Document:

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                                                                   EXHIBIT 10.35

                      AMENDMENT NO. 3 TO CREDIT AGREEMENT

         THIS AMENDMENT NO. 3 TO CREDIT AGREEMENT, dated as of May 14, 1999,
(the "AMENDMENT") relating to the Credit Agreement referenced below, by and
among FRESH FOODS, INC., a North Carolina corporation (the "COMPANY"), the
subsidiaries of the Company listed on the signature pages hereto (collectively
referred to as the "SUBSIDIARY BORROWERS" or individually referred to as a
"SUBSIDIARY BORROWER") (hereinafter, the Company and the Subsidiary Borrowers
are collectively referred to as the "BORROWERS" or individually referred to as a
"BORROWER"), each of those financial institutions identified as Lenders on the
signature pages hereto (together with each of their successors and assigns,
referred to individually as a "LENDER" and, collectively, as the "LENDERS"), and
FIRST UNION COMMERCIAL CORPORATION ("FUCC"), acting in the manner and to the
extent described in Article XIII of the Credit Agreement (in such capacity, the
"AGENT"). Terms used herein but not otherwise defined herein shall have the
meanings provided in the Credit Agreement.

                               W I T N E S S E T H

         WHEREAS, a $75,000,000 credit facility was extended to the Borrowers
pursuant to the terms of that certain Credit Agreement dated as of June 9, 1998
(as amended, modified or otherwise supplemented, the "CREDIT AGREEMENT") among
the Borrowers, the Lenders and the Agent;

         WHEREAS, the Borrowers have requested that the Credit Agreement be
amended as described herein; and

         WHEREAS, the Lenders are willing to make such amendments;

         NOW, THEREFORE, IN CONSIDERATION of these premises and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:

         (A) AMENDMENT TO SECTION 9.5. Section 9.5 is amended by deleting the
word "and" following subclause (b), inserting a comma in its place, and adding
the following after subclause (c):

                  and (d) guaranties by any Borrower in respect of obligations
                  of any other Borrower under leases, supply contracts and other
                  similar contractual obligations incurred in the ordinary
                  course of business.

         (B) REPRESENTATIONS AND WARRANTIES.

         Each Borrower hereby represents and warrants that (i) the
representations and warranties contained in Article VI of the Credit Agreement
are correct on and as of the date hereof as though made on and as of such date
(except for those representations and warranties which by their terms relate
solely to an earlier date) and after giving effect to the amendments contained
herein, (ii) no Default or Event of Default exists under the Credit Agreement on
and as of the date hereof and after giving effect to the amendments contained
herein, (iii) it has the corporate

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power and authority to execute and deliver this Amendment and to perform its
obligations hereunder and has taken all necessary corporate action to authorize
the execution, delivery and performance by it of this Amendment and (iv) it has
duly executed and delivered this Amendment, and this Amendment constitutes its
legal, valid and binding obligation enforceable in accordance with its terms
except as the enforceability thereof may be limited by bankruptcy, insolvency or
other similar laws affecting the rights of creditors generally or by general
principles of equity.

         (C) This Amendment shall become effective upon receipt by the Agent of
executed signature pages to this Amendment.

         (D) Except as expressly amended or modified by the terms hereof, the
Credit Agreement and each other Credit Document shall remain in full force and
effect. This Amendment shall not affect, modify or diminish the obligations of
the Borrowers which have accrued prior to the effectiveness of the provisions
hereof.

         (E) The Borrowers agree to pay all reasonable costs and expenses of the
Agent in connection with the preparation, execution and delivery of this
Amendment, including, without limitation, the reasonable fees and expenses of
Moore & Van Allen, PLLC.

         (F) This Amendment may be executed in any number of counterparts, each
of which when so executed and delivered shall be deemed an original and it shall
not be necessary in making proof of this Amendment to produce or account for
more than one such counterpart.

         (G) This Amendment and the Credit Agreement as amended hereby shall be
governed by and construed and interpreted in accordance with the laws of the
State of North Carolina.

                  [Remainder of page intentionally left blank]

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         IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart
of this Amendment to be duly executed and delivered as of the date first above
written.

COMPANY:                                    FRESH FOODS, INC.

                                            By: /s/ JAMES E. HARRIS
                                               -------------------------------
                                               Name:  James E. Harris
                                               Title: Vice President

SUBSIDIARY BORROWERS:                       CLAREMONT RESTAURANT GROUP, LLC

                                              By: FRESH FOODS, INC.,
                                                  its Sole Member

                                            FRESH FOODS RESTAURANT GROUP, LLC

                                              By: CLAREMONT RESTAURANT
                                                  GROUP, LLC, its Sole Member

                                                  BY: FRESH FOODS, INC.,
                                                      its Sole Member

                                            FRESH FOODS PROPERTIES, LLC

                                              By: FRESH FOODS, INC.,
                                                  its Sole Member

                                            SPICEWOOD, INC.

                                            SUNSHINE WSMP, INC.

                                            FRESH FOODS SALES, LLC

                                              By: FRESH FOODS, INC.,
                                                  its Sole Member

                                            PIERRE FOODS, LLC

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                                              By: FRESH FOODS, INC.,
                                                  its Sole Member

                                            MOM 'n' POP'S COUNTRY HAM, LLC

                                              By: PIERRE FOODS, LLC,
                                                  its Sole Member

                                              By: FRESH FOODS, INC.,
                                                  its Sole Member

                                            SAGEBRUSH OF TENNESSEE, L.P.

                                              By: SAGEBRUSH OF SOUTH
                                                  CAROLINA, LLC
                                                  General Partner

                                                  By: CLAREMONT RESTAURANT
                                                      GROUP, LLC, its Sole
                                                      Member

                                                      By: FRESH FOODS,
                                                          INC., its sole member

                                            SAGEBRUSH OF NORTH CAROLINA, LLC

                                              By: CLAREMONT RESTAURANT
                                                  GROUP, LLC its Sole Member

                                                  By: FRESH FOODS, INC.,
                                                      its sole member

                                            SAGEBRUSH OF SOUTH CAROLINA, LLC

                                              By: CLAREMONT RESTAURANT
                                                  GROUP, LLC, its Sole Member

                                                  By: FRESH FOODS, INC.,
                                                      its sole member

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                                            PIERRE LEASING, LLC

                                              By: FRESH FOODS, INC.,
                                                  its Sole Member

                                            By: /s/ James E. Harris
                                               --------------------------------
                                            Name:  James E. Harris
                                            Title: Vice President

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AGENT AND LENDERS:                          FIRST UNION COMMERCIAL CORPORATION,
                                            as Agent and a Lender

                                            By: /s/ Terri K. Lins
                                                --------------------------------
                                            Name:  Terri K. Lins
                                            Title: VP

                                            NATIONSBANK, N.A.,
                                            as a Lender

                                            By: /s/ Angela Peterson Leake
                                                --------------------------------
                                            Name:  Angela Peterson Leake
                                            Title: Vice President

                                            NATIONAL CITY COMMERCIAL
                                            FINANCE, INC.,
                                            as a Lender

                                            By: /s/ Carrie C. Tate
                                                --------------------------------
                                            Name:  Carrie C. Tate
                                            Title: VP

                                            AMERICAN NATIONAL BANK AND
                                            TRUST COMPANY OF CHICAGO,
                                            as a Lender

                                            By: /s/ Dawn M. Dieter
                                                --------------------------------
                                            Name:  Dawn M. Dieter
                                            Title: Vice President<PAGE>   1
                                                                  EXHIBIT 10.36

                                     CONSENT

         THIS CONSENT, dated as of July 29, 1999, (the "CONSENT") relating to
the Credit Agreement referenced below, is by and among FRESH FOODS, INC., a
North Carolina corporation (the "COMPANY"), the subsidiaries of the Company
listed on the signature pages hereto (collectively referred to as the
"SUBSIDIARY BORROWERS" or individually referred to as a "SUBSIDIARY BORROWER")
(hereinafter, the Company and the Subsidiary Borrowers are collectively referred
to as the "BORROWERS" or individually referred to as a "BORROWER"), each of
those financial institutions identified as Lenders on the signature pages hereto
(together with each of their successors and assigns, referred to individually as
a "LENDER" and, collectively, as the "LENDERS"), and FIRST UNION COMMERCIAL
CORPORATION ("FUCC"), acting in the manner and to the extent described in
Article XIII of the Credit Agreement (in such capacity, the "AGENT"). Terms used
herein but not otherwise defined herein shall have the meanings provided in the
Credit Agreement.

                               W I T N E S S E T H

         WHEREAS, a $75,000,000 credit facility was extended to the Borrowers
pursuant to the terms of that certain Credit Agreement dated as of June 9, 1998
(as amended, modified or otherwise supplemented, the "CREDIT AGREEMENT") among
the Borrowers, the Lenders and the Agent;

         WHEREAS, the Borrowers have requested that the Lenders and the Agent
consent to certain matters related to the Credit Agreement as described herein;
and

         WHEREAS, the Lenders are willing to make give such consents;

         NOW, THEREFORE, IN CONSIDERATION of these premises and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:

                  1. The following new definitions are applicable to this
         Consent:

                           "MOM 'N' POP'S LOAN" shall mean a revolving credit
                  loan in the amount of $500,000 made by the Company to Mom 'n'
                  Pop's Country Ham, LLC to provide working capital with a
                  scheduled maturity date of July 1, 2000.

                           "SMOKEHOUSE" shall mean the smokehouse facility and
                  related real property constituting a portion of the Claremont
                  Office property owned by Fresh Foods, Inc.

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                  2. SALE OF CERTAIN ASSETS. Notwithstanding the prohibition
         contained in Section 9.3 of the Credit Agreement, the Lenders hereby
         consent, subject to the terms and conditions set forth herein, to the
         sale of certain assets of the Borrowers listed on Annex I hereto (the
         "Sale Assets") to third parties, upon terms and conditions satisfactory
         to the Agent. In connection with the sale of the Sale Assets, the
         Lenders hereby authorize the Agent to release any and all Liens on the
         personal property, fixtures and real property comprising the Sale
         Assets.

                  3. SALE OF MOM 'N' POP'S, LLC. Notwithstanding the prohibition
         contained in Section 9.3 of the Credit Agreement, the Lenders hereby
         consent, subject to the terms and conditions set forth herein, to (a)
         the sale by Pierre Foods, LLC of all of the membership interests in
         Mom'n' Pop's Country Ham, LLC ("Mom 'n' Pop's") to Hoggs, LLC ("Hoggs")
         in consideration of a three-year promissory note from Hoggs in the
         amount of $995,000 (the "Hoggs Note") to be secured by all of the
         issued and outstanding membership interests in Hoggs, and (b) (i) if
         the Smokehouse is subdivided from the Claremont Office property prior
         to the closing of the sale of the membership interests in Mom 'n'
         Pop's, the intercompany transfer of the Smokehouse by the Company to
         Mom 'n' Pop's so that the Smokehouse can be sold concurrently with the
         sale of the membership interests in Mom 'n' Pop's, or (ii) if the
         Smokehouse is not so subdivided from the Claremont Office property, the
         lease of the Smokehouse to Mom 'n' Pop's for $1.00 and the subsequent
         transfer of the Smokehouse to Mom 'n' Pop's without further
         consideration upon the Smokehouse being legally subdivided from the
         Claremont Office property. In connection with the sale of Mom 'n'
         Pop's, the Lenders hereby authorize the Agent to release any and all
         Liens on the personal property, fixtures and real property used in
         connection with the business of Mom 'n' Pop's, including, without
         limitation, the Smokehouse.

                  4. CONSENT TO LICENSE. Notwithstanding the prohibition
         contained in Section 9.18 of the Credit Agreement, the Lenders hereby
         consent, subject to the terms and conditions set forth herein, to the
         grant by Fresh Foods Properties, LLC to Hoggs of (i) a perpetual,
         worldwide license to use the trademarks set forth on Annex II hereto on
         terms and conditions satisfactory to the Agent and the Lenders and (ii)
         a right to purchase the trademark set forth on Annex II hereto for
         $1.00 in the event Fresh Foods Properties, LLC should decide to sell
         such trademark. The Lenders also consent, and authorize the Agent to
         take such action when appropriate, to the release of any liens or
         security interests in the trademarks set forth on Annex II hereto in
         connection with the exercise by Hoggs of such right to purchase without
         further payment to Lenders.

                  5. RELEASE OF BORROWERS. The Lenders hereby consent to the
         release of the following Borrowers as parties to the Credit Agreement
         and the other Credit Documents, subject to the terms and conditions set
         forth herein: Mom 'n' Pop's Country Ham, LLC.

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<PAGE>   3

                  6. RELEASE OF COLLATERAL. The Agent hereby agrees to release
         its Liens on (a) the Sale Assets and (b) the personal property,
         fixtures and real property used in connection with the business of Mom
         'n' Pop's, such releases to be held in escrow pending consummation of
         the transactions contemplated herein and the Agent's receipt of the
         proceeds thereof.

                  7. EXCLUSION OF SALE ASSETS AND SMOKEHOUSE FROM ELIGIBLE REAL
         PROPERTY. As of the date hereof, the Sale Assets and the Smokehouse
         shall be excluded from the definition of Eligible Real Property, and
         Eligible Real Property shall be reduced by $2,255,000.

 .
                  8. CONDITION TO SECTIONS 3, 4, 5 AND 6(b). The Lenders' and
         the Agent's consent to Sections 3, 4, 5, and 6(b) shall be subject to
         the following:

                  (a) the Agent's approval of the notes and other loan documents
         in respect of the Mom 'n' Pop's Loan and the Hoggs Note.

                  (b) the applicable Borrower's pledge to the Lenders of the Mom
         'n' Pop's Loan and the Hoggs Note pursuant to documents acceptable to
         the Agent;

                  (c) the delivery of the original of the duly executed and
         delivered note evidencing the Mom 'n' Pop's Loan and the Hoggs Note to
         the Agent pursuant to the pledge agreement; and

                  (d) the approval of the Agent of the form of the License
         Agreement referred to in Section 4 hereof.

                  [Remainder of page intentionally left blank.]

                                       3
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         IN WITNESS WHEREOF, each of the parties hereto has caused a
counterpart of this Consent to be duly executed and delivered as of the date
first above written.

COMPANY:                                    FRESH FOODS, INC.

                                            By: /s/ James E. Harris
                                               -------------------------------
                                            Name:  James E. Harris
                                            Title: Vice President

SUBSIDIARY BORROWERS:                  CLAREMONT RESTAURANT GROUP, LLC

                                            By: FRESH FOODS, INC.,
                                                its Sole Member

                                       FRESH FOODS RESTAURANT GROUP, LLC

                                            By: CLAREMONT RESTAURANT
                                                GROUP, LLC, its Sole Member

                                                By: FRESH FOODS, INC.,
                                                    its Sole Member

                                       FRESH FOODS PROPERTIES, LLC

                                            By: FRESH FOODS, INC.,
                                                its Sole Member

                                       SPICEWOOD, INC.

                                       SUNSHINE WSMP, INC.

                                       FRESH FOODS SALES, LLC

                                            By: FRESH FOODS, INC.,
                                                its Sole Member

<PAGE>   5

                                       PIERRE FOODS, LLC

                                            By: FRESH FOODS, INC.,
                                                its Sole Member

                                       MOM 'n' POP'S COUNTRY HAM, LLC

                                            By: PIERRE FOODS, LLC,
                                                its Sole Member

                                                By: FRESH FOODS, INC.,
                                                    its Sole Member

                                       SAGEBRUSH OF TENNESSEE, L.P.

                                            By: SAGEBRUSH OF SOUTH
                                                CAROLINA, LLC
                                                General Partner

                                            By: CLAREMONT RESTAURANT GROUP,
                                                LLC, its Sole Member

                                                By: FRESH FOODS INC.,
                                                    its sole member

                                       SAGEBRUSH OF NORTH CAROLINA, LLC

                                            By: CLAREMONT RESTAURANT GROUP, LLC,
                                                its Sole Member

                                                By: FRESH FOODS, INC.,
                                                    its sole member

                                       SAGEBRUSH OF SOUTH CAROLINA, LLC

                                            By: CLAREMONT RESTAURANT
                                                GROUP, LLC, its Sole Member

                                                By: FRESH FOODS, INC.,
                                                    its sole member

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                                       PIERRE LEASING, LLC

                                            By: FRESH FOODS, INC.,
                                                its Sole Member

                                       By: /s/ James E. Harris
                                           --------------------------------
                                       Name:  James E. Harris
                                       Title: Vice President

<PAGE>   7

AGENT AND LENDERS:                  FIRST UNION COMMERCIAL CORPORATION,
                                    as Agent and a Lender

                                    By: /s/ Terri K. Lins
                                       --------------------------------
                                    Name:  Terri K. Lins
                                    Title: Vice President

                                    NATIONSBANK, N.A.,
                                    as a Lender

                                    By: /s/ Angela Peterson Leake
                                       --------------------------------
                                    Name:  Angela Peterson Leake
                                    Title: Vice President

                                    NATIONAL CITY COMMERCIAL
                                    FINANCE, INC.,
                                    as a Lender

                                    By: /s/ Joseph L. White
                                       --------------------------------
                                    Name:  Joseph L. White
                                    Title: Sr. VP

                                    AMERICAN NATIONAL BANK AND
                                    TRUST COMPANY OF CHICAGO,
                                    as a Lender

                                    By: /s/ Elizabeth J. Limpert
                                       --------------------------------
                                    Name:  Elizabeth J. Limpert
                                    Title: Senior Vice President

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