AMENDED
AGREEMENT
This Agreement dated October 15, 1998 amends the previous agreement
dated October 15, 1996 and is between Pilgrim's Pride corporation, a
Delaware Corporation (hereafter called "PPC") and Pilgrim Poultry, G.P.
(hereinafter called "PPGP") covering purchases of baby chicks, feed
medication, accounting and flock services from PPC at fair market value
and also covering PPGP sales of live broilers to PPC at fair market
value.
The term of this agreement is from October 15, 1998 until December
31, 1999 and is automatically renewable for each subsequent one calendar
year period thereafter unless terminated by either party in writing. The
effective date of such termination notice will be 90 days from the date
of mailing of such notice.
Fair Market Value is agreed as follows initially, but may be revised
from time to time subject to agreement between the parties in order to
more accurately arrive at Fair Market Value;
BABY CHICKS PURCHASED FROM PPC
105% of PPC average year-to-date cost using latest figures
available at the time.
BROILER FEED PURCHASED FROM PPC
$15.00 per ton above PPC Pittsburg Mill ingredient cost delivered
to farm.
MEDICATION PURCHASED FROM PPC
10% markup over PPC cost.
ACCOUNTING SERVICE FURNISHED BY PPC
$200 per month for all record keeping and monthly financial
statements.
FLOCK SERVICE
Compensation included in Broiler Feed markup.
LIVE BROILERS SOLD TO PPC
To be sold to PPC at the quoted weekly Georgia dock dressed quote
less 14.50 cents processing, hauling and catching allowance times
73% yield allowance to equal live equivalent market times good
live pounds based on farm weight less DOA's and condemned,
subject to a ceiling price of 102% of total live cost.
PAYMENT TERMS
60 days of invoice date from both parties.
In testimony whereof, the parties of this agreement have hereto set their
hands in duplicate, the day and year above written.
PILGRIM'S PRIDE CORPORATION PILGRIMS POULTRY, G.P.
/s/ Xxxxxxxx X. Xxxxxx /s/ Xxxxxx "Bo" Pilgrim
________________________________ ________________________
Xxxxxxxx X. Xxxxxx Xxxxxx "Bo" Pilgrim
Vice Chairman Proprietor
STATE OF TEXAS:
COUNTY OF CAMP:
Before me the undersigned authority, on this day personally appeared
Xxxxxxxx X. Xxxxxx, Vice Chairman, Pilgrim's Pride Corporation and Xxxxxx
"Bo" Pilgrim, Proprietor, Pilgrim Poultry, G.P. known to me to be the
persons whose names are subscribed to the foregoing instrument, and
acknowledged to be and executed the same for the purpose and
consideration therein expressed.
GIVEN UNDER MY HAND AND SEAL OF OFFICE
On this 15th day of October, 1998
/s/ X.X. Nears, Jr.
______________________________
Notary Public Camp County, Texas
