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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As filed
with the Securities and Exchange Commission on December 10, 2009</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Registration
No. 333-<font style="DISPLAY: inline; TEXT-DECORATION: underline">______________</font></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECURITIES
AND EXCHANGE COMMISSION</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Washington,
D.C. 20549</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">_______________________________</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 18pt; FONT-FAMILY: Times New Roman">FORM
S-8</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OF 1933</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">_______________________________</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 18pt; FONT-FAMILY: Times New Roman">PILGRIM'S
PRIDE CORPORATION</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Exact
name of registrant as specified in its charter)</font></div>
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      <div>
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<tr>
              <td valign="top" width="39%" style="BORDER-TOP: #ffffff 0.75pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Delaware</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(State
      or other jurisdiction of</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">incorporation
      or organization)</font></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">75-1285071</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(I.R.S.
      Employer</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Identification
      No.)</font></div>
              </td>
            </tr><tr>
              <td valign="top" width="39%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">4845
      US Hwy 271 North</font></div>
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      Texas</font></div>
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      of principal executive offices)</font></div>
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              <td valign="top" width="39%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">75686-0093</font></div>
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      Code)</font></div>
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            </tr></table>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">AMENDED
AND RESTATED EMPLOYMENT AGREEMENT</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Full
title of the plan)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Richard
A. Cogdill</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chief
Financial Officer, Secretary and Treasurer</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4845
US Hwy 271 North</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pittsburg,
Texas 75686-0093</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(903)
855-1000</font></div>
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address, telephone number, including area code, of agent for
service)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">with
a copy to:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">W.
Crews Lott</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Baker
&amp; McKenzie LLP</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2300
Trammell Crow Center</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2001
Ross Avenue</font></div>
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Texas 75201</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">_______________________________</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting company. See
the definitions of "large accelerated filer," "accelerated filer" and "smaller
reporting company" in Rule 12b-2 of the Exchange Act.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
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<tr>
              <td align="left" valign="top" width="37%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Large
      accelerated filer&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-FAMILY: wingdings">&#168;</font></font></div>
              </td>
              <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" valign="top" width="25%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Accelerated
      filer&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-FAMILY: wingdings">x</font></font></div>
              </td>
            </tr><tr>
              <td valign="middle" width="37%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td colspan="2" valign="middle" width="26%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr><tr>
              <td align="left" valign="top" width="37%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Non-accelerated
      filer&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-FAMILY: wingdings">&#168;</font></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(Do
      not check if a smaller reporting company)</font></div>
              </td>
              <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" valign="top" width="25%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Smaller
      reporting company&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-FAMILY: wingdings">&#168;</font></font></div>
              </td>
            </tr></table>
      </div><br>
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        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;
</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        </div>
      </div><br><br><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">CALCULATION
OF REGISTRATION FEE</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr>
              <td valign="middle" width="17%" style="BORDER-TOP: #000000 1.5pt double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Title
      of securities to be registered (1)(2)</font></div>
              </td>
              <td valign="middle" width="14%" style="BORDER-TOP: #000000 1.5pt double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Amount
      to be registered</font></div>
              </td>
              <td valign="middle" width="16%" style="BORDER-TOP: #000000 1.5pt double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Proposed
      maximum offering price per share&#160;(3)</font></div>
              </td>
              <td valign="middle" width="17%" style="BORDER-TOP: #000000 1.5pt double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Proposed
      maximum aggregate offering</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">price
      (3)</font></div>
              </td>
              <td valign="middle" width="14%" style="BORDER-TOP: #000000 1.5pt double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Amount
      of registration fee</font></div>
              </td>
            </tr><tr>
              <td align="left" valign="middle" width="17%" style="BORDER-BOTTOM: black 4px double">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Common
      Stock,</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">par
      value $0.01 per share</font></div>
              </td>
              <td valign="middle" width="14%" style="BORDER-BOTTOM: black 4px double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">3,085,656
      shares</font></div>
              </td>
              <td valign="middle" width="16%" style="BORDER-BOTTOM: black 4px double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">$6.90</font></div>
              </td>
              <td valign="middle" width="17%" style="BORDER-BOTTOM: black 4px double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">$21,291,027</font></div>
              </td>
              <td valign="middle" width="14%" style="BORDER-BOTTOM: black 4px double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">$1,188.04</font></div>
              </td>
            </tr></table>
      </div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;This
Registration Statement covers 3,085,656 shares of common stock, par value $0.01
per share (the "Common Stock"), of Pilgrim's Pride Corporation (the "Company")
issued pursuant to the amended and restated employment agreement between the
Company and Don Jackson dated January 27, 2009.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In
addition, this Registration Statement covers such indeterminate number of shares
of Common Stock as may be issued resulting from stock splits, stock dividends or
similar transactions in accordance with Rule&#160;416 under the Securities Act
of 1933, as amended (the "Securities Act"). All such shares of Common Stock are
subject to the reoffer prospectus included herein and are registered for offer
and sale hereunder.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Estimated
solely for the purpose of calculating the registration fee pursuant to
Rule&#160;457(c) and (h) promulgated under the Securities Act on the basis of
the average of the high and low prices of the Common Stock on December 3, 2009,
as reported on the Pink Sheets Electronic Quotation Service.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div><br><br><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;
</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">EXPLANATORY
NOTE</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
Registration Statement covers 3,085,656 shares of common stock, par value $0.01
per share (the "Common Stock"), of Pilgrim's Pride Corporation (the "Company")
issued pursuant to the amended and restated employment agreement between the
Company and Don Jackson dated January 27, 2009. References in this Registration
Statement and the prospectus which is a part hereof to "Pilgrim's Pride," "the
Company," "we," "us," "our," or similar terms refer to Pilgrim's Pride
Corporation.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
Registration Statement contains two parts. Part I contains a reoffer prospectus
pursuant to Form S&#8722;3 (in accordance with Section C of the General Instructions
to the Form S&#8722;8), which covers reoffers and resales of "restricted securities"
and/or "control securities" (as such terms are defined in Section C of the
General Instructions to Form S&#8722;8) of the Company. Part II of this Registration
Statement contains information required in the Registration Statement pursuant
to Part II of Form S&#8722;8.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">PART
I</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">REOFFER
PROSPECTUS</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">PILGRIM'S
PRIDE CORPORATION</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">3,085,656
Shares of Common Stock</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">_______________________________</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
prospectus relates to shares of the Common Stock, which may be offered from time
to time by Don Jackson, the Company's President and Chief Executive Officer, or
the selling stockholder, for his own account.&#160;&#160;The shares of Common
Stock covered by this prospectus were issued pursuant to the amended and
restated employment agreement between the Company and Don Jackson dated January
27, 2009 (the "Employment Agreement").</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
prospectus has been prepared for the purpose of registering the shares of Common
Stock under the Securities Act of 1933, as amended (the "Securities Act"), to
allow for future sale to the public by the selling stockholder, on a continuous
or delayed basis. The selling stockholder and any participating broker or dealer
may be deemed to be an "underwriter" within the meaning of the Securities Act,
in which event any profit on the sale of shares by the selling stockholder and
any commissions or discounts received by those brokers or dealers may be deemed
to be underwriting compensation under the Securities Act.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
Common Stock is quoted on the Pink Sheets Electronic Quotation Service under the
ticker symbol "PGPDQ.PK."&#160;&#160;On December 9, 2009, the last reported sale
price of our Common Stock was $7.17 per share.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">_______________________________</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">THIS
DOCUMENT CONSTITUTES PART OF A PROSPECTUS COVERING SECURITIES</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">THAT HAVE
BEEN REGISTERED UNDER THE SECURITIES ACT.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">_______________________________</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Investing
in our Common Stock involves risks.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">You
should consider carefully the <font style="DISPLAY: inline; TEXT-DECORATION: underline">risk factors</font>
beginning on page 2 of this prospectus.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">_______________________________</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Neither
the Securities and Exchange Commission (the "Commission") nor any state
securities commission has approved or disapproved of these securities or
determined that this prospectus is truthful or complete. Any representation to
the contrary is a criminal offense.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">_______________________________</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The date
of this prospectus is December 10, 2009.</font></div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;
</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        </div>
      </div><br><br><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">REOFFER
PROSPECTUS</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">TABLE
OF CONTENTS</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right">
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: left">
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font></font></font><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline"><font id="TAB2" style="LETTER-SPACING: 9pt"></font><font id="TAB2" style="LETTER-SPACING: 9pt"></font><font id="TAB2" style="LETTER-SPACING: 9pt"></font><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#160; <font style="TEXT-DECORATION: underline">PAGE</font></font></font></div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><br>
        <div align="left">
          <table cellpadding="0" cellspacing="0" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr bgcolor="white">
                <td align="left" valign="top" width="87%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 36pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">The
      Company</font></div>
                </td>
                <td align="right" valign="top" width="13%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 36pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;1</font></div>
                </td>
              </tr><tr bgcolor="white">
                <td align="left" valign="top" width="87%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 36pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Forward
      Looking Statements</font></div>
                </td>
                <td align="right" valign="top" width="13%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 36pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">1</font></div>
                </td>
              </tr><tr bgcolor="white">
                <td align="left" valign="top" width="87%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 36pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Risk
      Factors</font></div>
                </td>
                <td align="right" valign="top" width="13%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 36pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">2</font></div>
                </td>
              </tr><tr bgcolor="white">
                <td align="left" valign="top" width="87%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 36pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Use
      of Proceeds</font></div>
                </td>
                <td align="right" valign="top" width="13%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 36pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">14</font></div>
                </td>
              </tr><tr bgcolor="white">
                <td align="left" valign="top" width="87%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 36pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">The
      Selling Stockholder</font></div>
                </td>
                <td align="right" valign="top" width="13%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 36pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">15</font></div>
                </td>
              </tr><tr bgcolor="white">
                <td align="left" valign="top" width="87%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 36pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Plan
      of Distribution</font></div>
                </td>
                <td align="right" valign="top" width="13%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 36pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">15</font></div>
                </td>
              </tr><tr bgcolor="white">
                <td align="left" valign="top" width="87%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 36pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Legal
      Matters</font></div>
                </td>
                <td align="right" valign="top" width="13%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 36pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">17</font></div>
                </td>
              </tr><tr bgcolor="white">
                <td align="left" valign="top" width="87%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 36pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Experts</font></div>
                </td>
                <td align="right" valign="top" width="13%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 36pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">17</font></div>
                </td>
              </tr><tr bgcolor="white">
                <td align="left" valign="top" width="87%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 36pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Incorporation
      of Certain Information by Reference</font></div>
                </td>
                <td align="right" valign="top" width="13%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 36pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">17</font></div>
                </td>
              </tr><tr bgcolor="white">
                <td align="left" valign="top" width="87%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 36pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Where
      You Can Find More Information</font></div>
                </td>
                <td align="right" valign="top" width="13%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 36pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">18</font></div>
                </td>
              </tr><tr bgcolor="white">
                <td align="left" valign="top" width="87%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 36pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Indemnification
      of Directors and Officers</font></div>
                </td>
                <td align="right" valign="top" width="13%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 36pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">18</font></div>
                </td>
              </tr></table>
        </div><br><br><br></div><br><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;
</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
Company</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We are
one the largest chicken companies in the United States ("US"), Mexico and Puerto
Rico. Our fresh chicken retail line is sold throughout the US, throughout Puerto
Rico, and in the northern and central regions of Mexico.&#160;Our prepared
chicken products meet the needs of some of the largest customers in the food
service industry across the US. Additionally, the Company exports commodity
chicken products to over 90 countries. As a vertically integrated company, we
control every phase of the production of our products.&#160;We operate feed
mills, hatcheries, processing plants and distribution centers in
14&#160;US&#160;states, Puerto Rico and&#160;Mexico. Pilgrim's Pride operates in
two business segments&#8212;Chicken and Other Products. The Company, which was
incorporated in Texas in 1968 and re-incorporated in Delaware in 1986, is the
successor to a partnership founded in 1946 that operated a retail feed
store.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
December 1, 2008 (the "Petition Date"), the Company and six of its subsidiaries
(collectively, the "Debtors") filed voluntary petitions for relief under Chapter
11 of Title&#160;11 of the United States Code (the "Bankruptcy Code") in the
United States Bankruptcy Court for the Northern District of Texas, Fort Worth
Division (the "Bankruptcy Court"). The cases are being jointly administered
under Case No. 08-45664. The Company's subsidiaries in Mexico and certain
subsidiaries in the US were not included in the filing and continue to operate
outside of the Chapter 11 process.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
September 17, 2009, the Debtors filed their Joint Plan of Reorganization Under
Chapter 11 of the Bankruptcy Code with the Bankruptcy Court, along with the
Disclosure Statement for the Debtors' Joint Plan of Reorganization under Chapter
11 of the Bankruptcy Code (as amended and supplemented, the "Disclosure
Statement"). On November 11, 2009, the Debtors filed an Amended Joint Plan of
Reorganization Under Chapter 11 of the Bankruptcy Code (As Modified) with the
Bankruptcy Court (as amended and supplemented, the "Proposed Plan") which
altered the treatment of unsecured note holders to provide that unsecured note
holders may take a cash option rather than have their notes reinstated. The
Proposed Plan provides, among other things, for a reorganization of the Debtors'
businesses as a going concern.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
Proposed Plan is premised on (i) a transaction with JBS USA Holdings, Inc. (the
"Plan Sponsor" or "JBS USA") whereby, pursuant to the stock purchase agreement
between the Company and the Plan Sponsor dated September 16, 2009 (the "SPA"),
the Plan Sponsor will purchase approximately 64% of the common stock of the
reorganized Company ("Reorganized PPC") in exchange for $800 million in cash
(the "Proposed Acquisition"), to be used by the Debtors to, among other things,
fund distributions to holders of allowed claims under the Proposed Plan, and
(ii) the Debtors entering into a new credit facility having an aggregate
commitment of up to $1,750 million (as described below, the "Exit Credit
Facility"). If the Proposed Plan is confirmed and becomes effective, the Company
will adopt and file an Amended and Restated Certificate of Incorporation (the
"Restated Certificate of Incorporation") and will adopt Amended and Restated
Corporate Bylaws.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
Debtors are currently operating as "debtors-in-possession" under the
jurisdiction of the Bankruptcy Court and in accordance with the applicable
provisions of the Bankruptcy Code and orders of the Bankruptcy Court. In
general, as debtors-in-possession, we are authorized under Chapter 11 to
continue to operate as an ongoing business, but may not engage in transactions
outside the ordinary course of business without the prior approval of the
Bankruptcy Court.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
Company's principal executive offices are located at 4845 US Hwy 271 North,
Pittsburg, Texas 75686-0093 and its telephone number is
(903)&#160;434-1000.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Forward
Looking Statements</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
prospectus and other documents filed and incorporated by reference in this
prospectus include or may contain certain forward-looking statements. Statements
of our intentions, beliefs, expectations or predictions for the future, denoted
by the words "anticipate," "believe," "estimate," "expect," "project," "plan,"
"imply," "intend," "foresee" and similar expressions, are forward-looking
statements that reflect our current views about future events and are subject to
risks, uncertainties and assumptions. Such risks, uncertainties and assumptions
include those described under "Risk Factors" below and in our Annual Report on
Form 10-K for the fiscal year ended September 26, 2009, filed with the
Commission on November&#160;23, 2009.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Actual
results could differ materially from those projected in these forward-looking
statements as a result of these factors, among others, many of which are beyond
our control.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In making
these statements, we are not undertaking, and specifically decline to undertake,
any obligation to address or update each or any factor in future filings or
communications regarding our business or results, and we are not undertaking to
address how any of these factors may have caused changes in information
contained in previous filings or communications. The risks described below and
in our Annual Report on Form 10-K for the fiscal year ended September 26, 2009,
are not the only risks we face, and additional risks and uncertainties may also
impair our business operations. The occurrence of any one or more of the
following or other currently unknown factors could materially adversely affect
our business and operating results.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Risk
Factors</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">You
should carefully consider the risks and uncertainties described below before
making an investment decision. Any of the following risks could materially
adversely affect our business, operations, industry or financial position or our
future financial performance. While we believe we have identified and discussed
below all risk factors affecting our business that we believe are material,
there may be additional risks and uncertainties that are not presently known or
that are not currently believed to be significant that may adversely affect our
business, operations, industry, financial position and financial performance in
the future.&#160;The trading price of our Common Stock could decline due to any
of these risks, and you may lose all or part of your investment. You should also
refer to the other information included or incorporated by reference in this
prospectus, including our financial statements and related notes.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Proposed Plan of Reorganization and
the Proposed Acquisition.</font>&#160;&#160;We may not be able to obtain
confirmation of the proposed plan of reorganization.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We cannot
ensure that we will receive the requisite Proposed Plan acceptances to confirm
the Proposed Plan. Even if we receive the requisite Proposed Plan acceptances,
we cannot ensure that the Bankruptcy Court will confirm the Proposed Plan. The
adequacy of the Disclosure Statement or the balloting procedures and results may
be challenged as not being in compliance with the Bankruptcy Code, and even if
the Bankruptcy Court determined that the Disclosure Statement and the balloting
procedures and results were appropriate, the Bankruptcy Court could still
decline to confirm the Proposed Plan if it found that any of the statutory
requirements for confirmation had not been met. Section&#160;1129 of the
Bankruptcy Code sets forth the requirements for confirmation and requires, among
other things:&#160;&#160;(i) a finding by a bankruptcy court that a plan "does
not unfairly discriminate" and is "fair and equitable" with respect to any
non-accepting classes, (ii) confirmation is not likely to be followed by a
liquidation or a need for further financial reorganization and (iii) the value
of distributions to non-accepting holders of claims and interests within a
particular class under the plan will not be less than the value of distributions
such holders would receive if the debtors were liquidated under Chapter 7 of the
Bankruptcy Code. While there can be no assurance that these requirements will be
met, we believe that the Proposed Plan does not unfairly discriminate and is
fair and equitable, will not be followed by a need for further financial
reorganization, and that non-accepting holders under the Proposed Plan will
receive distributions at least as great as would be received following a
liquidation under Chapter 7 of the Bankruptcy Code.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Although
we believe that the Proposed Plan will satisfy all requirements necessary for
confirmation by the Bankruptcy Court, there can be no assurance that the
Bankruptcy Court will reach the same conclusion. Moreover, there can be no
assurance that modifications of the Proposed Plan will not be required for
confirmation or that such modifications would not necessitate the resolicitation
of votes. In addition, although we believe that the confirmation of the Proposed
Plan will occur on or before December 31, 2009, there can be no assurance as to
such timing.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Confirmation of the Proposed
Plan.&#160;&#160;</font>Our inability to obtain confirmation of the Proposed
Plan within the timeframe currently contemplated may significantly disrupt our
operations.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
impact a continuation of the bankruptcy proceedings may have on our operations
and businesses cannot be accurately predicted or quantified. Since the Petition
Date, we have suffered disruptions in operations, including losses of customers
and suppliers.&#160;&#160;The continuation of the bankruptcy proceedings,
particularly if the Proposed Plan is not approved or confirmed in the time frame
currently contemplated, could further adversely affect our operations and
relationships with our customers, vendors, suppliers and employees. If
confirmation of the Proposed Plan does not occur expeditiously, the bankruptcy
proceedings could result in, among other things, increases in costs,
professional fees and similar expenses. In addition, prolonged bankruptcy
proceedings may make it more difficult to retain and attract management and
other key personnel, and would require senior management to spend a significant
amount of time and effort dealing with our financial reorganization instead of
focusing on the operation of our businesses.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Liquidation or Financial
Reorganization. </font>Holders of our equity interests may face significant
losses in the event of our subsequent liquidation or financial
reorganization.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
management believes that, if it is permitted to implement its business plan and
if we meet our current financial projections as updated by the subsequently
identified variances, the confirmation of the Proposed Plan is not likely to be
followed by the liquidation, or the need for further financial reorganization.
Nevertheless, there can be no assurance that such liquidation will not occur or
that the need for such financial reorganization will not arise. Substantially
all of our unencumbered assets will be pledged to secure our obligations under
the Exit Credit Facility. Accordingly, after consummation of the Proposed Plan,
if we were to be liquidated or if the need for a further financial
reorganization were to arise, our unencumbered assets likely would be
insufficient to provide the holders of our equity interests with any material
recovery.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Closing Conditions to the
SPA</font>.&#160;&#160;The satisfaction or waiver of the closing conditions to
the SPA is a condition precedent for the confirmation of the Proposed Plan and
may prevent or delay confirmation of the Proposed Plan if such conditions are
not satisfied or waived as provided in the SPA.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The Plan
Sponsor has entered into the SPA and has agreed to purchase 64% of the common
stock of the Reorganized PPC as provided therein. However, the SPA is subject a
number of conditions precedent that must be satisfied or waived by the parties
thereto. These conditions include, in addition to certain customary closing
conditions, the satisfaction or waiver of the conditions precedent in respect to
the Exit Credit Facility and the Company's access to funding thereunder. To
date, the Company has only received non-binding mandate letters from the
potential lenders party to the Exit Credit Facility. If any of the closing
conditions in the SPA are not satisfied or waived, we will not be able to meet a
condition precedent for confirmation of the Proposed Plan. We can provide no
assurance that the closing conditions in the SPA will be satisfied or, if not
satisfied, waived by the parties thereto.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Plan Sponsor's Ownership
Percentage</font>.&#160;&#160;If the Plan Sponsor's ownership percentage in the
Reorganized PPC increases to 90% or more there will be no Equity Directors on
the Reorganized PPC's board of directors.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
to the terms of the Restated Certificate of Incorporation, the Plan Sponsor has
the right to elect six directors to the Reorganized PPC's board of directors,
with the minority stockholders having the right to elect two Equity Directors
(as defined in the Restated Certificate of Incorporation). If the Plan Sponsor's
ownership percentage in the Reorganized PPC increases to 90% or above, the
minority stockholders will no longer have the right to elect the Equity
Directors.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Mandatory Exchange
Transaction</font>.&#160;&#160;Holders of Reorganized PPC's common stock may
ultimately receive shares of JBS USA common stock.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under the
Proposed Plan, in the event JBS USA completes an initial public offering of its
common stock, and the offered shares are listed on a national securities
exchange, then, at any time during an exchange window falling within the period
commencing on the date of the closing of such offering and ending two years and
30 days from the effective date of the Proposed Plan, JBS USA will have the
right to deliver written notice of the mandatory exchange of the Reorganized
PPC's common stock for JBS USA common stock (the "Mandatory Exchange
Transaction") to Reorganized PPC at its principal place of business. Upon
delivery to Reorganized PPC of notice of the Mandatory Exchange Transaction each
share of Reorganized PPC's common stock held by stockholders other than JBS USA
will automatically, without any further action on behalf of Reorganized PPC, be
transferred to JBS USA in exchange for a number of duly authorized, validly
issued, fully paid and non-assessable shares of JBS USA common stock equal to
the Exchange Offer Ratio (as defined below). The Mandatory Exchange Transaction
is required to be effected in compliance with all applicable laws in accordance
with the Restated Certificate of Incorporation.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
Exchange Offer Ratio is a fraction, the numerator of which is the average
volume-weighted daily trading price per share on a national securities exchange
for the common stock of Reorganized PPC and the denominator of which is the
average volume-weighted daily trading price per share on the principal exchange
for the JBS USA common stock, in each case for the Measurement Period. The
"Measurement Period" is a number of consecutive trading days which is equal to
twice the number of consecutive trading days between (i) the first date on which
both JBS USA and Reorganized PPC shall have both made their respective annual or
quarterly reports or earnings releases and (ii) the date on which JBS USA
delivers to Reorganized PPC the notice of the Mandatory Exchange
Transaction.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
shares of common stock of Reorganized PPC may in the future be exchanged for
shares of JBS USA common stock without the consent or election of holders of
Reorganized PPC's common stock.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For more
information about the Plan Sponsor and its business, refer to a copy of the Plan
Sponsor's Registration Statement on Amendment No. 1 to Form S-1 filed with the
Commission on November 2, 2009. The Registration Statement was prepared by, and
is the responsibility of JBS USA. We disclaim any responsibility for the
accuracy or completeness of this document and it is not included as a part of,
or incorporated by reference into, this report.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Mandatory Exchange
Transaction</font>.&#160;&#160;The market price of the JBS USA common stock may
adversely affect the market price for Reorganized PPC's common
stock.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If JBS
USA completes an initial public offering of its common stock prior to the
expiration of the deadline for their exercise of the Mandatory Exchange
Transaction, the market price of the JBS USA common stock may influence the
market price of the common stock of Reorganized PPC. For example, the market
price of the Reorganized PPC's common stock could become more volatile and could
be depressed by (a) lack of trading activity in Reorganized PPC's common stock
as a result of investors' anticipation of JBS USA's potential exercise of the
Mandatory Exchange Transaction, (b) possible sales by holders of Reorganized
PPC's common stock who do not wish to receive shares of JBS USA common stock,
and (c) hedging or arbitrage trading activity that may develop involving
Reorganized PPC's common stock and JBS USA common stock.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Mandatory Exchange
Transaction</font>.&#160;&#160;Holders of Reorganized PPC's common stock will
bear the full risk of a decline in the market price of Reorganized PPC's common
stock.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
number of shares of JBS USA common stock that holders of Reorganized PPC's
common stock will receive upon JBS USA's exercise of the Mandatory Exchange
Transaction will be equal to the Exchange Offer Ratio (as defined above). As a
result, the number of shares that holders of Reorganized PPC's common stock will
receive in JBS USA is not fixed, but instead will depend on the market values of
both companies during a specified period of time. The aggregate market value of
the JBS USA common stock deliverable upon the consummation of the Mandatory
Exchange Transaction may be less than the aggregate market value of the
Reorganized PPC's common stock originally received pursuant to the Proposed
Plan. Accordingly, holders of Reorganized PPC's common stock will bear the full
risk of a decline in the market price of Reorganized PPC's common stock. Any
such decline could be substantial.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Mandatory Exchange
Transaction</font>.&#160;&#160;The Plan Sponsor has no obligation to maintain a
listing for JBS USA common stock after the consummation of the Mandatory
Exchange Transaction.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The SPA
does not require the Plan Sponsor to maintain a listing for JBS USA common stock
after it completes the Mandatory Exchange Transaction. There can be no assurance
that there will be sufficient liquidity in the market for JBS USA common stock,
or that it will be possible to sell shares of JBS USA common stock when desired,
at a reasonable price or at all.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Mandatory
Exchange Transaction.&#160;&#160;Holders of Reorganized PPC's common stock will
have no rights with respect to JBS USA common stock prior to the Mandatory
Exchange Transaction, but may be negatively affected by certain actions taken by
JBS USA.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Until the
consummation of the Mandatory Exchange Transaction, holders of Reorganized PPC's
common stock will have no rights with respect to the JBS USA common stock
(including, without limitation, voting rights, rights to receive dividends or
other distributions (if any) and rights to respond to tender offers). For
example, in the event that an amendment is proposed to the articles of
incorporation of JBS USA requiring stockholder approval and the record date for
determining the stockholders of record entitled to vote on the amendment occurs
prior to the consummation of the Mandatory Exchange Transaction, holders of
Reorganized PPC's common stock will not be entitled to vote on the amendment,
although they will nevertheless be subject to any changes in the powers,
preferences or special rights of the JBS USA common stock. In addition, JBS USA
may issue additional shares of JBS USA common stock, including in connection
with future acquisitions. The issuance of a significant amount of JBS USA common
stock would dilute the shares of JBS USA common stock acquired by holders of
Reorganized PPC's common stock pursuant to the Mandatory Exchange Transaction
and could depress the trading price of the JBS USA common stock.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Significant
Leverage.&#160;&#160;</font>Our future financial and operating flexibility may
be adversely affected by our significant leverage as a result of the Exit Credit
Facility.</font></div>
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have substantial indebtedness, which could adversely affect our financial
condition. On the closing date of the Proposed Acquisition, after giving effect
to the transactions contemplated by the Proposed Plan, we will, on a
consolidated basis, have approximately $1.4 billion in secured indebtedness and
will have the ability to borrow approximately $0.3 billion under the Exit Credit
Facility, unless such requirement is waived by the lenders party thereto.
Significant amounts of cash flow will be necessary to make payments of interest
and repay the principal amount of such indebtedness.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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degree to which we are leveraged could have important consequences
because:</font></div>
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affect our ability to satisfy our obligations under the Exit Credit
Facility;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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substantial portion of our cash flow from operations will be required to be
dedicated to interest and principal payments and may not be available for
operations, working capital, capital expenditures, expansion, acquisitions or
general corporate or other purposes;</font></div>
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ability to obtain additional financing and to fund working capital, capital
expenditures and other general corporate requirements in the future may be
impaired;</font></div>
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more highly leveraged than some of their competitors, which may place us at a
competitive disadvantage;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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flexibility in planning for, or reacting to, changes in our business may be
limited;</font></div>
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limit our ability to pursue acquisitions and sell assets; and</font></div>
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make us more vulnerable in the event of another downturn in our business or the
economy in general.</font></div>
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ability to make payments on and to refinance our debt, including the Exit Credit
Facility, will depend on our ability to generate cash in the future. This, to a
certain extent, is subject to various business factors (including, among others,
the commodity prices of feed ingredients and chicken) and general economic,
financial, competitive, legislative, regulatory, and other factors that are
beyond our control.</font></div>
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be no assurance that we will be able to generate sufficient cash flow from
operations or that future borrowings will be available under credit facilities
in an amount sufficient to enable us to pay our debt obligations, including
obligations under the Exit Credit Facility, or to fund our other liquidity
needs. We may need to refinance all or a portion of their debt on or before
maturity. There can be no assurance that we will be able to refinance any of
their debt on commercially reasonable terms or at all.</font></div>
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Covenants.&#160;&#160;</font>Restrictive covenants in the Exit Credit Facility
may adversely affect our business activities and operations.</font></div>
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Credit Facility will contain various covenants that may adversely affect our
ability to, among other things, incur additional indebtedness, incur liens, pay
dividends or make certain restricted payments, consummate certain asset sales,
enter into certain transactions with JBS&#160;USA and our other affiliates,
merge, consolidate and/or sell or dispose of all or substantially all of our
assets. In addition, the Exit Credit Facility will require us and certain of our
subsidiaries to maintain certain financial ratios and meet certain tests,
including leverage and interest coverage ratios. Covenants in the Exit Credit
Facility will also require us to use a portion of our cash flow and the proceeds
we receive from certain asset sales and specified debt or equity issuances and
upon the occurrence of other events to repay outstanding borrowings under the
Exit Credit Facility. These covenants may have important consequences on our
operations, including, without limitation, restricting their ability to obtain
additional financing and potentially limiting their ability to adjust to rapidly
changing market conditions.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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assure you that we and certain of our subsidiaries will be able to comply with
the provisions of their respective debt instruments, including, without
limitation, the financial covenants in the Exit Credit Facility. Any failure to
comply with the restrictions of the Exit Credit Facility or any other such
subsequent financing agreements may result in an event of default. An event of
default may allow the creditors to accelerate the related debt as well as any
other debt to which a cross-acceleration or cross-default provision applies. We
cannot provide assurance that we and certain of our subsidiaries' assets or cash
flow would be sufficient to fully repay borrowings under the outstanding debt
instruments, either upon maturity or if accelerated upon an event of default, or
that they would be able to refinance or restructure the payments on such debt.
If we are unable to repay amounts outstanding under the Exit Credit Facility
when due, the lenders thereunder could, subject to the terms of the relevant
agreements, seek to sell or otherwise transfer the assets that are pledged to
secure the indebtedness outstanding under those facilities and notes. The Exit
Credit Facility will be secured by substantially all of our assets.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic">National
Securities Exchange Listing</font>.&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">We may not be able to list the common
stock of Reorganized PPC on a national securities exchange or an active market
for shares of common stock of Reorganized PPC may not
develop.</font></font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Prior to
the Petition Date, our common stock was listed on the New York Stock Exchange
(the "NYSE"). On the Petition Date, our common stock was delisted from the NYSE
and has traded on an electronic quotations system, such as the system known as
the "Pink Sheets" during the bankruptcy proceedings. On November 11, 2009, we
applied to have our common stock listed on the NYSE under the ticker symbol
"PPC." However, there is no assurance that Reorganized PPC, or its common stock,
will comply with the listing requirements of the NYSE or another national
securities exchange. In addition, even if we are able to list common stock of
Reorganized PPC on a national securities exchange, there can be no assurance
that a regular trading market for common stock of Reorganized PPC will develop,
or if a trading market does develop, that it will be sustainable. Pursuant to
the SPA, the Plan Sponsor and Reorganized PPC are required to use their
commercially reasonable efforts to cause the common stock of Reorganized PPC to
comply with the continued listing standards of such national securities exchange
so that the common stock of Reorganized PPC will continue to be listed and
traded thereon. However, the Plan Sponsor has no obligation to ensure that the
share price or the market value of the shares of common stock of Reorganized PPC
is sufficient to maintain the listing of such shares. In addition, under certain
circumstances and with the consent of the required lenders under the Exit Credit
Facility, Reorganized PPC may be able to repurchase its common stock, which may
reduce the liquidity of the common stock of Reorganized PPC. There can be no
assurance that there will be sufficient liquidity in the market for common stock
of Reorganized PPC, or that it will be possible to sell shares of common stock
of Reorganized PPC when desired, or at all.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic">Purchase Price
for Common Stock of Reorganized PPC</font>.&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">The purchase price paid by the Plan
Sponsor for the common stock of Reorganized PPC is not intended to represent the
trading or market value of common stock of Reorganized PPC and there is no
assurance that a holder will be able to sell the common stock of Reorganized PPC
at such a price or at all.</font></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
determination of the purchase price of the common stock of Reorganized PPC was
based on the Plan Sponsor's and our assessments of the Reorganized PPC's
financial projections, business prospects, business opportunities, risks and
other factors, as applicable, and was not intended to represent the trading
values of common stock of Reorganized PPC in public or private markets. Several
factors may cause the price of common stock of Reorganized PPC to vary.
Additionally, the stock market has experienced extreme volatility in recent
months and this volatility has often been unrelated to the operating performance
of particular companies. All of these factors, among others, may cause the price
of the common stock of Reorganized PPC to fluctuate after trading commences and
it may not be possible to sell the common stock of Reorganized PPC at such a
price, or at all.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic">Common Stock of
Reorganized PPC&#8212;Voting</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">.</font>&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">The Plan Sponsor will hold a majority
of the common stock of Reorganized PPC and will have the ability to control the
vote on most matters brought before the holders of common stock of Reorganized
PPC.</font></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Following
consummation of the Proposed Plan, the Plan Sponsor will hold a majority of the
shares and voting power of the common stock of Reorganized PPC and will be
entitled to appoint a majority of the members of the board of directors of the
Reorganized PPC. As a result, the Plan Sponsor will, subject to restrictions on
its voting power and actions in the stockholders agreement that the Company will
enter into with JBS USA and the Restated Certificate of Incorporation, have the
ability to control the management, policies and financing decisions of the
Reorganized PPC, elect a majority of the members of Reorganized PPC's board of
directors at the annual meeting and control the vote on most matters coming
before the holders of common stock of Reorganized PPC.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Bankruptcy
Proceedings.&#160;&#160;</font>The bankruptcy proceedings may have negatively
affected our businesses, including our relationships with customers, suppliers
and vendors, which could adversely impact our future financial and operating
results<font style="DISPLAY: inline; FONT-STYLE: italic">.</font></font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Due to
the disruptions in our businesses as a result of the initiation of bankruptcy
proceedings, certain of our relationships with customers, suppliers and vendors
may have been adversely affected and/or terminated. Customers, suppliers or
vendors may have entered into alternate relationships with other counterparties
or modified their relationship with us due to performance issues or concerns. In
some instances, customers, suppliers and vendors are holders of claims in
connection with the bankruptcy proceedings. The effect of the bankruptcy process
and the resolution of such claims against us (including the confirmation of the
Proposed Plan) may have adversely affected or may in the future adversely affect
the relationships between such parties and us. In addition, the risks and
uncertainties associated with the bankruptcy proceedings may be used by
competitors with respect to our existing customers or may discourage future
customers from purchasing products under long-term arrangements. Changes in
relationships with customers, suppliers and vendors could have a material
adverse effect on our financial and operating results.</font></div>
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Company estimates that, following completion of the claims reconciliation
process, the aggregate amount of allowed general unsecured claims against the
Company and the other Debtors will be approximately $180 million, after
deducting duplicate claims, claims not supported by the Company's books and
records, claims that have already been reduced by agreement of the parties or
order of the Bankruptcy Court and claims that are subject to other objections.
These general unsecured claims consist of unsecured claims, including trade
claims, claims based on rejection of leases or executory contracts, prepetition
personal injury and prepetition litigation, and other general unsecured claims.
The general unsecured claims do not include claims relating to the Company's
senior notes, senior subordinated notes and subordinated notes issued under its
indentures.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic">The Proposed
Acquisition Synergies.</font> <font style="DISPLAY: inline; FONT-WEIGHT: bold">The expected synergies between JBS
USA and the Company may not materialize.</font></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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USA has significant acquisition experience and historically has been able to
realize substantial benefits through synergies, JBS USA may not be able to fully
achieve all of the anticipated synergistic gains of the Proposed Acquisition
within the time frames expected. The combined company's ability to realize the
anticipated benefits of the acquisition will depend, to a large extent, on the
ability of JBS USA to integrate the businesses of Reorganized PPC with JBS USA.
The combination of two independent companies is a complex, costly and
time-consuming process. As a result, the combined company will be required to
devote significant management attention and resources to integrating the
business practices and operations of JBS USA and Reorganized PPC. The
integration process and realizing the benefits of the synergies will be
additionally challenging so long as Reorganized PPC remains an independent,
publicly-traded entity. The integration process may disrupt the business of
either or both of the companies and, if implemented ineffectively, would
preclude realization of the full benefits expected by JBS USA. The failure of
the combined company to meet the challenges involved in integrating successfully
the operations of JBS USA and Reorganized PPC or otherwise to realize the
anticipated benefits of the transaction could cause an interruption of, or a
loss of momentum in, the activities of the combined company and could seriously
harm its results of operations. In addition, the overall integration of the two
companies may result in unanticipated problems, expenses, liabilities,
competitive responses, loss of customer and supplier relationships, and
diversion of management's attention, and may cause the price of common stock of
Reorganized PPC to decline. The difficulties of combining the operations of the
companies include, among others:</font></div>
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corporate and administrative infrastructures and eliminating duplicative
operations;</font></div>
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employee morale and retaining key employees;</font></div>
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diversion of management's attention from ongoing business concerns;</font></div>
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geographically separate organizations;</font></div>
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issues in integrating information technology, communications and other systems;
and</font></div>
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tax costs or inefficiencies associated with integrating the operations of the
combined company.</font></div>
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addition, even if the operations of JBS USA and Reorganized PPC are integrated
successfully, the combined company may not realize the full benefits of the
transaction, including the synergies, cost savings or sales or growth
opportunities that JBS USA expects. These benefits may not be achieved within
the anticipated time frame, or at all.&#160;&#160;As a result, while JBS USA
expects and believes that the transaction will result in substantial benefits
from the synergies outlined above, it cannot make any affirmative guarantees
that these results will be fully realized within the anticipated time frame
given the risks involved.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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regarding any synergies that may be created through the Proposed Acquisition are
the views of JBS USA and have not been independently verified by either us or
our advisors.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Cyclicality and Commodity Prices.
</font>Industry cyclicality can affect our earnings, especially due to
fluctuations in commodity prices of feed ingredients and chicken.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Profitability
in the chicken industry is materially affected by the commodity prices of feed
ingredients and chicken, which are determined by supply and demand factors. As a
result, the chicken industry is subject to cyclical earnings
fluctuations.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
production of feed ingredients is positively or negatively affected primarily by
the global level of supply inventories and demand for feed ingredients, the
agricultural policies of the United States and foreign governments and weather
patterns throughout the world. In particular, weather patterns often change
agricultural conditions in an unpredictable manner. A significant change in
weather patterns could affect supplies of feed ingredients, as well as both the
industry's and our ability to obtain feed ingredients, grow chickens or deliver
products.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The cost
of corn and soybean meal, our primary feed ingredients, increased significantly
from August 2006 to July 2008, before moderating in 2009, and there can be no
assurance that the price of corn or soybean meal will not significantly rise
again as a result of, among other things, increasing demand for these products
around the world and alternative uses of these products, such as ethanol and
biodiesel production.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">High feed
ingredient prices have had, and may continue to have, a material adverse effect
on our operating results, which has resulted in, and may continue to result in,
additional non-cash expenses due to impairment of the carrying amounts of
certain of our assets. We periodically seek, to the extent available, to enter
into advance purchase commitments or financial derivative contracts for the
purchase of feed ingredients in an effort to manage our feed ingredient costs.
The use of such instruments may not be successful.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Livestock and Poultry
Disease.&#160;&#160;</font>Outbreaks of livestock diseases in general and
poultry diseases in particular, including avian influenza, can significantly
affect our ability to conduct our operations and demand for our
products.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We take
precautions designed to ensure that our flocks are healthy and that our
processing plants and other facilities operate in a sanitary and
environmentally-sound manner. However, events beyond our control, such as the
outbreaks of disease, either in our own flocks or elsewhere, could significantly
affect demand for our products or our ability to conduct our operations.
Furthermore, an outbreak of disease could result in governmental restrictions on
the import and export of our fresh chicken or other products to or from our
suppliers, facilities or customers, or require us to destroy one or more of our
flocks. This could also result in the cancellation of orders by our customers
and create adverse publicity that may have a material adverse effect on our
ability to market our products successfully and on our business, reputation and
prospects.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">During
the first half of 2006, there was substantial publicity regarding a highly
pathogenic strain of avian influenza, known as H5N1, which has been affecting
Asia since 2002 and which has also been found in Europe and Africa. It is widely
believed that H5N1 is being spread by migratory birds, such as ducks and geese.
There have also been some cases where H5N1 is believed to have passed from birds
to humans as humans came into contact with live birds that were infected with
the disease.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Although
highly pathogenic H5N1 has not been identified in North America, there have been
outbreaks of low pathogenic strains of avian influenza in North America, and in
Mexico outbreaks of both high and low-pathogenic strains of avian influenza are
a fairly common occurrence. Historically, the outbreaks of low pathogenic avian
influenza have not generated the same level of concern, or received the same
level of publicity or been accompanied by the same reduction in demand for
poultry products in certain countries as that associated with the highly
pathogenic H5N1 strain. Accordingly, even if the highly pathogenic H5N1 strain
does not spread to North or Central America, there can be no assurance that it
will not materially adversely affect demand for North or Central American
produced poultry internationally and/or domestically, and, if it were to spread
to North or Central America, there can be no assurance that it would not
significantly affect our ability to conduct our operations and/or demand for our
products, in each case in a manner having a material adverse effect on our
business, reputation and/or prospects.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Contamination of
Products</font>.&#160;&#160;If our poultry products become contaminated, we may
be subject to product liability claims and product recalls.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Poultry
products may be subject to contamination by disease-producing organisms, or
pathogens, such as <font style="DISPLAY: inline; FONT-STYLE: italic">Listeria
monocytogenes</font>, <font style="DISPLAY: inline; FONT-STYLE: italic">Salmonella </font>and generic <font style="DISPLAY: inline; FONT-STYLE: italic">E.coli</font>. These pathogens are
generally found in the environment, and, as a result, there is a risk that they,
as a result of food processing, could be present in our processed poultry
products. These pathogens can also be introduced as a result of improper
handling at the further processing, foodservice or consumer level. These risks
may be controlled, although not eliminated, by adherence to good manufacturing
practices and finished product testing. We have little, if any, control over
proper handling once the product has been shipped. Illness and death may result
if the pathogens are not eliminated at the further processing, foodservice or
consumer level. Even an inadvertent shipment of contaminated products is a
violation of law and may lead to increased risk of exposure to product liability
claims, product recalls and increased scrutiny by federal and state regulatory
agencies and may have a material adverse effect on our business, reputation and
prospects.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
October 2002, one product sample produced in our Franconia, Pennsylvania,
facility that had not been shipped to customers tested positive for Listeria. We
later received information from the USDA suggesting environmental samples taken
at the facility had tested positive for both the strain of Listeria identified
in the product and a strain having characteristics similar to those of the
strain identified in a Northeastern Listeria outbreak. As a result, we
voluntarily recalled all cooked deli products produced at the plant from May 1,
2002, through October 11, 2002. We carried insurance designed to cover the
direct recall related expenses and certain aspects of the related business
interruption caused by the recall.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Product
Liability</font>.&#160;&#160;Product liability claims or product recalls can
adversely affect our business reputation and expose us to increased scrutiny by
federal and state regulators.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
packaging, marketing and distribution of food products entail an inherent risk
of product liability and product recall and the resultant adverse publicity. We
may be subject to significant liability if the consumption of any of our
products causes injury, illness or death. We could be required to recall certain
of our products in the event of contamination or damage to the products. In
addition to the risks of product liability or product recall due to deficiencies
caused by our production or processing operations, we may encounter the same
risks if any third party tampers with our products. We cannot assure you that we
will not be required to perform product recalls, or that product liability
claims will not be asserted against us, in the future. Any claims that may be
made may create adverse publicity that would have a material adverse effect on
our ability to market our products successfully or on our business, reputation,
prospects, financial condition and results of operations.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If our
poultry products become contaminated, we may be subject to product liability
claims and product recalls. There can be no assurance that any litigation or
reputational injury associated with product recalls will not have a material
adverse effect on our ability to market our products successfully or on our
business, reputation, prospects, financial condition and results of
operations.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Insurance.&#160;&#160;</font>We are
exposed to risks relating to product liability, product recall, property damage
and injuries to persons for which insurance coverage is expensive, limited and
potentially inadequate.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
business operations entail a number of risks, including risks relating to
product liability claims, product recalls, property damage and injuries to
persons. We currently maintain insurance with respect to certain of these risks,
including product liability insurance, property insurance, workers compensation
insurance, business interruption insurance and general liability insurance, but
in many cases such insurance is expensive, difficult to obtain and no assurance
can be given that such insurance can be maintained in the future on acceptable
terms, or in sufficient amounts to protect us against losses due to any such
events, or at all. Moreover, even though our insurance coverage may be designed
to protect us from losses attributable to certain events, it may not adequately
protect us from liability and expenses we incur in connection with such events.
For example, the losses attributable to our October 2002 recall of cooked deli
products produced at one of our facilities significantly exceeded available
insurance coverage. Additionally, in the past, two of our insurers encountered
financial difficulties and were unable to fulfill their obligations under the
insurance policies as anticipated and, separately, two of our other insurers
contested coverage with respect to claims covered under policies purchased,
forcing us to litigate the issue of coverage before we were able to collect
under these policies.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Significant
Competition</font>.&#160;&#160;Competition in the chicken industry with other
vertically integrated poultry companies may make us unable to compete
successfully in these industries, which could adversely affect our
business.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
chicken industry is highly competitive. In both the United States and Mexico, we
primarily compete with other vertically integrated chicken
companies.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
general, the competitive factors in the US chicken industry
include:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 54pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt;" face="Symbol, serif">&#183;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Price;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 54pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt;" face="Symbol, serif">&#183;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Product
quality;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 54pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt;" face="Symbol, serif">&#183;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Product
development;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 54pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt;" face="Symbol, serif">&#183;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Brand
identification;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 54pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt;" face="Symbol, serif">&#183;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Breadth
of product line; and</font></div>
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      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 54pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt;" face="Symbol, serif">&#183;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Customer
service.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Competitive
factors vary by major market. In the foodservice market, competition is based on
consistent quality, product development, service and price. In the US retail
market, we believe that competition is based on product quality, brand
awareness, customer service and price. Further, there is some competition with
non-vertically integrated further processors in the prepared chicken business.
In addition, the bankruptcy proceedings and the associated risks and
uncertainties may be used by competitors in an attempt to divert existing
customers or may discourage future customers from purchasing products under
long-term arrangements.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
Mexico, where product differentiation has traditionally been limited, we believe
product quality and price have been the most critical competitive factors. The
North American Free Trade Agreement eliminated tariffs for chicken and chicken
products sold to Mexico on January&#160;1, 2003. However, in July 2003, the US
and Mexico entered into a safeguard agreement with regard to imports into Mexico
of chicken leg quarters from the US. Under this agreement, a tariff rate for
chicken leg quarters of 98.8% of the sales price was established. On January 1,
2008, the tariff was eliminated. As a result of the elimination of this tariff,
greater amounts of chicken have been imported into Mexico from the US. Industry
exports of ready-to-cook chicken into Mexico have increased to 818 million
pounds, or 12.0% of all US ready-to-cook chicken exports, in 2009 from 503
million pounds, or 9.4% of all US ready-to-cook chicken exports, in 2005. These
trends, should they continue to increase, could negatively affect the
profitability of Mexican chicken producers located in the northern states of
Mexico. We believe the impact on producers, such as us, located in the central
states of Mexico should be much less pronounced.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Loss of Key
Customers.&#160;&#160;</font>The loss of one or more of our largest customers
could adversely affect our business.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our two
largest customers accounted for approximately 18% of our net sales in 2009, and
our largest customer, Wal-Mart Stores Inc., accounted for 12% of our net sales.
Our filing for protection under Chapter 11 of the Bankruptcy Code and the
associated risks and uncertainties may affect our customers' perception of our
business and increase our risk of losing key customers. Our business could
suffer significant setbacks in revenues and operating income if we lost one or
more of our largest customers, or if our customers' plans and/or markets should
change significantly.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Assumption of Unknown Liabilities in
Acquisitions.&#160;&#160;</font>Assumption of unknown liabilities in
acquisitions may harm our financial condition and operating
results.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We do not
currently intend to make any acquisition in the near future. However, if we do,
acquisitions may be structured in such a manner that would result in the
assumption of unknown liabilities not disclosed by the seller or uncovered
during pre-acquisition due diligence. For example, our acquisition of Gold Kist
Inc. ("Gold Kist") was structured as a stock purchase. In that acquisition we
assumed all of the liabilities of Gold Kist, including liabilities that may be
unknown. These obligations and liabilities could harm our financial condition
and operating results.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Foreign Operations
Risks</font>.&#160;&#160;Our foreign operations pose special risks to our
business and operations.</font></div>
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significant operations and assets located in Mexico and may participate in or
acquire operations and assets in other foreign countries in the future. Foreign
operations are subject to a number of special risks, including among
others:</font></div>
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      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 54pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt;" face="Symbol, serif">&#183;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Currency
exchange rate fluctuations;</font></div>
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      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 54pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt;" face="Symbol, serif">&#183;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Trade
barriers;</font></div>
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controls;</font></div>
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and</font></div>
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in laws and policies, including tax laws and laws governing foreign-owned
operations.</font></div>
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exchange rate fluctuations have adversely affected us in the past. Exchange rate
fluctuations or one or more other risks may have a material adverse effect on
our business or operations in the future.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
operations in Mexico are conducted through subsidiaries organized under the laws
of Mexico. We may rely in part on intercompany loans and distributions from our
subsidiaries to meet our obligations. Claims of creditors of our subsidiaries,
including trade creditors, will generally have priority as to the assets of our
subsidiaries over our claims. Additionally, the ability of our Mexican
subsidiaries to make payments and distributions to us will be subject to, among
other things, Mexican law. In the past, these laws have not had a material
adverse effect on the ability of our Mexican subsidiaries to make these payments
and distributions. However, laws such as these may have a material adverse
effect on the ability of our Mexican subsidiaries to make these payments and
distributions in the future.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Disruptions in International Markets
and Distribution Channels</font>.&#160;&#160;Disruptions in international
markets and distribution channels could adversely affect our
business.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Historically,
we have targeted international markets to generate additional demand for our
products. In particular, given US customers' general preference for white meat,
we have targeted international markets for the sale of dark chicken meat,
specifically leg quarters, which are a natural by-product of our US operations'
concentration on prepared chicken products.&#160;&#160;As part of this
initiative, we have created a significant international distribution network
into several markets in Mexico, Eastern Europe (including Russia), and the Far
East (including China). Our success in these markets may be, and our success in
recent periods has been, adversely affected by disruptions in chicken export
markets.&#160;&#160;For example, the United States poultry industry is currently
engaged in an anti-dumping proceeding in Ukraine and an anti-dumping and
countervailing duty proceeding in China that could materially adversely affect
our sales in these countries.&#160;&#160;A significant risk is disruption due to
import restrictions and tariffs, other trade protection measures, and import or
export licensing requirements. In addition, disruptions may be caused by
outbreaks of disease such as avian influenza, either in our flocks or elsewhere
in the world, and resulting changes in consumer preferences.&#160;&#160;For
example, the occurrence of avian influenza in Eastern Europe in October 2005
affected demand for poultry in Europe. One or more of these or other disruptions
in the international markets and distribution channels could adversely affect
our business.</font></div>
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Regulation</font>.&#160;&#160;Regulation, present and future, is a constant
factor affecting our business.</font></div>
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operations will continue to be subject to federal, state and local governmental
regulation, including in the health, safety and environmental areas. We
anticipate increased regulation by various agencies concerning food safety, the
use of medication in feed formulations and the disposal of chicken by-products
and wastewater discharges.</font></div>
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changes in laws or regulations or the application thereof may lead to government
enforcement actions and the resulting litigation by private litigants. We are
aware of an industry-wide investigation by the Wage and Hour Division of the US
Department of Labor to ascertain compliance with various wage and hour issues,
including the compensation of employees for the time spent on such activities
such as donning and doffing work equipment. The Company has been named a
defendant in a number of related suits brought by employees. Due, in part, to
the government investigation and the recent US Supreme Court decision in <font style="DISPLAY: inline; FONT-STYLE: italic">IBP, Inc. v. Alvarez</font>, it is
possible that we may be subject to additional employee claims.</font></div>
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matters, new laws and regulations, or stricter interpretations of existing laws
or regulations may materially affect our business or operations in the
future.</font></div>
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Legislation.</font> <font style="DISPLAY: inline; FONT-WEIGHT: bold">New
immigration legislation or increased enforcement efforts in connection with
existing immigration legislation could cause the costs of doing business to
increase, cause us to change the way we conduct our business or otherwise
disrupt our operations.</font></font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Immigration
reform continues to attract significant attention in the public arena and the US
Congress. If new federal immigration legislation is enacted or if states in
which we do business enact immigration laws, such laws may contain provisions
that could make it more difficult or costly for us to hire US citizens and/or
legal immigrant workers. In such case, we may incur additional costs to run
their business or may have to change the way they conduct their operations,
either of which could have a material adverse effect on our business, operating
results and financial condition. Also, despite our past and continuing efforts
to hire only US citizens and/or persons legally authorized to work in the US, we
may be unable to ensure that all of their employees are US citizens and/or
persons legally authorized to work in the US. US Immigration and Customs
Enforcement has been investigating identity theft within our workforce. With our
cooperation, during 2008 US Immigration and Customs Enforcement arrested
approximately 350 of our employees believed to have engaged in identity theft at
five of their facilities. No assurances can be given that further enforcement
efforts by governmental authorities will not disrupt a portion of our workforce
or operations at one or more facilities, thereby negatively impacting our
business. Also, no assurance can be given that further enforcement efforts by
governmental authorities will not result in the assessment of fines that could
adversely affect the Company's financial position, operating results or cash
flows.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Key Employee
Retention.&#160;&#160;</font>Loss of essential employees could have a
significant negative impact on our business.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
success is largely dependent on the skills, experience, and efforts of our
management and other employees. Our deteriorating financial performance, along
with our Chapter&#160;11 proceedings, creates uncertainty that could lead to an
increase in unwanted attrition. The loss of the services of one or more members
of our senior management or of numerous employees with essential skills could
have a negative effect on our business, financial condition and results of
operations.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
addition, the acquisition of a majority of our common stock by JBS USA pursuant
to the terms of the SPA will constitute a change in control of us under the
terms of change-in-control agreements between us and our executive officers and
certain of our key employees. The change in control of us may create
difficulties for us in retaining the services of these officers and employees,
which may negatively impact our business and the integration of our operations
with those of JBS USA. If we are not able to retain or attract talented,
committed individuals to fill vacant positions when needs arise, it may
adversely affect our ability to achieve our business objectives.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Labor
Relations.&#160;&#160;</font>Our performance depends on favorable labor
relations with our employees and our compliance with labor laws. Any
deterioration of those relations or increase in labor costs due to our
compliance with labor laws could adversely affect our business.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As of
September 26, 2009, we had approximately 36,600 employees in the US and
approximately 4,640 employees in Mexico. Approximately 10,370 of our employees
at various facilities in the US are members of collective bargaining units. In
Mexico, approximately 2,600 of our employees are covered by collective
bargaining agreements. Upon the expiration of existing collective bargaining
agreements or other collective labor agreements, we may not reach new agreements
without union action, and any such new agreements may not be on terms
satisfactory to us, which could result in higher wages or benefits paid to union
workers. In addition, any new agreements may be for shorter durations than those
of our historical agreements. Moreover, additional groups of currently
non-unionized employees may seek union representation in the future. If we are
unable to negotiate acceptable collective bargaining agreements, we may become
subject to union-initiated work stoppages, including strikes.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Since
March 2009, we have been involved in negotiations with the unions representing
our US employees to modify certain terms of the collective bargaining agreements
that we believe are necessary for our successful reorganization. We have
successfully negotiated settlements with a majority of these unions, and these
settlements were approved by the Bankruptcy Court on October 13, 2009. We have
not yet reached a settlement with the International Brotherhood of Teamsters
("IBT") and negotiations are ongoing. Currently, approximately 265 employees are
covered under three expired IBT collective bargaining agreements.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Extreme Weather and Natural
Disasters.</font>&#160;&#160;Extreme weather or natural disasters could
negatively impact our business.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Extreme
weather or natural disasters, including droughts, floods, excessive cold or
heat, hurricanes or other storms, could impair the health or growth of our
flocks, production or availability of feed ingredients, or interfere with our
operations due to power outages, fuel shortages, damage to our production and
processing facilities or disruption of transportation channels, among other
things. Any of these factors could have an adverse effect on our financial
results.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Environmental
Requirements.&#160;&#160;</font>We may face significant costs for compliance
with existing or changing environmental requirements and for potential
environmental obligations relating to current or discontinued
operations.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A number
of our facilities have been operating below capacity due to economic conditions,
and upgrades at some facilities have been delayed or deferred because of the
bankruptcy. Before production can be restored to pre-bankruptcy levels, capital
expenditures may be necessary at some facilities for installation of new
pollution control equipment in order to achieve compliance with existing or
changing environmental requirements, including more stringent limitations
imposed or expected in recently-renewed or soon-to be renewed environmental
permits.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In the
past, we have acquired businesses with operations such as pesticide and
fertilizer production that involved greater use of hazardous materials and
generation of more hazardous wastes than our current operations. While many of
those operations have been sold or closed, some environmental laws impose strict
and, in certain circumstances, joint and several liability for costs of
investigation and remediation of contaminated sites on current and former owners
and operators of the sites, and on persons who arranged for disposal of wastes
at such sites. In addition, current owners or operators of such contaminated
sites may seek to recover cleanup costs from us based on past operations or
contractual indemnifications.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">New
environmental requirements, stricter interpretations of existing environmental
requirements, or obligations related to the investigation or clean-up of
contaminated sites, may materially affect the our business or operations in the
future.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Control of Voting
Stock</font>.&#160;&#160;Control over the Company is maintained by affiliates
and members of the family of Lonnie "Bo" Pilgrim.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Through
two limited partnerships and related trusts and voting agreements, Lonnie "Bo"
Pilgrim, Patricia R. Pilgrim, his wife, and Lonnie Ken Pilgrim, his son, control
62.25% of the voting power of our outstanding common stock. Accordingly, other
than any approvals by stockholders in connection with the Proposed Plan, they
currently control the outcome of all actions requiring stockholder approval,
including the election of directors and significant corporate transactions, such
as a merger or other sale of the Company or its assets. This ensures their
ability to control the future direction and management of the Company until the
consummation of the Proposed Acquisition.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Use
of Proceeds</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We will
not receive any of the proceeds from the sale of shares of Common Stock by the
selling stockholder.</font></div><br>
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        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;
</font></div>
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        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;
</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        </div>
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      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
Selling Stockholder</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
shares of our Common Stock to which this prospectus relates are being registered
for offer and resale by Don Jackson, the Company's President and Chief Executive
Officer, or the selling stockholder, who acquired shares of Common Stock
pursuant to the Employment Agreement. The following table sets forth certain
information regarding the shares of our Common Stock beneficially owned by the
selling stockholder as of December 4, 2009 and is based on 77,141,389 shares of
our Common Stock outstanding on December 4, 2009.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
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<tr>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Selling
      Stockholder</font></div>
              </td>
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      </font></td>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Shares
      of Common Stock Offered</font></div>
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      </font></td>
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      of Common Stock Owned After the</font></div>
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              </td>
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      </font></td>
              <td valign="middle" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="middle" width="10%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="middle" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="middle" width="11%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="middle" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="middle" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Number</font></div>
              </td>
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      </font></td>
              <td valign="middle" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">%</font></div>
              </td>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Don
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                <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
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              <td valign="top" width="7%">
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              <td valign="top" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">0</font></div>
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shares granted under the employment agreement will vest upon confirmation of a
plan of reorganization of the Company and achievement of certain performance
targets. &#160;For purposes of the employment agreement, a plan of
reorganization is generally defined as a plan or reorganization that does not
provide for a sale of a majority of the Company's and its subsidiaries'
assets.</font></div>
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of Distribution</font></div>
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"selling stockholders" as used herein includes the selling stockholder, his
pledgees, donees, transferees, or any of their successors in interest selling
shares received from the selling stockholder as a gift or other transfer after
the date of this prospectus. The selling stockholders may sell the shares of
Common Stock offered by this prospectus from time to time on any stock exchange
or automated interdealer quotation system on which our Common Stock is listed or
quoted at the time of sale, in the over-the-counter market, in privately
negotiated transactions or otherwise, at fixed prices that may be changed, at
market prices prevailing at the time of sale, at prices related to prevailing
market prices or at prices otherwise negotiated. The selling stockholders may
sell the shares of Common Stock by one or more of the following methods, without
limitation:</font></div>
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<tr valign="top">
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                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">block
      trades in which the broker or dealer so engaged will attempt to sell the
      shares of Common Stock as agent but may position and resell a portion of
      the block as principal to facilitate the
  transaction;</font></div>
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<tr valign="top">
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                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">purchases
      by a broker or dealer as principal and resale by the broker or dealer for
      its own account pursuant to this
prospectus;</font></div>
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<tr valign="top">
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                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">an
      exchange distribution in accordance with the rules of any stock exchange
      or quotation system on which the shares of Common Stock are
      listed;</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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<tr valign="top">
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                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt;" face="Symbol, serif">&#183;&#160;&#160;</font></div>
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                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ordinary
      brokerage transactions and transactions in which the broker solicits
      purchases;</font></div>
              </td>
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      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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<tr valign="top">
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                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">privately
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
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                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">short
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
              <td align="right" style="WIDTH: 72pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt;" face="Symbol, serif">&#183;&#160;&#160;</font></div>
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      the writing of options on the shares of Common Stock, whether or not the
      options are listed on an options
exchange;</font></div>
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      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
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                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">through
      the distribution of the shares of Common Stock by any selling stockholder
      to its partners, members or
stockholders;</font></div>
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      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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<tr valign="top">
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                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt;" face="Symbol, serif">&#183;&#160;&#160;</font></div>
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                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">one
      or more underwritten offerings on a firm commitment or best efforts basis;
      and</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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<tr valign="top">
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                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt;" face="Symbol, serif">&#183;&#160;&#160;</font></div>
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      combination of any of these methods of
sale.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">These
transactions may include crosses, which are transactions in which the same
broker acts as an agent on both sides of the trade. The selling stockholders may
also transfer the shares of Common Stock by gift.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
selling stockholders may engage brokers and dealers, and any brokers or dealers
may arrange for other brokers or dealers to participate in effecting sales of
the shares of Common Stock. These brokers, dealers or underwriters may act as
principals, or as an agent of a selling stockholder. Broker-dealers may agree
with a selling stockholder to sell a specified number of the shares at a
stipulated price per share. If the broker-dealer is unable to sell shares of
Common Stock acting as agent for a selling stockholder, it may purchase as
principal any unsold shares at the stipulated price. Broker-dealers who acquire
shares of Common Stock as principals may thereafter resell the shares from time
to time in transactions in any stock exchange or automated interdealer quotation
system on which the shares of Common Stock are then listed, at prices and on
terms then prevailing at the time of sale, at prices related to the then-current
market price or in negotiated transactions. Broker-dealers may use block
transactions and sales to and through broker-dealers, including transactions of
the nature described above. The selling stockholders may also sell the shares of
Common Stock in accordance with Rule 144 under the Securities Act, rather than
pursuant to this prospectus. In order to comply with the securities laws of some
states, if applicable, the shares of common stock may be sold in these
jurisdictions only through registered or licensed brokers or
dealers.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">From time
to time, one or more of the selling stockholders may pledge, hypothecate or
grant a security interest in some or all of the shares owned by them. The
pledgees, secured parties or person to whom the shares have been hypothecated
will, upon foreclosure in the event of default, be deemed to be selling
stockholders. The number of a selling stockholder's shares offered under this
prospectus will decrease as and when it takes such actions. The plan of
distribution for that selling stockholder's shares will otherwise remain
unchanged. In addition, a selling stockholder may, from time to time, sell the
shares short, and, in those instances, this prospectus may be delivered in
connection with the short sales and the shares offered under this prospectus may
be used to cover short sales.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To the
extent required under the Securities Act, the aggregate amount of selling
stockholders' shares being offered and the terms of the offering, the names of
any agents, brokers, dealers or underwriters, any applicable commission and
other material facts with respect to a particular offer will be set forth in an
accompanying prospectus supplement or a post-effective amendment to the
registration statement of which this prospectus is a part, as appropriate. Any
underwriters, dealers, brokers or agents participating in the distribution of
the shares of Common Stock may receive compensation in the form of underwriting
discounts, concessions, commissions or fees from a selling stockholder and/or
purchasers of selling stockholders' shares, for whom they may act (which
compensation as to a particular broker-dealer might be less than or in excess of
customary commissions). Neither we nor the selling stockholder can presently
estimate the amount of any such compensation.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
selling stockholders and any underwriters, brokers, dealers or agents that
participate in the distribution of the shares of Common Stock may be deemed to
be "underwriters" within the meaning of the Securities Act, and any discounts,
concessions, commissions or fees received by them and any profit on the resale
of the securities sold by them may be deemed to be underwriting discounts and
commissions. If a selling stockholder is deemed to be an underwriter, the
selling stockholder may be subject to certain statutory liabilities including,
but not limited to Sections 11, 12 and 17 of the Securities Act and Rule 10b-5
under the Exchange Act. Selling stockholders who are deemed underwriters within
the meaning of the Securities Act will be subject to the prospectus delivery
requirements of the Securities Act. The Commission staff is of a view that
selling stockholders who are registered broker-dealers or affiliates of
registered broker-dealers may be underwriters under the Securities Act. We will
not pay any compensation or give any discounts or commissions to any underwriter
in connection with the securities being offered by this prospectus.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A selling
stockholder may enter into hedging transactions with broker-dealers and the
broker-dealers may engage in short sales of the shares of Common Stock in the
course of hedging the positions they assume with that selling stockholder,
including, without limitation, in connection with distributions of the shares of
Common Stock by those broker-dealers. A selling stockholder may enter into
option or other transactions with broker-dealers, who may then resell or
otherwise transfer those shares of Common Stock. A selling stockholder may also
loan or pledge the shares of Common Stock offered hereby to a broker-dealer and
the broker-dealer may sell the shares of Common Stock offered by this prospectus
so loaned or upon a default may sell or otherwise transfer the pledged shares of
Common Stock offered by this prospectus.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
selling stockholders and other persons participating in the sale or distribution
of the shares of Common Stock will be subject to applicable provisions of the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), and the rules
and regulations under the Exchange Act, including Regulation M. This regulation
may limit the timing of purchases and sales of any of the shares of Common Stock
by the selling stockholders and any other person. The anti-manipulation rules
under the Exchange Act may apply to sales of shares of Common Stock in the
market and to the activities of the selling stockholders and their affiliates.
Regulation M may restrict the ability of any person engaged in the distribution
of the shares of Common Stock to engage in market-making activities with respect
to the particular shares of Common Stock being distributed for a period of up to
five business days before the distribution. These restrictions may affect the
marketability of the shares of Common Stock and the ability of any person or
entity to engage in market-making activities with respect to the
shares.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Legal
Matters</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
validity of the shares of Common Stock offered hereby will be passed upon for us
by Baker &amp; McKenzie LLP.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Experts</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
consolidated financial statements of Pilgrim&#8217;s Pride Corporation appearing in
Pilgrim&#8217;s Pride&#8217;s Annual Report on Form 10-K for the fiscal year ended September
26, 2009 (including the schedule appearing therein), and the effectiveness of
Pilgrim&#8217;s Pride&#8217;s internal control over financial reporting as of September 26,
2009 have been audited by Ernst&#160;&amp; Young LLP, independent registered
public accounting firm, as set forth in their reports thereon (which contains an
explanatory paragraph describing conditions that raise substantial doubt about
the Company&#8217;s ability to continue as a going concern as described in Note A to
the consolidated financial statements), included therein, and incorporated
herein by reference. Such consolidated financial statements and Pilgrim&#8217;s
Pride&#8217;s management&#8217;s assessment of the effectiveness of internal control over
financial reporting as of September 26, 2009, are incorporated herein by
reference in reliance upon such reports given on the authority of such firm as
experts in accounting and auditing.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Incorporation
of Certain Information by Reference</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
following documents, which we previously filed with the Commission pursuant to
Sections&#160;13 or 15 of the Exchange Act, are incorporated by reference into
this prospectus:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
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<tr valign="top">
              <td style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
              </td>
              <td style="WIDTH: 18pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)</font></div>
              </td>
              <td>
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">our
      Annual Report on Form 10-K for the fiscal year ended September&#160;26,
      2009, filed with the Commission on November&#160;23,
  2009;</font></div>
              </td>
            </tr></table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
              <td style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
              </td>
              <td style="WIDTH: 18pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)</font></div>
              </td>
              <td>
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">our
      Current Report on Form 8-K filed with Commission on December 3, 2009;
      and</font></div>
              </td>
            </tr></table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
              <td style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
              </td>
              <td style="WIDTH: 18pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)</font></div>
              </td>
              <td>
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
      description of our Common Stock contained in the Company's Registration
      Statement on Form&#160;8-A/A-3 filed with the Commission on
      November&#160;21, 2003, pursuant to Section&#160;12 of the Exchange Act,
      including any amendments or reports filed for the purpose of updating such
      description.</font></div>
              </td>
            </tr></table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
incorporate by reference in this prospectus all documents subsequently filed by
us with the Commission pursuant to Sections 13(a), 13(c), 14 and 15(d) of the
Exchange Act, prior to the filing of a post-effective amendment which indicates
that all securities offered have been sold or which deregisters all securities
then remaining unsold, shall be deemed to be incorporated by reference herein
and to be part hereof from the date such documents are filed. Any statement
contained herein or in any document incorporated or deemed to be incorporated
herein by reference shall be deemed to be modified or superseded for purposes of
this registration statement to the extent that a statement contained in any
other subsequently filed document which also is or is deemed to be incorporated
herein by reference modifies or supersedes such statement. Any such statement so
modified or superseded shall not be deemed to constitute a part of this
registration statement, except as so modified or superseded.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We will
provide without charge to you, on written or oral request, a copy of any or all
of the foregoing documents incorporated herein by reference (other than exhibits
to such documents, unless the exhibits are specifically incorporated by
reference in the information we send to you). You may obtain a copy of any or
all of the documents that have been incorporated by reference herein by writing
to us at Pilgrim's Pride Corporation,&#160;&#160;4845 US Hwy 271 North,
Pittsburg, Texas 75686-0093, or telephoning (903)&#160;434-1000.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a name="tx75366_10">Where You Can Find More Information</a></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We file
annual, quarterly and current reports, proxy statements and other information
with the Commission. You may read and copy any reports, proxy statements and
other information we file at the Commission's Public Reference Room at
100&#160;F Street, N.E., Washington, D.C.&#160;20549. Please call 1-800-SEC-0330
for further information on the operation and location of the Public Reference
Room. Our filings are also available to the public at the website maintained by
the Commission at http://www.sec.gov and at our website at
http://www.pilgrimspride.com.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a name="tx75366_11">Indemnification of Directors and Officers</a></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
Amended and Restated Bylaws of the Company provide that the Company shall
indemnify and hold harmless any present or former officer or director or any
officer or director who is or was serving at the request of the Company as a
director, officer, partner, venturer, proprietor, trustee, employee, agent or
similar functionary of another corporation, partnership, trust, employee benefit
plan or other enterprise, from and against fines, judgments, penalties, amounts
paid in settlement and reasonable expenses actually incurred by such person in
connection with any suit to which they were or are made, or are threatened to be
made, a party, or to which they are a witness without being named a party, if it
is determined that he acted in good faith and in a manner that he reasonably
believed to be in or not opposed to the best interests of the Company, and, with
respect to any proceeding which is a criminal action, that he had no reasonable
cause to believe his conduct was unlawful.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
to Section 145 of the General Corporation Law of the State of Delaware
("Delaware Code"), the Company generally has the power to indemnify its present
and former directors, officers, employees and agents against expenses,
judgments, fines and amounts paid in settlement incurred by them in connection
with any suit (other than a suit by or in the right of the Company) to which
they are, or are threatened to be made, a party by reason of their serving in
such positions, or is or was serving at the Company's request in such positions
for another corporation, partnership, joint venture, trust or other enterprise,
so long as they acted in good faith and in a manner they reasonably believed to
be in, or not opposed to, the best interests of the Company, and with respect to
any criminal action, they had no reasonable cause to believe their conduct was
unlawful. Section 145 of the Delaware Code further provides that in connection
with the defense or settlement of any action by or in the right of the
corporation, a Delaware corporation may indemnify its present and former
directors, officers, employees and agents against expenses actually and
reasonably incurred by them if, in connection with the matters in issue, they
acted in good faith, in a manner they reasonably believed to be in or not
opposed to the best interests of the corporation, except that no indemnification
may be made with respect to any claim, issue or matter as to which such person
has been adjudged liable to the corporation unless the Court of Chancery or the
court in which such action or suit was brought approves such indemnification.
The statute also expressly provides that the power to indemnify authorized
thereby is not exclusive of any rights granted under any bylaw, agreement, vote
of stockholders or disinterested directors, or otherwise.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">According
to the Amended and Restated Bylaws of the Company and Section 145 of the
Delaware Code, the Company has the power to purchase and maintain insurance for
its present and former directors, officers, employees and agents. The above
discussion of the Company's Amended and Restated Bylaws and of Section 145 of
the Delaware Code is not intended to be exhaustive and is qualified in its
entirety by such Amended and Restated Corporate Bylaws and the Delaware
Code.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Insofar
as indemnification for liabilities arising under the Securities Act may be
permitted to directors, officers or persons controlling the Company pursuant to
the foregoing provisions, the Company has been informed that in the opinion of
the Commission such indemnification is against public policy as expressed in the
Securities Act and is therefore unenforceable.</font></div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;
</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        </div>
      </div><br>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">PART
II</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">INFORMATION
NOT REQUIRED IN THE PROSPECTUS</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Incorporation
of Documents by Reference</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
Company hereby incorporates by reference the following documents filed with the
Commission:</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
              <td style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
              </td>
              <td style="WIDTH: 18pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)</font></div>
              </td>
              <td>
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">our
      Annual Report on Form 10-K for the fiscal year ended September&#160;26,
      2009, filed with the Commission on November 23,
  2009;</font></div>
              </td>
            </tr></table>
      </div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
              <td style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
              </td>
              <td style="WIDTH: 18pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)</font></div>
              </td>
              <td>
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">our
      Current Report on Form 8-K filed with the Commission on December 3, 2009;
      and</font></div>
              </td>
            </tr></table>
      </div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
              <td style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
              </td>
              <td style="WIDTH: 18pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)</font></div>
              </td>
              <td>
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
      description of our Common Stock contained in the Company's Registration
      Statement on Form 8-A/A-3 filed with the Commission on November 21, 2003,
      pursuant to Section 12 of the Exchange Act, including any amendments or
      reports filed for the purpose of updating such
  description.</font></div>
              </td>
            </tr></table>
      </div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
incorporate by reference in this prospectus all documents subsequently filed by
the Company with the Commission pursuant to Sections 13(a), 13(c), 14 and 15(d)
of the Exchange Act, prior to the filing of a post-effective amendment which
indicates that all securities offered have been sold or which deregisters all
securities then remaining unsold, shall be deemed to be incorporated by
reference herein and to be part hereof from the date such documents are filed.
Any statement contained herein or in any document incorporated or deemed to be
incorporated herein by reference shall be deemed to be modified or superseded
for purposes of this registration statement to the extent that a statement
contained in any other subsequently filed document which also is or is deemed to
be incorporated herein by reference modifies or supersedes such statement. Any
such statement so modified or superseded shall not be deemed to constitute a
part of this registration statement, except as so modified or
superseded.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item&#160;4.
Description of Securities.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Not
applicable.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item&#160;5.
Interests of Named Experts and Counsel.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">None.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item&#160;6.
Indemnification of Directors and Officers.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
Amended and Restated Bylaws of the Company provide that the Company shall
indemnify and hold harmless any present or former officer or director or any
officer or director who is or was serving at the request of the Company as a
director, officer, partner, venturer, proprietor, trustee, employee, agent or
similar functionary of another corporation, partnership, trust, employee benefit
plan or other enterprise, from and against fines, judgments, penalties, amounts
paid in settlement and reasonable expenses actually incurred by such person in
connection with any suit to which they were or are made, or are threatened to be
made, a party, or to which they are a witness without being named a party, if it
is determined that he acted in good faith and in a manner that he reasonably
believed to be in or not opposed to the best interests of the Company, and, with
respect to any proceeding which is a criminal action, that he had no reasonable
cause to believe his conduct was unlawful.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
to Section 145 of the General Corporation Law of the State of Delaware
("Delaware Code"), the Company generally has the power to indemnify its present
and former directors, officers, employees and agents against expenses,
judgments, fines and amounts paid in settlement incurred by them in connection
with any suit (other than a suit by or in the right of the Company) to which
they are, or are threatened to be made, a party by reason of their serving in
such positions, or is or was serving at the Company's request in such positions
for another corporation, partnership, joint venture, trust or other enterprise,
so long as they acted in good faith and in a manner they reasonably believed to
be in, or not opposed to, the best interests of the Company, and with respect to
any criminal action, they had no reasonable cause to believe their conduct was
unlawful. Section 145 of the Delaware Code further provides that in connection
with the defense or settlement of any action by or in the right of the
corporation, a Delaware corporation may indemnify its present and former
directors, officers, employees and agents against expenses actually and
reasonably incurred by them if, in connection with the matters in issue, they
acted in good faith, in a manner they reasonably believed to be in or not
opposed to the best interests of the corporation, except that no indemnification
may be made with respect to any claim, issue or matter as to which such person
has been adjudged liable to the corporation unless the Court of Chancery or the
court in which such action or suit was brought approves such indemnification.
The statute also expressly provides that the power to indemnify authorized
thereby is not exclusive of any rights granted under any bylaw, agreement, vote
of stockholders or disinterested directors, or otherwise.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">According
to the Amended and Restated Bylaws of the Company and Section 145 of the
Delaware Code, the Company has the power to purchase and maintain insurance for
its present and former directors, officers, employees and agents. The above
discussion of the Company's Amended and Restated Bylaws and of Section 145 of
the Delaware Code is not intended to be exhaustive and is qualified in its
entirety by such Amended and Restated Corporate Bylaws and the Delaware
Code.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Insofar
as indemnification for liabilities arising under the Securities Act may be
permitted to directors, officers or persons controlling the Company pursuant to
the foregoing provisions, the Company has been informed that in the opinion of
the Commission such indemnification is against public policy as expressed in the
Securities Act and is therefore unenforceable.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
7.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Exemption
from Registration Claimed.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">None.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
8.&#160;&#160;Exhibits.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
following are filed as exhibits to this Registration Statement:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Exhibit
No</font>.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Description</font></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
              <td style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
              </td>
              <td style="WIDTH: 72pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.1</font></div>
              </td>
              <td>
                <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Certificate
      of Incorporation of the Company, as amended (incorporated by reference
      from Exhibit 3.1 of the Company's Annual Report on Form 10-K for the year
      ended October 2, 2004).</font></div>
              </td>
            </tr></table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
              <td style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
              </td>
              <td style="WIDTH: 72pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.2</font></div>
              </td>
              <td>
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amended
      and Restated Corporate Bylaws of the Company (incorporated by reference
      from Exhibit 3.1 of the Company's Current Report on Form 8-K filed on
      December 4, 2007).</font></div>
              </td>
            </tr></table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
              <td style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
              </td>
              <td style="WIDTH: 72pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.3</font></div>
              </td>
              <td>
                <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Specimen
      form of certificate representing $0.01 par value Common
    Stock.</font></div>
              </td>
            </tr></table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
              <td style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
              </td>
              <td style="WIDTH: 72pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5.1</font></div>
              </td>
              <td>
                <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Opinion
      of Baker &amp; McKenzie LLP. *</font></div>
              </td>
            </tr></table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
              <td style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
              </td>
              <td style="WIDTH: 72pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">23.1</font></div>
              </td>
              <td>
                <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consent
      of Ernst &amp; Young LLP.*</font></div>
              </td>
            </tr></table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
              <td style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
              </td>
              <td style="WIDTH: 72pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">23.2</font></div>
              </td>
              <td>
                <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consent
      of Baker &amp; McKenzie LLP (included in Exhibit
  5.1).*</font></div>
              </td>
            </tr></table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
              <td style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
              </td>
              <td style="WIDTH: 72pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">24</font></div>
              </td>
              <td>
                <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Power
      of Attorney (included on the signature page of the Registration
      Statement).*</font></div>
              </td>
            </tr></table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
              <td style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
              </td>
              <td style="WIDTH: 72pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.1</font></div>
              </td>
              <td>
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amended
      and Restated Employment Agreement between the Company and Don Jackson
      dated January 27, 2008 (incorporated by reference from Exhibit 10.1 of the
      Company's Current Report on Form 8-K filed on January 30,
      2009).</font></div>
              </td>
            </tr></table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">_________________________</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">* filed
herewith</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
9.&#160;&#160;Undertakings.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a) The
undersigned registrant hereby undertakes:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1) To
file, during any period in which offers or sales are being made, a
post-effective amendment to this registration statement:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(i) To
include any prospectus required by Section&#160;10(a)(3) of the Securities
Act;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(ii) To
reflect in the prospectus any facts or events arising after the effective date
of the registration statement (or the most recent post-effective amendment
thereof) which, individually or in the aggregate, represent a fundamental change
in the information set forth in the registration statement. Notwithstanding the
foregoing, any increase or decrease in volume of securities offered (if the
total dollar value of securities offered would not exceed that which was
registered) and any deviation from the low or high end of the estimated maximum
offering range may be reflected in the form of prospectus filed with the
Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume
and price represent no more than a 20 percent change in the maximum aggregate
offering price set forth in the "Calculation of Registration Fee" table in the
effective registration statement;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iii) To
include any material information with respect to the plan of distribution not
previously disclosed in the registration statement or any material change to
such information in the registration statement;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">provided, however</font>, that
paragraphs (a)(1)(i) and (a)(1)(ii) of this section do not apply if the
information required to be included in a post-effective amendment by those
paragraphs is contained in reports filed with or furnished to the Commission by
the registrant pursuant to section 13 or section 15(d) of the Exchange Act that
are incorporated by reference in the registration statement.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2) That,
for the purpose of determining any liability under the Securities Act, each such
post-effective amendment shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering
thereof.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3) To
remove from registration by means of a post-effective amendment any of the
securities being registered which remain unsold at the termination of the
offering.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b) The
undersigned registrant hereby undertakes that, for the purposes of determining
any liability under the Securities Act, each filing of the registrant's annual
report pursuant to Section 13(a) or 15(d) of the Exchange Act (and, where
applicable, each filing of an employee benefit plan's annual report pursuant to
Section 15(d) of the Exchange Act) that is incorporated by reference in the
registration statement shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering
thereof.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)
Insofar as indemnification for liabilities arising under the Securities Act may
be permitted to directors, officers and controlling persons of the registrant
pursuant to the foregoing provisions, or otherwise, the registrant has been
advised that in the opinion of the Commission such indemnification is against
public policy as expressed in the Securities Act and is, therefore,
unenforceable. In the event that a claim for indemnification against such
liabilities (other than the payment by the registrant of expenses incurred or
paid by a director, officer or controlling person of the registrant in the
successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered, the registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public
policy as expressed in the Securities Act and will be governed by the final
adjudication of such issue.</font></div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;
</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SIGNATURES</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
to the requirements of the Securities Act, the Company certifies that it has
reasonable grounds to believe that it meets all of the requirements for filing
on Form S-8 and has duly caused this Registration Statement to be signed on its
behalf by the undersigned, hereunto duly authorized, in the City of Pittsburg,
State of Texas, on December 9, 2009.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr>
              <td valign="top" width="39%" style="BORDER-TOP: #ffffff 0.75pt solid; BORDER-BOTTOM: black 2px solid"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" valign="top" width="39%" style="BORDER-TOP: #ffffff 0.75pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">PILGRIM'S
      PRIDE CORPORATION</font></div>
              </td>
            </tr><tr>
              <td valign="top" width="39%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="39%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr><tr>
              <td valign="top" width="39%" style="BORDER-BOTTOM: black 2px solid"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" valign="top" width="39%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">By:&#160;&#160;<font style="DISPLAY: inline">/s/ Richard A.
      Cogdill</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 54pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Richard
      A. Cogdill</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 54pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Chief
      Financial Officer, Secretary</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 54pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">and
      Treasurer</font></div>
              </td>
            </tr></table>
      </div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">POWER
OF ATTORNEY</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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person whose signature appears below hereby constitutes and appoints Richard A.
Cogdill his or her true and lawful attorney-in-fact and agent, with full power
of substitution and resubstitution, for him or her and in his or her name, place
and stead, in any and all capacities, to sign any and all amendments (including
post-effective amendments) to this Registration Statement, and to file the same,
with all exhibits thereto, and other documents in connection therewith, with the
Commission, and hereby grants to such attorney-in-fact and agent full power and
authority to do and perform each and every act and thing requisite and necessary
to be done, as fully to all intents and purposes as he or she might or could do
in person, hereby ratifying and confirming that said attorney-in-fact and agent,
or his substitute or substitutes, may lawfully do or cause to be done by virtue
hereof.</font></div>
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to the requirements of the Securities Act, this registration statement has been
signed by the following persons in the capacities indicated as of December 9,
2009.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
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<tr>
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              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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            </tr><tr>
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              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="17%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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            </tr><tr>
              <td valign="bottom" width="23%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="17%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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            </tr><tr>
              <td align="left" valign="bottom" width="23%" style="BORDER-BOTTOM: black 2px solid">
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      Lonnie "Bo" Pilgrim</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" valign="bottom" width="41%">
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              </td>
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              <td align="left" valign="bottom" width="17%">
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      9, 2009</font></div>
              </td>
            </tr><tr>
              <td align="left" valign="bottom" width="23%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 18pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Lonnie
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              <td valign="bottom" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="17%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr><tr>
              <td valign="bottom" width="23%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="17%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr><tr>
              <td valign="bottom" width="23%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="17%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr><tr>
              <td align="left" valign="bottom" width="23%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 18pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">/s/
      Don Jackson</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td align="left" valign="bottom" width="41%">
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              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" valign="bottom" width="17%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">December
      9, 2009</font></div>
              </td>
            </tr><tr>
              <td align="left" valign="bottom" width="23%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 18pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Don
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              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="17%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr><tr>
              <td valign="bottom" width="23%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="17%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr><tr>
              <td valign="bottom" width="23%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="17%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td align="left" valign="bottom" width="23%" style="BORDER-BOTTOM: black 2px solid">
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              <td align="left" valign="bottom" width="17%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">December
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            </tr><tr>
              <td align="left" valign="bottom" width="23%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 18pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Richard
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              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="17%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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            </tr><tr>
              <td valign="bottom" width="23%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td align="left" valign="bottom" width="41%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(Principal
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              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="17%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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            </tr><tr>
              <td valign="bottom" width="23%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="17%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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      Charles L. Black</font></div>
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              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td align="left" valign="bottom" width="17%">
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              </td>
            </tr><tr>
              <td align="left" valign="bottom" width="23%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 18pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Charles
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              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="17%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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            </tr><tr>
              <td valign="bottom" width="23%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="17%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="23%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="17%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              </td>
            </tr><tr>
              <td align="left" valign="bottom" width="23%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 18pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Linda
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              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="17%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr><tr>
              <td valign="bottom" width="23%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="17%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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            </tr><tr>
              <td valign="bottom" width="23%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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      9, 2009</font></div>
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            </tr><tr>
              <td align="left" valign="bottom" width="23%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 18pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">S.
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              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="17%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="23%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="17%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="23%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="17%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="23%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="17%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="23%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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<tr>
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              <td valign="bottom" width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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            </tr><tr>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 18pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Lonnie
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              <td valign="bottom" width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="top" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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            </tr><tr>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 18pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">James
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              <td valign="bottom" width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="top" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="bottom" width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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      Donald L. Wass, Ph.D.</font></div>
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      </font></td>
              <td align="left" valign="bottom" width="40%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Director</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" colspan="3" valign="bottom" width="17%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">December
      9, 2009</font></div>
              </td>
            </tr><tr>
              <td align="left" valign="bottom" width="24%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 18pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Donald
      L. Wass, Ph.D.</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td colspan="3" valign="bottom" width="17%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr><tr>
              <td valign="bottom" width="24%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td colspan="3" valign="bottom" width="17%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr></table>
      </div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;
</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">EXHIBIT
INDEX</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Exhibit
No</font>.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Description</font></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
              <td style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
              </td>
              <td style="WIDTH: 72pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.1</font></div>
              </td>
              <td>
                <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Certificate
      of Incorporation of the Company, as amended (incorporated by reference
      from Exhibit 3.1 of the Company's Annual Report on Form 10-K for the year
      ended October 2, 2004).</font></div>
              </td>
            </tr></table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
              <td style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
              </td>
              <td style="WIDTH: 72pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.2</font></div>
              </td>
              <td>
                <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amended
      and Restated Corporate Bylaws of the Company (incorporated by reference
      from Exhibit 3.1 of the Company's Current Report on Form 8-K filed on
      December 4, 2007).</font></div>
              </td>
            </tr></table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
              <td style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
              </td>
              <td style="WIDTH: 72pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.3</font></div>
              </td>
              <td>
                <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Specimen
      form of certificate representing $0.01 par value Common
    Stock.</font></div>
              </td>
            </tr></table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
              <td style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
              </td>
              <td style="WIDTH: 72pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5.1</font></div>
              </td>
              <td>
                <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Opinion
      of Baker &amp; McKenzie LLP. *</font></div>
              </td>
            </tr></table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
              <td style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
              </td>
              <td style="WIDTH: 72pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">23.1</font></div>
              </td>
              <td>
                <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consent
      of Ernst &amp; Young LLP.*</font></div>
              </td>
            </tr></table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
              <td style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
              </td>
              <td style="WIDTH: 72pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">23.2</font></div>
              </td>
              <td>
                <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consent
      of Baker &amp; McKenzie LLP (included in Exhibit
  5.1).*</font></div>
              </td>
            </tr></table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
              <td style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
              </td>
              <td style="WIDTH: 72pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">24</font></div>
              </td>
              <td>
                <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Power
      of Attorney (included on the signature page of the Registration
      Statement).*</font></div>
              </td>
            </tr></table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
              <td style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
              </td>
              <td style="WIDTH: 72pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.1</font></div>
              </td>
              <td>
                <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amended
      and Restated Employment Agreement between the Company and Don Jackson
      dated January 27, 2008 (incorporated by reference from Exhibit 10.1 of the
      Company's Current Report on Form 8-K filed on January 30,
      2009).</font></div>
              </td>
            </tr></table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">________________________</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">* filed
herewith</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;
</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibit
5.1</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">December
10, 2009</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
              <td style="WIDTH: 12.2pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
              </td>
              <td>
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pilgrim&#8217;s
      Pride Corporation</font></div>
              </td>
            </tr></table>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
              <td style="WIDTH: 12.2pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
              </td>
              <td>
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4845
      US Highway 271 North</font></div>
              </td>
            </tr></table>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
              <td style="WIDTH: 12.2pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
              </td>
              <td>
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pittsburg,
      Texas 75686-0093</font></div>
              </td>
            </tr></table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ladies
and Gentlemen:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pilgrim&#8217;s
Pride Corporation (the "Company"), a Delaware corporation, has filed with the
Securities and Exchange Commission (the "Commission") on the date hereof a
registration statement (the "Registration Statement") on Form S-8 under the
Securities Act of 1933, as amended (the "Act").&#160;&#160;The Registration
Statement covers 3,085,656&#160;&#160;shares of the Company&#8217;s common stock,
$0.01 par value per share (the "Securities"), issued to an executive of the
Company pursuant to the amended and restated employment agreement between the
Company and the executive dated January 27, 2009 (the "Agreement"), to be
registered for resale by means of the Registration Statement, and any additional
shares of the Company&#8217;s common stock as a result of stock dividend, stock split,
recapitalization or other similar transaction.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We have
acted as counsel to the Company in connection with the preparation and filing of
the Registration Statement.&#160;&#160;In rendering this opinion, we have
examined the Registration Statement, the prospectus attached thereto and
originals or copies, certified or otherwise identified to our satisfaction, of
such records, agreements and instruments of the Company, certificates of public
officials and of officers of the Company and such other documents and records,
including without limitation, the Order Authorizing Debtors To Enter Into
Employment Agreement With Don Jackson, of the United States Bankruptcy Court for
the Northern District of Texas Fort Worth Division (the "Order"), have received
such representations from the officers of the Company, and have reviewed such
questions of law as in our judgment are necessary, relevant or appropriate to
enable us to render the opinion expressed below.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As to any
facts material to our opinion, we have made no independent investigation of such
facts and have relied, to the extent that we deem such reliance proper, upon
certificates of public officials and officers or other representatives of the
Company.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
rendering the opinions set forth below, we have assumed that (i) all information
contained in all documents reviewed by us is true and correct, (ii) all
signatures on all documents examined by us are genuine, (iii) the Order has not
been modified or rescinded and is in full force and effect on the date hereof,
(iv) all documents submitted to us as originals are authentic and all documents
submitted to us as copies conform to the originals of those documents, (v) each
natural person signing any document reviewed by us had the legal capacity to do
so,&#160;&#160;and (vi) each person signing in a representative capacity (other
than on behalf of the Company) any document reviewed by us had authority to sign
in such capacity. This opinion further assumes compliance both in the past and
in the future with the terms of the Agreement by the Company and the
executive.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Based
upon such examination and review and upon representations made to us by officers
of the Company, we are of the opinion that upon issuance and delivery of the
Securities in accordance with the applicable terms and conditions of the
Agreement, and assuming no change in the applicable law or facts, the Securities
will be validly issued, fully paid and nonassessable.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
foregoing opinion is limited in all respects to the corporate laws of the State
of Delaware and the federal laws of United States of America, in each case,
that, in our experience, are normally applicable to transactions of the type
contemplated by the Registration Statement and, to the extent that judicial or
regulatory orders or decrees or consents, approvals, licenses, authorizations,
validations, filings, recordings or registrations with governmental authorities
are relevant, to those required under such laws, and we do not express any
opinions as to the laws of any other jurisdiction.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
opinion is limited to the laws, including the rules and regulations, as in
effect on the date hereof, which laws are subject to change with possible
retroactive effect and to the facts as they presently exist and we have no
continuing obligation hereunder to inform you of changes of law, including
judicial interpretations of law, or of facts of which we become aware after the
date hereof.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
opinion letter is limited to the matters stated herein, and no opinion is
implied or may be inferred beyond the matters expressly stated.&#160;&#160;We
hereby consent to the filing of this opinion as herein set forth as an exhibit
to the Registration Statement.&#160;&#160;In giving such consent, we do not
hereby admit that we come within the category of persons whose consent is
required by Section 7 of the Act or the rules and regulations of the Commission
promulgated thereunder or Item 509 of Regulation S-K.</font></div>
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      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">CONSENT
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a name="50" /><a name="51">We consent to the reference to our firm under the caption
&#8220;Experts&#8221; in the Registration Statement (Form S-8) pertaining to the Amended and
Restated Employment Agreement Plan of Pilgrim&#8217;s Pride Corporation and to the
incorporation by reference therein of our reports dated November 20, 2009, with
respect to the consolidated financial statements and schedule of Pilgrim&#8217;s Pride
Corporation and the effectiveness of internal control over financial reporting
of Pilgrim&#8217;s Pride Corporation, included in its Annual Report (Form 10-K) for
the fiscal year ended September 26, 2009, filed with the Securities and Exchange
Commission.</a></font></div>
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{"company-data": {"conformed-name": "PILGRIMS PRIDE CORP", "cik": "0000802481", "assigned-sic": "2015", "irs-number": "751285071", "state-of-incorporation": "DE", "fiscal-year-end": "0304"}, "filing-values": {"form-type": "S-8", "act": "33", "file-number": "333-163639", "film-number": "091234015"}, "business-address": {"street1": "4845 US HWY. 271 N.", "city": "PITTSBURG", "state": "TX", "zip": "75686", "phone": "9034341402"}, "mail-address": {"street1": "4845 US HWY. 271 N.", "city": "PITTSBURG", "state": "TX", "zip": "75686"}}
s_8.htm
As filed
with the Securities and Exchange Commission on December 10, 2009
Registration
No. 333-
______________
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
_______________________________
FORM
S-8
REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OF 1933
_______________________________
PILGRIM'S
PRIDE CORPORATION
(Exact
name of registrant as specified in its charter)
Delaware
(State
      or other jurisdiction of
incorporation
      or organization)
75-1285071
(I.R.S.
      Employer
Identification
      No.)
4845
      US Hwy 271 North
Pittsburg,
      Texas
(Address
      of principal executive offices)
75686-0093
(Zip
      Code)
AMENDED
AND RESTATED EMPLOYMENT AGREEMENT
(Full
title of the plan)
Richard
A. Cogdill
Chief
Financial Officer, Secretary and Treasurer
4845
US Hwy 271 North
Pittsburg,
Texas 75686-0093
(903)
855-1000
(Name,
address, telephone number, including area code, of agent for
service)
with
a copy to:
W.
Crews Lott
Baker
& McKenzie LLP
2300
Trammell Crow Center
2001
Ross Avenue
Dallas,
Texas 75201
_______________________________
Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting company. See
the definitions of "large accelerated filer," "accelerated filer" and "smaller
reporting company" in Rule 12b-2 of the Exchange Act.
Large
      accelerated filer
¨
Accelerated
      filer
x
Non-accelerated
      filer
¨
(Do
      not check if a smaller reporting company)
Smaller
      reporting company
¨
CALCULATION
OF REGISTRATION FEE
Title
      of securities to be registered (1)(2)
Amount
      to be registered
Proposed
      maximum offering price per share (3)
Proposed
      maximum aggregate offering
price
      (3)
Amount
      of registration fee
Common
      Stock,
par
      value $0.01 per share
3,085,656
      shares
$6.90
$21,291,027
$1,188.04
(1)           This
Registration Statement covers 3,085,656 shares of common stock, par value $0.01
per share (the "Common Stock"), of Pilgrim's Pride Corporation (the "Company")
issued pursuant to the amended and restated employment agreement between the
Company and Don Jackson dated January 27, 2009.
(2)           In
addition, this Registration Statement covers such indeterminate number of shares
of Common Stock as may be issued resulting from stock splits, stock dividends or
similar transactions in accordance with Rule 416 under the Securities Act
of 1933, as amended (the "Securities Act"). All such shares of Common Stock are
subject to the reoffer prospectus included herein and are registered for offer
and sale hereunder.
(3)           Estimated
solely for the purpose of calculating the registration fee pursuant to
Rule 457(c) and (h) promulgated under the Securities Act on the basis of
the average of the high and low prices of the Common Stock on December 3, 2009,
as reported on the Pink Sheets Electronic Quotation Service.
EXPLANATORY
NOTE
This
Registration Statement covers 3,085,656 shares of common stock, par value $0.01
per share (the "Common Stock"), of Pilgrim's Pride Corporation (the "Company")
issued pursuant to the amended and restated employment agreement between the
Company and Don Jackson dated January 27, 2009. References in this Registration
Statement and the prospectus which is a part hereof to "Pilgrim's Pride," "the
Company," "we," "us," "our," or similar terms refer to Pilgrim's Pride
Corporation.
This
Registration Statement contains two parts. Part I contains a reoffer prospectus
pursuant to Form S−3 (in accordance with Section C of the General Instructions
to the Form S−8), which covers reoffers and resales of "restricted securities"
and/or "control securities" (as such terms are defined in Section C of the
General Instructions to Form S−8) of the Company. Part II of this Registration
Statement contains information required in the Registration Statement pursuant
to Part II of Form S−8.
PART
I
REOFFER
PROSPECTUS
PILGRIM'S
PRIDE CORPORATION
3,085,656
Shares of Common Stock
_______________________________
This
prospectus relates to shares of the Common Stock, which may be offered from time
to time by Don Jackson, the Company's President and Chief Executive Officer, or
the selling stockholder, for his own account.  The shares of Common
Stock covered by this prospectus were issued pursuant to the amended and
restated employment agreement between the Company and Don Jackson dated January
27, 2009 (the "Employment Agreement").
This
prospectus has been prepared for the purpose of registering the shares of Common
Stock under the Securities Act of 1933, as amended (the "Securities Act"), to
allow for future sale to the public by the selling stockholder, on a continuous
or delayed basis. The selling stockholder and any participating broker or dealer
may be deemed to be an "underwriter" within the meaning of the Securities Act,
in which event any profit on the sale of shares by the selling stockholder and
any commissions or discounts received by those brokers or dealers may be deemed
to be underwriting compensation under the Securities Act.
Our
Common Stock is quoted on the Pink Sheets Electronic Quotation Service under the
ticker symbol "PGPDQ.PK."  On December 9, 2009, the last reported sale
price of our Common Stock was $7.17 per share.
_______________________________
THIS
DOCUMENT CONSTITUTES PART OF A PROSPECTUS COVERING SECURITIES
THAT HAVE
BEEN REGISTERED UNDER THE SECURITIES ACT.
_______________________________
Investing
in our Common Stock involves risks.
You
should consider carefully the
risk factors
beginning on page 2 of this prospectus.
_______________________________
Neither
the Securities and Exchange Commission (the "Commission") nor any state
securities commission has approved or disapproved of these securities or
determined that this prospectus is truthful or complete. Any representation to
the contrary is a criminal offense.
_______________________________
The date
of this prospectus is December 10, 2009.
REOFFER
PROSPECTUS
TABLE
OF CONTENTS
PAGE
The
      Company
1
Forward
      Looking Statements
1
Risk
      Factors
2
Use
      of Proceeds
14
The
      Selling Stockholder
15
Plan
      of Distribution
15
Legal
      Matters
17
Experts
17
Incorporation
      of Certain Information by Reference
17
Where
      You Can Find More Information
18
Indemnification
      of Directors and Officers
18
The
Company
We are
one the largest chicken companies in the United States ("US"), Mexico and Puerto
Rico. Our fresh chicken retail line is sold throughout the US, throughout Puerto
Rico, and in the northern and central regions of Mexico. Our prepared
chicken products meet the needs of some of the largest customers in the food
service industry across the US. Additionally, the Company exports commodity
chicken products to over 90 countries. As a vertically integrated company, we
control every phase of the production of our products. We operate feed
mills, hatcheries, processing plants and distribution centers in
14 US states, Puerto Rico and Mexico. Pilgrim's Pride operates in
two business segments—Chicken and Other Products. The Company, which was
incorporated in Texas in 1968 and re-incorporated in Delaware in 1986, is the
successor to a partnership founded in 1946 that operated a retail feed
store.
On
December 1, 2008 (the "Petition Date"), the Company and six of its subsidiaries
(collectively, the "Debtors") filed voluntary petitions for relief under Chapter
11 of Title 11 of the United States Code (the "Bankruptcy Code") in the
United States Bankruptcy Court for the Northern District of Texas, Fort Worth
Division (the "Bankruptcy Court"). The cases are being jointly administered
under Case No. 08-45664. The Company's subsidiaries in Mexico and certain
subsidiaries in the US were not included in the filing and continue to operate
outside of the Chapter 11 process.
On
September 17, 2009, the Debtors filed their Joint Plan of Reorganization Under
Chapter 11 of the Bankruptcy Code with the Bankruptcy Court, along with the
Disclosure Statement for the Debtors' Joint Plan of Reorganization under Chapter
11 of the Bankruptcy Code (as amended and supplemented, the "Disclosure
Statement"). On November 11, 2009, the Debtors filed an Amended Joint Plan of
Reorganization Under Chapter 11 of the Bankruptcy Code (As Modified) with the
Bankruptcy Court (as amended and supplemented, the "Proposed Plan") which
altered the treatment of unsecured note holders to provide that unsecured note
holders may take a cash option rather than have their notes reinstated. The
Proposed Plan provides, among other things, for a reorganization of the Debtors'
businesses as a going concern.
The
Proposed Plan is premised on (i) a transaction with JBS USA Holdings, Inc. (the
"Plan Sponsor" or "JBS USA") whereby, pursuant to the stock purchase agreement
between the Company and the Plan Sponsor dated September 16, 2009 (the "SPA"),
the Plan Sponsor will purchase approximately 64% of the common stock of the
reorganized Company ("Reorganized PPC") in exchange for $800 million in cash
(the "Proposed Acquisition"), to be used by the Debtors to, among other things,
fund distributions to holders of allowed claims under the Proposed Plan, and
(ii) the Debtors entering into a new credit facility having an aggregate
commitment of up to $1,750 million (as described below, the "Exit Credit
Facility"). If the Proposed Plan is confirmed and becomes effective, the Company
will adopt and file an Amended and Restated Certificate of Incorporation (the
"Restated Certificate of Incorporation") and will adopt Amended and Restated
Corporate Bylaws.
The
Debtors are currently operating as "debtors-in-possession" under the
jurisdiction of the Bankruptcy Court and in accordance with the applicable
provisions of the Bankruptcy Code and orders of the Bankruptcy Court. In
general, as debtors-in-possession, we are authorized under Chapter 11 to
continue to operate as an ongoing business, but may not engage in transactions
outside the ordinary course of business without the prior approval of the
Bankruptcy Court.
The
Company's principal executive offices are located at 4845 US Hwy 271 North,
Pittsburg, Texas 75686-0093 and its telephone number is
(903) 434-1000.
Forward
Looking Statements
This
prospectus and other documents filed and incorporated by reference in this
prospectus include or may contain certain forward-looking statements. Statements
of our intentions, beliefs, expectations or predictions for the future, denoted
by the words "anticipate," "believe," "estimate," "expect," "project," "plan,"
"imply," "intend," "foresee" and similar expressions, are forward-looking
statements that reflect our current views about future events and are subject to
risks, uncertainties and assumptions. Such risks, uncertainties and assumptions
include those described under "Risk Factors" below and in our Annual Report on
Form 10-K for the fiscal year ended September 26, 2009, filed with the
Commission on November 23, 2009.
Actual
results could differ materially from those projected in these forward-looking
statements as a result of these factors, among others, many of which are beyond
our control.
In making
these statements, we are not undertaking, and specifically decline to undertake,
any obligation to address or update each or any factor in future filings or
communications regarding our business or results, and we are not undertaking to
address how any of these factors may have caused changes in information
contained in previous filings or communications. The risks described below and
in our Annual Report on Form 10-K for the fiscal year ended September 26, 2009,
are not the only risks we face, and additional risks and uncertainties may also
impair our business operations. The occurrence of any one or more of the
following or other currently unknown factors could materially adversely affect
our business and operating results.
Risk
Factors
You
should carefully consider the risks and uncertainties described below before
making an investment decision. Any of the following risks could materially
adversely affect our business, operations, industry or financial position or our
future financial performance. While we believe we have identified and discussed
below all risk factors affecting our business that we believe are material,
there may be additional risks and uncertainties that are not presently known or
that are not currently believed to be significant that may adversely affect our
business, operations, industry, financial position and financial performance in
the future. The trading price of our Common Stock could decline due to any
of these risks, and you may lose all or part of your investment. You should also
refer to the other information included or incorporated by reference in this
prospectus, including our financial statements and related notes.
Proposed Plan of Reorganization and
the Proposed Acquisition.
We may not be able to obtain
confirmation of the proposed plan of reorganization.
We cannot
ensure that we will receive the requisite Proposed Plan acceptances to confirm
the Proposed Plan. Even if we receive the requisite Proposed Plan acceptances,
we cannot ensure that the Bankruptcy Court will confirm the Proposed Plan. The
adequacy of the Disclosure Statement or the balloting procedures and results may
be challenged as not being in compliance with the Bankruptcy Code, and even if
the Bankruptcy Court determined that the Disclosure Statement and the balloting
procedures and results were appropriate, the Bankruptcy Court could still
decline to confirm the Proposed Plan if it found that any of the statutory
requirements for confirmation had not been met. Section 1129 of the
Bankruptcy Code sets forth the requirements for confirmation and requires, among
other things:  (i) a finding by a bankruptcy court that a plan "does
not unfairly discriminate" and is "fair and equitable" with respect to any
non-accepting classes, (ii) confirmation is not likely to be followed by a
liquidation or a need for further financial reorganization and (iii) the value
of distributions to non-accepting holders of claims and interests within a
particular class under the plan will not be less than the value of distributions
such holders would receive if the debtors were liquidated under Chapter 7 of the
Bankruptcy Code. While there can be no assurance that these requirements will be
met, we believe that the Proposed Plan does not unfairly discriminate and is
fair and equitable, will not be followed by a need for further financial
reorganization, and that non-accepting holders under the Proposed Plan will
receive distributions at least as great as would be received following a
liquidation under Chapter 7 of the Bankruptcy Code.
Although
we believe that the Proposed Plan will satisfy all requirements necessary for
confirmation by the Bankruptcy Court, there can be no assurance that the
Bankruptcy Court will reach the same conclusion. Moreover, there can be no
assurance that modifications of the Proposed Plan will not be required for
confirmation or that such modifications would not necessitate the resolicitation
of votes. In addition, although we believe that the confirmation of the Proposed
Plan will occur on or before December 31, 2009, there can be no assurance as to
such timing.
Confirmation of the Proposed
Plan.
Our inability to obtain confirmation of the Proposed
Plan within the timeframe currently contemplated may significantly disrupt our
operations.
The
impact a continuation of the bankruptcy proceedings may have on our operations
and businesses cannot be accurately predicted or quantified. Since the Petition
Date, we have suffered disruptions in operations, including losses of customers
and suppliers.  The continuation of the bankruptcy proceedings,
particularly if the Proposed Plan is not approved or confirmed in the time frame
currently contemplated, could further adversely affect our operations and
relationships with our customers, vendors, suppliers and employees. If
confirmation of the Proposed Plan does not occur expeditiously, the bankruptcy
proceedings could result in, among other things, increases in costs,
professional fees and similar expenses. In addition, prolonged bankruptcy
proceedings may make it more difficult to retain and attract management and
other key personnel, and would require senior management to spend a significant
amount of time and effort dealing with our financial reorganization instead of
focusing on the operation of our businesses.
Liquidation or Financial
Reorganization.
Holders of our equity interests may face significant
losses in the event of our subsequent liquidation or financial
reorganization.
Our
management believes that, if it is permitted to implement its business plan and
if we meet our current financial projections as updated by the subsequently
identified variances, the confirmation of the Proposed Plan is not likely to be
followed by the liquidation, or the need for further financial reorganization.
Nevertheless, there can be no assurance that such liquidation will not occur or
that the need for such financial reorganization will not arise. Substantially
all of our unencumbered assets will be pledged to secure our obligations under
the Exit Credit Facility. Accordingly, after consummation of the Proposed Plan,
if we were to be liquidated or if the need for a further financial
reorganization were to arise, our unencumbered assets likely would be
insufficient to provide the holders of our equity interests with any material
recovery.
Closing Conditions to the
SPA
.  The satisfaction or waiver of the closing conditions to
the SPA is a condition precedent for the confirmation of the Proposed Plan and
may prevent or delay confirmation of the Proposed Plan if such conditions are
not satisfied or waived as provided in the SPA.
The Plan
Sponsor has entered into the SPA and has agreed to purchase 64% of the common
stock of the Reorganized PPC as provided therein. However, the SPA is subject a
number of conditions precedent that must be satisfied or waived by the parties
thereto. These conditions include, in addition to certain customary closing
conditions, the satisfaction or waiver of the conditions precedent in respect to
the Exit Credit Facility and the Company's access to funding thereunder. To
date, the Company has only received non-binding mandate letters from the
potential lenders party to the Exit Credit Facility. If any of the closing
conditions in the SPA are not satisfied or waived, we will not be able to meet a
condition precedent for confirmation of the Proposed Plan. We can provide no
assurance that the closing conditions in the SPA will be satisfied or, if not
satisfied, waived by the parties thereto.
Plan Sponsor's Ownership
Percentage
.  If the Plan Sponsor's ownership percentage in the
Reorganized PPC increases to 90% or more there will be no Equity Directors on
the Reorganized PPC's board of directors.
Pursuant
to the terms of the Restated Certificate of Incorporation, the Plan Sponsor has
the right to elect six directors to the Reorganized PPC's board of directors,
with the minority stockholders having the right to elect two Equity Directors
(as defined in the Restated Certificate of Incorporation). If the Plan Sponsor's
ownership percentage in the Reorganized PPC increases to 90% or above, the
minority stockholders will no longer have the right to elect the Equity
Directors.
Mandatory Exchange
Transaction
.  Holders of Reorganized PPC's common stock may
ultimately receive shares of JBS USA common stock.
Under the
Proposed Plan, in the event JBS USA completes an initial public offering of its
common stock, and the offered shares are listed on a national securities
exchange, then, at any time during an exchange window falling within the period
commencing on the date of the closing of such offering and ending two years and
30 days from the effective date of the Proposed Plan, JBS USA will have the
right to deliver written notice of the mandatory exchange of the Reorganized
PPC's common stock for JBS USA common stock (the "Mandatory Exchange
Transaction") to Reorganized PPC at its principal place of business. Upon
delivery to Reorganized PPC of notice of the Mandatory Exchange Transaction each
share of Reorganized PPC's common stock held by stockholders other than JBS USA
will automatically, without any further action on behalf of Reorganized PPC, be
transferred to JBS USA in exchange for a number of duly authorized, validly
issued, fully paid and non-assessable shares of JBS USA common stock equal to
the Exchange Offer Ratio (as defined below). The Mandatory Exchange Transaction
is required to be effected in compliance with all applicable laws in accordance
with the Restated Certificate of Incorporation.
The
Exchange Offer Ratio is a fraction, the numerator of which is the average
volume-weighted daily trading price per share on a national securities exchange
for the common stock of Reorganized PPC and the denominator of which is the
average volume-weighted daily trading price per share on the principal exchange
for the JBS USA common stock, in each case for the Measurement Period. The
"Measurement Period" is a number of consecutive trading days which is equal to
twice the number of consecutive trading days between (i) the first date on which
both JBS USA and Reorganized PPC shall have both made their respective annual or
quarterly reports or earnings releases and (ii) the date on which JBS USA
delivers to Reorganized PPC the notice of the Mandatory Exchange
Transaction.
The
shares of common stock of Reorganized PPC may in the future be exchanged for
shares of JBS USA common stock without the consent or election of holders of
Reorganized PPC's common stock.
For more
information about the Plan Sponsor and its business, refer to a copy of the Plan
Sponsor's Registration Statement on Amendment No. 1 to Form S-1 filed with the
Commission on November 2, 2009. The Registration Statement was prepared by, and
is the responsibility of JBS USA. We disclaim any responsibility for the
accuracy or completeness of this document and it is not included as a part of,
or incorporated by reference into, this report.
Mandatory Exchange
Transaction
.  The market price of the JBS USA common stock may
adversely affect the market price for Reorganized PPC's common
stock.
If JBS
USA completes an initial public offering of its common stock prior to the
expiration of the deadline for their exercise of the Mandatory Exchange
Transaction, the market price of the JBS USA common stock may influence the
market price of the common stock of Reorganized PPC. For example, the market
price of the Reorganized PPC's common stock could become more volatile and could
be depressed by (a) lack of trading activity in Reorganized PPC's common stock
as a result of investors' anticipation of JBS USA's potential exercise of the
Mandatory Exchange Transaction, (b) possible sales by holders of Reorganized
PPC's common stock who do not wish to receive shares of JBS USA common stock,
and (c) hedging or arbitrage trading activity that may develop involving
Reorganized PPC's common stock and JBS USA common stock.
Mandatory Exchange
Transaction
.  Holders of Reorganized PPC's common stock will
bear the full risk of a decline in the market price of Reorganized PPC's common
stock.
The
number of shares of JBS USA common stock that holders of Reorganized PPC's
common stock will receive upon JBS USA's exercise of the Mandatory Exchange
Transaction will be equal to the Exchange Offer Ratio (as defined above). As a
result, the number of shares that holders of Reorganized PPC's common stock will
receive in JBS USA is not fixed, but instead will depend on the market values of
both companies during a specified period of time. The aggregate market value of
the JBS USA common stock deliverable upon the consummation of the Mandatory
Exchange Transaction may be less than the aggregate market value of the
Reorganized PPC's common stock originally received pursuant to the Proposed
Plan. Accordingly, holders of Reorganized PPC's common stock will bear the full
risk of a decline in the market price of Reorganized PPC's common stock. Any
such decline could be substantial.
Mandatory Exchange
Transaction
.  The Plan Sponsor has no obligation to maintain a
listing for JBS USA common stock after the consummation of the Mandatory
Exchange Transaction.
The SPA
does not require the Plan Sponsor to maintain a listing for JBS USA common stock
after it completes the Mandatory Exchange Transaction. There can be no assurance
that there will be sufficient liquidity in the market for JBS USA common stock,
or that it will be possible to sell shares of JBS USA common stock when desired,
at a reasonable price or at all.
Mandatory
Exchange Transaction.  Holders of Reorganized PPC's common stock will
have no rights with respect to JBS USA common stock prior to the Mandatory
Exchange Transaction, but may be negatively affected by certain actions taken by
JBS USA.
Until the
consummation of the Mandatory Exchange Transaction, holders of Reorganized PPC's
common stock will have no rights with respect to the JBS USA common stock
(including, without limitation, voting rights, rights to receive dividends or
other distributions (if any) and rights to respond to tender offers). For
example, in the event that an amendment is proposed to the articles of
incorporation of JBS USA requiring stockholder approval and the record date for
determining the stockholders of record entitled to vote on the amendment occurs
prior to the consummation of the Mandatory Exchange Transaction, holders of
Reorganized PPC's common stock will not be entitled to vote on the amendment,
although they will nevertheless be subject to any changes in the powers,
preferences or special rights of the JBS USA common stock. In addition, JBS USA
may issue additional shares of JBS USA common stock, including in connection
with future acquisitions. The issuance of a significant amount of JBS USA common
stock would dilute the shares of JBS USA common stock acquired by holders of
Reorganized PPC's common stock pursuant to the Mandatory Exchange Transaction
and could depress the trading price of the JBS USA common stock.
Significant
Leverage.
Our future financial and operating flexibility may
be adversely affected by our significant leverage as a result of the Exit Credit
Facility.
We will
have substantial indebtedness, which could adversely affect our financial
condition. On the closing date of the Proposed Acquisition, after giving effect
to the transactions contemplated by the Proposed Plan, we will, on a
consolidated basis, have approximately $1.4 billion in secured indebtedness and
will have the ability to borrow approximately $0.3 billion under the Exit Credit
Facility, unless such requirement is waived by the lenders party thereto.
Significant amounts of cash flow will be necessary to make payments of interest
and repay the principal amount of such indebtedness.
The
degree to which we are leveraged could have important consequences
because:
·
It could
affect our ability to satisfy our obligations under the Exit Credit
Facility;
·
A
substantial portion of our cash flow from operations will be required to be
dedicated to interest and principal payments and may not be available for
operations, working capital, capital expenditures, expansion, acquisitions or
general corporate or other purposes;
·
Our
ability to obtain additional financing and to fund working capital, capital
expenditures and other general corporate requirements in the future may be
impaired;
·
We may be
more highly leveraged than some of their competitors, which may place us at a
competitive disadvantage;
·
Our
flexibility in planning for, or reacting to, changes in our business may be
limited;
·
It may
limit our ability to pursue acquisitions and sell assets; and
·
It may
make us more vulnerable in the event of another downturn in our business or the
economy in general.
Our
ability to make payments on and to refinance our debt, including the Exit Credit
Facility, will depend on our ability to generate cash in the future. This, to a
certain extent, is subject to various business factors (including, among others,
the commodity prices of feed ingredients and chicken) and general economic,
financial, competitive, legislative, regulatory, and other factors that are
beyond our control.
There can
be no assurance that we will be able to generate sufficient cash flow from
operations or that future borrowings will be available under credit facilities
in an amount sufficient to enable us to pay our debt obligations, including
obligations under the Exit Credit Facility, or to fund our other liquidity
needs. We may need to refinance all or a portion of their debt on or before
maturity. There can be no assurance that we will be able to refinance any of
their debt on commercially reasonable terms or at all.
Restrictive
Covenants.
Restrictive covenants in the Exit Credit Facility
may adversely affect our business activities and operations.
The Exit
Credit Facility will contain various covenants that may adversely affect our
ability to, among other things, incur additional indebtedness, incur liens, pay
dividends or make certain restricted payments, consummate certain asset sales,
enter into certain transactions with JBS USA and our other affiliates,
merge, consolidate and/or sell or dispose of all or substantially all of our
assets. In addition, the Exit Credit Facility will require us and certain of our
subsidiaries to maintain certain financial ratios and meet certain tests,
including leverage and interest coverage ratios. Covenants in the Exit Credit
Facility will also require us to use a portion of our cash flow and the proceeds
we receive from certain asset sales and specified debt or equity issuances and
upon the occurrence of other events to repay outstanding borrowings under the
Exit Credit Facility. These covenants may have important consequences on our
operations, including, without limitation, restricting their ability to obtain
additional financing and potentially limiting their ability to adjust to rapidly
changing market conditions.
We cannot
assure you that we and certain of our subsidiaries will be able to comply with
the provisions of their respective debt instruments, including, without
limitation, the financial covenants in the Exit Credit Facility. Any failure to
comply with the restrictions of the Exit Credit Facility or any other such
subsequent financing agreements may result in an event of default. An event of
default may allow the creditors to accelerate the related debt as well as any
other debt to which a cross-acceleration or cross-default provision applies. We
cannot provide assurance that we and certain of our subsidiaries' assets or cash
flow would be sufficient to fully repay borrowings under the outstanding debt
instruments, either upon maturity or if accelerated upon an event of default, or
that they would be able to refinance or restructure the payments on such debt.
If we are unable to repay amounts outstanding under the Exit Credit Facility
when due, the lenders thereunder could, subject to the terms of the relevant
agreements, seek to sell or otherwise transfer the assets that are pledged to
secure the indebtedness outstanding under those facilities and notes. The Exit
Credit Facility will be secured by substantially all of our assets.
National
Securities Exchange Listing
.
We may not be able to list the common
stock of Reorganized PPC on a national securities exchange or an active market
for shares of common stock of Reorganized PPC may not
develop.
Prior to
the Petition Date, our common stock was listed on the New York Stock Exchange
(the "NYSE"). On the Petition Date, our common stock was delisted from the NYSE
and has traded on an electronic quotations system, such as the system known as
the "Pink Sheets" during the bankruptcy proceedings. On November 11, 2009, we
applied to have our common stock listed on the NYSE under the ticker symbol
"PPC." However, there is no assurance that Reorganized PPC, or its common stock,
will comply with the listing requirements of the NYSE or another national
securities exchange. In addition, even if we are able to list common stock of
Reorganized PPC on a national securities exchange, there can be no assurance
that a regular trading market for common stock of Reorganized PPC will develop,
or if a trading market does develop, that it will be sustainable. Pursuant to
the SPA, the Plan Sponsor and Reorganized PPC are required to use their
commercially reasonable efforts to cause the common stock of Reorganized PPC to
comply with the continued listing standards of such national securities exchange
so that the common stock of Reorganized PPC will continue to be listed and
traded thereon. However, the Plan Sponsor has no obligation to ensure that the
share price or the market value of the shares of common stock of Reorganized PPC
is sufficient to maintain the listing of such shares. In addition, under certain
circumstances and with the consent of the required lenders under the Exit Credit
Facility, Reorganized PPC may be able to repurchase its common stock, which may
reduce the liquidity of the common stock of Reorganized PPC. There can be no
assurance that there will be sufficient liquidity in the market for common stock
of Reorganized PPC, or that it will be possible to sell shares of common stock
of Reorganized PPC when desired, or at all.
Purchase Price
for Common Stock of Reorganized PPC
.
The purchase price paid by the Plan
Sponsor for the common stock of Reorganized PPC is not intended to represent the
trading or market value of common stock of Reorganized PPC and there is no
assurance that a holder will be able to sell the common stock of Reorganized PPC
at such a price or at all.
The
determination of the purchase price of the common stock of Reorganized PPC was
based on the Plan Sponsor's and our assessments of the Reorganized PPC's
financial projections, business prospects, business opportunities, risks and
other factors, as applicable, and was not intended to represent the trading
values of common stock of Reorganized PPC in public or private markets. Several
factors may cause the price of common stock of Reorganized PPC to vary.
Additionally, the stock market has experienced extreme volatility in recent
months and this volatility has often been unrelated to the operating performance
of particular companies. All of these factors, among others, may cause the price
of the common stock of Reorganized PPC to fluctuate after trading commences and
it may not be possible to sell the common stock of Reorganized PPC at such a
price, or at all.
Common Stock of
Reorganized PPC—Voting
.
The Plan Sponsor will hold a majority
of the common stock of Reorganized PPC and will have the ability to control the
vote on most matters brought before the holders of common stock of Reorganized
PPC.
Following
consummation of the Proposed Plan, the Plan Sponsor will hold a majority of the
shares and voting power of the common stock of Reorganized PPC and will be
entitled to appoint a majority of the members of the board of directors of the
Reorganized PPC. As a result, the Plan Sponsor will, subject to restrictions on
its voting power and actions in the stockholders agreement that the Company will
enter into with JBS USA and the Restated Certificate of Incorporation, have the
ability to control the management, policies and financing decisions of the
Reorganized PPC, elect a majority of the members of Reorganized PPC's board of
directors at the annual meeting and control the vote on most matters coming
before the holders of common stock of Reorganized PPC.
Bankruptcy
Proceedings.
The bankruptcy proceedings may have negatively
affected our businesses, including our relationships with customers, suppliers
and vendors, which could adversely impact our future financial and operating
results
.
Due to
the disruptions in our businesses as a result of the initiation of bankruptcy
proceedings, certain of our relationships with customers, suppliers and vendors
may have been adversely affected and/or terminated. Customers, suppliers or
vendors may have entered into alternate relationships with other counterparties
or modified their relationship with us due to performance issues or concerns. In
some instances, customers, suppliers and vendors are holders of claims in
connection with the bankruptcy proceedings. The effect of the bankruptcy process
and the resolution of such claims against us (including the confirmation of the
Proposed Plan) may have adversely affected or may in the future adversely affect
the relationships between such parties and us. In addition, the risks and
uncertainties associated with the bankruptcy proceedings may be used by
competitors with respect to our existing customers or may discourage future
customers from purchasing products under long-term arrangements. Changes in
relationships with customers, suppliers and vendors could have a material
adverse effect on our financial and operating results.
The
Company estimates that, following completion of the claims reconciliation
process, the aggregate amount of allowed general unsecured claims against the
Company and the other Debtors will be approximately $180 million, after
deducting duplicate claims, claims not supported by the Company's books and
records, claims that have already been reduced by agreement of the parties or
order of the Bankruptcy Court and claims that are subject to other objections.
These general unsecured claims consist of unsecured claims, including trade
claims, claims based on rejection of leases or executory contracts, prepetition
personal injury and prepetition litigation, and other general unsecured claims.
The general unsecured claims do not include claims relating to the Company's
senior notes, senior subordinated notes and subordinated notes issued under its
indentures.
The Proposed
Acquisition Synergies.
The expected synergies between JBS
USA and the Company may not materialize.
While JBS
USA has significant acquisition experience and historically has been able to
realize substantial benefits through synergies, JBS USA may not be able to fully
achieve all of the anticipated synergistic gains of the Proposed Acquisition
within the time frames expected. The combined company's ability to realize the
anticipated benefits of the acquisition will depend, to a large extent, on the
ability of JBS USA to integrate the businesses of Reorganized PPC with JBS USA.
The combination of two independent companies is a complex, costly and
time-consuming process. As a result, the combined company will be required to
devote significant management attention and resources to integrating the
business practices and operations of JBS USA and Reorganized PPC. The
integration process and realizing the benefits of the synergies will be
additionally challenging so long as Reorganized PPC remains an independent,
publicly-traded entity. The integration process may disrupt the business of
either or both of the companies and, if implemented ineffectively, would
preclude realization of the full benefits expected by JBS USA. The failure of
the combined company to meet the challenges involved in integrating successfully
the operations of JBS USA and Reorganized PPC or otherwise to realize the
anticipated benefits of the transaction could cause an interruption of, or a
loss of momentum in, the activities of the combined company and could seriously
harm its results of operations. In addition, the overall integration of the two
companies may result in unanticipated problems, expenses, liabilities,
competitive responses, loss of customer and supplier relationships, and
diversion of management's attention, and may cause the price of common stock of
Reorganized PPC to decline. The difficulties of combining the operations of the
companies include, among others:
·
Consolidating
corporate and administrative infrastructures and eliminating duplicative
operations;
·
Maintaining
employee morale and retaining key employees;
·
The
diversion of management's attention from ongoing business concerns;
·
Coordinating
geographically separate organizations;
·
Unanticipated
issues in integrating information technology, communications and other systems;
and
·
Managing
tax costs or inefficiencies associated with integrating the operations of the
combined company.
In
addition, even if the operations of JBS USA and Reorganized PPC are integrated
successfully, the combined company may not realize the full benefits of the
transaction, including the synergies, cost savings or sales or growth
opportunities that JBS USA expects. These benefits may not be achieved within
the anticipated time frame, or at all.  As a result, while JBS USA
expects and believes that the transaction will result in substantial benefits
from the synergies outlined above, it cannot make any affirmative guarantees
that these results will be fully realized within the anticipated time frame
given the risks involved.
The views
regarding any synergies that may be created through the Proposed Acquisition are
the views of JBS USA and have not been independently verified by either us or
our advisors.
Cyclicality and Commodity Prices.
Industry cyclicality can affect our earnings, especially due to
fluctuations in commodity prices of feed ingredients and chicken.
Profitability
in the chicken industry is materially affected by the commodity prices of feed
ingredients and chicken, which are determined by supply and demand factors. As a
result, the chicken industry is subject to cyclical earnings
fluctuations.
The
production of feed ingredients is positively or negatively affected primarily by
the global level of supply inventories and demand for feed ingredients, the
agricultural policies of the United States and foreign governments and weather
patterns throughout the world. In particular, weather patterns often change
agricultural conditions in an unpredictable manner. A significant change in
weather patterns could affect supplies of feed ingredients, as well as both the
industry's and our ability to obtain feed ingredients, grow chickens or deliver
products.
The cost
of corn and soybean meal, our primary feed ingredients, increased significantly
from August 2006 to July 2008, before moderating in 2009, and there can be no
assurance that the price of corn or soybean meal will not significantly rise
again as a result of, among other things, increasing demand for these products
around the world and alternative uses of these products, such as ethanol and
biodiesel production.
High feed
ingredient prices have had, and may continue to have, a material adverse effect
on our operating results, which has resulted in, and may continue to result in,
additional non-cash expenses due to impairment of the carrying amounts of
certain of our assets. We periodically seek, to the extent available, to enter
into advance purchase commitments or financial derivative contracts for the
purchase of feed ingredients in an effort to manage our feed ingredient costs.
The use of such instruments may not be successful.
Livestock and Poultry
Disease.
Outbreaks of livestock diseases in general and
poultry diseases in particular, including avian influenza, can significantly
affect our ability to conduct our operations and demand for our
products.
We take
precautions designed to ensure that our flocks are healthy and that our
processing plants and other facilities operate in a sanitary and
environmentally-sound manner. However, events beyond our control, such as the
outbreaks of disease, either in our own flocks or elsewhere, could significantly
affect demand for our products or our ability to conduct our operations.
Furthermore, an outbreak of disease could result in governmental restrictions on
the import and export of our fresh chicken or other products to or from our
suppliers, facilities or customers, or require us to destroy one or more of our
flocks. This could also result in the cancellation of orders by our customers
and create adverse publicity that may have a material adverse effect on our
ability to market our products successfully and on our business, reputation and
prospects.
During
the first half of 2006, there was substantial publicity regarding a highly
pathogenic strain of avian influenza, known as H5N1, which has been affecting
Asia since 2002 and which has also been found in Europe and Africa. It is widely
believed that H5N1 is being spread by migratory birds, such as ducks and geese.
There have also been some cases where H5N1 is believed to have passed from birds
to humans as humans came into contact with live birds that were infected with
the disease.
Although
highly pathogenic H5N1 has not been identified in North America, there have been
outbreaks of low pathogenic strains of avian influenza in North America, and in
Mexico outbreaks of both high and low-pathogenic strains of avian influenza are
a fairly common occurrence. Historically, the outbreaks of low pathogenic avian
influenza have not generated the same level of concern, or received the same
level of publicity or been accompanied by the same reduction in demand for
poultry products in certain countries as that associated with the highly
pathogenic H5N1 strain. Accordingly, even if the highly pathogenic H5N1 strain
does not spread to North or Central America, there can be no assurance that it
will not materially adversely affect demand for North or Central American
produced poultry internationally and/or domestically, and, if it were to spread
to North or Central America, there can be no assurance that it would not
significantly affect our ability to conduct our operations and/or demand for our
products, in each case in a manner having a material adverse effect on our
business, reputation and/or prospects.
Contamination of
Products
.  If our poultry products become contaminated, we may
be subject to product liability claims and product recalls.
Poultry
products may be subject to contamination by disease-producing organisms, or
pathogens, such as
Listeria
monocytogenes
,
Salmonella
and generic
E.coli
. These pathogens are
generally found in the environment, and, as a result, there is a risk that they,
as a result of food processing, could be present in our processed poultry
products. These pathogens can also be introduced as a result of improper
handling at the further processing, foodservice or consumer level. These risks
may be controlled, although not eliminated, by adherence to good manufacturing
practices and finished product testing. We have little, if any, control over
proper handling once the product has been shipped. Illness and death may result
if the pathogens are not eliminated at the further processing, foodservice or
consumer level. Even an inadvertent shipment of contaminated products is a
violation of law and may lead to increased risk of exposure to product liability
claims, product recalls and increased scrutiny by federal and state regulatory
agencies and may have a material adverse effect on our business, reputation and
prospects.
In
October 2002, one product sample produced in our Franconia, Pennsylvania,
facility that had not been shipped to customers tested positive for Listeria. We
later received information from the USDA suggesting environmental samples taken
at the facility had tested positive for both the strain of Listeria identified
in the product and a strain having characteristics similar to those of the
strain identified in a Northeastern Listeria outbreak. As a result, we
voluntarily recalled all cooked deli products produced at the plant from May 1,
2002, through October 11, 2002. We carried insurance designed to cover the
direct recall related expenses and certain aspects of the related business
interruption caused by the recall.
Product
Liability
.  Product liability claims or product recalls can
adversely affect our business reputation and expose us to increased scrutiny by
federal and state regulators.
The
packaging, marketing and distribution of food products entail an inherent risk
of product liability and product recall and the resultant adverse publicity. We
may be subject to significant liability if the consumption of any of our
products causes injury, illness or death. We could be required to recall certain
of our products in the event of contamination or damage to the products. In
addition to the risks of product liability or product recall due to deficiencies
caused by our production or processing operations, we may encounter the same
risks if any third party tampers with our products. We cannot assure you that we
will not be required to perform product recalls, or that product liability
claims will not be asserted against us, in the future. Any claims that may be
made may create adverse publicity that would have a material adverse effect on
our ability to market our products successfully or on our business, reputation,
prospects, financial condition and results of operations.
If our
poultry products become contaminated, we may be subject to product liability
claims and product recalls. There can be no assurance that any litigation or
reputational injury associated with product recalls will not have a material
adverse effect on our ability to market our products successfully or on our
business, reputation, prospects, financial condition and results of
operations.
Insurance.
We are
exposed to risks relating to product liability, product recall, property damage
and injuries to persons for which insurance coverage is expensive, limited and
potentially inadequate.
Our
business operations entail a number of risks, including risks relating to
product liability claims, product recalls, property damage and injuries to
persons. We currently maintain insurance with respect to certain of these risks,
including product liability insurance, property insurance, workers compensation
insurance, business interruption insurance and general liability insurance, but
in many cases such insurance is expensive, difficult to obtain and no assurance
can be given that such insurance can be maintained in the future on acceptable
terms, or in sufficient amounts to protect us against losses due to any such
events, or at all. Moreover, even though our insurance coverage may be designed
to protect us from losses attributable to certain events, it may not adequately
protect us from liability and expenses we incur in connection with such events.
For example, the losses attributable to our October 2002 recall of cooked deli
products produced at one of our facilities significantly exceeded available
insurance coverage. Additionally, in the past, two of our insurers encountered
financial difficulties and were unable to fulfill their obligations under the
insurance policies as anticipated and, separately, two of our other insurers
contested coverage with respect to claims covered under policies purchased,
forcing us to litigate the issue of coverage before we were able to collect
under these policies.
Significant
Competition
.  Competition in the chicken industry with other
vertically integrated poultry companies may make us unable to compete
successfully in these industries, which could adversely affect our
business.
The
chicken industry is highly competitive. In both the United States and Mexico, we
primarily compete with other vertically integrated chicken
companies.
In
general, the competitive factors in the US chicken industry
include:
·
Price;
·
Product
quality;
·
Product
development;
·
Brand
identification;
·
Breadth
of product line; and
·
Customer
service.
Competitive
factors vary by major market. In the foodservice market, competition is based on
consistent quality, product development, service and price. In the US retail
market, we believe that competition is based on product quality, brand
awareness, customer service and price. Further, there is some competition with
non-vertically integrated further processors in the prepared chicken business.
In addition, the bankruptcy proceedings and the associated risks and
uncertainties may be used by competitors in an attempt to divert existing
customers or may discourage future customers from purchasing products under
long-term arrangements.
In
Mexico, where product differentiation has traditionally been limited, we believe
product quality and price have been the most critical competitive factors. The
North American Free Trade Agreement eliminated tariffs for chicken and chicken
products sold to Mexico on January 1, 2003. However, in July 2003, the US
and Mexico entered into a safeguard agreement with regard to imports into Mexico
of chicken leg quarters from the US. Under this agreement, a tariff rate for
chicken leg quarters of 98.8% of the sales price was established. On January 1,
2008, the tariff was eliminated. As a result of the elimination of this tariff,
greater amounts of chicken have been imported into Mexico from the US. Industry
exports of ready-to-cook chicken into Mexico have increased to 818 million
pounds, or 12.0% of all US ready-to-cook chicken exports, in 2009 from 503
million pounds, or 9.4% of all US ready-to-cook chicken exports, in 2005. These
trends, should they continue to increase, could negatively affect the
profitability of Mexican chicken producers located in the northern states of
Mexico. We believe the impact on producers, such as us, located in the central
states of Mexico should be much less pronounced.
Loss of Key
Customers.
The loss of one or more of our largest customers
could adversely affect our business.
Our two
largest customers accounted for approximately 18% of our net sales in 2009, and
our largest customer, Wal-Mart Stores Inc., accounted for 12% of our net sales.
Our filing for protection under Chapter 11 of the Bankruptcy Code and the
associated risks and uncertainties may affect our customers' perception of our
business and increase our risk of losing key customers. Our business could
suffer significant setbacks in revenues and operating income if we lost one or
more of our largest customers, or if our customers' plans and/or markets should
change significantly.
Assumption of Unknown Liabilities in
Acquisitions.
Assumption of unknown liabilities in
acquisitions may harm our financial condition and operating
results.
We do not
currently intend to make any acquisition in the near future. However, if we do,
acquisitions may be structured in such a manner that would result in the
assumption of unknown liabilities not disclosed by the seller or uncovered
during pre-acquisition due diligence. For example, our acquisition of Gold Kist
Inc. ("Gold Kist") was structured as a stock purchase. In that acquisition we
assumed all of the liabilities of Gold Kist, including liabilities that may be
unknown. These obligations and liabilities could harm our financial condition
and operating results.
Foreign Operations
Risks
.  Our foreign operations pose special risks to our
business and operations.
We have
significant operations and assets located in Mexico and may participate in or
acquire operations and assets in other foreign countries in the future. Foreign
operations are subject to a number of special risks, including among
others:
·
Currency
exchange rate fluctuations;
·
Trade
barriers;
·
Exchange
controls;
·
Expropriation;
and
·
Changes
in laws and policies, including tax laws and laws governing foreign-owned
operations.
Currency
exchange rate fluctuations have adversely affected us in the past. Exchange rate
fluctuations or one or more other risks may have a material adverse effect on
our business or operations in the future.
Our
operations in Mexico are conducted through subsidiaries organized under the laws
of Mexico. We may rely in part on intercompany loans and distributions from our
subsidiaries to meet our obligations. Claims of creditors of our subsidiaries,
including trade creditors, will generally have priority as to the assets of our
subsidiaries over our claims. Additionally, the ability of our Mexican
subsidiaries to make payments and distributions to us will be subject to, among
other things, Mexican law. In the past, these laws have not had a material
adverse effect on the ability of our Mexican subsidiaries to make these payments
and distributions. However, laws such as these may have a material adverse
effect on the ability of our Mexican subsidiaries to make these payments and
distributions in the future.
Disruptions in International Markets
and Distribution Channels
.  Disruptions in international
markets and distribution channels could adversely affect our
business.
Historically,
we have targeted international markets to generate additional demand for our
products. In particular, given US customers' general preference for white meat,
we have targeted international markets for the sale of dark chicken meat,
specifically leg quarters, which are a natural by-product of our US operations'
concentration on prepared chicken products.  As part of this
initiative, we have created a significant international distribution network
into several markets in Mexico, Eastern Europe (including Russia), and the Far
East (including China). Our success in these markets may be, and our success in
recent periods has been, adversely affected by disruptions in chicken export
markets.  For example, the United States poultry industry is currently
engaged in an anti-dumping proceeding in Ukraine and an anti-dumping and
countervailing duty proceeding in China that could materially adversely affect
our sales in these countries.  A significant risk is disruption due to
import restrictions and tariffs, other trade protection measures, and import or
export licensing requirements. In addition, disruptions may be caused by
outbreaks of disease such as avian influenza, either in our flocks or elsewhere
in the world, and resulting changes in consumer preferences.  For
example, the occurrence of avian influenza in Eastern Europe in October 2005
affected demand for poultry in Europe. One or more of these or other disruptions
in the international markets and distribution channels could adversely affect
our business.
Government
Regulation
.  Regulation, present and future, is a constant
factor affecting our business.
Our
operations will continue to be subject to federal, state and local governmental
regulation, including in the health, safety and environmental areas. We
anticipate increased regulation by various agencies concerning food safety, the
use of medication in feed formulations and the disposal of chicken by-products
and wastewater discharges.
Also,
changes in laws or regulations or the application thereof may lead to government
enforcement actions and the resulting litigation by private litigants. We are
aware of an industry-wide investigation by the Wage and Hour Division of the US
Department of Labor to ascertain compliance with various wage and hour issues,
including the compensation of employees for the time spent on such activities
such as donning and doffing work equipment. The Company has been named a
defendant in a number of related suits brought by employees. Due, in part, to
the government investigation and the recent US Supreme Court decision in
IBP, Inc. v. Alvarez
, it is
possible that we may be subject to additional employee claims.
Unknown
matters, new laws and regulations, or stricter interpretations of existing laws
or regulations may materially affect our business or operations in the
future.
Immigration
Legislation.
New
immigration legislation or increased enforcement efforts in connection with
existing immigration legislation could cause the costs of doing business to
increase, cause us to change the way we conduct our business or otherwise
disrupt our operations.
Immigration
reform continues to attract significant attention in the public arena and the US
Congress. If new federal immigration legislation is enacted or if states in
which we do business enact immigration laws, such laws may contain provisions
that could make it more difficult or costly for us to hire US citizens and/or
legal immigrant workers. In such case, we may incur additional costs to run
their business or may have to change the way they conduct their operations,
either of which could have a material adverse effect on our business, operating
results and financial condition. Also, despite our past and continuing efforts
to hire only US citizens and/or persons legally authorized to work in the US, we
may be unable to ensure that all of their employees are US citizens and/or
persons legally authorized to work in the US. US Immigration and Customs
Enforcement has been investigating identity theft within our workforce. With our
cooperation, during 2008 US Immigration and Customs Enforcement arrested
approximately 350 of our employees believed to have engaged in identity theft at
five of their facilities. No assurances can be given that further enforcement
efforts by governmental authorities will not disrupt a portion of our workforce
or operations at one or more facilities, thereby negatively impacting our
business. Also, no assurance can be given that further enforcement efforts by
governmental authorities will not result in the assessment of fines that could
adversely affect the Company's financial position, operating results or cash
flows.
Key Employee
Retention.
Loss of essential employees could have a
significant negative impact on our business.
Our
success is largely dependent on the skills, experience, and efforts of our
management and other employees. Our deteriorating financial performance, along
with our Chapter 11 proceedings, creates uncertainty that could lead to an
increase in unwanted attrition. The loss of the services of one or more members
of our senior management or of numerous employees with essential skills could
have a negative effect on our business, financial condition and results of
operations.
In
addition, the acquisition of a majority of our common stock by JBS USA pursuant
to the terms of the SPA will constitute a change in control of us under the
terms of change-in-control agreements between us and our executive officers and
certain of our key employees. The change in control of us may create
difficulties for us in retaining the services of these officers and employees,
which may negatively impact our business and the integration of our operations
with those of JBS USA. If we are not able to retain or attract talented,
committed individuals to fill vacant positions when needs arise, it may
adversely affect our ability to achieve our business objectives.
Labor
Relations.
Our performance depends on favorable labor
relations with our employees and our compliance with labor laws. Any
deterioration of those relations or increase in labor costs due to our
compliance with labor laws could adversely affect our business.
As of
September 26, 2009, we had approximately 36,600 employees in the US and
approximately 4,640 employees in Mexico. Approximately 10,370 of our employees
at various facilities in the US are members of collective bargaining units. In
Mexico, approximately 2,600 of our employees are covered by collective
bargaining agreements. Upon the expiration of existing collective bargaining
agreements or other collective labor agreements, we may not reach new agreements
without union action, and any such new agreements may not be on terms
satisfactory to us, which could result in higher wages or benefits paid to union
workers. In addition, any new agreements may be for shorter durations than those
of our historical agreements. Moreover, additional groups of currently
non-unionized employees may seek union representation in the future. If we are
unable to negotiate acceptable collective bargaining agreements, we may become
subject to union-initiated work stoppages, including strikes.
Since
March 2009, we have been involved in negotiations with the unions representing
our US employees to modify certain terms of the collective bargaining agreements
that we believe are necessary for our successful reorganization. We have
successfully negotiated settlements with a majority of these unions, and these
settlements were approved by the Bankruptcy Court on October 13, 2009. We have
not yet reached a settlement with the International Brotherhood of Teamsters
("IBT") and negotiations are ongoing. Currently, approximately 265 employees are
covered under three expired IBT collective bargaining agreements.
Extreme Weather and Natural
Disasters.
Extreme weather or natural disasters could
negatively impact our business.
Extreme
weather or natural disasters, including droughts, floods, excessive cold or
heat, hurricanes or other storms, could impair the health or growth of our
flocks, production or availability of feed ingredients, or interfere with our
operations due to power outages, fuel shortages, damage to our production and
processing facilities or disruption of transportation channels, among other
things. Any of these factors could have an adverse effect on our financial
results.
Environmental
Requirements.
We may face significant costs for compliance
with existing or changing environmental requirements and for potential
environmental obligations relating to current or discontinued
operations.
A number
of our facilities have been operating below capacity due to economic conditions,
and upgrades at some facilities have been delayed or deferred because of the
bankruptcy. Before production can be restored to pre-bankruptcy levels, capital
expenditures may be necessary at some facilities for installation of new
pollution control equipment in order to achieve compliance with existing or
changing environmental requirements, including more stringent limitations
imposed or expected in recently-renewed or soon-to be renewed environmental
permits.
In the
past, we have acquired businesses with operations such as pesticide and
fertilizer production that involved greater use of hazardous materials and
generation of more hazardous wastes than our current operations. While many of
those operations have been sold or closed, some environmental laws impose strict
and, in certain circumstances, joint and several liability for costs of
investigation and remediation of contaminated sites on current and former owners
and operators of the sites, and on persons who arranged for disposal of wastes
at such sites. In addition, current owners or operators of such contaminated
sites may seek to recover cleanup costs from us based on past operations or
contractual indemnifications.
New
environmental requirements, stricter interpretations of existing environmental
requirements, or obligations related to the investigation or clean-up of
contaminated sites, may materially affect the our business or operations in the
future.
Control of Voting
Stock
.  Control over the Company is maintained by affiliates
and members of the family of Lonnie "Bo" Pilgrim.
Through
two limited partnerships and related trusts and voting agreements, Lonnie "Bo"
Pilgrim, Patricia R. Pilgrim, his wife, and Lonnie Ken Pilgrim, his son, control
62.25% of the voting power of our outstanding common stock. Accordingly, other
than any approvals by stockholders in connection with the Proposed Plan, they
currently control the outcome of all actions requiring stockholder approval,
including the election of directors and significant corporate transactions, such
as a merger or other sale of the Company or its assets. This ensures their
ability to control the future direction and management of the Company until the
consummation of the Proposed Acquisition.
Use
of Proceeds
We will
not receive any of the proceeds from the sale of shares of Common Stock by the
selling stockholder.
The
Selling Stockholder
The
shares of our Common Stock to which this prospectus relates are being registered
for offer and resale by Don Jackson, the Company's President and Chief Executive
Officer, or the selling stockholder, who acquired shares of Common Stock
pursuant to the Employment Agreement. The following table sets forth certain
information regarding the shares of our Common Stock beneficially owned by the
selling stockholder as of December 4, 2009 and is based on 77,141,389 shares of
our Common Stock outstanding on December 4, 2009.
Selling
      Stockholder
Shares
      of Common Stock Beneficially Owned Prior to Offering
Shares
      of Common Stock Offered
Shares
      of Common Stock Owned After the
Offering
Number
%
Don
      Jackson
President
      and Chief Executive Officer
3,085,656
*
3,085,656
0
0
* The
shares granted under the employment agreement will vest upon confirmation of a
plan of reorganization of the Company and achievement of certain performance
targets.  For purposes of the employment agreement, a plan of
reorganization is generally defined as a plan or reorganization that does not
provide for a sale of a majority of the Company's and its subsidiaries'
assets.
Plan
of Distribution
The
"selling stockholders" as used herein includes the selling stockholder, his
pledgees, donees, transferees, or any of their successors in interest selling
shares received from the selling stockholder as a gift or other transfer after
the date of this prospectus. The selling stockholders may sell the shares of
Common Stock offered by this prospectus from time to time on any stock exchange
or automated interdealer quotation system on which our Common Stock is listed or
quoted at the time of sale, in the over-the-counter market, in privately
negotiated transactions or otherwise, at fixed prices that may be changed, at
market prices prevailing at the time of sale, at prices related to prevailing
market prices or at prices otherwise negotiated. The selling stockholders may
sell the shares of Common Stock by one or more of the following methods, without
limitation:
·
block
      trades in which the broker or dealer so engaged will attempt to sell the
      shares of Common Stock as agent but may position and resell a portion of
      the block as principal to facilitate the
  transaction;
·
purchases
      by a broker or dealer as principal and resale by the broker or dealer for
      its own account pursuant to this
prospectus;
·
an
      exchange distribution in accordance with the rules of any stock exchange
      or quotation system on which the shares of Common Stock are
      listed;
·
ordinary
      brokerage transactions and transactions in which the broker solicits
      purchases;
·
privately
      negotiated transactions;
·
short
      sales;
·
through
      the writing of options on the shares of Common Stock, whether or not the
      options are listed on an options
exchange;
·
through
      the distribution of the shares of Common Stock by any selling stockholder
      to its partners, members or
stockholders;
·
one
      or more underwritten offerings on a firm commitment or best efforts basis;
      and
·
any
      combination of any of these methods of
sale.
These
transactions may include crosses, which are transactions in which the same
broker acts as an agent on both sides of the trade. The selling stockholders may
also transfer the shares of Common Stock by gift.
The
selling stockholders may engage brokers and dealers, and any brokers or dealers
may arrange for other brokers or dealers to participate in effecting sales of
the shares of Common Stock. These brokers, dealers or underwriters may act as
principals, or as an agent of a selling stockholder. Broker-dealers may agree
with a selling stockholder to sell a specified number of the shares at a
stipulated price per share. If the broker-dealer is unable to sell shares of
Common Stock acting as agent for a selling stockholder, it may purchase as
principal any unsold shares at the stipulated price. Broker-dealers who acquire
shares of Common Stock as principals may thereafter resell the shares from time
to time in transactions in any stock exchange or automated interdealer quotation
system on which the shares of Common Stock are then listed, at prices and on
terms then prevailing at the time of sale, at prices related to the then-current
market price or in negotiated transactions. Broker-dealers may use block
transactions and sales to and through broker-dealers, including transactions of
the nature described above. The selling stockholders may also sell the shares of
Common Stock in accordance with Rule 144 under the Securities Act, rather than
pursuant to this prospectus. In order to comply with the securities laws of some
states, if applicable, the shares of common stock may be sold in these
jurisdictions only through registered or licensed brokers or
dealers.
From time
to time, one or more of the selling stockholders may pledge, hypothecate or
grant a security interest in some or all of the shares owned by them. The
pledgees, secured parties or person to whom the shares have been hypothecated
will, upon foreclosure in the event of default, be deemed to be selling
stockholders. The number of a selling stockholder's shares offered under this
prospectus will decrease as and when it takes such actions. The plan of
distribution for that selling stockholder's shares will otherwise remain
unchanged. In addition, a selling stockholder may, from time to time, sell the
shares short, and, in those instances, this prospectus may be delivered in
connection with the short sales and the shares offered under this prospectus may
be used to cover short sales.
To the
extent required under the Securities Act, the aggregate amount of selling
stockholders' shares being offered and the terms of the offering, the names of
any agents, brokers, dealers or underwriters, any applicable commission and
other material facts with respect to a particular offer will be set forth in an
accompanying prospectus supplement or a post-effective amendment to the
registration statement of which this prospectus is a part, as appropriate. Any
underwriters, dealers, brokers or agents participating in the distribution of
the shares of Common Stock may receive compensation in the form of underwriting
discounts, concessions, commissions or fees from a selling stockholder and/or
purchasers of selling stockholders' shares, for whom they may act (which
compensation as to a particular broker-dealer might be less than or in excess of
customary commissions). Neither we nor the selling stockholder can presently
estimate the amount of any such compensation.
The
selling stockholders and any underwriters, brokers, dealers or agents that
participate in the distribution of the shares of Common Stock may be deemed to
be "underwriters" within the meaning of the Securities Act, and any discounts,
concessions, commissions or fees received by them and any profit on the resale
of the securities sold by them may be deemed to be underwriting discounts and
commissions. If a selling stockholder is deemed to be an underwriter, the
selling stockholder may be subject to certain statutory liabilities including,
but not limited to Sections 11, 12 and 17 of the Securities Act and Rule 10b-5
under the Exchange Act. Selling stockholders who are deemed underwriters within
the meaning of the Securities Act will be subject to the prospectus delivery
requirements of the Securities Act. The Commission staff is of a view that
selling stockholders who are registered broker-dealers or affiliates of
registered broker-dealers may be underwriters under the Securities Act. We will
not pay any compensation or give any discounts or commissions to any underwriter
in connection with the securities being offered by this prospectus.
A selling
stockholder may enter into hedging transactions with broker-dealers and the
broker-dealers may engage in short sales of the shares of Common Stock in the
course of hedging the positions they assume with that selling stockholder,
including, without limitation, in connection with distributions of the shares of
Common Stock by those broker-dealers. A selling stockholder may enter into
option or other transactions with broker-dealers, who may then resell or
otherwise transfer those shares of Common Stock. A selling stockholder may also
loan or pledge the shares of Common Stock offered hereby to a broker-dealer and
the broker-dealer may sell the shares of Common Stock offered by this prospectus
so loaned or upon a default may sell or otherwise transfer the pledged shares of
Common Stock offered by this prospectus.
The
selling stockholders and other persons participating in the sale or distribution
of the shares of Common Stock will be subject to applicable provisions of the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), and the rules
and regulations under the Exchange Act, including Regulation M. This regulation
may limit the timing of purchases and sales of any of the shares of Common Stock
by the selling stockholders and any other person. The anti-manipulation rules
under the Exchange Act may apply to sales of shares of Common Stock in the
market and to the activities of the selling stockholders and their affiliates.
Regulation M may restrict the ability of any person engaged in the distribution
of the shares of Common Stock to engage in market-making activities with respect
to the particular shares of Common Stock being distributed for a period of up to
five business days before the distribution. These restrictions may affect the
marketability of the shares of Common Stock and the ability of any person or
entity to engage in market-making activities with respect to the
shares.
Legal
Matters
The
validity of the shares of Common Stock offered hereby will be passed upon for us
by Baker & McKenzie LLP.
Experts
The
consolidated financial statements of Pilgrim's Pride Corporation appearing in
Pilgrim's Pride's Annual Report on Form 10-K for the fiscal year ended September
26, 2009 (including the schedule appearing therein), and the effectiveness of
Pilgrim's Pride's internal control over financial reporting as of September 26,
2009 have been audited by Ernst & Young LLP, independent registered
public accounting firm, as set forth in their reports thereon (which contains an
explanatory paragraph describing conditions that raise substantial doubt about
the Company's ability to continue as a going concern as described in Note A to
the consolidated financial statements), included therein, and incorporated
herein by reference. Such consolidated financial statements and Pilgrim's
Pride's management's assessment of the effectiveness of internal control over
financial reporting as of September 26, 2009, are incorporated herein by
reference in reliance upon such reports given on the authority of such firm as
experts in accounting and auditing.
Incorporation
of Certain Information by Reference
The
following documents, which we previously filed with the Commission pursuant to
Sections 13 or 15 of the Exchange Act, are incorporated by reference into
this prospectus:
(a)
our
      Annual Report on Form 10-K for the fiscal year ended September 26,
      2009, filed with the Commission on November 23,
  2009;
(b)
our
      Current Report on Form 8-K filed with Commission on December 3, 2009;
      and
(c)
the
      description of our Common Stock contained in the Company's Registration
      Statement on Form 8-A/A-3 filed with the Commission on
      November 21, 2003, pursuant to Section 12 of the Exchange Act,
      including any amendments or reports filed for the purpose of updating such
      description.
We
incorporate by reference in this prospectus all documents subsequently filed by
us with the Commission pursuant to Sections 13(a), 13(c), 14 and 15(d) of the
Exchange Act, prior to the filing of a post-effective amendment which indicates
that all securities offered have been sold or which deregisters all securities
then remaining unsold, shall be deemed to be incorporated by reference herein
and to be part hereof from the date such documents are filed. Any statement
contained herein or in any document incorporated or deemed to be incorporated
herein by reference shall be deemed to be modified or superseded for purposes of
this registration statement to the extent that a statement contained in any
other subsequently filed document which also is or is deemed to be incorporated
herein by reference modifies or supersedes such statement. Any such statement so
modified or superseded shall not be deemed to constitute a part of this
registration statement, except as so modified or superseded.
We will
provide without charge to you, on written or oral request, a copy of any or all
of the foregoing documents incorporated herein by reference (other than exhibits
to such documents, unless the exhibits are specifically incorporated by
reference in the information we send to you). You may obtain a copy of any or
all of the documents that have been incorporated by reference herein by writing
to us at Pilgrim's Pride Corporation,  4845 US Hwy 271 North,
Pittsburg, Texas 75686-0093, or telephoning (903) 434-1000.
Where You Can Find More Information
We file
annual, quarterly and current reports, proxy statements and other information
with the Commission. You may read and copy any reports, proxy statements and
other information we file at the Commission's Public Reference Room at
100 F Street, N.E., Washington, D.C. 20549. Please call 1-800-SEC-0330
for further information on the operation and location of the Public Reference
Room. Our filings are also available to the public at the website maintained by
the Commission at http://www.sec.gov and at our website at
http://www.pilgrimspride.com.
Indemnification of Directors and Officers
The
Amended and Restated Bylaws of the Company provide that the Company shall
indemnify and hold harmless any present or former officer or director or any
officer or director who is or was serving at the request of the Company as a
director, officer, partner, venturer, proprietor, trustee, employee, agent or
similar functionary of another corporation, partnership, trust, employee benefit
plan or other enterprise, from and against fines, judgments, penalties, amounts
paid in settlement and reasonable expenses actually incurred by such person in
connection with any suit to which they were or are made, or are threatened to be
made, a party, or to which they are a witness without being named a party, if it
is determined that he acted in good faith and in a manner that he reasonably
believed to be in or not opposed to the best interests of the Company, and, with
respect to any proceeding which is a criminal action, that he had no reasonable
cause to believe his conduct was unlawful.
Pursuant
to Section 145 of the General Corporation Law of the State of Delaware
("Delaware Code"), the Company generally has the power to indemnify its present
and former directors, officers, employees and agents against expenses,
judgments, fines and amounts paid in settlement incurred by them in connection
with any suit (other than a suit by or in the right of the Company) to which
they are, or are threatened to be made, a party by reason of their serving in
such positions, or is or was serving at the Company's request in such positions
for another corporation, partnership, joint venture, trust or other enterprise,
so long as they acted in good faith and in a manner they reasonably believed to
be in, or not opposed to, the best interests of the Company, and with respect to
any criminal action, they had no reasonable cause to believe their conduct was
unlawful. Section 145 of the Delaware Code further provides that in connection
with the defense or settlement of any action by or in the right of the
corporation, a Delaware corporation may indemnify its present and former
directors, officers, employees and agents against expenses actually and
reasonably incurred by them if, in connection with the matters in issue, they
acted in good faith, in a manner they reasonably believed to be in or not
opposed to the best interests of the corporation, except that no indemnification
may be made with respect to any claim, issue or matter as to which such person
has been adjudged liable to the corporation unless the Court of Chancery or the
court in which such action or suit was brought approves such indemnification.
The statute also expressly provides that the power to indemnify authorized
thereby is not exclusive of any rights granted under any bylaw, agreement, vote
of stockholders or disinterested directors, or otherwise.
According
to the Amended and Restated Bylaws of the Company and Section 145 of the
Delaware Code, the Company has the power to purchase and maintain insurance for
its present and former directors, officers, employees and agents. The above
discussion of the Company's Amended and Restated Bylaws and of Section 145 of
the Delaware Code is not intended to be exhaustive and is qualified in its
entirety by such Amended and Restated Corporate Bylaws and the Delaware
Code.
Insofar
as indemnification for liabilities arising under the Securities Act may be
permitted to directors, officers or persons controlling the Company pursuant to
the foregoing provisions, the Company has been informed that in the opinion of
the Commission such indemnification is against public policy as expressed in the
Securities Act and is therefore unenforceable.
PART
II
INFORMATION
NOT REQUIRED IN THE PROSPECTUS
Item
3.                      Incorporation
of Documents by Reference
The
Company hereby incorporates by reference the following documents filed with the
Commission:
(a)
our
      Annual Report on Form 10-K for the fiscal year ended September 26,
      2009, filed with the Commission on November 23,
  2009;
(b)
our
      Current Report on Form 8-K filed with the Commission on December 3, 2009;
      and
(c)
the
      description of our Common Stock contained in the Company's Registration
      Statement on Form 8-A/A-3 filed with the Commission on November 21, 2003,
      pursuant to Section 12 of the Exchange Act, including any amendments or
      reports filed for the purpose of updating such
  description.
We
incorporate by reference in this prospectus all documents subsequently filed by
the Company with the Commission pursuant to Sections 13(a), 13(c), 14 and 15(d)
of the Exchange Act, prior to the filing of a post-effective amendment which
indicates that all securities offered have been sold or which deregisters all
securities then remaining unsold, shall be deemed to be incorporated by
reference herein and to be part hereof from the date such documents are filed.
Any statement contained herein or in any document incorporated or deemed to be
incorporated herein by reference shall be deemed to be modified or superseded
for purposes of this registration statement to the extent that a statement
contained in any other subsequently filed document which also is or is deemed to
be incorporated herein by reference modifies or supersedes such statement. Any
such statement so modified or superseded shall not be deemed to constitute a
part of this registration statement, except as so modified or
superseded.
Item 4.
Description of Securities.
Not
applicable.
Item 5.
Interests of Named Experts and Counsel.
None.
Item 6.
Indemnification of Directors and Officers.
The
Amended and Restated Bylaws of the Company provide that the Company shall
indemnify and hold harmless any present or former officer or director or any
officer or director who is or was serving at the request of the Company as a
director, officer, partner, venturer, proprietor, trustee, employee, agent or
similar functionary of another corporation, partnership, trust, employee benefit
plan or other enterprise, from and against fines, judgments, penalties, amounts
paid in settlement and reasonable expenses actually incurred by such person in
connection with any suit to which they were or are made, or are threatened to be
made, a party, or to which they are a witness without being named a party, if it
is determined that he acted in good faith and in a manner that he reasonably
believed to be in or not opposed to the best interests of the Company, and, with
respect to any proceeding which is a criminal action, that he had no reasonable
cause to believe his conduct was unlawful.
Pursuant
to Section 145 of the General Corporation Law of the State of Delaware
("Delaware Code"), the Company generally has the power to indemnify its present
and former directors, officers, employees and agents against expenses,
judgments, fines and amounts paid in settlement incurred by them in connection
with any suit (other than a suit by or in the right of the Company) to which
they are, or are threatened to be made, a party by reason of their serving in
such positions, or is or was serving at the Company's request in such positions
for another corporation, partnership, joint venture, trust or other enterprise,
so long as they acted in good faith and in a manner they reasonably believed to
be in, or not opposed to, the best interests of the Company, and with respect to
any criminal action, they had no reasonable cause to believe their conduct was
unlawful. Section 145 of the Delaware Code further provides that in connection
with the defense or settlement of any action by or in the right of the
corporation, a Delaware corporation may indemnify its present and former
directors, officers, employees and agents against expenses actually and
reasonably incurred by them if, in connection with the matters in issue, they
acted in good faith, in a manner they reasonably believed to be in or not
opposed to the best interests of the corporation, except that no indemnification
may be made with respect to any claim, issue or matter as to which such person
has been adjudged liable to the corporation unless the Court of Chancery or the
court in which such action or suit was brought approves such indemnification.
The statute also expressly provides that the power to indemnify authorized
thereby is not exclusive of any rights granted under any bylaw, agreement, vote
of stockholders or disinterested directors, or otherwise.
According
to the Amended and Restated Bylaws of the Company and Section 145 of the
Delaware Code, the Company has the power to purchase and maintain insurance for
its present and former directors, officers, employees and agents. The above
discussion of the Company's Amended and Restated Bylaws and of Section 145 of
the Delaware Code is not intended to be exhaustive and is qualified in its
entirety by such Amended and Restated Corporate Bylaws and the Delaware
Code.
Insofar
as indemnification for liabilities arising under the Securities Act may be
permitted to directors, officers or persons controlling the Company pursuant to
the foregoing provisions, the Company has been informed that in the opinion of
the Commission such indemnification is against public policy as expressed in the
Securities Act and is therefore unenforceable.
Item
7.                      Exemption
from Registration Claimed.
None.
Item
8.  Exhibits.
The
following are filed as exhibits to this Registration Statement:
Exhibit
No
.
Description
4.1
Certificate
      of Incorporation of the Company, as amended (incorporated by reference
      from Exhibit 3.1 of the Company's Annual Report on Form 10-K for the year
      ended October 2, 2004).
4.2
Amended
      and Restated Corporate Bylaws of the Company (incorporated by reference
      from Exhibit 3.1 of the Company's Current Report on Form 8-K filed on
      December 4, 2007).
4.3
Specimen
      form of certificate representing $0.01 par value Common
    Stock.
5.1
Opinion
      of Baker & McKenzie LLP. *
23.1
Consent
      of Ernst & Young LLP.*
23.2
Consent
      of Baker & McKenzie LLP (included in Exhibit
  5.1).*
24
Power
      of Attorney (included on the signature page of the Registration
      Statement).*
99.1
Amended
      and Restated Employment Agreement between the Company and Don Jackson
      dated January 27, 2008 (incorporated by reference from Exhibit 10.1 of the
      Company's Current Report on Form 8-K filed on January 30,
      2009).
_________________________
* filed
herewith
Item
9.  Undertakings.
(a) The
undersigned registrant hereby undertakes:
(1) To
file, during any period in which offers or sales are being made, a
post-effective amendment to this registration statement:
(i) To
include any prospectus required by Section 10(a)(3) of the Securities
Act;
(ii) To
reflect in the prospectus any facts or events arising after the effective date
of the registration statement (or the most recent post-effective amendment
thereof) which, individually or in the aggregate, represent a fundamental change
in the information set forth in the registration statement. Notwithstanding the
foregoing, any increase or decrease in volume of securities offered (if the
total dollar value of securities offered would not exceed that which was
registered) and any deviation from the low or high end of the estimated maximum
offering range may be reflected in the form of prospectus filed with the
Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume
and price represent no more than a 20 percent change in the maximum aggregate
offering price set forth in the "Calculation of Registration Fee" table in the
effective registration statement;
(iii) To
include any material information with respect to the plan of distribution not
previously disclosed in the registration statement or any material change to
such information in the registration statement;
provided, however
, that
paragraphs (a)(1)(i) and (a)(1)(ii) of this section do not apply if the
information required to be included in a post-effective amendment by those
paragraphs is contained in reports filed with or furnished to the Commission by
the registrant pursuant to section 13 or section 15(d) of the Exchange Act that
are incorporated by reference in the registration statement.
(2) That,
for the purpose of determining any liability under the Securities Act, each such
post-effective amendment shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering
thereof.
(3) To
remove from registration by means of a post-effective amendment any of the
securities being registered which remain unsold at the termination of the
offering.
(b) The
undersigned registrant hereby undertakes that, for the purposes of determining
any liability under the Securities Act, each filing of the registrant's annual
report pursuant to Section 13(a) or 15(d) of the Exchange Act (and, where
applicable, each filing of an employee benefit plan's annual report pursuant to
Section 15(d) of the Exchange Act) that is incorporated by reference in the
registration statement shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering
thereof.
(c)
Insofar as indemnification for liabilities arising under the Securities Act may
be permitted to directors, officers and controlling persons of the registrant
pursuant to the foregoing provisions, or otherwise, the registrant has been
advised that in the opinion of the Commission such indemnification is against
public policy as expressed in the Securities Act and is, therefore,
unenforceable. In the event that a claim for indemnification against such
liabilities (other than the payment by the registrant of expenses incurred or
paid by a director, officer or controlling person of the registrant in the
successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered, the registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public
policy as expressed in the Securities Act and will be governed by the final
adjudication of such issue.
SIGNATURES
Pursuant
to the requirements of the Securities Act, the Company certifies that it has
reasonable grounds to believe that it meets all of the requirements for filing
on Form S-8 and has duly caused this Registration Statement to be signed on its
behalf by the undersigned, hereunto duly authorized, in the City of Pittsburg,
State of Texas, on December 9, 2009.
PILGRIM'S
      PRIDE CORPORATION
By:
/s/ Richard A.
      Cogdill
Richard
      A. Cogdill
Chief
      Financial Officer, Secretary
and
      Treasurer
POWER
OF ATTORNEY
Each
person whose signature appears below hereby constitutes and appoints Richard A.
Cogdill his or her true and lawful attorney-in-fact and agent, with full power
of substitution and resubstitution, for him or her and in his or her name, place
and stead, in any and all capacities, to sign any and all amendments (including
post-effective amendments) to this Registration Statement, and to file the same,
with all exhibits thereto, and other documents in connection therewith, with the
Commission, and hereby grants to such attorney-in-fact and agent full power and
authority to do and perform each and every act and thing requisite and necessary
to be done, as fully to all intents and purposes as he or she might or could do
in person, hereby ratifying and confirming that said attorney-in-fact and agent,
or his substitute or substitutes, may lawfully do or cause to be done by virtue
hereof.
Pursuant
to the requirements of the Securities Act, this registration statement has been
signed by the following persons in the capacities indicated as of December 9,
2009.
Signature
Title
Date
/s/
      Lonnie "Bo" Pilgrim
Chairman
      of the Board
December
      9, 2009
Lonnie
      "Bo" Pilgrim
/s/
      Don Jackson
President,
      Chief Executive Officer and Director
December
      9, 2009
Don
      Jackson
/s/
      Richard A. Cogdill
Chief
      Financial Officer, Secretary, Treasurer and
December
      9, 2009
Richard
      A. Cogdill
Director
(Principal
      Financial and Accounting Officer)
/s/
      Charles L. Black
Director
December
      9, 2009
Charles
      L. Black
/s/
      Linda Chavez
Director
December 9,
      2009
Linda
      Chavez
/s/
      S. Key Coker
Director
December
      9, 2009
S.
      Key Coker
/s/
      Keith W. Hughes
Director
December
      9, 2009
Keith
      W. Hughes
/s/
      Blake D. Lovette
Director
December
      9, 2009
Blake
      D. Lovette
/s/
      Vance C. Miller, Sr.
Director
December
      9, 2009
Vance
      C. Miller, Sr.
/s/
      Lonnie Ken Pilgrim
Director
December
      9, 2009
Lonnie
      Ken Pilgrim
/s/
      James G. Vetter, Jr.
Director
December
      9, 2009
James
      G. Vetter, Jr.
/s/
      Donald L. Wass, Ph.D.
Director
December
      9, 2009
Donald
      L. Wass, Ph.D.
EXHIBIT
INDEX
Exhibit
No
.
Description
4.1
Certificate
      of Incorporation of the Company, as amended (incorporated by reference
      from Exhibit 3.1 of the Company's Annual Report on Form 10-K for the year
      ended October 2, 2004).
4.2
Amended
      and Restated Corporate Bylaws of the Company (incorporated by reference
      from Exhibit 3.1 of the Company's Current Report on Form 8-K filed on
      December 4, 2007).
4.3
Specimen
      form of certificate representing $0.01 par value Common
    Stock.
5.1
Opinion
      of Baker & McKenzie LLP. *
23.1
Consent
      of Ernst & Young LLP.*
23.2
Consent
      of Baker & McKenzie LLP (included in Exhibit
  5.1).*
24
Power
      of Attorney (included on the signature page of the Registration
      Statement).*
99.1
Amended
      and Restated Employment Agreement between the Company and Don Jackson
      dated January 27, 2008 (incorporated by reference from Exhibit 10.1 of the
      Company's Current Report on Form 8-K filed on January 30,
      2009).
________________________
* filed
herewith
Exhibit
5.1
December
10, 2009
Pilgrim's
      Pride Corporation
4845
      US Highway 271 North
Pittsburg,
      Texas 75686-0093
Ladies
and Gentlemen:
Pilgrim's
Pride Corporation (the "Company"), a Delaware corporation, has filed with the
Securities and Exchange Commission (the "Commission") on the date hereof a
registration statement (the "Registration Statement") on Form S-8 under the
Securities Act of 1933, as amended (the "Act").  The Registration
Statement covers 3,085,656  shares of the Company's common stock,
$0.01 par value per share (the "Securities"), issued to an executive of the
Company pursuant to the amended and restated employment agreement between the
Company and the executive dated January 27, 2009 (the "Agreement"), to be
registered for resale by means of the Registration Statement, and any additional
shares of the Company's common stock as a result of stock dividend, stock split,
recapitalization or other similar transaction.
We have
acted as counsel to the Company in connection with the preparation and filing of
the Registration Statement.  In rendering this opinion, we have
examined the Registration Statement, the prospectus attached thereto and
originals or copies, certified or otherwise identified to our satisfaction, of
such records, agreements and instruments of the Company, certificates of public
officials and of officers of the Company and such other documents and records,
including without limitation, the Order Authorizing Debtors To Enter Into
Employment Agreement With Don Jackson, of the United States Bankruptcy Court for
the Northern District of Texas Fort Worth Division (the "Order"), have received
such representations from the officers of the Company, and have reviewed such
questions of law as in our judgment are necessary, relevant or appropriate to
enable us to render the opinion expressed below.
As to any
facts material to our opinion, we have made no independent investigation of such
facts and have relied, to the extent that we deem such reliance proper, upon
certificates of public officials and officers or other representatives of the
Company.
In
rendering the opinions set forth below, we have assumed that (i) all information
contained in all documents reviewed by us is true and correct, (ii) all
signatures on all documents examined by us are genuine, (iii) the Order has not
been modified or rescinded and is in full force and effect on the date hereof,
(iv) all documents submitted to us as originals are authentic and all documents
submitted to us as copies conform to the originals of those documents, (v) each
natural person signing any document reviewed by us had the legal capacity to do
so,  and (vi) each person signing in a representative capacity (other
than on behalf of the Company) any document reviewed by us had authority to sign
in such capacity. This opinion further assumes compliance both in the past and
in the future with the terms of the Agreement by the Company and the
executive.
Based
upon such examination and review and upon representations made to us by officers
of the Company, we are of the opinion that upon issuance and delivery of the
Securities in accordance with the applicable terms and conditions of the
Agreement, and assuming no change in the applicable law or facts, the Securities
will be validly issued, fully paid and nonassessable.
The
foregoing opinion is limited in all respects to the corporate laws of the State
of Delaware and the federal laws of United States of America, in each case,
that, in our experience, are normally applicable to transactions of the type
contemplated by the Registration Statement and, to the extent that judicial or
regulatory orders or decrees or consents, approvals, licenses, authorizations,
validations, filings, recordings or registrations with governmental authorities
are relevant, to those required under such laws, and we do not express any
opinions as to the laws of any other jurisdiction.
This
opinion is limited to the laws, including the rules and regulations, as in
effect on the date hereof, which laws are subject to change with possible
retroactive effect and to the facts as they presently exist and we have no
continuing obligation hereunder to inform you of changes of law, including
judicial interpretations of law, or of facts of which we become aware after the
date hereof.
The
opinion letter is limited to the matters stated herein, and no opinion is
implied or may be inferred beyond the matters expressly stated.  We
hereby consent to the filing of this opinion as herein set forth as an exhibit
to the Registration Statement.  In giving such consent, we do not
hereby admit that we come within the category of persons whose consent is
required by Section 7 of the Act or the rules and regulations of the Commission
promulgated thereunder or Item 509 of Regulation S-K.
Very
truly yours,
/s/ Baker
& McKenzie LLP
Baker
& McKenzie LLP
Exhibit
23.1
CONSENT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We consent to the reference to our firm under the caption
"Experts" in the Registration Statement (Form S-8) pertaining to the Amended and
Restated Employment Agreement Plan of Pilgrim's Pride Corporation and to the
incorporation by reference therein of our reports dated November 20, 2009, with
respect to the consolidated financial statements and schedule of Pilgrim's Pride
Corporation and the effectiveness of internal control over financial reporting
of Pilgrim's Pride Corporation, included in its Annual Report (Form 10-K) for
the fiscal year ended September 26, 2009, filed with the Securities and Exchange
Commission.
/s/ Ernst & Young
LLP
Dallas,
Texas
December
8, 2009