A G R E E M E N T

                                     BETWEEN

                              SANDERSON FARMS, INC.

                          (BRAZOS PRODUCTION DIVISION)

                                       AND

                              SANDERSON FARMS, INC.

                          (BRAZOS PROCESSING DIVISION)

                                       AND

                          TEAMSTERS LOCAL UNION NO. 968

                                 Affiliated with

                     INTERNATIONAL BROTHERHOOD OF TEAMSTERS

                      DECEMBER 27, 1999 - DECEMBER 26, 2002





                                TABLE OF CONTENTS

ARTICLE                                                          PAGE
- -------                                                          ----

1.     AGREEMENT                                                   4

2.     RECOGNITION                                                 4

3.     MANAGEMENT RIGHTS                                           4

4.     JOB STEWARDS                                                5

5.     UNION BULLETIN BOARD                                        6

6.     NO STRIKE - NO LOCK OUT                                     6

7.     GRIEVANCE PROCEDURE                                         6

       STEP 1                                                      6

       STEP 2                                                      7

       STEP 3                                                      7

8.     ARBITRATION                                                 8

9.     SENIORITY                                                   9

10.    SENIORITY LIST                                             11

11.    HOURS OF WORK                                              11

12.    LEAVES  OF  ABSENCE                                        12

13.    VACATIONS                                                  13

14.    HOLIDAYS                                                   14

15.    INSURANCE                                                  15

16.    EMPLOYEE STOCK OWNERSHIP PLAN                              16

17.    WAGES                                                      16

18.    MISCELLANEOUS                                              16

19     NO DISCRIMINATION                                          17

20.    COMPLETE AGREEMENT AND SEPARABILITY                        17

21.    CHECK-OFF                                                  18

22.    DURATION OF AGREEMENT                                      19

       SIGNATURES                                                 19

       APPENDIX A - WAGE RATES                                    20

       APPENDIX B - CHECK OFF AUTHORIZATION                       21







                                    ARTICLE 1

                                    AGREEMENT

Section  1.1.  This  Agreement  made and entered into this 27TH day of December,
1999, by and between  SANDERSON  FARMS,  INC. (BRAZOS  PRODUCTION  DIVISION) and
SANDERSON  FARMS,  INC.  (BRAZOS  PROCESSING  DIVISION)  at their  Bryan,  Texas
facilities  (hereinafter referred to as "Employer" or "Company"),  and TEAMSTERS
LOCAL  No.  968,   affiliated  with   INTERNATIONAL   BROTHERHOOD  OF  TEAMSTERS
(hereinafter referred to as the "Union".

                                   WITNESSETH

Section 1.2. WHEREAS,  the Company and the Union are desirous of entering into a
contractual  relationship  covering  rates of pay, hours of work and other terms
and  conditions  of  employment  of  employees   employed  within  the  unit  of
representation as hereinafter  described;  and Section 1.3. WHEREAS, the parties
have  conferred,  negotiated  and  agreed  upon  the  terms  and  conditions  of
employment to be applicable to the employees  covered by this  Agreement for the
contract  period  as  herein  specified.   Section  1.4.  NOW,   THEREFORE,   in
consideration  of the mutual  covenants and  agreements  herein  contained,  the
parties do hereby agree as follows:

                                    ARTICLE 2

                                   RECOGNITION

Section 2.1.  The  Employer  recognizes  the Union as the  certified  bargaining
representative   (NLRB  Case  No.   16-RC-10102)  for  all  forklift  operators,
distribution,  feed mill and live  haul  drivers  in and  around  Bryan,  Texas,
excluding  all  other  employees,   guards,   watchmen,   office  clerical,  and
supervisors as defined in the Act.

                                    ARTICLE 3

                                MANAGEMENT RIGHTS

Section 3.1.  Nothing in this Agreement shall be deemed to limit the Employer in
any way in the  exercise of the  customary  functions  of  management  which are
recognized  as the  Employer's  exclusive  responsibility,  including,  but  not
limited to, the right to plan,  direct, and control  operations,  to utilize the
services of  contractors,  to  determine  the number,  size and  location of its
establishments,  to close an establishment or departments  thereof,  to hire, to
promote, to demote, and for proper cause to discipline, suspend or discharge, to
assign and schedule  work and transfer  employees  from one job or department to
another,  and to make and enforce  reasonable rules and regulations  relative to
any and all of these  matters or to the  management of its  operation,  provided
that the reasonableness of rules may be tested in the grievance  procedure.  The
Employer  shall  be  the  exclusive  judge  of  all  matters  pertaining  to its
operations and their scheduling and the methods, processes,  equipment, means of
operation  and  size  of  workforce.  Section  3.2.  The  Employer  retains  all
prerogatives  and rights of management and all  privileges and  responsibilities
not specifically limited by this Agreement.

Section 3.3. If the sub-contracting of work usually performed by bargaining unit
employees  or partial or complete  plant  relocation  will have the  foreseeable
effect of causing the layoff of any unit employee,  the Company will give notice
to the Union and the parties will negotiate on the effects of the layoff.  It is
further  understood  that none of the  provisions of this Article shall have the
effect  to  reduce  or waive any  rights  of unit  employees  under  the  Worker
Adjustment and Retraining Notification Act (WARN).

                                    ARTICLE 4

                                  JOB STEWARDS

Section  4.1. The Employer  recognizes  the right of the Union to designate  job
stewards, not to exceed two (2) in each department. Alternates may be designated
but there  shall be only one active  steward  during each shift at any one time.
The Union shall notify the Company in writing as to the names of the stewards.

Section  4.2. A  representative  of the Union  shall be  permitted  to enter the
Employer's premises at reasonable times,  provided such representative  complies
with all safety  requirements  and does not  interfere  with the  operations  of
Employer's business and shall make arrangements with the Employer's manager.

                                    ARTICLE 5

                              UNION BULLETIN BOARD

Section 5.1. The Employer will provide a bulletin  board in each  department for
posting union  notices.  All matters to be posted shall be of union matters such
as meeting  notices,  information  pertaining  to union  business and must be on
union letterhead signed by a union representative.

                                    ARTICLE 6

                             NO STRIKE - NO LOCK OUT

Section  6.1.  For the  duration  of this  Agreement,  there shall be no strike,
stoppages,  slowdowns,  picketing, or other interruption of or interference with
Employer's operations. Section 6.2. The Company shall not lock out employees for
the  duration of this  Agreement.  Section  6.3.  Neither the  violation  of any
provisions  of the  Agreement,  nor the  commission of any act  constituting  an
unfair labor practice,  or otherwise made unlawful,  shall excuse the employees,
the Union,  or the Company from their  obligations  under the provisions of this
Article.

Section 6.4. An employee  discharged or otherwise  disciplined  for violation of
this  Article,  may seek review of such  discipline  through the  grievance  and
arbitration  procedures  provided herein. In this event, the only question to be
reviewed  shall be whether or not the employee  participated  in the  prohibited
conduct.

                                    ARTICLE 7

                               GRIEVANCE PROCEDURE

Section 7.1.  Grievances  arising  under this  contract are herein  defined as a
claim by a party to this Agreement or an employee covered by this Agreement that
the Company or the Union has violated a provision of this Agreement.

                                     STEP I

         The  employee  shall  discuss  the  grievance  or  complaint  with  the
immediate  supervisor  within five (5) working  days after the event giving rise
thereto occurs,  or within five (5) working days following the date on which the
grievant had or reasonably  would have had knowledge  thereof.  In the event the
employee so requests, the appropriate steward shall be present at this step. The
supervisor shall give an answer within five (5) working days after the grievance
is received.

                                     STEP 2

         If there is no  settlement in Step 1, the grievance may be presented by
the employee  and/or shop steward  within five (5) working days from the date on
which  the  supervisor's  answer  was  given  in Step 1. The  grievance  must be
presented  in  writing  to the  department  superintendent  and must  state  the
following information:

         (a) name or names of employee or employees involved;
         (b) the department or departments involved;
         (c) the date and time of the occurrence or discovery of the grievance;
         (d) the facts of the incident on which the claim is based;
         (e) the specific provision of this Agreement alleged to have been
             violated;
         (f) the remedy requested.
The  superintendent  shall give the Company's  answer in writing within five (5)
working days after the grievance is received by the superintendent.

                                     STEP 3

         In the event the grievance is not settled in Step 2, then the grievance
may  be  appealed  in  writing  to  the   division   manager  or  a   designated
representative  by the  Union to Step 3 within  five (5)  working  days from the
Company's answer in Step 2. The division manager or a designated  representative
shall give an answer in writing  within five (5)  working  days from the date of
the appeal.  In the event the grievance is not settled then the aggrieved  party
or parties shall have the right to request arbitration.

         In the event a grievance  arises on behalf of the Employer,  the matter
shall be presented to the Union Business Agent in writing,  who shall have seven
(7) days from the date of  submission  within which to endeavor to reconcile the
grievance presented and shall give an answer in writing within that time. If not
settled within that time, the aggrieved party or parties shall have the right to
request arbitration.

Section 7.2. Discharge  grievances shall be processed  initially under Step 3 of
the grievance procedure.  The written grievance shall be filed with the division
manager  within five (5) working days  following the date of discharge.  Section
7.3.  A  failure  to  observe  the time  limit  specified  herein  for  original
presentation  of a  grievance  or  presentation  in any  subsequent  step of the
grievance  procedure  on the part of either the  grievant  or the Union shall be
conclusive evidence that the grievance has been settled and abandoned.

         Failure on the part of the  Company to comply  with the time limits for
delivering its answer in any step of the grievance procedure shall automatically
advance the grievance to the next step of the grievance procedure.

         The time limits of the  grievance  procedure  may be extended by mutual
consent of the Union and the Company.

                                    ARTICLE 8

                                   ARBITRATION

Section  8.1.  If a party  to this  Agreement  desires  to take a  grievance  to
arbitration,  it shall within fifteen (15) calendar days after the denial of the
grievance,  give written  notice of his  intention to the other party,  together
with a  written  statement  of the  specific  provision  or  provisions  of this
Agreement at issue.

Section 8.2. The parties  shall  attempt to select an impartial  arbitrator.  If
they are unable to agree upon a choice  within seven (7) calendar days after the
receipt of Notice of Intent to  Arbitrate,  either party may request the Federal
Mediation  and  Conciliation  Service to submit a list of five (5)  arbitrators,
from  which the  arbitrator  will be  selected.  Selection  shall be made by the
parties  alternately  striking any name from the list (the first to strike shall
be the party requesting  arbitration) until only one (1) name remains. The final
name remaining shall be the arbitrator of the grievance.

Section  8.3.  The  jurisdiction  and  the  decision  of the  arbitrator  of the
grievance  shall  be  confined  to  a   determination   of  the  facts  and  the
interpretation  or application  of the specific  provision or provisions of this
Agreement at issue. The Arbitrator shall be bound by terms and provisions of the
Agreement and shall have the authority to consider only grievances  representing
solely an arbitration  issue under this Agreement.  The arbitrator shall have no
authority to add to, alter,  amend,  or modify any provision of this  Agreement.
The  decision  of the  arbitrator  in writing on any issue  properly  before the
arbitrator in accordance with the provisions of this  Agreement,  shall be final
and binding on the aggrieved employee or employees, the Union, and the Employer.
Section 8.4. Multiple grievances shall not be heard before one arbitrator at the
same hearing except by mutual agreement of the parties.

Section 8.5.  The Union and the Employer  shall each bear its own costs in these
arbitration proceedings,  except that they shall share equally the fee and other
expenses of the arbitrator in connection with the grievance.

                                    ARTICLE 9

                                    SENIORITY

Section  9.1.  Company  seniority  is  defined  as the  length of an  employee's
continuous  employment in the  bargaining  unit since the last permanent date of
employment.  Departmental  seniority  is defined as the length of an  employee's
continuous   employment  in  a  department   within  the  bargaining  unit.  The
departments  are  (1)  Live  Haul  Driver  Department,   (2)  Feed  Mill  Driver
Department,  and (3) Distribution  Driver Department.  Eligibility for vacation,
holidays, and other company benefits shall be determined by company seniority.

Section  9.2.  All newly  hired or re-hired  employees  shall be  considered  as
probationary employees for a period of ninety (90) days during which, they shall
not acquire  any  seniority,  and during  which they may be  discharged  without
recourse  to the  grievance  and  arbitration  procedures  provided  herein.  If
retained as a regular employee upon satisfactory  completion of the probationary
period, seniority shall be retroactive to the first day of employment.

Section  9.3.  Beginning  departmental  seniority  shall be the date of  company
seniority as of the effective date of this agreement.  Thereafter,  departmental
seniority  shall begin on the date of entry into the  department.  In matters of
layoff, recall, promotion and choice of vacation, departmental seniority will be
the deciding factor,  provided employees have the skill and ability  immediately
to perform required duties.

Section  9.4.     Departmental seniority shall prevail as follows:
- -------------
(a) All  starting  times in the Live Haul Driver  Department  shall be filled in
accordance with Section 9.8 of this Article; (b) Shifts in the Field Mill Driver
Department  shall be filled in accordance with Section 9.8 of this Article;  and
(c)  Vacancies  in all  departments  shall  be  filled  in  accordance  with the
procedures in Section 9.8 and Section 9.9.

Section 9.5.  Distribution  drivers shall indicate their preference for not more
than two scheduled days off for the following week to their  supervisor no later
than the preceding  Thursday.  In the event two or more  employees seek the same
days off,  the  employee  with the most  departmental  seniority  will  prevail.
Special  requests  for days off shall be granted if the  request (1) is received
not less than two weeks prior to the week when the days off are needed,  (2) the
time has not already been claimed by another  employee,  and (3) customer  needs
can be met. The weekly schedule shall be prepared on the preceding  Friday,  but
it is  understood  that it is subject to change  based upon  employee  absences,
customer  orders,  and  availability  of  experienced  drivers.

Section 9.6. An employee's  seniority  shall be lost and  employment  considered
terminated by:

(a)  discharge  for just cause;
(b)  failure to return  from layoff  within five (5) working days after written
     notice by certified mail is sent by the Company to the  employee's last
     known  address on the  Company's  books.  Actual  notice to the employee
     of recall by any other means shall satisfy the terms of this provision;
(c)  voluntary termination of employment;
(d)  failure to report  after  termination  of a leave of absence  approved  by
     the Company in writing on the first  scheduled  day
     following the expiration of such leave of absence;
(e)  engaging in a gainful occupation while on leave of absence;
(f)  absence  from  work for  three (3)  consecutive  days  without notice  to
     the  Company,  which  shall  be  considered  as a voluntary quit, unless
     notice was prevented by a cause beyond the control of the employee;
(g)  layoff  for a period  exceeding  an  employee's  length of  service  in the
     bargaining  unit,  or three  months,  whichever  is less.

Section 9.7. For thepurposes of this  Agreement,  layoffs shall be classified as
(a) "short term" and (b) "long term". A short term layoff is a layoff which will
not exceed ten (10)  workdays in length.  Short term layoffs may be made without
regard to  seniority.  A long term layoff is a layoff which will exceed ten (10)
workdays in length. Long term layoffs shall be made subject to Section 3 of this
Article.

Section  9.8.  All  permanent  job  vacancies  shall be  posted  for  three  (3)
consecutive  working days on the  bulletin  board.  Employees in the  department
desiring,  respectively,  the  starting  time or the shift,  as the case may be,
shall sign a bid sheet  posted on the bulletin  board.  An employee who does not
sign such bid sheet shall have no right to consideration for the vacancy.  If no
employee within the department bids on the posted position, the company may fill
the  position in its  discretion.  If an employee  from another  department  has
requested transfer into the department with a vacancy,  said employee shall have
preference over any new hire.  Section 9.9.  Employees  desiring a transfer to a
different  department  within the bargaining unit shall indicate their desire by
notifying their immediate  supervisor.  Any opening in that department  shall be
offered to the requesting  employee before a new employee is hired. In the event
two or more employees from outside the department have requested  transfer,  the
vacancy shall be filled by the employee with the greatest company seniority.

Section  9.10. An employee laid off in a reduction in force shall have the right
to bid into an  existing  vacancy in another  department,  and his  departmental
seniority in that  department  shall begin on the date of the  successful  move.
Section 9.11 The Company will  continue  its  practice of  permitting  live haul
drivers  access to  available  casual  overtime,  which  shall be offered to the
senior available driver.

                                   ARTICLE 10

                                 SENIORITY LIST

Section 10.1. Upon request at any reasonable  time, the Company shall furnish to
the Union a current seniority list. The list shall be by departmental  seniority
and shall include social security number, date of hire, and rate of pay.

                                   ARTICLE 11

                                  HOURS OF WORK

Section 11.1. The regular work week shall consist of five (5) days or forty (40)
hours.  This shall not be  construed  as a  guarantee  of any amount of hours or
work.  The basic  work week  shall be the seven (7) day  period  from 12:01 a.m.
Sunday until midnight the following  Saturday.  Employees will be given at least
one (1) calendar week's notice of any change by the Company of the payroll week.

Section  11.2.  An employee who works more than forty (40) hours in any one week
which includes work in either the Feed Mill or Distribution Departments shall be
paid at time and  one-half  the  regular  rate of pay for all hours in excess of
forty (40). If pending  litigation  finally  establishes live haul drivers to be
covered under the Fair Labor  Standards  Act,  they also shall receive  overtime
premium.

Section 11.3.  When employees are called to work a shift outside their regularly
scheduled  shift  and  report  for work,  or when  they  report to work at their
regularly  scheduled time, they shall be given the opportunity to work a minimum
of three (3) hours or receive pay for same at the applicable hourly rate, except
that no such pay shall be made when the plant cannot  operate for reasons beyond
the  control of the  Employer,  such as, but not limited  to,  strikes,  utility
failure,  fire,  flood,  storms or other acts of God interfering with work, or a
breakdown of machinery or equipment when the Company  notifies the employees not
to report to work at least four (4) hours prior to the scheduled time to work.

                                   ARTICLE 12

                                LEAVES OF ABSENCE

Section  12.1.  An employee who has  completed  the  probationary  period may be
granted,  at the  Company's  discretion,  a leave of absence  without  pay for a
reasonable  period  of time,  not to exceed  one (1)  month,  for the  following
reasons:

         (a)  emergency personal business; and
         (b)  Union business,  upon written request by the Union's  Business
              Manager,  provided that no more than three (3) employees shall
              be on such leave simultaneously.

Section  12.2.  Employees  who have  completed  their  probationary  period  are
eligible  for up to  thirteen  (13) weeks per year of unpaid  family and medical
treatment leave for the following reasons:

          (a)  Employee's   serious   health   condition  --  a  medical
          certification  will be required which states that the employee
          is unable to perform the functions of the employee's position.
          (b) Family  serious  health  condition -- spouse,  parent,  or
          child. A medical  certification  will be required  stating the
          employee is "needed to care for the individual." (c) New child
          leave -- the birth,  adoption  or foster care  placement  by a
          state agency of a child,  and, the need to care for the child;
          such leave may be prior to the actual birth or placement.

         The provisions of this Section shall be administered in accordance with
the Family and Medical  Leave Act of 1993 (FMLA).  Section  12.3.  Employees who
have completed their  probationary  period who lose actual work time in order to
attend the funeral of a family  member shall  receive a paid  funeral  leave for
time necessarily lost during the employee's regularly scheduled shift,  provided
the employee  would have been  scheduled and at work during that day. Said leave
shall be up to three (3) days with pay for a  deceased  parent,  spouse,  child,
brother, or sister and one (1) day for a deceased father-in-law,  mother-in-law,
grandparent,  brother-in-law,  or  sister-in-law.  In order to receive pay under
this Section,  an employee must be actively  working,  must make application for
such  paid  leave,  and  must  attend  the  funeral.  The  Company  may  require
satisfactory  evidence of attendance at the funeral and the  relationship of the
deceased.

Section 12.4.  If the Company has  knowledge  that an employee will be on family
and medical leave,  military leave, or an industrial  injury leave for more than
thirty  (30)  calendar  days,  the job will be posted and filled on a  temporary
basis within the department.  When employees on leave under this Section return,
they  shall be  immediately  assigned  to their old job;  employees  temporarily
filling the job shall return to their  regular jobs  Section  12.5.  The Company
shall pay each active employee who reports for jury duty the difference  between
pay up to eight  times the hourly  rate for time  actually  lost and the juror's
daily fee for each day the employee is required to serve on a jury. The employee
must report to work during those days of his  regularly  scheduled  shift during
which the  employee is not  required to report for jury duty or be  available at
court for jury service.  The employee must present proof of jury service and the
amount of compensation received from the court.

                                   ARTICLE 13

                                    VACATIONS

Section 13.1.  Regular full-time  employees shall be eligible for one (1) week's
vacation after the first  anniversary date of continuous  employment,  and after
the anniversary date of each succeeding year.

         Employees  shall be eligible  for a second  week of vacation  after the
second anniversary date of continuous employment, and after the anniversary date
of each succeeding year of continuous employment.

         Employees  shall be  eligible  for a third week of  vacation  after the
tenth anniversary date of continuous employment,  and after the anniversary date
of each succeeding year of continuous employment.

         Employees  shall be eligible  for a fourth  week of vacation  after the
twentieth  anniversary  date of continuous  employment and after the anniversary
date of each  succeeding  year of  continuous  employment.  Section  13.2. To be
eligible for a vacation,  an employee must have worked sixteen  hundred  (1,600)
hours  during  the  preceding  twelve  (12)  months or eighty  (80)  percent  of
available hours for that period,  whichever is less.  Vacations and holidays not
worked shall be considered time worked for purposes of this Section.

Section 13.3.  Vacation pay shall be computed at forty (40) times the Employee's
regular straight time hourly rate. Section 13.4. Due consideration will be given
employees'  choice of vacation time, but all vacations  scheduled are subject to
the final  approval  of the  Company in keeping  with the  Company's  scheduling
needs.  In the event that two or more  employees  cannot be released at the same
time,  the  employee  with the longest  service  with the Company  will be given
preference.  An employee who notifies  the Company of a vacation  choice  thirty
(30) days in advance  shall not lose that vacation  choice to another  employee.
Vacations  may  not be  scheduled  for  periods  of less  than a  week,  and all
vacations  must be taken within an anniversary  year.  Section 13.5. The Company
reserves  the right to schedule a plant  shutdown for one .(l) week in any year,
which  shall be treated  as a  vacation  week for those  employees  entitled  to
vacation.






                                   ARTICLE 14

                                    HOLIDAYS

Section 14.1.   The following shall be considered holidays:
- -------------
                    New Year's Day                     Labor Day
                    Martin Luther King's Birthday      Thanksgiving Day
                    Memorial Day                       Christmas Day
                    July Fourth                        Birthday Holiday

         The birthday holiday shall be taken on the employee's birthday.  If the
birthday  falls on a Saturday  or Sunday,  the  holiday  shall be taken on a day
agreed upon by the Company and the employee within one week of the birthday.

         In the event any other  holiday  falls on a  Saturday  or  Sunday,  the
Company will announce whether it will be observed on the Friday preceding or the
Monday following the holiday.  Such notice shall be given at least four (4) days
in advance.  Section 14.2.  All regular  full-time  employees who have completed
their  probationary  period  shall be paid for eight (8) hours at their  regular
straight time rate for each holiday  enumerated above,  provided they report for
work and work all scheduled hours on the workday  preceding and the workday next
following  the  holiday,  unless  the  employee  was  necessarily  absent due to
personal  illness,  supported  by a  doctor's  certificate,  or  because  of  an
emergency occurring to the employee or the employee's  immediate family (meaning
only spouse,  children,  or parents). No employee shall lose holiday pay because
of missing no more than thirty (30) minutes on the workday before or the workday
following the holiday.

         In any  event,  an  employee  must work at least one (1) day during the
calendar  week in which a holiday falls in order to be eligible for holiday pay,
except the employee who is on vacation. Section 14.3. Employees required to work
on a holiday  shall be paid the amount  provided  above,  in  addition  to their
regular  earnings  for that  day.  Hours not  worked  on a holiday  shall not be
considered as work time in computing any additional  compensation  due under the
overtime provisions of this contract.

Section 14.4. If an employee is required to work and fails to report or fails to
work scheduled  hours on a holiday,  the employee shall forfeit  holiday pay for
that day. Section 14.5. Employees on vacation during the week in which a holiday
falls shall receive holiday pay.

                                   ARTICLE 15

                                    INSURANCE

Section 15.1. The Company shall provide a group insurance  program for employees
covered  by  this   Agreement.   The  Company  will  continue  to  make  monthly
contributions  toward  group  insurance  premiums in the same  proportion  as is
currently in effect. Employees will bear the remaining costs of the insurance.

                                   ARTICLE 16

                   EMPLOYEE STOCK OWNERSHIP PLAN - RETIREMENT

Section 16.1. Employees covered by this Agreement will continue to be covered by
the Employee  Stock  Ownership  Plan of Sanderson  Farms,  Inc. and  Affiliates.
Participation  and  benefits  in  the  plan  shall  be in  accordance  with  the
provisions of that plan.

                                   ARTICLE 17

                                      WAGES

Section 17.1.  Wages shall be paid as provided in Appendix A attached hereto and
made a part of this Agreement.  Section 17.2.  Whenever a new job classification
is created by the Company, or there is a change or merger of job classifications
or the  job  content  of job  classifications,  the  Company  will  discuss  the
appropriate wage rate with the Union. If a mutually  satisfactory rate cannot be
agreed upon,  the Company  will set the rate.  The Union may file a grievance on
the rate, and the dispute shall be settled in accordance  with the grievance and
arbitration  procedures of this contract  Section 17.3.  Loader  Operators shall
receive  downtime pay for delays  exceeding thirty (30) minutes on a farm due to
truck delays,  slow startup,  excessive  distance  between farms,  and the like,
unless the delay is due to reasons  described in Section 11.3 of this Agreement.
Travel time to the first farm and travel time from the last farm are included in
the piece rate.  Downtime shall be paid an hourly rate in addition to piece rate
earnings.

Section  17.4.  In addition to the wage rates as provided in Appendix A, drivers
who have been  continuously  employed  for five (5) or more years shall  receive
seniority  pay of fifty  (50)  cents per  hour,  effective  on their  respective
anniversary  dates.  Section  17.5.  It is  understood  by the parties  that the
Company is engaged in a review of payment  methods  for its  drivers  which will
possibly  result  in  changes  to be  effective  on or about  January  1,  2000.
Beginning  on that date the  contract  will be  automatically  reopened  for the
purpose of  considering  the  adoption of revised  payment  methods.  Only those
portions of the  contract  affected by such  changes  will be  reopened,  as the
remaining  provisions  shall  remain in effect.  In the event the parties  reach
impasse on the  reopener,  the parties may exercise  their legal  rights.  It is
specifically  agreed  that  Article  6 shall be  suspended  until  agreement  is
reached.

                                   ARTICLE 18

                                  MISCELLANEOUS

Section 18.1.  The Company shall maintain safe,  sanitary,  and healthy  working
conditions  at all  times,  and  employees  will be  required  to  cooperate  in
maintaining such conditions.  Any complaints regarding safety or health shall be
processed through the grievance and arbitration provisions of this Agreement.

Section  18.2.  The Company will provide any uniforms  required of employees who
         have  completed  their  probationary  period.  The Company will furnish
         required safety equipment,  gloves,  aprons, hair nets, freezer gloves,
         cotton gloves, and smocks at

no cost to the employee.  Needed replacements,  through normal use, will be made
at no cost provided the worn out article is returned to the Company.  If an item
is lost or destroyed through employee  negligence,  the employee will be charged
for its  replacement.  Section 18.3. The Employer may require an employee,  upon
return from on the job injury, to take a physical  examination at the Employer's
expense.

Section  18.4.  It  shall be the  responsibility  of all  employees  to keep the
Employer apprised of their current address, telephone number, marital status and
number of  dependents.  Section  18.5.  The Company  will  continue  its current
practice to reimburse  employees for hotel/motel and meal expenses  required for
overnight  travel.   The  meal  allowance  shall  not  exceed  $17.00  within  a
twenty-four  hour period.  Section 18.6. It is the intent of the parties  hereto
that no provisions of this  Agreement  shall require either party to perform any
act which shall be unlawful under any Texas or Federal statute

                                   ARTICLE 19

                                NO DISCRIMINATION

Section  19.1.  The Company and the Union agree that they will not  discriminate
against any person  with regard to  employment  or Union  membership  because of
race,  creed,  color,  sex,  religion,  age,  national origin, or disability (as
defined in the Americans With Disabilities Act).

Section 19.2.  Whenever  masculine  gender is used in this  Agreement,  it shall
apply to the feminine gender.
- ------------
                                   ARTICLE 20

                       COMPLETE AGREEMENT AND SEPARABILITY

Section 20.1. Complete  Agreement:  The parties expressly declare that they have
bargained  between  themselves  on all  phases  of  hours,  wages,  rate of pay,
conditions  of  employment  and  working  conditions,  and  that  this  contract
represents their full and complete agreement without reservations or unexpressed
understanding.  Any  aspect  of  hours,  rates  of  pay,  wages,  conditions  of
employment and working conditions not covered by a particular  provision of this
agreement  is  declared  to have been  expressly  eliminated  as a  subject  for
bargaining  and during the life of this  Agreement may not be raised for further
bargaining in negotiations without written consent of all parties hereto.

         It is further  understood and agreed that neither party hereto has been
induced to enter into this Agreement by any  representations or promises made by
the other  which are not  expressly  set forth  herein,  and that this  document
correctly sets forth the effect of all preliminary negotiations, understandings,
and  agreements,  and supersedes  any previous  agreements,  whether  written or
verbal. This contract constitutes the entire Agreement and understanding between
the  parties  and shall not be  modified,  altered,  change,  or  amended in any
respect  except on mutual  agreement  set forth in  writing  and  signed by both
parties.

Section 20.2. Separability: In the event any of the provisions of this Agreement
are held to be in conflict with or in violation of any state or federal  statute
or other applicable law, administrative rule or regulation,  such decision shall
not affect the  validity  of the  remaining  provisions  of the  Agreement.  The
parties   further  agree  that  they  will  meet  within  thirty  (30)  days  to
re-negotiate  the provisions of the Agreement held to be invalid,  provided that
Article 6 shall remain in full force and effect during all such negotiations.

                                   ARTICLE 21

                                    CHECK-OFF

Section 21.1 The Employer  agrees that it will deduct the initiation fee and all
current  monthly  Union dues on a monthly  basis from the wages of the employees
who have made  application  for  membership  in the Union and who are covered by
this  Agreement,  provided the  Employer  receives  from each  employee on whose
account such  deductions  are made,  a written  assignment  individually  signed
authorizing  the  Employer  to make  such  deductions  in the  form as  shown on
Appendix  "B".  Dues shall be deducted from the payroll each month no later than
the fifteenth day of each month and forwarded to the Union within ten (10) days.
Section 21.2  Deductions are made for the convenience of the Union and the Union
shall  indemnify  and save the Employer  harmless  against any claims,  demands,
suits or other forms of liability that shall arise out of or by reason of action
taken or not taken by the Employer for the purpose of complying  with any of the
provisions of this Article.

Section 21.3 The Company agrees to make Credit Union  deductions  from the wages
of employees who duly authorize same.  Deductions will be made on a weekly basis
as requested by the employee with the following restrictions: An employee during
any  calendar  year may  authorize a regular  weekly  deduction  and/or a single
one-time deduction.  An employee may further authorize an increase in deductions
to establish a loan  payment.  Except for those  instances  outlined  above,  no
employee may increase,  decrease or withdraw from the program more than one time
in any calendar  year.  Said  deductions  shall be forwarded to the Credit Union
(Charger No. 20147) on a monthly  basis.  The Union will  indemnify and hold the
Company  harmless  from any and all  claims of  nature,  whatsoever,  arising or
resulting  from the  operation of this  provision  and the making of  deductions
pursuant thereto.

                                   ARTICLE 22

                              DURATION OF AGREEMENT

Section 22.1. This Agreement shall remain in full force and effect from the 27th
day of December,  1999 until the 26th day of December,  2002, and shall continue
thereafter  from year to year until  either party to this  Agreement  desires to
terminate this Agreement by giving written notice at least sixty (60) days prior
to December 26, 2002, or at least sixty (60) days'  written  notice prior to any
anniversary  date  thereafter.  The parties to this Agreement  shall endeavor to
satisfactorily  negotiate  any  contemplated  change or execute a new  Agreement
during the sixty (60) day period,  after proper notice in writing has been given
as provided  herein and above.  Notice,  as specified in this Article,  shall be
mailed via United States Certified Mail.

IN WITNESS  WHEREOF,  the parties have hereunto  signed there names this 28th
day of December, 1999.


SANDERSON FARMS, INC.                          TEAMSTERS LOCAL UNION NO. 968
(Brazos Production Division)

/s/Kevin Crook                               /s/Leo Correa
- -------------------------------------       ------------------------------------

- -------------------------------------       ------------------------------------

- -------------------------------------       ------------------------------------




SANDERSON FARMS, INC.
(Brazos Procession Division)

/s/Eric Erickson
- -------------------------------------

- -------------------------------------

- -------------------------------------







                                  APPENDIX "A"

                                  WAGE SCHEDULE

                                   EFFECTIVE:

                          Current     1/2/00      1/7/01      1/6/02



Distribution               10.15       10.40       10.60       10.95

Feed Mill                   8.95        9.20        9.40        9.75

Live Haul                   9.80       10.05       10.25       10.60

Loader Operators            8.65        8.90        9.10        9.45
 (Downtime)
 (Piece Rate)
Per thousand head:
 (4.00 lb. bird)
         Night              2.05        2.10        2.14        2.21
         Day                2.15        2.20        2.24        2.31
 (5.25 lb. bird)
         Night              2.25        2.31        2.36        2.44
         Day                2.35        2.41        2.46        2.54
 (6.25 lb. bird)
         Night              2.95        3.02        3.08        3.14
         Day                3.05        3.12        3.18        3.24








                                  APPENDIX "B"

                     CHECK-OFF AUTHORIZATION AND ASSIGNMENT

         I, ________________________________________________, hereby authorize
                                    (Print Name)
my employer to deduct from my wages each and every month an amount  equal to the
monthly dues,  initiation  fees and uniform  assessments of Local Union 968, and
direct  such   amounts  so  deducted  to  be  turned  over  each  month  to  the
Secretary-Treasurer of such Local Union for and on my behalf.

         This authorization is voluntary and is not conditioned on my present or
future membership in the Union.

         This  authorization and assignment shall be irrevocable for the term of
the  applicable  contract  between  the union and the  employer or for one year,
whichever is the lesser,  and shall  automatically  renew itself for  successive
yearly or applicable contract periods thereafter,  whichever is lesser, unless I
give written  notice to the company and the union at least sixty (60) days,  but
not more than  seventy-five  (75) days before any periodic  renewal date of this
authorization and assignment of my desire to revoke same.

Signature: _____________________________________________________________________

Social Security Number: ___________________________________  Date: _____________

Address: ______________________________________________________________________

City: _________________________________ State: _____________ Zip Code: _________
Employer: ____________________________________________________________________
Original to  Employer  Copy to Local  Union  Union dues are not deductible as
charitable contributions for Federal Tax purposes.