Exhibit 10.1

LANCE, INC.

2003 Annual Performance Incentive Plan for Officers

      Purposes and Introduction   The primary purposes of the 2003 Annual
Performance Incentive Plan for Officers are to:

              •   Motivate behaviors that lead to the successful achievement of
specific sales, financial and operations goals that support Lance’s stated
business strategy.           •   Emphasize link between participants’
performance and rewards for meeting predetermined, specific goals.           •  
Improve the competitiveness of total cash pay opportunities.           •   Help
establish performance orientation at Lance and communicate to employees that
greater responsibility carries greater rewards because more pay is “at risk.”

          For 2003, participants will be eligible to earn incentive awards based
on Division operating profit, specified safety and performance objectives,
individual performance objectives and the discretion of the Compensation
Committee.           To achieve the maximum motivational impact, plan goals and
the rewards that will be received for meeting those goals will be communicated
to participants as soon as practical after the 2003 Plan is approved by the
Compensation Committee of the Board of Directors.           Each participant
will be assigned a Target Incentive Award, stated as a percent of Base Salary.
The Target Incentive Award, or a greater or lesser amount, will be earned at the
end of the plan year based on the attainment of predetermined goals.          
Following year-end, 100% of the awards earned will be payable to participants in
cash.       Plan Year   The period over which performance will be measured is
the Company’s fiscal year.       Eligibility and Participation   Eligibility in
the Plan is limited to Officers of Lance who are key to Lance’s success. The
Compensation Committee of the Board of Directors will review and approve
participants nominated by

 

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          the President and CEO. Participation in one year does not guarantee
participation in a following year, but instead will be reevaluated and
determined on an annual basis.           Participants in the Plan may not
participate in any other annual incentive plan (e.g., sales incentives, etc.)
offered by Lance or its affiliates. Attachment A includes the list of 2003
participants approved by the Compensation Committee at its July 14, 2003
meeting.       Target Incentive Awards   Each participant will be assigned a
Target Incentive Award expressed as a percentage of his or her Base Salary.
Participants may be assigned Target Incentive Awards by position by salary level
or based on other factors as determined by the President and CEO.          
Target Incentive Awards will be reevaluated at least every other year, if not
annually. If the job duties of a position change during the year, or Base Salary
is increased significantly, the Target Incentive Award shall be revised as
appropriate.           Attachment A lists the Target Incentive Award for each
participant for the 2003 Plan Year. These Awards will be reviewed and adjusted
annually by the Compensation Committee. Target Incentive Awards will be
communicated to each participant as close to the beginning of the year as
practicable, in writing. Final awards will be calculated by multiplying each
participant’s Target Incentive Award by the appropriate percentage (based on
financial and individual performance for the year, as described below).      
Individual Performance   Each Officer (other than those named in the last
sentence of this paragraph and the first sentence of the next paragraph) will
receive 100% of his or her Incentive Award based on the discretion of the
Compensation Committee. Division Presidents, who are Officers, will receive 25%
to 65% of the Incentive Award based on the operating profit of his or her
Division or other Division for which he or she is responsible.       Performance
Measures and Weightings   The 2003 financial performance measure for the
President of Vista Bakery, Inc. will be 90% Divisions operating profit and 10%
Divisions safety. Specific goals and related payouts are shown below.

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                      2003 Goals and Related Payouts        

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            Payout as Percent     Performance Measure   Goal   of Target Award  
 

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    Vista Operating Profit                       Minimum   2003 Annual Operating
Profit: $*   25% (if met at minimum) If minimum is not met, no payouts will be
earned                   Intermediate   2003 Annual Operating
Profit: $*   50% (if met at intermediate)                   Target   2003 Annual
Operating
Profit: $*   100% (if met at Target)                   Maximum   2003 Annual
Operating
Profit: $*   200% (if met at maximum)  
   

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            Tamming Operating Profit                       Minimum   2003 Annual
Operating
Profit: $ *   25% (if met at minimum) If minimum is not met, no payouts will be
earned                   Intermediate   2003 Annual Operating
Profit: $*   75% (if met at intermediate)                   Target   2003 Annual
Operating
Profit: $*   100% (if met at Target)                   Maximum   2003 Annual
Operating
Profit: $*   200% (if met at maximum)

          [*Targets not required to be disclosed.]           Percent of payout
will be determined on a straight line basis between minimum and maximum. There
will be no payouts based on operating profit unless the minimum operating profit
is reached. The performance measures, specific numerical goals and the role of
individual performance in determining final payouts will be communicated to each
participant at the beginning of the year. Final performance awards will be
calculated after the Compensation Committee has reviewed the Company’s audited
financial statements for 2003 and determined the performance level achieved.

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          Minimum, Intermediate, Target and Maximum levels will be defined at
the beginning of each year for each performance measure.           The following
definitions for the terms Maximum, Target, Intermediate and Minimum should help
Lance set the goals for each year, as well as evaluate the payouts:

              •   Maximum: Excellent; deserves an above-market bonus           •
  Target: Normal or expected performance; deserves market level bonus          
•   Intermediate: Intermediate level of performance deserving of mid-level bonus
          •   Minimum: Lowest level of performance deserving payment above base
salary; deserves below market bonus           •   Below minimum: Deserves no
additional pay beyond
base salary

      Form and Timing of Payments   Final award payments will be made in cash as
soon as practicable after award amounts are approved by the Compensation
Committee of the Board of Directors. All awards will be rounded to the nearest
$100.       Change In Status   In the event that a participant changes positions
during the plan year, whether due to promotion, demotion or lateral move, at the
discretion of the President and CEO, awards may be prorated for the year based
on the length of time in each position.           An employee hired into an
eligible position during the year may participate in the plan for the balance of
the year on a pro rata basis.       Certain Terminations of Employment   In the
event a participant voluntarily terminates employment or is terminated
involuntarily before the end of the year, any award will be forfeited. In the
event of death, permanent disability, or normal or early retirement, the award
will be paid on a pro rata basis after the end of the plan year. Awards
otherwise will be calculated on the same basis as for other participants, except
that any adjustment for individual performance will be based on performance
prior to the termination of employment.

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      Change In Control   In the event of a Change in Control, pro rata payouts
will be made at the greater of (1) Target or (2) actual results for the
year-to-date, based on the number of days in the plan year preceding the Change
in Control. Payouts will be made within 30 days after the relevant transaction
has been completed.           For this purpose, a Change in Control is defined
as when any person, corporation or other entity and its affiliates (excluding
members of the Van Every Family and any trust, custodian or fiduciary for the
benefit of any one or more members of the Van Every Family) acquires or
contracts to acquire or otherwise controls in excess of 35% of the then
outstanding equity securities of the Company. For the purposes of this plan, the
Van Every Family shall mean the lineal descendants of Salem A. Van Every, Sr.,
whether by blood or adoption, and their spouses.       Withholding   The Company
shall withhold from award payments any Federal, foreign, state, or local income
or other taxes required to be withheld.       Communications   Progress reports
should be made to participants quarterly showing the year-to-date performance
results and the percentage of Target awards that would be earned if results
remain at that level for the entire year.       Executive Officers  
Notwithstanding any provisions to the contrary above, participation, Target
Incentive Awards and prorations for executive officers, including the President
and CEO, shall be approved by the Compensation Committee.       Governance   The
Compensation Committee of the Board of Directors of Lance, Inc. is ultimately
responsible for the administration and governance of the Plan. Actions requiring
Committee approval include final determination of plan eligibility and
participation, identification of performance goals and final award
determination. The decisions of the Committee shall be conclusive and binding on
all participants.

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Attachment A

              Name   Title   Award   Target

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P. A. Stroup, III   President & CEO   *%   $*               H. D. Fields   Vice
President and President, Vista Bakery, Inc.   *%   $*               L. R.
Gragnani, Jr.   Vice President - Information Technology/CIO   *%   $*          
    E. D. Leake   Vice President - Human Resources   *%   $*               B. C.
Preslar   Vice President - Finance/CFO   *%   $*               F. I. Lewis  
Vice President - Sales   *%   $*               D. R. Perzinski   Treasurer   *%
  $*               M. E. Wicklund   Controller and Assistant Secretary   *%   $*

[*Target awards omitted for participants as targets not required to be
disclosed.]