<PAGE>   1
                                                                    EXHIBIT 10.5




                           PREMIUM STANDARD FARMS INC.

                        SPECIAL EXECUTIVE RETIREMENT PLAN

                            EFFECTIVE JANUARY 1, 2000
<PAGE>   2
                                TABLE OF CONTENTS


<TABLE>
<S>                                                                                        <C>
ARTICLE I - DEFINITIONS......................................................................1

   1.01   ACTUARIAL EQUIVALENT...............................................................1

   1.02   ACTUARIAL VALUE....................................................................1

   1.03   BENEFICIARY........................................................................1

   1.04   BOARD..............................................................................1

   1.05   CHANGE IN CONTROL..................................................................1

   1.06   BOARD..............................................................................1

   1.07   CLAIMANT...........................................................................2

   1.08   CODE...............................................................................2

   1.09   COMMITTEE..........................................................................2

   1.10   COMPANY............................................................................2

   1.11   EARLY RETIREMENT AGE...............................................................2

   1.12   EMPLOYER(S)........................................................................2

   1.13   ERISA..............................................................................3

   1.14   FINAL AVERAGE EARNINGS.............................................................3

   1.15   NORMAL RETIREMENT AGE..............................................................3

   1.16   PARTICIPANT........................................................................3

   1.17   PLAN...............................................................................3

   1.18   PRIMARY BENEFIT....................................................................3

   1.19   RETIREMENT PLAN OFFSET AMOUNT......................................................3

   1.20   SERP BENEFIT.......................................................................3

   1.21   SOCIAL SECURITY OFFSET AMOUNT......................................................3

   SOCIAL SECURITY OFFSET AMOUNT.............................................................3

   1.22   YEARS OF BENEFIT SERVICE...........................................................4

   1.23   YEARS OF VESTING SERVICE...........................................................4


ARTICLE II - ELIGIBILITY.....................................................................4

   2.01   SELECTION BY COMMITTEE.............................................................4


ARTICLE III - VESTING........................................................................4

   3.01   VESTING IN BENEFITS................................................................4

   3.02   CHANGE IN CONTROL..................................................................4
</TABLE>


                                       i
<PAGE>   3
<TABLE>
<S>                                                                                         <C>
ARTICLE IV - BENEFITS........................................................................4

   4.01   NORMAL RETIREMENT..................................................................4

   4.02   EARLY RETIREMENT...................................................................4

   4.03   FORM OF BENEFITS...................................................................5

   4.04   COMMITTEE DISCRETION...............................................................5

   4.05   WITHHOLDING AND PAYROLL TAXES......................................................5

   4.06   BENEFITS ON DEATH..................................................................5

   4.07   COMMENCEMENT OF BENEFITS...........................................................6


ARTICLE V - TERMINATION AND AMENDMENT........................................................6

   5.01   TERMINATION........................................................................6

   5.02   AMENDMENT..........................................................................6


ARTICLE VI - OTHER BENEFITS AND AGREEMENT....................................................7

   6.01   COORDINATION WITH OTHER BENEFITS...................................................7


ARTICLE VII - ADMINISTRATION OF THE PLAN.....................................................7

   7.01   COMMITTEE DUTIES...................................................................7

   7.02   AGENTS.............................................................................7

   7.03   BINDING EFFECT OF DECISIONS........................................................7

   7.04   INDEMNITY OF COMMITTEE.............................................................7

   7.05   EMPLOYER INFORMATION...............................................................7


ARTICLE VIII - CLAIMS PROCEDURES.............................................................7

   8.01   PRESENTATION OF CLAIM..............................................................7

   8.02   NOTIFICATION OF DECISION...........................................................8

   8.03   REVIEW OF A DENIED CLAIM...........................................................8

   8.04   DECISION ON REVIEW.................................................................8

   8.05   LEGAL ACTION.......................................................................9


ARTICLE IX - MISCELLANEOUS...................................................................9

   9.01   UNSECURED GENERAL CREDITOR.........................................................9

   9.02   EMPLOYER'S LIABILITY...............................................................9

   9.03   NONASSIGNABILITY...................................................................9

   9.04   NOT A CONTRACT OF EMPLOYMENT.......................................................9

   9.05   FURNISHING INFORMATION.............................................................9
</TABLE>


                                       ii
<PAGE>   4
<TABLE>
<S>                                                                                         <C>
   9.06   TERMS..............................................................................9

   9.07   CAPTIONS...........................................................................10

   9.08   GOVERNING LAW......................................................................10

   9.09   VALIDITY...........................................................................10

   9.10   NOTICE.............................................................................10

   9.11   SUCCESSORS.........................................................................10

   9.12   SPOUSE'S INTEREST..................................................................10

   9.13   INCOMPETENT........................................................................10

   9.14   COURT ORDER........................................................................10

   9.15   DISTRIBUTION IN THE EVENT OF TAXATION..............................................11
</TABLE>


                                      iii
<PAGE>   5
                           PREMIUM STANDARD FARMS INC.
                        SPECIAL EXECUTIVE RETIREMENT PLAN

                            EFFECTIVE JANUARY 1, 2000

                                     PURPOSE

        The purpose of this Plan is to provide specified benefits to a select
group of management and highly compensated employees of Premium Standard Farms
Inc., a Delaware corporation, and its subsidiaries, if any, that sponsor this
Plan. This Plan shall be unfunded for tax purposes and for purposes of Title I
of ERISA.

                             ARTICLE I - DEFINITIONS

        1.01 "Actuarial Equivalent" shall mean a benefit of equivalent value, as
calculated by an actuary selected by the Company, computed on the basis of the
following actuarial assumptions:

             Interest: the annual interest rate on 30-year Treasury securities
             as specified by the Secretary of the Treasury or his delegate for
             the month preceding the month in which the Participant's
             distribution commences.

             Mortality: the 1983 Group Annuity Mortality Table using a blend of
             50% of the male table and 50% of the female table.

        1.02 "Actuarial Value" shall mean the lump sum cash value, as calculated
by an actuary selected by the Company, computed on the basis of the following
actuarial assumptions:

             Interest: the annual interest rate on 30-year Treasury securities
             as specified by the Secretary of the Treasury or his delegate for
             the month preceding the month in which the Participant's
             distribution commences.

             Mortality: the 1983 Group Annuity Mortality Table using a blend of
             50% of the male table and 50% of the female table.

        1.03 "Beneficiary" shall mean the surviving spouse of a deceased
Participant.

        1.04 "Board" shall mean the board of directors of the Company.

        1.05 "Change in Control" shall mean the first to occur of any of the
following events, unless such event shall have received prior approval of a
majority vote of the Continuing Directors, as defined below, indicating that
such event shall not constitute a Change in Control:

                (i) Any "person" (as that term is used in Section 13(d) and
        14(d) of the Securities Exchange Act of 1934) (other than the Company,
        any trustee or other fiduciary holding securities under an employee
        benefit plan of the Company or any corporation owned, directly or
        indirectly, by the stockholders of the Company in substantially the same
        proportions as their ownership of the stock of the Company), is or
        becomes the
<PAGE>   6
        "beneficial owner" (as defined in Rule 13(d)(3) under the Securities
        Exchange Act of 1934), directly or indirectly, of securities of the
        Company representing thirty percent (30%) or more of the combined voting
        power of the Company's then outstanding securities.

               (ii) During any period of two consecutive years (not including
        any period prior to the Effective Date of this Plan), individuals
        ("Existing Directors") who at the beginning of such period constitute
        the Board of Directors, and any new board member (an "Approved
        Director") (other than a board member designated by a person who has
        entered into an agreement with the Company to effect a transaction
        described in paragraph (i), (iii) or (iv) of this Section 1.05) whose
        election by the Board of Directors or nomination for election by the
        Company's shareholders was approved by a vote of at least two-thirds
        (2/3) of the board members then still in office who either were board
        members at the beginning of the period or whose election or nomination
        for election previously was so approved (Existing Directors together
        with Approved Directors constituting "Continuing Directors"), cease for
        any reason to constitute at least a majority of the Board of Directors;
        or

               (iii) The stockholders of the Company approve a merger or
        consolidation of the Company with any other person, other than (a) a
        merger or consolidation which would result in the voting securities of
        the Company outstanding immediately prior thereto continuing to
        represent (either by remaining outstanding or by being converted into
        voting securities for the surviving entity) more than fifty percent
        (50%) of the combined voting power of the voting securities of the
        Company or such surviving entity outstanding immediately after such
        merger or consolidation, or (b) a merger in which no "person" (as
        defined in Section 1.05(i)) acquires more than thirty percent (30%) of
        the combined voting power of the Company's then outstanding securities;
        or

               (iv) The stockholders of the Company approve a plan of complete
        liquidation of the Company or an agreement for the sale or disposition
        by the Company of all or substantially all of the Company's assets (or
        any transaction having a similar effect).

        1.06 "Board" shall mean the board of directors of the Company.

        1.07 "Claimant" shall have the meaning set forth in Section 8.1.

        1.08 "Code" shall mean the Internal Revenue Code of 1986, as amended
from time to time.

        1.09 "Committee" shall mean the Compensation Committee of the Board.

        1.10 "Company" shall mean Premium Standard Farms Inc., a Delaware
corporation.

        1.11 "Early Retirement Age" shall mean age 55 with five years of Vesting
Service.

        1.12 "Employer(s)" shall mean the Company and any subsidiaries of the
Company that have been selected by the Board to participate in the Plan.


                                       2
<PAGE>   7
        1.13 "ERISA" means the Employee Retirement Income Security Act of 1974,
as amended.

        1.14 "Final Average Earnings" shall mean the average of the
Participant's final three full calendar years' base salary, including any
amounts deferred to a qualified or nonqualified retirement plan or contributed
by the Participant to a cafeteria plan.

        1.15 "Normal Retirement Age" shall mean age 62.

        1.16 "Participant" shall mean any employee who is selected to
participate in the Plan by the Board and listed on Exhibit A as amended hereto
from time to time. The Board shall have the sole and exclusive authority to
select and delete Participants and to determine each Participant's Primary
Benefit.

        1.17 "Plan" shall mean this Special Executive Retirement Plan.

        1.18 "Primary Benefit" shall mean a monthly benefit equal to 1/12th of:

                (i) the percentage of Final Average Earnings times Years of
        Benefit Service set forth opposite the Participant's name on Exhibit A.

        The Maximum Primary Benefit shall be a monthly benefit equal to 1/12th
of 66.7% of Final Average Earnings.

        1.19 "Retirement Plan Offset Amount" shall mean the increase in benefit
actually paid to or on behalf of a Participant because of such Participant's
service with an Employer under any defined benefit retirement plans of the
Company or ContiGroup Companies, Inc. or its affiliates, including the Actuarial
Equivalent of any benefit not paid as a monthly annuity. A Participant's
Retirement Plan Offset Amount shall include any distributions (other than
distributions of salary deferrals) previously made to the Participant.

        1.20 "SERP Benefit" shall mean the benefit payable to a Participant
determined under Section 4.01.

        1.21 "Social Security Offset Amount" shall mean one-half (1/2) of a
Participant's anticipated monthly social security benefit payable beginning at
the earliest age permitted (currently 62), multiplied by a fraction, the
numerator of which shall be the Participant's Years of Benefits Service and the
denominator of which is the Participant's years of service for purposes of
calculating his social security benefit, subject to the following rules:

               (i) If a Participant elects to commence benefits under this Plan
        prior to age 62, his Social Security Offset Amount shall be reduced by
        6% by each full year by which the date on which he commences benefits
        precedes the date on which he attains Normal Retirement Age.

               (ii) If a Participant elects to commence benefits under this Plan
        at any age in a lump sum, his Social Security Offset Amount shall be
        one-half (1/2) the Actuarial Value of his expected social security
        benefits, including any benefits previously paid assuming


                                       3
<PAGE>   8
        that his benefits commenced at the earliest age permitted (currently,
        age 62) and were not thereafter adjusted for cost of living adjustments.

               (iii) If a Participant elects to commence benefits under this
        Plan in an annuity form at or following the time he has commenced
        receipt of social security benefits, his Social Security Offset Amount
        shall be one-half (1/2) the actual monthly benefit received at that time
        and shall not be adjusted thereafter for cost of living adjustments or
        the subsequent death of the Participant.

                (iv) If a surviving spouse is entitled to a benefit pursuant to
        Section 4.06, the Social Security Offset Amount shall be computed as
        though the Participant was still living at age 62.

        1.22 "Years of Benefit Service" shall mean full years of employment with
the Company.

        1.23 "Years of Vesting Service" shall mean full years of employment with
the Company, excluding for this purpose years of employment prior to January 1,
2000.

ARTICLE II - ELIGIBILITY

        2.01 SELECTION BY COMMITTEE. Participation in the Plan shall be limited
to a select group of management and highly compensated employees of the
Employers. From that group, the Committee shall select, in its sole discretion,
employees to participate in the Plan.

ARTICLE III -  VESTING

        3.01 VESTING IN BENEFITS. Each Participant shall be 100% vested in his
SERP Benefit upon the completion of five (5) Years of Vesting Service.

        3.02 CHANGE IN CONTROL. Notwithstanding Section 3.01 or any other
provision in this Plan that could be interpreted to the contrary, in the event
of a Change in Control, a Participant's SERP Benefit shall immediately become
100% vested (if it is not already vested in accordance with Section 3.01 above).

                              ARTICLE IV - BENEFITS

        4.01 NORMAL RETIREMENT. A Participant who has completed five (5) Years
of Vesting Service and who has terminated employment with the Company shall be
entitled to receive a SERP Benefit at Normal Retirement Age. The SERP Benefit
payable to a Participant at Normal Retirement Age shall be an annuity for the
life of the Participant equal to his Primary Benefit minus the sum of (i) his
Retirement Plan Offset Amount and (ii) his Social Security Offset Amount.

        4.02 EARLY RETIREMENT. A Participant who attains Early Retirement Age
and who has terminated employment shall be entitled to retire and receive a
reduced SERP Benefit equal to his SERP Benefit reduced by one half of one
percent (.5%) for each month by which the date on which he commences benefits
precedes the date on which he attains his Normal Retirement Age.


                                       4
<PAGE>   9
        4.03 FORM OF BENEFITS. Payments of vested SERP Benefits shall be made in
the form and at the time elected by the Participant. The Participant shall make
an election as to the form and timing of payments no later than 60 days prior to
the end of the second calendar year preceding his retirement or other
termination of employment on forms and in accordance with procedures announced
from time to time by the Committee. Such election may be revoked or amended any
time prior to the last date for making an election according to the preceding
sentence. The forms of benefit available under the Plan shall be:

                (i) lump sum, which shall be the Actuarial Value of the SERP
        Benefit;

               (ii) joint and 50% survivor annuity, which shall be a monthly
        income payable for the lifetime of the Participant and continuing
        thereafter in an amount one-half as large to the Participant's surviving
        spouse for the lifetime of such spouse and shall be the Actuarial
        Equivalent of the SERP Benefit;

               (iii) joint and 100% survivor annuity, which shall be a monthly
        income payable for the lifetime of the Participant and continuing
        thereafter in an equal amount to the Participant's surviving spouse for
        the lifetime of such spouse and shall be the Actuarial Equivalent of the
        SERP Benefit; and

                (iv) an annuity for the life of the Participant only.

        If the Participant has elected a joint and survivor annuity and has no
        spouse at the time benefits become payable, the election shall be void
        and the benefits shall be paid as an annuity for the life of the
        Participant only. Should the spouse die after benefits have become
        payable, no survivor annuity shall be paid to any subsequent spouse of
        the Participant.

        4.04 COMMITTEE DISCRETION. The Committee, in its sole discretion and
consistent with its established procedures and rules, may consider other forms
of vested SERP Benefit payments, or the timing of vested SERP Benefit payments,
as it deems necessary and prudent under the circumstances.

        4.05 WITHHOLDING AND PAYROLL TAXES. The Employer, to the extent required
by applicable law, shall withhold from any and all benefits made under this
Article 4, all federal, state and local income, employment and other taxes
required to be withheld by the Employer in connection with the benefits
hereunder, in amounts to be determined in the sole discretion of the Employer.

        4.06 BENEFITS ON DEATH. If a Participant dies prior to commencing
benefits under this Plan and is married on the date of his death, a spousal
death benefit shall be payable under this Plan. The spousal death benefit under
this Plan shall be equal to an annuity based on 50% of the Participant's SERP
Benefit, commencing immediately but no earlier than the date that the
Participant would have attained age 55, and reduced by one-half of one percent
(.5%) for each month by which the date benefits commence precedes the date that
the Participant would have attained age 62. Any spousal death benefits payable
under this Plan shall be paid in the form of an annuity for the spouse's single
life. If a Participant has no surviving spouse, the benefits remaining under the
Plan shall be forfeited.


                                       5
<PAGE>   10
        4.07 COMMENCEMENT OF BENEFITS. Payment of a benefit to a Participant may
not begin earlier than the later of:

                (i) the Participant's Early Retirement Age, or

                (ii) The Participant's termination of employment.

                      ARTICLE V - TERMINATION AND AMENDMENT

        5.01 TERMINATION. The Company reserves the right to terminate the Plan
at any time by the action of the Board. The termination of the Plan shall not
adversely affect any Participant or his or her Beneficiary who has become
entitled to the payment of any benefits under the Plan as of the date of
termination, provided, however, that the Employer shall have the right to
accelerate payments by paying the Actuarial Value of such payments. For all
other Participants, upon the termination of the Plan, the Employer shall have
the right to pay the Actuarial Value of a Participant's vested SERP Benefit in a
lump sum.

        5.02 AMENDMENT. The Company may, at any time, amend or modify the Plan
in whole or in part by the action of its Board; provided, however, that no
amendment or modification shall be effective to decrease or restrict a
Participant's then vested SERP Benefit. The amendment or modification of the
Plan shall not affect any Participant or his or her Beneficiary who has become
entitled to the payment of benefits under the Plan as of the date of the
amendment or modification; provided, however, that the Employer shall have the
right to accelerate installment payments by paying the Actuarial Value of such
payments in a lump sum or the Actuarial Equivalent in some other accelerated
form of payment.


                                       6
<PAGE>   11
                    ARTICLE VI - OTHER BENEFITS AND AGREEMENT

        6.01 COORDINATION WITH OTHER BENEFITS. Except as provided herein and
except as otherwise expressly provided under any other plan or program for
employees of the Employers, the benefits provided under this Plan to a
Participant are in addition to the benefits available to such Participant under
any other such plan or program. The Plan shall supplement and shall not
supersede, modify or amend any other such plan or program except as may
otherwise be expressly provided.

                    ARTICLE VII - ADMINISTRATION OF THE PLAN

        7.01 COMMITTEE DUTIES. This Plan shall be administered by the Committee,
or such committee or individual as the Board shall appoint. Members of the
Committee may be Participants under this Plan. The Committee shall also have the
discretion and authority to (i) make, amend, interpret and enforce all
appropriate rules and regulations for the administration of this Plan and (ii)
decide or resolve any and all questions including interpretations of this Plan,
as may arise in connection with the Plan.

        7.02 AGENTS. In the administration of this Plan, the Committee may
employ agents and delegate to them such administrative duties as it sees fit
(including acting through a duly appointed representative) and may from time to
time consult with counsel who may be counsel to any Employer.

        7.03 BINDING EFFECT OF DECISIONS. The decision or action of the
Committee with respect to any question arising out of or in connection with the
administration, interpretation and application of the Plan and the rules and
regulations promulgated hereunder shall be final and conclusive and binding upon
all persons having any interest in the Plan.

        7.04 INDEMNITY OF COMMITTEE. All Employers shall indemnify and hold
harmless the members of the Committee against any and all claims, losses,
damages, expenses or liabilities arising from any action or failure to act with
respect to this Plan, except in the case of willful misconduct by the Committee
or any of its members.

        7.05 EMPLOYER INFORMATION. To enable the Committee to perform its
functions, each Employer shall supply full and timely information to the
Committee on all matters relating to the compensation of its Participants, the
date and circumstances of the retirement, disability, death or termination of
employment of its Participants, and such other pertinent information as the
Committee may reasonably require.

                        ARTICLE VIII - CLAIMS PROCEDURES

        8.01 PRESENTATION OF CLAIM. Any Participant or Beneficiary (such
Participant or Beneficiary being referred to below as a "Claimant") may deliver
to the Committee a written claim for a determination with respect to the amounts
distributable to such Claimant from the Plan. If such a claim relates to the
contents of a notice received by the Claimant, the claim must be made within 60
days after such notice was received by the Claimant. The claim must state with
particularity the determination desired by the Claimant. All other claims must
be made


                                       7
<PAGE>   12
within 180 days of the date on which the event that caused the claim to arise
occurred. The claim must state with particularity the determination desired by
the Claimant.

        8.02 NOTIFICATION OF DECISION. The Committee shall consider a Claimant's
claim within 90 days (unless special circumstances require additional time), and
shall notify the Claimant in writing:

                (i) that the Claimant's requested determination has been made,
        and that the claim has been allowed in full; or

               (ii) that the Committee has reached a conclusion contrary, in
        whole or in part, to the Claimant's requested determination, and such
        notice must set forth in a manner calculated to be understood by the
        Claimant;

                        (1) the specific reason(s) for the denial of the claim,
                or any part of it;

                        (2) specific reference(s) to pertinent provisions of the
                Plan upon which such denial was based;

                        (3) a description of any additional material or
                information necessary for the Claimant to perfect the claim, and
                an explanation of why such material or information is necessary;
                and

                        (4) an explanation of the claim review procedure set
                forth in Section 8.03 below.

        8.03 REVIEW OF A DENIED CLAIM. Within 60 days after receiving a notice
from the Committee that a claim has been denied, in whole or in part, a Claimant
(or the Claimant's duly authorized representative) may file with the Committee a
written request for a review of the denial of the claim. Thereafter, but not
later than 30 days after the review procedure began, the Claimant (or the
Claimant's duly authorized representative):

                (i) may review pertinent documents;

                (ii) may submit written comments or other documents; and/or

                (iii) may request a hearing, which the Committee, in its sole
        discretion, may grant.

        8.04 DECISION ON REVIEW. The Committee shall render its decision on
review promptly, and not later than 60 days after the filing of a written
request for review of the denial, unless a hearing is held or other special
circumstances require additional time, in which case the Committee's decision
must be rendered within 120 days after such date. Such decision must be written
in a manner calculated to be understood by the Claimant, and it must contain:

                (i) specific reasons for the decision;


                                       8
<PAGE>   13
                (ii) specific reference(s) to the pertinent Plan provisions upon
        which the decision was based; and

                (iii) such other matters as the Committee deems relevant.

        8.05 LEGAL ACTION. A Claimant's compliance with the foregoing provisions
of this Article 8 is a mandatory prerequisite to a Claimant's right to commence
any legal action with respect to any claim for benefits under this Plan.

                           ARTICLE IX - MISCELLANEOUS

        9.01 UNSECURED GENERAL CREDITOR. Participants and their Beneficiaries
successors and assigns shall have no legal or equitable rights, interests or
claims in any property or assets of an Employer. Any and all of an Employer's
assets shall be, and remain, the general, unpledged, unrestricted assets of the
Employer. An Employer's obligation under the Plan shall be merely that of an
unfunded and unsecured promise to pay money in the future.

        9.02 EMPLOYER'S LIABILITY. An Employer's liability for the payment of
benefits shall be defined only by the Plan. An Employer shall have no obligation
to a Participant under the Plan except as expressly provided in the Plan.

        9.03 NONASSIGNABILITY. Neither a Participant nor any other person shall
have any right to commute, sell, assign, transfer, pledge, anticipate, mortgage
or otherwise encumber, transfer, hypothecate or convey in advance of actual
receipt, the amounts, if any, payable hereunder, or any part thereof, which are,
and all rights to which are, expressly declared to be, unassignable and
non-transferable. No part of the amounts payable shall, prior to actual payment,
be subject to seizure or sequestration for the payment of any debts, judgments,
alimony or separate maintenance owed by a Participant or any other person, nor
be transferable by operation of law in the event of a Participant's or any other
person's bankruptcy or insolvency.

        9.04 NOT A CONTRACT OF EMPLOYMENT. The terms and conditions of this Plan
shall not be deemed to constitute a contract of employment between any Employer
and the Participant. Such employment is hereby acknowledged to be an "at will"
employment relationship that can be terminated at any time for any reason, with
or without cause, unless expressly provided in a written employment agreement.
Nothing in this Plan shall be deemed to give a Participant the right to be
retained in the service of any Employer or to interfere with the right of any
Employer to discipline or discharge the Participant at any time.

        9.05 FURNISHING INFORMATION. A Participant or his or her Beneficiary
will cooperate with the Committee by furnishing any and all information
requested by the Committee and take such other actions as may be requested in
order to facilitate the administration of the Plan and the payments of benefits
hereunder, including but not limited to taking such physical examinations as the
Committee may deem necessary.

        9.06 TERMS. Whenever any words are used herein in the masculine, they
shall be construed as though they were in the feminine in all cases where they
would so apply; and wherever any words are used herein in the singular or in the
plural, they shall be construed as


                                       9
<PAGE>   14
though they were used in the plural or the singular, as the case may be, in all
cases where they would so apply.

        9.07 CAPTIONS. The captions of the articles, sections and paragraphs of
this Plan are for convenience only and shall not control or affect the meaning
or construction of any of its provisions.

        9.08 GOVERNING LAW. Subject to ERISA, the provisions of this Plan shall
be construed and interpreted according to the internal laws of the State of
Missouri without regard to its conflict of laws principles.

        9.09 VALIDITY. In case any provision of this Plan shall be illegal or
invalid for any reason, said illegality or invalidity shall not affect the
remaining parts thereof, but this Plan shall be construed and enforced as if
such illegal and invalid provision had never been inserted herein.

        9.10 NOTICE. Any notice or filing required or permitted to be given to
the Committee under this Plan shall be sufficient if in writing and
hand-delivered, or sent by registered or certified mail, to the address below:

        Such notice shall be deemed given as of the date of delivery or, if
delivery is made by mail, as of the date shown on the postmark on the receipt
for registration or certification.

        Any notice or filing required or permitted to be given to a Participant
under this Plan shall be sufficient if in writing and hand-delivered, or sent by
mail, to the last known address of the participant.

        9.11 SUCCESSORS. The provisions of this Plan shall bind and inure to the
benefit of the Participant's Employer and its successors and assigns and the
Participant and the Participant's Beneficiary.

        9.12 SPOUSE'S INTEREST. The interest in the benefits hereunder of a
spouse of a Participant who has predeceased the Participant shall automatically
pass to the Participant and shall not be transferable by such spouse in any
manner, including but not limited to such spouse's will, nor shall such interest
pass under the laws of intestate succession.

        9.13 INCOMPETENT. If the Committee determines in its discretion that a
benefit under this Plan is to be paid to a minor, a person declared incompetent
or to a person incapable of handling the disposition of that person's property,
the Committee may direct payment of such benefit to the guardian, legal
representative or person having the care and custody of such minor, incompetent
or incapable person. The Committee may require proof of minority, incompetency,
incapacity or guardianship, as it may deem appropriate prior to distribution of
the benefit. Any payment of a benefit shall be a payment for the account of the
Participant and the Participant's Beneficiary, as the case may be, and shall be
a complete discharge of any liability under the Plan for such payment amount.

        9.14 COURT ORDER. The Committee is authorized to make any payments
directed by court order in any action in which the Plan or Committee has been
named as a party.


                                       10
<PAGE>   15
        9.15 DISTRIBUTION IN THE EVENT OF TAXATION. If, for any reason, all or
any portion of a Participant's benefit under this Plan becomes taxable to the
Participant prior to receipt, a Participant may petition the Committee for a
distribution of that portion of his or her benefit that has become taxable. Upon
the approval of such a petition a Participant's Employer shall distribute to the
Participant immediately available funds in an amount equal to the taxable
portion of his or her benefit (which amount shall not exceed a Participant's
unpaid vested benefit under the Plan). If the petition is approved, the tax
liability distribution shall be made within 90 days of the date when the
Participant's petition is approved. Such a distribution shall affect and reduce
the benefits to be paid under this Plan.

        IN WITNESS WHEREOF, Premium Standard Farms Inc. has signed this Plan
document as of January 1, 2001.
                                            "COMPANY'

                                            PREMIUM STANDARD FARMS INC.



                                            By: /s/
                                                --------------------------------
                                            Title:
                                                   -----------------------------


                                       11
<PAGE>   16
                                                                       Exhibit A

                          PREMIUM STANDARD FARMS, INC.

                                SERP PARTICIPANTS


<TABLE>
<CAPTION>
       Name                                Position                       Percent
       ----                                --------                       -------
<S>                             <C>                                       <C>
John Meyer                      CEO                                          4%
Robert Manly                    President                                    4%
Stephen Lightstone              CFO                                          4%
Michael Townsley                Sr. VP Sales and Marketing                   2%
David James                     VP MO & NC Farm Operations                   2%
Don Killingsworth               VP Industrial Procurement                    2%
Dennis Rippe                    VP Controller, Corp. Asst. Secretary         2%
Daniel Harris                   VP Information Technology                    2%
David Klein                     VP Human Resources                           2%
Calvin Held                     VP Milan Plant Processing Operations         2%
David Townsend                  VP Environmental Affairs                     2%
Charles Arnot                   VP Communications and Public Affairs         2%
Collette Schultz-Kaster         VP Food Safety and Technical Services        2%
Jere Null                       VP Lundy Plant Processing Operations         2%
</TABLE>