Document:

CEO Management Continuity Agreement

     

     

    
 

    Exhibit
      10.1

    CEO
      MCA

    

    

    2006

    AMENDED
      AND RESTATED

    MANAGEMENT
      CONTINUITY AGREEMENT

    

    AGREEMENT
      between Ralcorp Holdings, Inc., a Missouri corporation ("Ralcorp"), and
      _______________ (the "Executive"), WITNESSETH:

    

    WHEREAS,
      the Board of Directors (the "Board") has authorized Ralcorp to enter into
      Management Continuity Agreements with certain key executives of Ralcorp;
      and

    

    WHEREAS,
      the Executive is a key executive of Ralcorp and has been selected by the Board
      to be offered this Management Continuity Agreement; and

    

    WHEREAS,
      should a third person take steps which might lead to a Change in Control of
      Ralcorp (as defined herein), the Board believes it imperative that Ralcorp
      be
      able to rely upon the Executive to continue in the Executive’s position, and
      that Ralcorp be able to receive and rely upon the Executive’s advice, if it is
      requested, as to the best interests of Ralcorp and its shareholders without
      concern that the Executive might be distracted by the personal uncertainties
      and
      risks created by such a Change in Control or influenced by conflicting
      interests; and 

     

    

    WHEREAS,
      the Board and Executive have agreed to amend and restate the terms of this
      Agreement and replace any previous Management Continuity Agreement with this
      Agreement.

    

    NOW,
      THEREFORE, for and in consideration of the premises and other good and valuable
      consideration, Ralcorp and the Executive agree as follows:

    

    
      	1.  	
              Definitions.
                For purposes of this Agreement, the following terms shall have the
                meanings set forth below:

            

    

    

    a. 
“Accounting
      Firm” as defined in Section 7.

    

    
      	 	 	
              b.

            	
              "Base
                Amount" shall be the Executive's Base Amount as defined and determined
                pursuant to Section 280G of the Code and regulations applicable at
                the
                time of the Executive's Qualifying
                Termination.

            

    

    

    c.  "Base
      Compensation" shall consist of:

    

    
      	 	 	 	
              (i)

            	
              The
                Executive's monthly gross salary for the last full month preceding
                the
                Executive’s Qualifying Termination or for the last full month preceding
                the Change in Control, whichever is higher. If Executive has elected
                to
                accelerate or defer salary (including the Executive's pre-tax
                contributions under the Ralcorp Holdings, Inc. Savings Investment
                Plan and
                under any benefit plan complying with Section 125 of the Code and
                deferrals pursuant to the Executive Savings Investment Plan, and
                any
                successor plans thereto), said monthly gross salary shall be calculated
                as
                if there had been no acceleration or
                deferral.

            

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
 

    
      	 	 	 	
              (ii)

            	 	
              one-twelfth
                the higher of (x) the bonus to which the Executive would be entitled
                in
                the fiscal year in which a Qualifying Termination occurred after
                assuming
                all performance targets (personal and Company targets) were achieved
                at a
                level of 100% or (y) the Executive's last annual bonus paid by the
                Company, whether paid or deferred, preceding the Executive’s Qualifying
                Termination or the Change in Control, whichever is higher.
                

            

    

    

    
      	 	 	
              d.

            	
              "Change
                in Control" means (i) the acquisition by any person, entity or "group"
                within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities
                Exchange Act of 1934 (the "Exchange Act"), of beneficial ownership
                (within
                the meaning of Rule 13d-3 promulgated under the Exchange Act) of
                (x) 50%
                or more of the aggregate voting power of the then outstanding shares
                of
                Stock, other than acquisitions by Ralcorp or any of its subsidiaries
                or
                any employee benefit plan of Ralcorp (or any Trust created to hold
                or
                invest in issues thereof) or any entity holding Stock for or pursuant
                to
                the terms of any such plan, or (y) all, or substantially all, of
                the
                assets of Ralcorp or its subsidiaries taken as a whole; or (ii)
                individuals who shall qualify as Continuing Directors shall have
                ceased
                for any reason to constitute at least a majority of the Board of
                Directors
                of Ralcorp. Notwithstanding the foregoing, a Change-in-Control shall
                not
                include a transaction (commonly known as a “Morris Trust” transaction)
                pursuant to which a third party acquires one or more businesses of
                the
                Company by acquiring all of the common stock of Ralcorp while leaving
                the
                Company’s remaining businesses in a separate public company, unless the
                businesses so acquired constitute all or substantially all of the
                Company’s businesses.

            

    

    

    
      	 	 	
              e.

            	
              "Code"
                shall mean the Internal Revenue Code of 1986, as
                amended.

            

    

    

    
      	 	 	
              f.

            	
              "Company"
                shall mean Ralcorp Holdings, Inc. and its wholly owned
                subsidiaries.

            

    

    

    
      	 	 	
              g.

            	
              “Continuing
                Director" means any member of the Board of Directors of Ralcorp,
                as of
                February 1, 1997 while such person is a member of the Board, and any
                other director, while such other director is a member of the Board,
                who is
                recommended or elected to succeed the Continuing Director by at least
                two-thirds (2/3) of the Continuing Directors then in
                office.

            

    

    

    
      	 	 	
              h.

            	
              "Disability"
                shall exist when the Executive suffers a complete and permanent inability
                to perform any and every material duty of the Executive’s regular
                occupation because of injury or
                sickness.

            

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

     

     

    
      	 	 	 	
              To
                determine whether the Executive is Disabled, the Executive shall
                undergo
                examination by a licensed physician and other experts (including
                other
                physicians) as determined by such physician, and the Executive shall
                cooperate in providing relevant medical records as requested. The
                Company
                and Executive shall jointly select such physician. If they are unable
                to
                agree on the selection, each shall designate one physician and the
                two
                physicians shall designate a third physician so that a determination
                of
                disability may be made by the three physicians. Fees and expenses
                of the
                physicians and other experts and costs of examinations of the Executive
                shall be shared equally by the Company and the Executive. The decision
                as
                to the Executive's Disability made by such physician or physicians
                shall
                be binding on the Company and the
                Executive.

            

    

    

    
      	 	 	
              i.

            	
              "Discount
                Rate" means 120% of the applicable Federal rate determined under
                Section
                1274(d) of the Code and the regulations thereunder at the time the
                relevant payments are made.

               

            

    

    
      	 	 	
              j.

            	
              “Employment
                Agreement” shall mean an agreement so styled providing for continuation of
                salary and bonus payments under certain circumstances and entered
                into
                between Ralcorp and Executive contemporaneously with the execution
                of this
                Agreement.

            

    

    

    
      	  
              k.  	
                             
                “Excise Tax” as defined in Section
                7.

            

    

    

    
      	l.  	
                             
                “Gross-Up Payment” as defined in Section
                7.

            

    

    

    
      	 	 	
              m.

            	
              "Involuntary
                Termination" shall be any termination of the Executive's employment
                with
                the Company (a) to which the Executive objects orally or in writing
                or (b)
                which follows any of the following:

            

    

    

    
      	 	 	 	
              (i)

            	
              without
                the express written consent of the Executive, (a) the assignment
                of the
                Executive to any duties materially inconsistent with the Executive's
                positions, duties, responsibilities and status immediately prior
                to the
                Change in Control or (b) a material change in the Executive's titles,
                offices, or reporting responsibilities as in effect immediately prior
                to
                the Change in Control and with respect to either (a) or (b) the situation
                is not remedied within thirty (30) days after the receipt by the
                Company
                of written notice by the Executive; provided, however, (a) and (b)
                herein
                shall not constitute an "Involuntary Termination" if either situation
                is
                in connection with the Executive's death or disability.
                

            

    

    

    
      	 	 	 	
              (ii)

            	
              without
                the express written consent of the Executive, a reduction in the
                Executive's annual salary or opportunity for total annual compensation
                in
                effect immediately prior to the Change in Control which is not remedied
                within thirty (30) days after receipt by the Company of written notice
                by
                the Executive.

            

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

     

     

    
      	 	 	 	
              (iii)

            	
              without
                the express written consent of the Executive, the Executive is required
                to
                be based anywhere other than the Executive’s office location immediately
                preceding the Change in Control, except for required travel on business
                to
                an extent substantially consistent with the business travel obligations
                of
                the Executive immediately preceding the occurrence of the Change
                in
                Control.

            

    

    

    
      	 	 	 	
              (iv)

            	
              without
                the express written consent of the Executive, following the Change
                in
                Control (a) failure by the Company or its successor or assigns to
                provide
                to the Executive any material benefit or compensation plan, stock
                ownership plan, stock purchase plan, stock based incentive plan,
                defined
                benefit pension plan, defined contribution pension plan, life insurance
                plan, health and accident plan, or disability plan in which the Executive
                is participating or entitled to participate at the time of the Change
                in
                Control (or plans providing substantially similar benefits) or in
                which
                executive officers of the ultimate parent entity acquiring the Company
                are
                entitled to participate (whichever are more favorable); or (b) the
                taking
                of any action by the Company that would (1) adversely affect the
                participation in or materially reduce the benefits under any of such
                plans
                either in terms of the amount of benefits provided or the level of
                the
                Executive's participation relative to other participants; (2) deprive
                the
                Executive of any material fringe benefit enjoyed by the Executive
                at the
                time of the Change in Control; or (3) cause a failure to provide
                the
                number of paid vacation days to which the Executive was then entitled
                in
                accordance with Ralcorp's normal vacation policy in effect immediately
                prior to the Change in Control, which in either situation (a) or
                (b) is
                not remedied within thirty (30) days after receipt by the Company
                of
                written notice by the Executive.

            

    

    

    
      	 	 	 	
              (v)

            	
              the
                liquidation, dissolution, consolidation, or merger of the Company
                or
                transfer of all or substantially all of its assets, unless a successor
                or
                successors (by merger, consolidation, or otherwise) to which all
                or a
                significant portion of its assets have been transferred expressly
                assumes
                in writing all duties and obligations of the Company as here set
                forth.

            

    

    

    
      	 	 	 	
              (vi)

            	
              the
                failure by the Company or its successor or assigns (whether by purchase,
                merger, consolidation or otherwise) to expressly assume and agree
                to
                perform this Agreement after a Change in
                Control.

            

    

    

    
      
        	 	 	 	
                The
                  Executive's continued employment shall not constitute consent to,
                  or a
                  waiver of rights with respect to any circumstances set forth
                  above.

                 

              

      

      
        	 	 	
                n.
                  

              	
                "Non
                  Compete Effective Date” shall mean the date on which the Company or any
                  entity on its behalf shall pay the Executive all of the severance
                  benefits
                  to which the Executive is entitled under paragraph a and b of Section
                  3
                  hereunder.

              

      

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

     

    
      	 	 	
              o.

            	
              "Normal
                Retirement Date" shall be the date on which the Executive attains
                age
                65.

            

    

    

    
      	 	
              p.

            	
                
                 "Payment” as defined in Section
                7.

            

    

    

    
      	 	 	
              q.

            	
              The
                "Payment Period" shall be the following period commencing with the
                first
                day of the month following that in which a Qualifying Termination
                occurs:

            

    

    

    
      	 	 	 	
              (i)

            	 	
              if
                the Qualifying Termination is an Involuntary Termination that occurs
                at
                any time during the first or second year following the Change in
                Control
                -- 36 months; 

            

    

    

    
      
        	 	 	 	
                (ii)

              	 	
                if
                  the Qualifying Termination is an Involuntary Termination that occurs
                  at
                  any time during the third year following the Change in Control
                  -- 24
                  months; 

              

      

      
        	 	 	 	 	 	 

      

      
        	 	 	 	
                (iii)
                  

              	 	
                if
                  the Qualifying Termination is a Voluntary Termination that occurs
                  at any
                  time between six months following a Change in Control and three
                  years
                  following the Change in Control -- 24 months; or 

                 

              

      

      
        	 	 	 	
                (iv)

              	 	
                if
                  the Qualifying Termination is a Voluntary Termination that occurs
                  within
                  six months following a change in control -- 24
                  months.

              

      

    

    

       
      but in no event shall the Payment Period extend beyond the Executive’s Normal
      Retirement Date.

    

    
      	 	 	
              r.

            	
              "Qualifying
                Termination" shall be the Executive's Voluntary Termination or Involuntary
                Termination of employment with the Company except any termination
                because
                of the Executive's death, retirement at or after the Executive’s Normal
                Retirement Date or Termination for Cause. "Qualifying Termination"
                shall
                not include any change in the Executive's employment status due to
                Disability.

            

    

    

    
      	 	 	
              s.

            	
              "Retirement
                Plan" means the Ralcorp Holdings, Inc. Retirement Plan or any successor
                qualified plan, as amended from time to
                time.

            

    

    

    
      	 	 	
              t.

            	
              "Stock"
                means the common stock of Ralcorp or such other security entitling
                the
                holder to vote at the election of Ralcorp's directors or any other
                security outstanding upon its reclassification, including, without
                limitation, any stock split-up, stock dividend or other recapitalization
                of Ralcorp or any merger or consolidation of Ralcorp with any of
                its
                Affiliates.

            

    

    

    
      	 	 	
              u.

            	
              "Supplemental
                Plan" means the Ralcorp Holdings, Inc. Supplemental Retirement Plan
                as
                amended from time to time.

            

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
 

    
      	 	 	
              v.

            	
              "Termination
                for Cause" shall be a termination because
                of:

            

    

    

    
      	 	 	 	
              (i)

            	 	
              the
                continued failure by the Executive to devote reasonable time and
                effort to
                the performance of the Executive’s duties (other than any such failure
                resulting from the Executive's incapacity due to physical or mental
                illness) after written demand therefor has been delivered to the
                Executive
                by the Company that specifically identifies how the Executive has
                not
                devoted reasonable time and effort to the performance of the Executive’s
                duties; or

            

    

     

    
      	 	 	 	
              (ii)

            	 	
              the
                willful engaging by the Executive in misconduct which is materially
                injurious to the Company, monetarily or otherwise;
                or

            

    

    

    
      	 	 	 	
              (iii)

            	 	
              the
                Executive’s conviction of a felony or a crime involving moral
                turpitude;

            

    

    

    
      	 	 	 	
              in
                any case as determined by the Board upon the good faith vote of not
                less
                than a majority of the directors then in office, after reasonable
                notice
                to the Executive specifying in writing the basis or bases for the
                proposed
                Termination for Cause and after the Executive has been provided an
                opportunity to be heard before a meeting of the Board held upon reasonable
                notice to all directors; provided, however, that a Termination for
                Cause
                shall not include a termination attributable
                to:

            

    

    

    
      	 	 	 	
              (i)

            	 	
              bad
                judgment or negligence on the part of the Executive other than habitual
                negligence; or

            

    

    

    
      	 	 	 	
              (ii)

            	 	
              an
                act or omission believed by the Executive in good faith to have been
                in or
                not opposed to the best interests of the Company and reasonably believed
                by the Executive to be lawful; or

            

    

    

    
      	 	 	 	
              (iii)

            	 	
              the
                good faith conduct of the Executive in connection with a Change in
                Control
                (including the Executive’s opposition to or support
                thereof).

            

    

     

                          w.                                    
       "Voluntary Termination" shall be any termination of the Executive's
      employment with the Company other than an Involuntary Termination or a
      Termination for Cause.

     

    2.  
Operation
      of
      Agreement. This Agreement shall not create any obligation on the part of the
      Company or the Executive to continue their employment relationship. Anything
      in
      this Agreement to the contrary notwithstanding, no payments shall be made
      hereunder unless and until there has been a Change in Control of the Company.
      This Agreement is not exclusive with regard to benefits to be provided to the
      Executive on the Executive’s termination of employment with the Company and
      shall not affect any other agreement or arrangement providing for such
      benefits.

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

     

    3. 
      Severance
      Benefits.
      Provided that the Executive remains in the employ of the Company until a Change
      in Control has occurred, then upon the Executive's Qualifying Termination within
      three years after that Change in Control, the Executive shall be entitled to
      the
      following "Severance Benefits":

     

    
      	 	 	
              a.

            	
              Payment
                in a lump sum in cash, within 60 days after the Executive's Qualifying
                Termination, of the present value as of the date of the Qualifying
                Termination of an income stream equal to the Executive’s Base Compensation
                payable each month throughout the applicable Payment Period. For
                purposes
                of this subparagraph, present value shall be calculated by application
                of
                the Discount Rate;

            

    

     

    
      	 	 	
              b.

            	
              Continuation
                during the Payment Period of the Executive's participation in each
                life,
                health, accident and disability plan in which the Executive was entitled
                to participate immediately prior to the Change in Control, upon the
                same
                terms and conditions, including those with respect to spouses and
                dependents, applicable at such time; provided, however, that if the
                terms
                of any such benefit plan do not permit continued participation by
                the
                Executive, then the Company will arrange, at the Company's sole cost
                and
                expense, to provide the Executive a benefit substantially similar
                to, and
                no less favorable than, on an after-tax basis, the benefit the Executive
                was entitled to receive under such plan immediately prior to the
                Change in
                Control; provided further, however, that the benefit to be provided
                or
                payments to be made hereunder may be reduced by the benefits provided
                or
                payments made (in either case on an after-tax basis) by subsequent
                employer for the same occurrence or
                event;

            

    

    

    
      
        	 	 	
                c.

              	
                Payment
                  in a lump sum in cash, within 60 days after the Executive's Qualifying
                  Termination, of the difference between the present values as of
                  the date
                  of the Qualifying Termination of (a) the benefits under the Retirement
                  Plan and the Supplemental Plan which the Executive and the Executive’s
                  beneficiary, if applicable, would have been entitled to receive
                  had the
                  Executive remained employed by Ralcorp at a compensation level
                  equal to
                  the Executive’s Base Compensation for the entirety of the applicable
                  Payment Period, and (b) the Executive’s actual benefit, if any, to which
                  the Executive and the Executive’s beneficiary are entitled under the
                  Retirement Plan and the Supplemental Plan. For purposes of this
                  subparagraph, present value shall be calculated in accordance with
                  Section
                  417(e)(3) of the Code; no reduction factors for early retirement
                  shall be
                  applied in the calculation of benefits; and

                 

              

      

      
        	 	 	d.	
                Payment,
                  on a curent and ongoing basis, or any actual costs and expenses of
                  litigation incurred by the Executive, including costs of investigation
                  and
                  reasonable attorney's fees, in the event the Executive is a party
                  to any
                  legal action to enforce or to recover damages for breach of this
                  Agreement, or to recover or recoup from the Executive or the Executive's
                  legal representative or beneficiary any amounts paid under or pursuant
                  to
                  this Agreement, regardless of the outcome of such litigation, plus
                  interest at the applicable Federal rate provided for in Section
                  7872(f)(2)
                  of the Code.

                 

              

      

      
        	 	 	e.	Payment,
                on a current and ongoing basis (up to $20,000 in the aggregate) of
                costs
                or expenses incurred relating to or in the nature of outplacement
                assistance.  Such outplacement assistance includes, but is not
                limited to, office rental, travel for job interviews, and secretarial
                services.

      

    

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

     

     

    In
      the
      event the Executive’s employment is terminated  (other than as a result of
      a Termination for Cause) and the Executive objects to such termination orally
      or
      in writing and such termination occurs within 270 days prior to a Change in
      Control, the Executive shall be treated as meeting the requirements for
      severance benefits under the Section 3, for a Payment Period of 36
      months.

    

    The
      Executive may file with the Secretary or any Assistant Secretary of Ralcorp
      a
      written designation of a beneficiary or contingent beneficiaries to receive
      the
      payments described in subparagraphs (a) and (c) above in the event of the
      Executive's death following the Executive’s Qualifying Termination but prior to
      payment by the Company. The Executive may from time to time revoke or change
      any
      such designation of beneficiary and any designation of beneficiary pursuant
      to
      this Agreement shall be controlling over any other disposition, testamentary
      or
      otherwise; provided, however, that if the Company shall be in doubt as to the
      right of any such beneficiary to receive such payments, it may determine to
      pay
      such amounts to the legal representative of the Executive, in which case the
      Company shall not be under any further liability to anyone. In the event that
      such designated beneficiary or legal representative becomes a party to a legal
      action to enforce or to recover damages for breach of this Agreement, or to
      recover or recoup from the Executive or the Executive’s estate, legal
      representative or beneficiary any amounts paid under or pursuant to this
      Agreement, regardless of the outcome of such litigation, the Company shall
      pay
      their actual costs and expenses of such litigation, including costs of
      investigation and reasonable attorneys' fees, plus interest at the applicable
      Federal rate provided for in Section 7872(f)(2) of the Code; provided, however,
      that the Company shall not be required to pay such costs and expenses in
      connection with litigation to determine the proper payee, among two or more
      claimants, of the payments described in subparagraphs (a) and (c).

    

    4. 
       Successors
      to Company; Binding Effect; Assignment.
      This
      Agreement shall inure to the benefit of and be binding upon the Company and
      its
      successors. The Company will require any successor (whether direct or indirect,
      by purchase, merger, consolidation or otherwise) to all or substantially all
      of
      the business and/or assets of the Company to assume expressly and agree to
      perform this Agreement in the same manner and to the same extent that the
      Company would be required to perform it if no such succession had taken place.
      As used in this Agreement, "Company" shall mean the Company as herein before
      defined and any successor to its business and/or assets as aforesaid which
      assumes and agrees to perform this Agreement by operation of law, or otherwise.
      The Company may not assign this Agreement other than to a successor to all
      or
      substantially all of the business and/or assets of the Company. The Executive
      shall have no right to transfer or assign the right to receive any severance
      benefit under this Agreement except as noted in paragraph three
      above.

    

    5.
       Missouri
      Law to Govern.
      This
      Agreement shall be governed by the laws of the State of Missouri without giving
      effect to the conflict of laws provisions thereof.

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
 

    6. 
      Miscellaneous.
      No
      provision of this Agreement may be modified, waived or discharged unless such
      modification, waiver or discharge is agreed to in writing signed by the
      Executive and a duly authorized officer of the Company. No waiver by a party
      hereto at any time of any breach by the other party hereto of, or of compliance
      with, any condition or provision of this Agreement to be performed by such
      other
      party shall be deemed a waiver of similar or dissimilar provisions or conditions
      at the same or at any prior or subsequent time. No agreements or
      representations, oral or otherwise, express or implied, with respect to the
      subject matter hereof have been made by either party which are not expressly
      set
      forth in this Agreement.

     

    7. 
Certain
      Additional Payments by the Company.

     

    
      	a.  	
              Anything
                in this Agreement to the contrary notwithstanding and except as set
                forth
                below, in the event it shall be determined that any payment or
                distribution by the Company to or for the benefit of the Executive
                (whether paid or payable or distributed or distributable pursuant
                to the
                terms of this Agreement, any Stock based award or otherwise, but
                determined without regard to any additional payments required under
                this
                Section 7) (collectively, a “Payment”) would be subject to the excise tax
                imposed by Section 4999 of the Code or any interest or penalties
                are
                incurred by the Executive with respect to such excise tax (such excise
                tax, together with any such interest and penalties, are hereinafter
                collectively referred to as the “Excise Tax”), then the Executive shall be
                entitled to receive an additional payment (a “Gross-Up Payment”) in an
                amount such that after payment by the Executive of all taxes (including
                any interest or penalties imposed with respect to such taxes), including,
                without limitation, any income taxes (and any interest and penalties
                imposed with respect thereto) and Excise Tax imposed upon the Gross-Up
                Payment, the Executive retains an amount of the Gross-Up Payment
                equal to
                the Excise Tax imposed upon the
                Payments.

            

    

    

    
      	b.  	
              Subject
                to the provisions of Section 7(c), all determinations required to
                be made
                under this Section 7, including whether and when a Gross-Up Payment
                is
                required and the amount of such Gross-Up Payment and the assumptions
                to be
                utilized in arriving at such determination, shall be made by
                PricewaterhouseCoopers LLP or such other certified public accounting
                firm
                as may be designated by the Executive (the “Accounting Firm”) which shall
                provide detailed supporting calculations both to the Company and
                the
                Executive within 15 business days of the receipt of notice from the
                Executive that there has been a Payment, or such earlier time as
                is
                requested by the Company. In the event that the Accounting Firm is
                serving
                as accountant or auditor for the individual, entity or group effecting
                the
                Change of Control, the Executive shall appoint another nationally
                recognized accounting firm to make the determinations required hereunder
                (which accounting firm shall then be referred to as the Accounting
                Firm
                hereunder). All fees and expenses of the Accounting Firm shall be
                borne
                solely by the Company. Any Gross-Up Payment, as determined pursuant
                to
                this Section 7, shall be paid by the Company to the Executive within
                five
                days of the receipt of the Accounting Firm’s determination. Any
                determination by the Accounting Firm shall be binding upon the Company
                and
                the Executive. As a result of the uncertainty in the application
                of
                Section 4999 of the Code at the time of the initial determination
                by the
                Accounting Firm hereunder, it is possible that Gross-Up Payments
                which
                will not have been made by the company should have been made
                (“Underpayment”), consistent with the calculations required to be made
                hereunder. In the event that the Company exhausts its remedies pursuant
                to
                Section 7(c) and the Executive thereafter is required to make a payment
                of
                any Excise Tax, the Accounting Firm shall determine the amount of
                the
                Underpayment that has occurred and any such Underpayment shall be
                promptly
                paid by the Company to or for the benefit of the
                Executive.

            

    

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
 

    
      	c.  	
              The
                Executive shall notify the Company in writing of any claim by the
                Internal
                Revenue Service that, if successful, would require the payment by
                the
                Company of the Gross-Up Payment. Such notification shall be given
                as soon
                as practicable but no later than ten business days after the Executive
                is
                informed in writing of such claim and shall apprise the Company of
                the
                nature of such claim and the date on which such claim is requested
                to be
                paid. The Executive shall not pay such claim prior to the expiration
                of
                the 30-day period following the date on which it gives such notice
                to the
                Company (or such shorter period ending on the date that any payment
                of
                taxes with respect to such claim is due). If the Company notifies
                the
                Executive in writing prior to the expiration of such period that
                it
                desires to contest such claim, the Executive
                shall:

            

    

    

    
      	(i)  	
              give
                the Company any information reasonably requested by the Company relating
                to such claim,

            

    

    

    
      	(ii)  	
              take
                such action in connection with contesting such claim as the Company
                shall
                reasonably request in writing from time to time, including, without
                limitation, accepting legal representation with respect to such claim
                by
                an attorney reasonably selected by the
                Company,

            

    

    

    
      	(iii)  	
              cooperate
                with the Company in good faith in order effectively to contest such
                claim,
                and

            

    

    

    
      	(iv)  	
              permit
                the Company to participate in any proceedings relating to such
                claim.

            

    

    

    Provided,
      however, that the Company shall bear and pay directly all costs and expenses
      (including additional interest and penalties) incurred in connection with such
      contest and shall indemnify and hold the Executive harmless, on an after-tax
      basis, for any Excise Tax or income tax (including interest and penalties with
      respect thereto) imposed as a result of such representation and payment of
      costs
      and expenses. Without limitation on the foregoing provisions of this Section
      7(c), the Company shall control all proceedings taken in connection with such
      contest and, at its sole option, may pursue or forgo any and all administrative
      appeals, proceedings, hearings and conferences with the taxing authority in
      respect of such claim and may, at its sole option, either direct the Executive
      to pay the tax claimed and sue for a refund or contest the claim in any
      permissible manner, and the Executive agrees to prosecute such contest to a
      determination before any administrative tribunal, in a court of initial
      jurisdiction and in one or more appellate courts, as the Company shall
      determine; provided, however, that if the Company directs the Executive to
      pay
      such claim and sue for a refund, the Company shall advance the amount of such
      payment to the Executive, on an interest-free basis and shall indemnify and
      hold
      the Executive harmless, on an after-tax basis, from any Excise Tax or income
      tax
      (including interest or penalties with respect thereto) imposed with respect
      to
      such advance or with respect to any imputed income with respect to such advance;
      and further provided that any extension of the statute of limitations relating
      to payment of taxes for the taxable year of the Executive with respect to which
      such contested amount is claimed to be due is limited solely to such contested
      amount. Furthermore, the Company’s control of the contest shall be limited to
      issues with respect to which a Gross-Up Payment would be payable hereunder
      and
      the Executive shall be entitled to settle or contest, as the case may be, any
      other issue raised by the Internal Revenue Service or any other taxing
      authority.

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
 

    
      	 	
              d.

            	
              If,
                after the receipt by the Executive of an amount advanced by the Company
                pursuant to Section 7(c), the Executive becomes entitled to receive
                any
                refund with respect to such claim, the Executive shall (subject to
                the
                Company’s complying with the requirements of Section 7(c) promptly pay to
                the Company the amount of such refund (together with any interest
                paid or
                credited thereon after taxes applicable thereto). If, after the receipt
                by
                the Executive of an amount advanced by the Company pursuant to Section
                7(c), a determination is made that the Executive shall not be entitled
                to
                any refund with respect to such claim and the Company does not notify
                the
                Executive in writing of its intent to contest such denial of refund
                prior
                to the expiration of 30 days after such determination, then such
                advance
                shall be forgiven and shall not be required to be repaid and the
                amount of
                such advance shall offset, to the extent thereof, the amount of Gross-Up
                Payment required to be paid.

            

    

    

    8. 
      Taxes;
      Set-off. 
      All payments to be made to the Executive under this Agreement will be subject
      to
      required withholding of federal, state and local income and employment taxes.
      The foregoing, however, shall not be construed as limiting the Company’s
      obligations to make payments under Section 7. The right of the Executive to
      receive benefits under this Agreement, however, shall be absolute and shall
      not
      be subject to any set-off, counter-claim, recoupment, defense, duty to mitigate
      or other rights the Company may have against the Executive or anyone
      else.

     

    9. Severability.
      The
      invalidity and unenforceability of any particular provision of this Agreement
      shall not affect any other provision of this Agreement, and the Agreement shall
      be construed in all respects as if the invalid or unenforceable provision were
      omitted. 

    

    10. Covenant
      Not to Compete; Non Solicitation; and Confidentiality.
      

    

    
      	 	 	
              a.

            	
              Executive
                shall not from the Non Compete Effective Date until the first anniversary
                thereof,

            

    

    

    
      
        	 	 	 	
                (i)

              	
                engage
                  (whether as an owner, operator, manager, employee, officer, director,
                  consultant, advisor, representative or otherwise) directly or indirectly
                  in any business that produces, develops, markets or sells any type
                  of food
                  products that compete with those food products produced by the
                  Company as
                  of the date of a Change in Control; provided however, that
                  ownership of less than five percent (5%) of the outstanding stock
                  of any
                  publicly-traded corporation shall not be deemed to be engaging
                  solely by
                  reason thereof in any of it’s the Company’s businesses; or

                 

              

      

      
        	 	 	 	(ii)	induce
                or attempt to induce any customer, supplier, lender or other business
                relation of the Company to cease doing business with the Guarantor
                or any
                of its subsidiaries.

      

    

    .

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

     

     

     

    

    
      	 	 	
              b.

            	
              The
                Executive agrees that during the period beginning on the Non Compete
                Effective Date and ending on the second anniversary thereof, the
                Executive
                shall not: (i) directly or indirectly, contact, approach or solicit
                for
                the purposes of offering employment to, or (ii) hire (whether as
                an
                employee, consultant, agent, independent contractor or otherwise)
                any
                senior management level employee employed by the Company (or its
                successors or assigns) without the prior written consent of the Company
                or
                its successors or assigns. 

            

    

    

    
      	 	 	
              c.

            	
              Executive
                agrees to treat and hold as confidential any information concerning
                the
                business and affairs of the Company that is not or does not become
                generally available to the public other than as a result of a disclosure
                in violation of this Agreement (the "Confidential Information”), refrain
                from using any of the Confidential Information except in connection
                with
                this Agreement, and deliver promptly to the Company or destroy, at
                the
                request and option of the Company, all tangible embodiments (and
                all
                copies) of the Confidential Information which are in the Executive’s
                possession.

            

    

    

    
      	 	 	
              d.

            	
              Executive
                acknowledges and agrees that in the event of a breach by the Executive
                of
                any of the provisions of this Section 10, monetary damages shall
                not
                constitute a sufficient remedy. Consequently, in the event of any
                such
                breach, the Company or its successor or assigns shall be entitled
                to, in
                addition to the other rights and remedies existing in their favor,
                specific performance and/or injunctive or other relief in order to
                enforce
                or prevent any violations of the provisions hereof from any court
                of
                competent jurisdiction in each case without the requirement of posting
                a
                bond or proving actual damages. Further, Executive shall return to
                the
                Company or its successors or assigns sums paid under Section 3 hereof
                in
                the event a court of competent jurisdiction issue a final non-appealable
                ruling that finds the Executive breached the terms of this Section
                10.

            

    

    

    
      
        	 	 	
                e.

              	
                The
                  Executive agrees that except in connection with any legal proceeding
                  relating to the enforcement of this Agreement, following the Non
                  Compete
                  Effective Date, the Executive shall not be publicly disparaging
                  of the
                  Company or its officers or directors. 

                 

              

      

      
        	 	 	f.	The
                term "indirectly" as used in this Section 10 with respect to the
                Executive
                is intended to mean any acts authorized or directed by or on behalf
                of the
                Executive or any entity controlled by the
                Executive.

      

    

     

     

    
      	 	 	
              g.

            	
              In
                the event any sums due the Executive under this Agreement are not
                timely
                paid, then this Section 10 g will terminate automatically.
                

            

    

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
 

    

    11. Release
      of Claims.
      The
      Executive agrees that in exchange for the payment of all sums due hereunder,
      the
      Executive forever settles, compromises, discharges, forgives and voids all
      employment related claims and causes of action the Executive has or may have
      against the Company or its successor or assigns.

    

    
       

    

    

    IN
      WITNESS WHEREOF, the undersigned have executed this Agreement effective on
      the
      ______ day of ____________________, 2006.

    

    

    

    

    EXECUTIVE         
RALCORP
      HOLDINGS, INC.

    

    

    

    ___________________________                           
      By:  __________________________

       
      Jack W. Goodall, Chairman Corporate

                   
      Governance and Compensation Committee

     

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    S:/Employee
      Folder/Huber/2006 MCA’s/ CEO MCACorporate Officer Management Continuity Agreement

    Exhibit
      10.2

    Corporate
      Officer MCA

     

     

    2006

    AMENDED
      AND RESTATED

    MANAGEMENT
      CONTINUITY AGREEMENT

     

        AGREEMENT
      between
      Ralcorp Holdings, Inc. a Misouri corporation ("Ralcorp") and ________________
      (the "Executive"), WITNESSETH:

     

           
WHEREAS, the Board of
      Directors (the "Board") has authorized Ralcorp to enter
      into Management Continuity Agreements with certain key executives of Ralcorp;
      and

     

           
      WHEREAS, the Executive is a key executive of Ralcorp and has been selected
      by
      the Board to be offered this Management Continuity Agreement; and

     

           
      WHEREAS, should a third person take steps which might lead to a Change in
      Control of Ralcorp (as defined herein), the Board believes it imperative that
      Ralcorp be able to rely upon the Executive to continue in the Executive’s
      position, and that Ralcorp be able to receive and rely upon the Executive’s
      advice, if it is requested, as to the best interests of Ralcorp and its
      shareholders without concern that the Executive might be distracted by the
      personal uncertainties and risks created by such a Change in Control or
      influenced by conflicting interests; and 

           
      

     

           
      WHEREAS, the Board and Executive have agreed to amend and restate the terms
      of
      this Agreement and replace any previous Management Continuity Agreement with
      this Agreement.

     

           
      NOW, THEREFORE, for and in consideration of the premises and other good and
      valuable consideration, Ralcorp and the Executive agree as follows:

     

    1.     
      Definitions.  For purposes of this Agreement, the following terms
      shall have the meanings set forth below:

     

           
      a.           “Accounting Firm”
as defined in Section 7.

     

                   
      b.           "Base Amount"
      shall be the Executive's Base Amount as defined and determined pursuant to
      Section 280G of the Code and regulations applicable at the time of the
      Executive's Qualifying Termination.

     

                   
      c.           "Base
      Compensation" shall consist of:

     

                                 
      (i)          The Executive's
      monthly gross salary for the last full month preceding the Executive’s
      Qualifying Termination or for the last full month preceding the Change in
      Control, whichever is higher.  If Executive has elected to accelerate or
      defer salary (including the Executive's pre-tax contributions under the Ralcorp
      Holdings, Inc. Savings Investment Plan and under any benefit plan complying
      with
      Section 125 of the Code and deferrals pursuant to the Executive Savings
      Investment Plan, and any successor plans thereto), said monthly gross salary
      shall be calculated as if there had been no acceleration or deferral.

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

     

     

     

     

                                 
      (ii)          one-twelfth the
      higher of (x) the bonus to which the Executive would be entitled in the fiscal
      year in which a Qualifying Termination occurred after assuming all performance
      targets (personal and Company targets) were achieved at a level of 100% or
      (y)
      the Executive's last annual bonus paid by the Company, whether paid or deferred,
      preceding the Executive’s Qualifying Termination or the Change in Control,
      whichever is higher. 

     

                   
      d.           "Change in
      Control" means (i) the acquisition by any person, entity or "group" within
      the
      meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934
      (the "Exchange Act"), of beneficial ownership (within the meaning of Rule 13d-3
      promulgated under the Exchange Act) of (x) 50% or more of the aggregate voting
      power of the then outstanding shares of Stock, other than acquisitions by
      Ralcorp or any of its subsidiaries or any employee benefit plan of Ralcorp
      (or
      any Trust created to hold or invest in issues thereof) or any entity holding
      Stock for or pursuant to the terms of any such plan, or (y) all, or
      substantially all, of the assets of Ralcorp or its subsidiaries taken as a
      whole; or (ii) individuals who shall qualify as Continuing Directors shall
      have
      ceased for any reason to constitute at least a majority of the Board of
      Directors of Ralcorp.  Notwithstanding the foregoing, a Change-in-Control
      shall not include a transaction (commonly known as a “Morris Trust” transaction)
      pursuant to which a third party acquires one or more businesses of the Company
      by acquiring all of the common stock of Ralcorp while leaving the Company’s
      remaining businesses in a separate public company, unless the businesses so
      acquired constitute all or substantially all of the Company’s businesses.

     

                   
      e.           "Code" shall mean
      the Internal Revenue Code of 1986, as amended.

     

                   
      f.            "Company"
      shall mean Ralcorp Holdings, Inc. and its wholly owned subsidiaries.

     

                   g.          
      “Continuing Director" means any member of the Board of Directors of Ralcorp,
      as
      of February 1, 1997 while such person is a member of the Board, and any
      other director, while such other director is a member of the Board, who is
      recommended or elected to succeed the Continuing Director by at least two-thirds
      (2/3) of the Continuing Directors then in office.

     

                   h.          
      "Disability" shall exist when the Executive suffers a complete and permanent
      inability to perform any and every material duty of the Executive’s regular
      occupation because of injury or sickness.

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

     

     

     

     

                                 
      To determine whether the Executive is Disabled, the Executive shall undergo
      examination by a licensed physician and other experts (including other
      physicians) as determined by such physician, and the Executive shall cooperate
      in providing relevant medical records as requested.  The Company and
      Executive shall jointly select such physician.  If they are unable to agree
      on the selection, each shall designate one physician and the two physicians
      shall designate a third physician so that a determination of disability may
      be
      made by the three physicians.  Fees and expenses of the physicians and
      other experts and costs of examinations of the Executive shall be shared equally
      by the Company and the Executive.  The decision as to the Executive's
      Disability made by such physician or physicians shall be binding on the Company
      and the Executive.

     

                   
      i.            "Discount
      Rate" means 120% of the applicable Federal rate determined under Section 1274(d)
      of the Code and the regulations thereunder at the time the relevant payments
      are
      made.

     

                   j.           
      “Employment Agreement” shall mean an agreement so styled providing for
      continuation of salary and bonus payments under certain circumstances and
      entered into between Ralcorp and Executive contemporaneously with the execution
      of this Agreement.

     

    k.                       
      “Excise Tax” as defined in Section 7.

     

    l.                        
      “Gross-Up Payment” as defined in Section 7.

     

                  
      m.           "Involuntary
      Termination" shall be any termination of the Executive's employment with the
      Company (a) to which the Executive objects orally or in writing or (b) which
      follows any of the following:

     

                                 
      (i)           without the
      express written consent of the Executive, (a) the assignment of the Executive
      to
      any duties materially inconsistent with the Executive's positions, duties,
      responsibilities and status immediately prior to the Change in Control or (b)
      a
      material change in the Executive's titles, offices, or reporting
      responsibilities as in effect immediately prior to the Change in Control and
      with respect to either (a) or (b) the situation is not remedied within thirty
      (30) days after the receipt by the Company of written notice by the Executive;
      provided, however, (a) and (b) herein shall not constitute an "Involuntary
      Termination" if either situation is in connection with the Executive's death
      or
      disability.  

     

                                 
      (ii)          without the express
      written consent of the Executive, a reduction in the Executive's annual salary
      or opportunity for total annual compensation in effect immediately prior to
      the
      Change in Control which is not remedied within thirty (30) days after receipt
      by
      the Company of written notice by the Executive.

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

     

     

     

     

                                 
      (iii)         without the express
      written consent of the Executive, the Executive is required to be based anywhere
      other than the Executive’s office location immediately preceding the Change in
      Control, except for required travel on business to an extent substantially
      consistent with the business travel obligations of the Executive immediately
      preceding the occurrence of the Change in Control.

     

                                 
      (iv)         without the express written
      consent of the Executive, following the Change in Control (a) failure by the
      Company or its successor or assigns to provide to the Executive any material
      benefit or compensation plan, stock ownership plan, stock purchase plan, stock
      based incentive plan, defined benefit pension plan, defined contribution pension
      plan, life insurance plan, health and accident plan, or disability plan in
      which
      the Executive is participating or entitled to participate at the time of the
      Change in Control (or plans providing substantially similar benefits) or in
      which executive officers of the  ultimate parent entity acquiring the
      Company are entitled to participate (whichever are more favorable); or (b)
      the
      taking of any action by the Company that would (1) adversely affect the
      participation in or materially reduce the benefits under any of such plans
      either in terms of the amount of benefits provided or the level of the
      Executive's participation relative to other participants; (2) deprive the
      Executive of any material fringe benefit enjoyed by the Executive at the time
      of
      the Change in Control; or (3) cause a failure to provide the number of paid
      vacation days to which the Executive was then entitled in accordance with
      Ralcorp's normal vacation policy in effect immediately prior to the Change
      in
      Control, which in either situation (a) or (b) is not remedied within thirty
      (30)
      days after receipt by the Company of written notice by the Executive.

     

                                 
      (v)          the liquidation,
      dissolution, consolidation, or merger of the Company or transfer of all or
      substantially all of its assets, unless a successor or successors (by merger,
      consolidation, or otherwise) to which all or a significant portion of its assets
      have been transferred expressly assumes in writing all duties and obligations
      of
      the Company as here set forth.

     

                                 
      (vi)         the failure by the Company
      or its successor or assigns (whether by purchase, merger, consolidation or
      otherwise) to expressly assume and agree to perform this Agreement after a
      Change in Control.

     

                                 
      The Executive's continued employment shall not constitute consent to, or a
      waiver of rights with respect to any circumstances set forth above.

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

     

     

     

     

     n.          
      “Non Compete Effective Date” shall mean the date on which the Company or any
      entity on its behalf shall pay the Executive all of the severance benefits
      to
      which the Executive is entitled under paragraph a and b of Section 3
      hereunder.

     

                   
      o.           "Normal
      Retirement Date" shall be the date on which the Executive attains age 65.

     

    p.          
      “Payment” as defined in Section 7.

     

                   q.          
      The "Payment Period" shall be the following period commencing with the first
      day
      of the month following that in which a Qualifying Termination occurs:

     

                                 
      (i)           if the
      Qualifying Termination is an Involuntary Termination that occurs at any time
      during the first or second year following the Change in Control -- 36 months;
      

     

                                 
      (ii)          if the Qualifying
      Termination is an Involuntary Termination that occurs at any time during the
      third year following the Change in Control -- 24 months; 

     

    (iii)          if
      the Qualifying Termination is a Voluntary Termination that occurs at any time
      between six months following a Change in Control and two years following the
      Change in Control -- 12 months; or

     

                                 
      (iv)        if the Qualifying
      Termination is a Voluntary Termination that occurs within six months following
      a
      change in control – 24 months.

     

    but
      in no event shall the Payment Period extend beyond the Executive’s Normal
      Retirement Date.

     

                   
      r.            "Qualifying
      Termination" shall be the Executive's Voluntary Termination or Involuntary
      Termination of employment with the Company except any termination because of
      the
      Executive's death, retirement at or after the Executive’s Normal Retirement Date
      or Termination for Cause.  "Qualifying Termination" shall not include any
      change in the Executive's employment status due to Disability.

     

                   
      s.            "Retirement
      Plan" means the Ralcorp Holdings, Inc. Retirement Plan or any successor
      qualified plan, as amended from time to time.

     

                   
      t.            "Stock"
      means the common stock of Ralcorp or such other security entitling the holder
      to
      vote at the election of Ralcorp's directors or any other security outstanding
      upon its reclassification, including, without limitation, any stock split-up,
      stock dividend or other recapitalization of Ralcorp or any merger or
      consolidation of Ralcorp with any of its Affiliates.

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

     

     

     

     

     

                   
      u.           "Supplemental
      Plan" means the Ralcorp Holdings, Inc. Supplemental Retirement Plan as amended
      from time to time.

     

                   
      v.           "Termination for
      Cause" shall be a termination because of:

     

                                 
      (i)          the continued
      failure by the Executive to devote reasonable time and effort to the performance
      of the Executive’s duties (other than any such failure resulting from the
      Executive's incapacity due to physical or mental illness) after written demand
      therefor has been delivered to the Executive by the Company that specifically
      identifies how the Executive has not devoted reasonable time and effort to
      the
      performance of the Executive’s duties; or

                   
      

                                 
      (ii)         the willful engaging
      by the Executive in misconduct which is materially injurious to the Company,
      monetarily or otherwise; or

     

                                 
      (iii)         the Executive’s conviction
      of a felony or a crime involving moral turpitude;

     

                                 
      in any case as determined by the Board upon the good faith vote of not less
      than
      a majority of the directors then in office, after reasonable notice to the
      Executive specifying in writing the basis or bases for the proposed Termination
      for Cause and after the Executive has been provided an opportunity to be heard
      before a meeting of the Board held upon reasonable notice to all directors;
      provided, however, that a Termination for Cause shall not include a termination
      attributable to:

     

                                 
      (i)           bad judgment or
      negligence on the part of the Executive other than habitual negligence; or

     

                                 
      (ii)          an act or omission
      believed by the Executive in good faith to have been in or not opposed to the
      best interests of the Company and reasonably believed by the Executive to be
      lawful; or

     

                                 
      (iii)         the good faith conduct of
      the Executive in connection with a Change in Control (including the Executive’s
      opposition to or support thereof).

     

                                 
      w.          "Voluntary Termination"
      shall be any termination of the Executive's employment with the Company other
      than an Involuntary Termination or a Termination for Cause.

           
      2.     Operation of Agreement.  This Agreement
      shall not create any obligation on the part of the Company or the Executive
      to
      continue their employment relationship.  Anything in this Agreement to the
      contrary notwithstanding, no payments shall be made hereunder unless and until
      there has been a Change in Control of the Company.  This Agreement is not
      exclusive with regard to benefits to be provided to the Executive on the
      Executive’s termination of employment with the Company and shall not affect any
      other agreement or arrangement providing for such benefits.

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

     

     

           
      3.     Severance Benefits.  Provided that the
      Executive remains in the employ of the Company until a Change in Control has
      occurred, then upon the Executive's Qualifying Termination within three years
      after that Change in Control, the Executive shall be entitled to the following
      "Severance Benefits":

                   
      a.           Payment in a lump
      sum in cash, within 60 days after the Executive's Qualifying Termination, of
      the
      present value as of the date of the Qualifying Termination of an income stream
      equal to the Executive’s Base Compensation payable each month throughout the
      applicable Payment Period.  For purposes of this subparagraph, present
      value shall be calculated by application of the Discount Rate;

                   
      b.           Continuation
      during the Payment Period of the Executive's participation in each life, health,
      accident and disability plan in which the Executive was entitled to participate
      immediately prior to the Change in Control, upon the same terms and conditions,
      including those with respect to spouses and dependents, applicable at such
      time;
      provided, however, that if the terms of any such benefit plan do not permit
      continued participation by the Executive, then the Company will arrange, at
      the
      Company's sole cost and expense, to provide the Executive a benefit
      substantially similar to, and no less favorable than, on an after-tax basis,
      the
      benefit the Executive was entitled to receive under such plan immediately prior
      to the Change in Control; provided further, however, that the benefit to be
      provided or payments to be made hereunder may be reduced by the benefits
      provided or payments made (in either case on an after-tax basis) by subsequent
      employer for the same occurrence or event;

     

                   
      c.           Payment in a lump
      sum in cash, within 60 days after the Executive's Qualifying Termination, of
      the
      difference between the present values as of the date of the Qualifying
      Termination of (a) the benefits under the Retirement Plan and the Supplemental
      Plan which the Executive and the Executive’s beneficiary, if applicable, would
      have been entitled to receive had the Executive remained employed by Ralcorp
      at
      a compensation level equal to the Executive’s Base Compensation for the entirety
      of the applicable Payment Period, and (b) the Executive’s actual benefit, if
      any, to which the Executive and the Executive’s beneficiary are entitled under
      the Retirement Plan and the Supplemental Plan.  For purposes of this
      subparagraph, present value shall be calculated in accordance with Section
      417(e)(3) of the Code; no reduction factors for early retirement shall be
      applied in the calculation of benefits; and

     

    d.           Payment,
      on a current and ongoing basis, of any actual costs and expenses of litigation
      incurred by the Executive, including costs of investigation and reasonable
      attorney's fees, in the event the Executive is a party to any legal action
      to
      enforce or to recover damages for breach of this Agreement, or to recover or
      recoup from the Executive or the Executive’s legal representative or beneficiary
      any amounts paid under or pursuant to this Agreement, regardless of the outcome
      of such litigation, plus interest at the applicable Federal rate provided for
      in
      Section 7872(f)(2) of the Code.

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

     

     

     

     

     

    e.           Payment,
      on a current and ongoing basis (up to $20,000 in the aggregate) of costs or
      expenses incurred relating to or in the nature of outplacement assistance. 
Such outplacement assistance includes, but is not limited to, office rental,
      travel for job interviews, and secretarial services.

     

            In
      the event the Executive’s employment is terminated (other than as a result of a
      Termination for Cause) and the Executive objects to such termination orally
      or
      in writing and such termination occurs within 270 days prior to a Change in
      Control, the Executive shall be treated as meeting the requirements for
      severance benefits under the Section 3, for a Payment Period of 36 months.

     

           
      The Executive may file with the Secretary or any Assistant Secretary of Ralcorp
      a written designation of a beneficiary or contingent beneficiaries to receive
      the payments described in subparagraphs (a) and (c) above in the event of the
      Executive's death following the Executive’s Qualifying Termination but prior to
      payment by the Company.  The Executive may from time to time revoke or
      change any such designation of beneficiary and any designation of beneficiary
      pursuant to this Agreement shall be controlling over any other disposition,
      testamentary or otherwise; provided, however, that if the Company shall be
      in
      doubt as to the right of any such beneficiary to receive such payments, it
      may
      determine to pay such amounts to the legal representative of the Executive,
      in
      which case the Company shall not be under any further liability to anyone. 
In the event that such designated beneficiary or legal representative becomes
      a
      party to a legal action to enforce or to recover damages for breach of this
      Agreement, or to recover or recoup from the Executive or the Executive’s estate,
      legal representative or beneficiary any amounts paid under or pursuant to this
      Agreement, regardless of the outcome of such litigation, the Company shall
      pay
      their actual costs and expenses of such litigation, including costs of
      investigation and reasonable attorneys' fees, plus interest at the applicable
      Federal rate provided for in Section 7872(f)(2) of the Code; provided, however,
      that the Company shall not be required to pay such costs and expenses in
      connection with litigation to determine the proper payee, among two or more
      claimants, of the payments described in subparagraphs (a) and (c).

     

           
      4.     Successors to Company; Binding Effect;
      Assignment.  This Agreement shall inure to the benefit of and be
      binding upon the Company and its successors.  The Company will require any
      successor (whether direct or indirect, by purchase, merger, consolidation or
      otherwise) to all or substantially all of the business and/or assets of the
      Company to assume expressly and agree to perform this Agreement in the same
      manner and to the same extent that the Company would be required to perform
      it
      if no such succession had taken place.  As used in this Agreement,
      "Company" shall mean the Company as herein before defined and any successor
      to
      its business and/or assets as aforesaid which assumes and agrees to perform
      this
      Agreement by operation of law, or otherwise.  The Company may not assign
      this Agreement other than to a successor to all or substantially all of the
      business and/or assets of the Company.  The Executive shall have no right
      to transfer or assign the right to receive any severance benefit under this
      Agreement except as noted in paragraph three above.

     

           
      5.     Missouri Law to Govern.  This Agreement
      shall be governed by the laws of the State of Missouri without giving effect
      to
      the conflict of laws provisions thereof.

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

     

     

     

     

    6.           
      Miscellaneous.  No provision of this Agreement may be modified,
      waived or discharged unless such modification, waiver or discharge is agreed
      to
      in writing signed by the Executive and a duly authorized officer of the
      Company.  No waiver by a party hereto at any time of any breach by the
      other party hereto of, or of compliance with, any condition or provision of
      this
      Agreement to be performed by such other party shall be deemed a waiver of
      similar or dissimilar provisions or conditions at the same or at any prior
      or
      subsequent time.  No agreements or representations, oral or otherwise,
      express or implied, with respect to the subject matter hereof have been made
      by
      either party which are not expressly set forth in this Agreement.

     

    7.         
      Certain Additional Payments by the Company.

     

    a.      
      Anything in this Agreement to the contrary notwithstanding and except as set
      forth below, in the event it shall be determined that any payment or
      distribution by the Company to or for the benefit of the Executive (whether
      paid
      or payable or distributed or distributable pursuant to the terms of this
      Agreement, any Stock based award or otherwise, but determined without regard
      to
      any additional payments required under this Section 7) (collectively, a
“Payment”) would be subject to the excise tax imposed by Section 4999 of the
      Code or any interest or penalties are incurred by the Executive with respect
      to
      such excise tax (such excise tax, together with any such interest and penalties,
      are hereinafter collectively referred to as the “Excise Tax”), then the
      Executive shall be entitled to receive an additional payment (a “Gross-Up
      Payment”) in an amount such that after payment by the Executive of all taxes
      (including any interest or penalties imposed with respect to such taxes),
      including, without limitation, any income taxes (and any interest and penalties
      imposed with respect thereto) and Excise Tax imposed upon the Gross-Up Payment,
      the Executive retains an amount of the Gross-Up Payment equal to the Excise
      Tax
      imposed upon the Payments.

     

    b.     
      Subject to the provisions of Section 7(c), all determinations required to be
      made under this Section 7, including whether and when a Gross-Up Payment is
      required and the amount of such Gross-Up Payment and the assumptions to be
      utilized in arriving at such determination, shall be made by
      PricewaterhouseCoopers LLP or such other certified public accounting firm as
      may
      be designated by the Executive (the “Accounting Firm”) which shall provide
      detailed supporting calculations both to the Company and the Executive within
      15
      business days of the receipt of notice from the Executive that there has been
      a
      Payment, or such earlier time as is requested by the Company.  In the event
      that the Accounting Firm is serving as accountant or auditor for the individual,
      entity or group effecting the Change of Control, the Executive shall appoint
      another nationally recognized accounting firm to make the determinations
      required hereunder (which accounting firm shall then be referred to as the
      Accounting Firm hereunder).  All fees and expenses of the Accounting Firm
      shall be borne solely by the Company.  Any Gross-Up Payment, as determined
      pursuant to this Section 7, shall be paid by the Company to the Executive within
      five days of the receipt of the Accounting Firm’s determination.  Any
      determination by the Accounting Firm shall be binding upon the Company and
      the
      Executive.  As a result of the uncertainty in the application of Section
      4999 of the Code at the time of the initial determination by the Accounting
      Firm
      hereunder, it is possible that Gross-Up Payments which will not have been made
      by the company should have been made (“Underpayment”), consistent with the
      calculations required to be made hereunder.  In the event that the Company
      exhausts its remedies pursuant to Section 7(c) and the Executive thereafter
      is
      required to make a payment of any Excise Tax, the Accounting Firm shall
      determine the amount of the Underpayment that has occurred and any such
      Underpayment shall be promptly paid by the Company to or for the benefit of
      the
      Executive.

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

     

     

     

     

     

    c.    The
      Executive shall notify the Company in writing of any claim by the Internal
      Revenue Service that, if successful, would require the payment by the Company
      of
      the Gross-Up Payment.  Such notification shall be given as soon as
      practicable but no later than ten business days after the Executive is informed
      in writing of such claim and shall apprise the Company of the nature of such
      claim and the date on which such claim is requested to be paid.  The
      Executive shall not pay such claim prior to the expiration of the 30-day period
      following the date on which it gives such notice to the Company (or such shorter
      period ending on the date that any payment of taxes with respect to such claim
      is due).  If the Company notifies the Executive in writing prior to the
      expiration of such period that it desires to contest such claim, the Executive
      shall:

     

    (i)        
      give the Company any information reasonably requested by the Company relating
      to
      such claim,

     

    (ii)        take
      such action in connection with contesting such claim as the Company shall
      reasonably request in writing from time to time, including, without limitation,
      accepting legal representation with respect to such claim by an attorney
      reasonably selected by the Company,

     

    (iii)       cooperate
      with the Company in good faith in order effectively to contest such claim,
      and

     

    (iv)       permit
      the Company to participate in any proceedings relating to such claim.

     

    Provided,
      however, that the Company shall bear and pay directly all costs and expenses
      (including additional interest and penalties) incurred in connection with such
      contest and shall indemnify and hold the Executive harmless, on an after-tax
      basis, for any Excise Tax or income tax (including interest and penalties with
      respect thereto) imposed as a result of such representation and payment of
      costs
      and expenses.  Without limitation on the foregoing provisions of this
      Section 7(c), the Company shall control all proceedings taken in connection
      with
      such contest and, at its sole option, may pursue or forgo any and all
      administrative appeals, proceedings, hearings and conferences with the taxing
      authority in respect of such claim and may, at its sole option, either direct
      the Executive to pay the tax claimed and sue for a refund or contest the claim
      in any permissible manner, and the Executive agrees to prosecute such contest
      to
      a determination before any administrative tribunal, in a court of initial
      jurisdiction and in one or more appellate courts, as the Company shall
      determine; provided, however, that if the Company directs the Executive to
      pay
      such claim and sue for a refund, the Company shall advance the amount of such
      payment to the Executive, on an interest-free basis and shall indemnify and
      hold
      the Executive harmless, on an after-tax basis, from any Excise Tax or income
      tax
      (including interest or penalties with respect thereto) imposed with respect
      to
      such advance or with respect to any imputed income with respect to such advance;
      and further provided that any extension of the statute of limitations relating
      to payment of taxes for the taxable year of the Executive with respect to which
      such contested amount is claimed to be due is limited solely to such contested
      amount.  Furthermore, the Company’s control of the contest shall be limited
      to issues with respect to which a Gross-Up Payment would be payable hereunder
      and the Executive shall be entitled to settle or contest, as the case may be,
      any other issue raised by the Internal Revenue Service or any other taxing
      authority.

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

     

     

     

     

     

    d.    
      If, after the receipt by the Executive of an amount advanced by the Company
      pursuant to Section 7(c), the Executive becomes entitled to receive any refund
      with respect to such claim, the Executive shall (subject to the Company’s
      complying with the requirements of Section 7(c) promptly pay to the Company
      the
      amount of such refund (together with any interest paid or credited thereon
      after
      taxes applicable thereto).  If, after the receipt by the Executive of an
      amount advanced by the Company pursuant to Section 7(c), a determination is
      made
      that the Executive shall not be entitled to any refund with respect to such
      claim and the Company does not notify the Executive in writing of its intent
      to
      contest such denial of refund prior to the expiration of 30 days after such
      determination, then such advance shall be forgiven and shall not be required
      to
      be repaid and the amount of such advance shall offset, to the extent thereof,
      the amount of Gross-Up Payment required to be paid.

     

    8.           
      Taxes; Set-off.  All payments to be made to the Executive under this
      Agreement will be subject to required withholding of federal, state and local
      income and employment taxes.  The foregoing, however, shall not be
      construed as limiting the Company’s obligations to make payments under Section
      7.  The right of the Executive to receive benefits under this Agreement,
      however, shall be absolute and shall not be subject to any set-off,
      counter-claim, recoupment, defense, duty to mitigate or other rights the Company
      may have against the Executive or anyone else.

           
      

    9.     
      Severability.  The invalidity and unenforceability of any particular
      provision of this Agreement shall not affect any other provision of this
      Agreement, and the Agreement shall be construed in all respects as if the
      invalid or unenforceable provision were omitted. 

     

    10.   
      Covenant Not to Compete; Non Solicitation; and Confidentiality. 

     

                   
      a.     Executive shall not from the Non Compete Effective
      Date until the first anniversary thereof,

     

                           
      (i)    engage (whether as an owner, operator, manager, employee,
      officer, director, consultant, advisor, representative or otherwise) directly
      or
      indirectly in any business that produces, develops, markets or sells any type
      of
      food products that compete with those food products produced by the Company
      as
      of the date of a Change in Control; provided however, that ownership of
      less than five percent (5%) of the outstanding stock of any publicly-traded
      corporation shall not be deemed to be engaging solely by reason thereof in
      any
      of it’s the Company’s businesses; or

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

     

     

     

     

     

                           
      (ii)    induce or attempt to induce any customer, supplier,
      lender or other business relation of the Company to cease doing business with
      the Guarantor or any of its subsidiaries.

     

                   
      b.     The Executive agrees that during the period beginning
      on the Non Compete Effective Date and ending on the second anniversary thereof,
      the Executive shall not:  (i) directly or indirectly, contact, approach or
      solicit for the purposes of offering employment to, or (ii) hire (whether as
      an
      employee, consultant, agent, independent contractor or otherwise) any senior
      management level employee employed by  the Company (or its successors or
      assigns) without the prior written consent of the Company or its successors
      or
      assigns.  

     

                   
      c.     Executive agrees to treat and hold as confidential
      any information concerning the business and affairs of  the Company that is
      not or does not become generally available to the public other than as a result
      of a disclosure in violation of this Agreement (the "Confidential Information”),
      refrain from using any of the Confidential Information except in connection
      with
      this Agreement, and deliver promptly to  the Company or destroy, at the
      request and option of  the Company, all tangible embodiments (and all
      copies) of the Confidential Information which are in the Executive’s
      possession.

     

                   
      d.     Executive acknowledges and agrees that in the event
      of a breach by the Executive of any of the provisions of this Section 10,
      monetary damages shall not constitute a sufficient remedy.  Consequently,
      in the event of any such breach, the Company or its successor or assigns shall
      be entitled to, in addition to the other rights and remedies existing in their
      favor, specific performance and/or injunctive or other relief in order to
      enforce or prevent any violations of the provisions hereof from any court of
      competent jurisdiction in each case without the requirement of posting a bond
      or
      proving actual damages.  Further, Executive shall return to the Company or
      its successors or assigns sums paid under Section 3 hereof in the event a court
      of competent jurisdiction issue a final non-appealable ruling that finds the
      Executive breached the terms of this Section 10.

     

                    
      e.     The Executive agrees that except in connection with
      any legal proceeding relating to the enforcement of this Agreement, following
      the Non Compete Effective Date, the Executive shall not be publicly disparaging
      of the Company or its officers or directors. 

     

     f.      The
      term “indirectly” as used in this Section 10 with respect to the Executive is
      intended to mean any acts authorized or directed by or on behalf of the
      Executive or any entity controlled by the Executive.

     

                   
g.     In the event any sums
      due the Executive under this
      Agreement are not timely paid, then this Section 10 g will terminate
      automatically. 

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

     

     

     

     

     

    11.   
      Release of Claims.  The Executive agrees that in exchange for the
      payment of all sums due hereunder, the Executive forever settles, compromises,
      discharges, forgives and voids all employment related claims and causes of
      action the Executive has or may have against  the Company or its successor
      or assigns.

     

     

           
      IN WITNESS WHEREOF, the undersigned have executed this Agreement effective
      on
      the ______ day of _______________, 2006.

     

     

     

     

    EXECUTIVE                                                 
      RALCORP HOLDINGS, INC.

     

     

     

     

                                                               
                By:
      __________________________________

                   
                                                                   
Jack W. Goodall, Chairman Corporate

    Governance and Compensation
      Committee

                                                                                 
      

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    S:/Employee
      Folder/Huber/2006 MCA’s/ Corp. Officer MCA

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