Document:

Exhibit 10.4

 

CONAGRA

 

NONQUALIFIED PENSION
PLAN

 

1. Purpose. ConAgra has
previously adopted the Restatement of the ConAgra Pension Plan for Salaried
Employees (“Qualified Pension Plan”). The Qualified Pension Plan is qualified
under Code Section 401(a). Regardless of a qualified plan’s benefit formula,
the Code imposes restrictions upon the benefits that may be provided under
plans qualified under Code Section 401(a), such as limitations under Code
Sections 401(a)(17), 402(g) and 415 (“Code Restrictions”). These Code
Restrictions limit the amount of retirement benefits that may be provided
certain ConAgra executives under the Qualified Pension Plan. This Plan is
intended to make up the benefits (on an after-tax basis) not available under
the Qualified Pension Plan benefit formula because of the Code Restrictions.

 

Since the contributions and
earnings under this Plan are not tax-deferred as are the contributions under
the Qualified Pension Plan, the benefits under this Plan will be tax-effected
to reflect this difference, so that the benefits under this Plan make up on an
after-tax basis the benefits not available under the Qualified Pension Plan
formula because of the Code Restrictions. However, ConAgra recognizes that the
tax effect to each Participant is unique, and therefore, the benefits cannot be
tax-effected to certainty, but must be approximated.

 

2. Definitions. The following
definitions shall apply to the Plan:

 

2.1 “Business Combination or
Acquisition” means (i) any merger or consolidation of ConAgra with or into any
other corporation, (ii) the sale or lease of all or any substantial part of the
assets of ConAgra to any Other Entity, and (iii) a tender offer or other series
of stock purchases which result in any Other Entity becoming the beneficial owner
of more than 50% of ConAgra’s outstanding voting securities.

 

2.2 “Code” means the Internal
Revenue Code of 1986, as amended.

 

2.3 “Committee” means the
ConAgra Employee Benefits Committee or any successor thereto. The Committee
shall be the “named fiduciary” as described in ERISA Section 402(a)(2).

 

2.4 “Compensation Committee”
means the Compensation Committee of the Board of Directors of ConAgra.

 

2.5 “ConAgra” means ConAgra,
Inc., a Delaware corporation.

 

2.6 “ConAgra Controlled Group”
means the controlled group of corporations as described in Code Section 414(b),
which includes ConAgra.

 

2.7 “Effective Date” of this
Plan means January 1, 1988.

 

2.8 “Employee” shall have the
same meaning as set forth in the Qualified Pension Plan.

 

2.9 “ERISA” means the Employee
Retirement Income Security Act of 1974, as amended.

 

2.10 “Other Entity” means any
corporation, person or other entity and any other entity with which it or its
affiliates or associates has any agreement, arrangement or understanding,
directly or indirectly, for the purpose of acquiring, holding, voting or
disposing of the stock of ConAgra or which is an affiliate or associate of such
entity, together with the successors and assigns of such persons.

 

2.11 “Participant” means an
Employee who has satisfied the eligibility requirements set forth in Section 3
of the Plan and who has not received his total benefits under the Plan.

 

24

 

Exhibit 10.4

 

2.12 “Past Service Cost” means
the aggregate cost of providing the benefits which relate to service of the
Participant prior to establishment of the Plan and prior to the Employee
becoming a Participant hereunder.

 

2.13 “Plan” means this plan
which shall be called the ConAgra Nonqualified Pension Plan.

 

2.14 “Plan Year” means the
calendar year.

 

2.15 “Total and Permanent
Disability” shall have the same meaning as set forth in the Qualified Pension
Plan.

 

2.16 “Trustee” means the entity
or individual selected by the Committee to be trustee of the trust. The
Committee shall select the Trustee and ConAgra shall enter into a Trust
Agreement with the Trustee.

 

2.17 “Year of Service” shall
have the same meaning as set forth in the Qualified Pension Plan.

 

3. Eligibility and
Participation. Each Employee who meets the following requirements shall
participate in this Plan:

 

(a) The Employee participates
in the Qualified Pension Plan;

 

(b) The Employee has completed
One Year of Service; and

 

(c) The Employee’s benefits
under the Qualified Pension Plan are limited by the Code Restrictions; and

 

(d) The Compensation Committee
has selected the Employee to participate in the Plan.

 

The Employee shall become a
Participant in this Plan as of the first day that he has met each of the above
four requirements, or such other date as selected by the Compensation
Committee. Each Participant shall continue to participate in this Plan until
all the benefits payable to the Participant under this Plan have been paid.

 

4. Benefits.

 

4.1 Benefit Objectives. The
objective of the Plan is to provide each Participant with a benefit, assuming
the Participant’s vesting schedule as described in Paragraph 4.5, which equals
the excess of (a) over (b) where,

 

(a) equals the value of the
after-tax Qualified Pension Plan benefits the Participant would have received
had there not been any Code Restrictions, and

 

(b) equals the value of the
after-tax Qualified Pension Plan benefits the Participant is expected to
receive.

 

No benefit shall be earned
under this Plan for periods of employment after the Participant has attained
age 65. The Plan is also intended to provide a tax gross-up to reflect that
this is an after-tax plan, whereas the Qualified Pension Plan is a before-tax
plan. The intent is to provide the Participant with a combined after-tax benefit
from this Plan and the Qualified Pension Plan that approximates the benefit the
Participant would receive had there not been any Code Restrictions.

 

4.2 General Funding. ConAgra
shall fund each Participant’s Account sufficiently to meet the benefit objectives
set forth in Paragraph 4.1. At a minimum, each Plan Year, ConAgra shall
contribute to each Participant’s Account an amount equal to the sum of (a) and
(b) below, where

 

(a) equals the actuarially
determined lump sum value of benefits that were not earned by the Participant
under the Qualified Pension Plan because of Code Restrictions, and

 

25

 

Exhibit 10.4

 

(b) equals an amortization
(over the Participant’s remaining years until age 65) of the Participant’s Past
Service Cost.

 

Subject to the preceding, the
Committee, in its sole and absolute discretion, shall determine the amount of
funding for each Participant each Plan Year with the assistance of an actuarial
firm selected by the Committee. The Committee shall select reasonable actuarial
assumptions (in the aggregate) to use to make the calculations.

 

4.3 Tax Gross-Up. In addition
to other contributions hereunder, ConAgra shall make a tax gross-up payment to
each Participant each Plan Year to approximate his additional Federal and state
income tax on account of the Plan. The Committee shall determine the amount of
the payment and the Committee’s determination shall be final, conclusive and
binding on, the Participant, the Trustee and ConAgra. In making the
determination, the Committee may make any assumptions it deems appropriate,
including, but not limited to, the Participant’s Federal and state income tax
rates and the earnings of the Participant’s Account. The Committee may, but is
not required to, assume that the same Federal and/or state income tax rate
applies to all Participants. Also, at the Committee’s discretion, all
Participants may be treated differently or the same, as long as the Committee
has a reasonable basis for such different treatment. It is expressly understood
that the payment contemplated by this Paragraph 4.3 is an approximation and
will not necessarily be the taxes that result from the Plan to an individual
Participant. The Committee, in its discretion, may make a portion or all of this
payment to the Participant’s Account, rather than the Participant.

 

4.4 Business Combination or
Acquisition. Notwithstanding any other provisions of the Plan, upon a Business
Combination or Acquisition, any amounts necessary to immediately fund the benefits
vested hereunder pursuant to the Participant’s vesting schedule under Paragraph
4.5 shall be immediately funded, unless 75% or more of the living ConAgra
Directors (who were Directors of ConAgra on the date 1 year prior to the vote)
vote not to have this Paragraph 4.4 apply. Such amounts include all amounts for
past service of the Participant, all amounts for future service of the
Participant that are vested under the applicable schedule described in
Paragraph 4.5 assuming the Participant will be employed by ConAgra until age 65
and a tax gross-up payment to the Participant (or the Participant’s Account) to
reflect the Federal and state income tax effects to the Participant of the
funding under this Paragraph 4.4. Notwithstanding Section 12 of the Plan, this
Paragraph 4.4 may not be amended after the date of a Business Combination or
Acquisition unless such Business Combination or Acquisition has received prior
approval of 75% or more of the ConAgra Directors who were Directors of ConAgra
on the date 1 year prior to such approval.

 

4.5 Vesting. There shall be
three vesting schedules for the Plan. The Compensation Committee shall
determine which vesting schedule applies to a Participant at the time the
Employee is selected to participate in the Plan. The Compensation Committee may
change the vesting schedule that applies to a Participant, but in no event may
a Participant whose vesting schedule is Schedule C be changed to Schedule B or
A, nor may a Participant whose vesting schedule is Schedule B be changed to
Schedule A. Under Schedule A, a Participant is always 100% vested in his
interest in the Plan that is earned for his past service, but the Participant
benefits related to future service are forfeited upon his termination of
employment with ConAgra. Under Schedule B, a Participant is 100% vested in his
interest in the Plan that is earned for his past service and that would be
earned for the 5 Plan Years following his entry into the Plan even if the
Participant terminates his employment prior to the end of such 5 years. Under
Schedule C, a Participant is 100% vested in his interest in the Plan that is
earned for his past service and that would be earned for all future years of
service up to age 65. In all events, a Participant shall be 100% vested in his interest
in the Plan earned in the year he terminates employment.

 

4.6 Funding Upon Death or
Disability of Participant. If a Participant dies, or becomes Totally and
Permanently Disabled, prior to age 65 while employed by ConAgra, no additional
funding shall be made with regard to potential future service of the
Participant. However, upon such death, or Total and Permanent Disability,
funding and related tax gross-up shall be made as soon as possible to
adequately fund the Participant’s death or disability benefit. The
Participant’s benefit upon such death or Total and Permanent

 

26

 

Exhibit 10.4

 

Disability shall be the benefit
that can be provided based upon the assets in his Participant’s Account.

 

4.7 Funding Upon Early
Retirement. A Participant may elect early retirement under this Plan in the
same manner and to the same extent as provided in the Qualified Pension Plan.
If a Participant properly elects such early retirement, immediate funding and
related tax gross-up will be made to adequately fund the Participant’s early
retirement benefit.

 

4.8 Funding Upon Termination of
Employment. Upon termination of employment prior to age 65 (other than early
retirement under Paragraph 4.7 or death or disability under Paragraph 4.6)
funding and related tax gross-up shall be made as soon as possible to
adequately fund the Participant’s termination benefit. If the Participant’s
vesting schedule is Schedule B or Schedule C any future years funding shall be
made in the applicable year (with appropriate loss adjustments), subject to
acceleration of funding under Paragraph 4.4.

 

5. Participants’ Accounts. A
separate account shall be established for each Participant in the Plan
(“Participant’s Account”). Each Participant Account shall share in the earnings
and losses of the trust in proportion to the value of the account on the first
day of the valuation period. Each Participant’s Account shall be valued as
often as determined appropriate by the Committee, but at least once per Plan
Year.

 

6. Participant Reports. Within
30 days after execution of this document, each Participant will be provided a
calculation which sets forth the Participant’s vested benefit under the Plan as
of that date including any vested benefit for future years of service by the
Participant. Thereafter, within 90 days after each Plan Year end, each
Participant shall receive a calculation which sets forth the Participant’s
vested benefits under the Plan as of the preceding December 31, including any
vested benefits for future years of service by the Participant.

 

7. Payment of Benefits. The
benefits payable under this Plan shall be payable upon the same event that
causes the payment of benefits under the Qualified Pension Plan. The form of
benefits hereunder shall be the same form as the form of benefit payments
provided under the Qualified Pension Plan with the same elections to the
Participant (and his spouse) as provided under the Qualified Pension Plan. The
amount of benefits shall be based upon the balance in the Participant’s Account
with payment of benefits from the Participant’s Account payable until the
Participant’s Account has a zero balance.

 

The Trust shall purchase an
annuity to fund any payment of benefits that are to be paid in an annuity form.

 

8. Loss Adjustment. If the
earnings and losses of a Participant’s Account do not equal or exceed the
earnings rate assumption used to compute funding under Paragraph 4.2, ConAgra
shall contribute a sufficient additional amount so that such earnings and losses
equal such earnings rate assumption. This additional funding shall be made at
such date or dates as determined in the sole and absolute discretion of the
Committee, but no later than the earlier of the date necessary to make the
benefit payments contemplated by Paragraph 4.2 or the date of funding pursuant
to Paragraph 4.4. The intent of this Paragraph 8 is for ConAgra to incur the
investment risk inherent in this defined contribution plan, rather than the
Participant. To the extent any other provision of this Plan is inconsistent or
contrary to this Paragraph 8, this Paragraph 8 shall control.

 

9. Administration. This Plan
shall be administered by the Committee. The Committee shall make all
determinations with regard to the Plan, subject to the provisions of the Plan
and any determinations that are designated to be made by the Compensation
Committee. The Committee shall have the authority, subject to the provisions of
the Plan, to establish, adopt or revise rules and regulations as it deems
necessary or advisable for the administration of the Plan. Claims procedures
and claims review procedures required by ERISA shall be developed by the
Committee. To the extent not inconsistent with the provisions of the Plan, all
determinations of the Committee shall be final, conclusive and binding upon all
the parties. Any determination or decision that only affects a member of the
Committee who is a Participant shall be made by the Compensation Committee.

 

27

 

Exhibit 10.4

 

10. Beneficiary Designation.
Designation of a beneficiary under the Plan shall be in the same form and with
the same restrictions as under the Qualified Pension Plan.

 

11. Nonalienation of Benefits.
No benefit payable under this Plan shall be subject, at any time and in any
manner, to alienation, sale, transfer, assignment, pledge or encumbrance of any
kind.

 

12. Amendment and Termination.
ConAgra, by action of its Board of Directors, may amend or terminate this Plan
at any time, provided, however, no such action shall eliminate ConAgra’s
obligation to provide the benefits intended to be provided by this Plan for
both past and future service of Employees who are Participants in the Plan at
the time of such action and this Plan shall not be amended or terminated to
eliminate or reduce any benefits that a Participant shall receive. The Plan may
only be amended to reduce benefits of Employees who are not Participants at the
time of amendment and the Plan may only be terminated with regard to Employees
who are not Participants at the time of such termination.

 

13. Applicable Law. This Plan
and all rights hereunder shall be governed by and construed according to the
laws of the State of Nebraska.

 

This Plan has been adopted
effective January 1, 1988.

 

FIRST AMENDMENT TO
THE

CONAGRA NONQUALIFIED
PENSION PLAN

(Effective May 11, 1989)

 

Effective upon ConAgra Board of
Director approval of this amendment, the ConAgra Nonqualified Pension Plan
shall be amended as follows:

 

ARTICLE I

 

Paragraph 2.1 of the Plan shall
be amended to read, as follows:

 

“2.1 “Change of Control” shall
mean:

 

(i) The acquisition (other than
from ConAgra) 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”),
(excluding, for this purpose, ConAgra or its subsidiaries, or any employee
benefit plan of ConAgra or its subsidiaries which acquires beneficial ownership
of voting securities of ConAgra) of beneficial ownership (within the meaning of
Rule 13d-3 promulgated under the Exchange Act) of 30% or more of either the
then outstanding shares of common stock or the combined voting power of
ConAgra’s then outstanding voting securities entitled to vote generally in the
election of directors; or

 

(ii) Individuals who, as of the
date hereof, constitute the Board (as of the date hereof the “Incumbent Board”)
cease for any reason to constitute at least a majority of the Board, provided
that any person becoming a director subsequent to the date hereof whose
election, or nomination for election by ConAgra’s shareholders, was approved by
a vote of at least a majority of the directors then comprising the Incumbent
Board shall be, for purposes of this Agreement, considered as through such
person were a member of the Incumbent Board; or

 

(iii) Approval by the
stockholders of ConAgra of a reorganization, merger, consolidation, in each
case, with respect to which persons who were the stockholders of ConAgra
immediately prior to such reorganization, merger or consolidation do not,
immediately thereafter, own more than 50% of the combined voting power entitled
to vote generally in the election of directors of the reorganized, merged or
consolidated company’s then outstanding voting securities, or a liquidation or
dissolution of ConAgra or of the sale of all or substantially all of the assets
of ConAgra.”

 

28

 

Exhibit 10.4

 

ARTICLE II

 

Paragraph 2.10 of the Plan is
hereby deleted and the paragraphs thereafter shall be appropriately renumbered.

 

ARTICLE III

 

Paragraph 4.4 shall be amended
to read, as follows:

 

“4.4 Change of Control.
Notwithstanding any other provisions of the Plan, upon a Change of Control, any
amounts necessary to immediately fund the benefits vested hereunder pursuant to
the Participants’ vesting schedule under Paragraph 4.5 shall be immediately
funded. Such amounts include all amounts for past service of the Participant,
all amounts for future service of the Participant that are vested under the
applicable schedule described in Paragraph 4.5 assuming the Participant will be
employed by ConAgra until age 65 and a tax gross-up payment to the Participant
(or the Participant’s account) to reflect the Federal and state income tax
effects to the Participant of the funding under this Paragraph 4.4.
Notwithstanding Paragraph 12 of the Plan, this Paragraph 4.4 may not be amended
after the date of a Change of Control.”

 

ARTICLE IV

 

In all other respects the Plan
is hereby confirmed.

 

29Exhibit 10.5

 

CONAGRA

SUPPLEMENTAL PENSION
AND CRISP PLAN

FOR CHANGE OF CONTROL

 

1. Name and Purpose.

 

Name. The name of the plan
shall be the ConAgra Supplemental Pension and CRISP Plan for Change of Control
(“Plan”).

 

1.2 Purpose. The Board of
Directors of ConAgra has determined that the interests of ConAgra stockholders
will best be served by assuring certain employees of adequate retirement
benefits in the event of termination of employment or sale of an IOC after a
Change of Control of ConAgra. This Plan is intended to promote stability among
employees in order to serve the best interests of ConAgra stockholders. Under
this Plan, supplemental pension and CRISP benefits will be provided to certain,
eligible employees in the event of the employee’s termination or sale of an
IOC, prior to age 65, after a Change of Control.

 

2. Definitions.

 

The terms used herein shall
have the following meanings unless a different meaning is clearly required by
the context:

 

2.1 “Additional Years of
Service” means the additional Years of Service the Eligible Employee would
receive if his employment with ConAgra was not terminated (or if the IOC sale
described in Paragraph 4 did not occur) prior to his attaining age 65.

 

2.2 “Board” means the Board of
Directors of ConAgra.

 

2.3 “Change of Control” means:

 

(i) The acquisition (other than
from ConAgra) 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”), (excluding, for this purpose, ConAgra or its subsidiaries, or any
employee benefit plan of ConAgra or its subsidiaries which acquires beneficial
ownership of voting securities of ConAgra) of beneficial ownership (within the
meaning of Rule 13d-3 promulgated under the Exchange Act) of 30% or more of
either the then outstanding shares of common stock or the combined voting power
of ConAgra’s then outstanding voting securities entitled to vote generally in
the election of directors; or

 

(ii) Individuals who, as of the
date hereof, constitute the Board (as of the date hereof the “Incumbent Board”)
cease for any reason to constitute at least a majority of the Board, provided
that any person becoming a director subsequent to the date hereof whose
election, or nomination for election by ConAgra’s shareholders, was approved by
a vote of at least a majority of the directors then comprising the Incumbent
Board shall be, for purposes of this Agreement, considered as through such
person were a member of the Incumbent Board; or

 

(iii) Approval by the stockholders
of ConAgra of a reorganization, merger, consolidation, in each case, with
respect to which persons who were the stockholders of ConAgra immediately prior
to such reorganization, merger or consolidation do not, immediately thereafter,
own more than 50% of the combined voting power entitled to vote generally in
the election of directors of the reorganized, merged or consolidated company’s
then outstanding voting securities, or a liquidation or dissolution of ConAgra
or of the sale of all or substantially all of the assets of ConAgra.

 

2.4 “Committee” means the
Compensation Committee of the Board.

 

30

 

Exhibit 10.5

 

2.5 “Code” means the Internal
Revenue Code of 1986, as amended.

 

2.6 “ConAgra” means ConAgra,
Inc., a Delaware Corporation, or any successor thereto.

 

2.7 “ConAgra Controlled Group”
shall mean the controlled group of corporations as defined in Code section 414,
which includes ConAgra.

 

2.8 “CRISP” means the ConAgra
Retirement Income Savings Plan, or any successor thereto.

 

2.9 “Effective Date” of this
Plan means January 1, 1989.

 

2.10 “Eligible Employee” means
any of the following employees who have attained age 50 with at least 10 Years
of Service at the time of a Change of Control:

 

A. A ConAgra salaried,
corporate employee. A corporate employee is an employee who is employed in a
corporate administration department.

 

B. A salaried, non-plant IOC
Employee.

 

Notwithstanding the preceding,
Eligible Employee shall exclude the following:

 

1. Any ConAgra employee who is
a party to a conditional employment agreement with ConAgra. “Conditional
employment agreement” refers to those agreements between ConAgra and certain of
its executives, previously or hereafter executed, providing certain benefits if
another entity acquires control of ConAgra, generally in the form of those
agreements incorporated at Exhibit 10.5 to ConAgra’s Form 10-K for the fiscal
year ended May 29, 1988.

 

2. Any employee who is not
eligible to participate in the Qualified Pension Plan and CRISP.

 

2.11 “IOC” means an Independent
Operating Company of ConAgra. “IOC Employee” means an employee of an IOC.
However, ConAgra recognizes that not all IOCs are separate corporations and an
IOC Employee may legally be employed by ConAgra or a member of the ConAgra
Controlled Group.

 

2.12 “Qualified Pension Plan”
means the ConAgra, Inc. Pension Plan for Salaried Employees or the ConAgra,
Inc. Pension Plan for Hourly Rate Production Employees, or any defined benefit
retirement plan of ConAgra or a member of the ConAgra Controlled Group, that
qualifies under section 401(a) of the Internal Revenue Code of 1986, as
amended, whichever applies to the Eligible Employee. If the Eligible Employee
participates in more than one such plan, benefits under each plan shall be
combined for purposes of this Plan.

 

2.13 “Years of Service” shall
have the same meaning as set forth in CRISP.

 

3. Effect of a Change of
Control. In the event of involuntary termination of an Eligible Employee’s
employment by a member of the ConAgra Controlled Group after a Change of
Control, the Eligible Employee shall receive the supplemental pension and CRISP
benefit and the supplemental CRISP benefit described herein. An Eligible
Employee shall also receive a supplemental pension and CRISP benefit hereunder
if the Employee voluntarily terminates his employment with the ConAgra
Controlled Group after a Change of Control following a reduction in the
Eligible Employee’s compensation (including fringe benefits) or a substantial
change in the location of the Eligible Employee’s job without the Eligible
Employee’s written consent. Substantial change in location means any location
change in excess of 35 miles from the location of the Eligible Employee’s job
at the time of the Change of Control. Regardless of any other provisions of the
Plan, no supplemental pension or CRISP benefit shall be paid if the Eligible
Employee’s employment with ConAgra terminates after the Eligible Employee
attains age 65.

 

31

 

Exhibit 10.5

 

4. Disposition of an IOC
Following a Change of Control. An Eligible Employee who is an IOC Employee
shall receive a supplemental pension and CRISP benefit hereunder if (i) all of
the stock or substantially all of the assets of the IOC of such Eligible
Employee, prior to such Eligible Employee attaining age 65 or terminating
employment as described in Paragraph 3, are sold or otherwise disposed of
following a Change of Control and (ii) the Eligible Employee’s employment is
subsequently terminated as described in Paragraph 3. For purposes of this
paragraph, termination of employment shall not include termination upon the
sale or disposition unless the purchaser does not offer employment to the
Eligible Employee under similar terms and conditions applicable to the Eligible
Employee immediately preceding the sale or disposition. Such a disposition
includes the sale of one or more members of the ConAgra Controlled Group which
consist of all or a substantial portion of the IOC. Substantial or
substantially all means greater than 50%.

 

5. Amount of Supplemental
Pension Benefit. The supplemental pension benefit shall be equal to the result
of subtracting the benefit the Eligible Employee will receive under the
Qualified Pension Plan from the pension benefit the Eligible Employee would
obtain under the Qualified Pension Plan if the Eligible Employee remained in
the employ of ConAgra until the Eligible Employee attained age 65. The Eligible
Employee’s compensation for purposes of computing the supplemental pension
benefit (and for purposes of Paragraph 6, below) shall be the greater of the
Eligible Employee’s compensation for the calendar year preceding his
termination or the Eligible Employee’s compensation for the calendar year
preceding the Change of Control. The supplemental pension benefit is to be
computed assuming the Eligible Employee is to receive an unreduced normal
retirement pension benefit payable beginning at the later of the date the
Eligible Employee attains age 60 or the date of the Eligible Employee’s
termination of employment, or disposition of the IOC, as described in
Paragraphs 3 and 4. If the Eligible Employee begins to receive his supplemental
pension benefit at a time other than as described in the preceding sentence, an
actuarial adjustment shall be made to reflect such.

 

6. Amount of Supplemental CRISP
Benefit. The supplemental CRISP benefit shall be equal to the amount computed,
as follows:

 

A. The Additional Years of
Service of the Eligible Employee is multiplied by the Eligible Employee’s
compensation (as described in Paragraph 5).

 

B. The result in A, immediately
above, is multiplied by 2%.

 

C. The result in B, immediately
above, is present valued to the date of the Eligible Employee’s termination of
employment, or disposition of the IOC, by the ConAgra Controlled Group (as
described in Paragraphs 3 and 4). The discount factor for such present value
shall be the discount factor used by the Qualified Pension Plan at the time of
such termination of employment. The present value shall be computed based on
the assumption that the result in B, immediately above, is paid ratably (and
monthly) over the Additional Years of Service of the Eligible Employee.

 

D. The present value amount
determined pursuant to C, immediately above, shall be funded pursuant to
Paragraph 8, below.

 

7. Actuarial Assumptions and
Form of Benefit. The actuarial assumptions and methods used by this Plan shall
be the same as those used by the Qualified Pension Plan, for the preceding
fiscal year. The timing of payment and the form of benefit under this Plan
shall be the same as elected by the Eligible Employee under the Qualified
Pension Plan for the supplemental pension benefit and the same as elected by
the Eligible Employee under CRISP for the supplemental CRISP benefit; provided,
however, the Committee must approve the Eligible Employee’s form of benefit
elected with respect to this Plan.

 

8. Funding. The supplemental
pension and CRISP benefits payable under this Plan shall be unfunded until a
voluntary or involuntary termination or a disposition of an IOC (as described
in Paragraphs 3 and 4, above) following a Change of Control. Within 60 days
following such a termination or disposition, the

 

32

 

Exhibit 10.5

 

supplemental pension and CRISP
benefits shall be funded, in one lump sum payment, through a trust in the form
attached hereto and incorporated by reference. The transferred amount for the
supplemental CRISP benefit shall be held in a separate account and separately
invested by the trustee. The amount accumulated in such account shall be the
sole source of payment of the supplemental CRISP benefit, and shall be the
amount of the supplemental CRISP benefit hereunder. ConAgra shall make up any
supplemental pension benefit payments the Eligible Employee does not receive
under the trust, e.g., if the funds in the trust are insufficient to make the
payments due to insufficient earnings in the trust. A separate trust shall be
established for each Eligible Employee who is entitled to a supplemental
pension or CRISP benefit. The trustee of such trust shall be a national or
state chartered bank. If funding of the trust is not made within the sixty day
period described in this Paragraph 8, the Eligible Employee’s supplemental
pension and CRISP benefits shall then be equal to 150% multiplied by the amount
of supplemental pension and CRISP benefits described in Paragraphs 5 and 6,
above; provided, however, this increase in benefits is not intended to remove
ConAgra’s obligation to fund the trust. The supplemental pension and CRISP
benefits shall not be paid from the assets of the Qualified Pension Plan or
CRISP.

 

9. Notice to Employees. The
Vice President of Human Resources of ConAgra shall notify the Eligible
Employees of the provisions of this Plan. Any employee receiving written notice
of the Plan from such Vice President shall automatically be an Eligible
Employee.

 

10. Administration. This Plan
shall be administered by the Committee. A majority vote of the Committee at a
meeting at which a quorum is present, or acts reduced to, or approved in
writing by, a majority of the members of the Committee, shall be the valid acts
of the Committee for purposes of this Plan.

 

11. Attorneys’ Fees, Etc. If an
Eligible Employee successfully brings a lawsuit to enforce his rights
hereunder, ConAgra shall reimburse the Eligible Employee for any attorneys’
fees and expenses incurred by the Eligible Employee with respect to such
lawsuit.

 

12. Amendment. This Plan may be
amended from time to time by the Board; provided, however, no amendment shall
be effective subsequent to the announcement of an event that could result in a
Change of Control with respect to a person who is an Eligible Employee on the
date of such announcement.

 

13. Termination. This Plan may
be terminated by the Board; provided, however, the Plan may not be terminated
after an announcement of an event that could result in a Change of Control with
respect to a person who is an Eligible Employee on the date of such announcement.

 

33

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