Document:

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                                                                    EXHIBIT 10.3

[PREMIUM STANDARD FARMS LOGO]

                             PREMIUM STANDARD FARMS
                           LONG TERM INCENTIVE PROGRAM

                                 FY2005 - FY2007

                                                                               1
<PAGE>

                             PREMIUM STANDARD FARMS
                         LONG TERM INCENTIVE PLAN (LTIP)
                                  "AT A GLANCE"

PURPOSE:                 Encourage sustained growth of the Company.
                         Provide key executives with capital accumulation
                         opportunity.
                         Encourage retention and motivation of key PSF
                         executives.

ELIGIBILITY:             Senior managers of PSF who are responsible for the
                         leadership and accountability of the
                         long-term growth and earnings of PSF as determined
                         by PSF Compensation Committee.

PERFORMANCE              3 Years  -  April 1, 2004 through March 31, 2007
PERIOD:

PERFORMANCE              Return on Net Assets  (RONA)
MEASURE:

PERFORMANCE              Threshold:       8% RONA will pay at 30% of pool
TARGETS:                 Goal:            12% RONA will pay at 100% of pool
                         Stretch Goal:    15% Increase for each 1% increase
                                          in RONA over Target. Example:  12%
                                          RONA will pay at 100% and 13% RONA
                                          will pay at 115%.

PARTICIPANT'S            Assigned by the CEO at the inception of the LTIP
                         period.
SHARE OF POOL:           Each participant's percentage share of the Pool
                         determines annual eligible LTIP award.

PARTICIPANT'S            Divided into two sections: Incentive and Discretionary:
AWARD:                   Incentive:        Two-thirds of the earned LTIP
                                           award is allocated to incentives
                                           based on RONA.
                         Discretionary:    One-third of the earned LTIP award
                                           is allocated to discretionary
                                           objectives based on overall
                                           performance and effort at the end of
                                           each year.

                                                                               2
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VESTING:                 One-Third at the end of each fiscal Year

DEFERRED COMPENSATION:   At the option of the participant

ADMINISTRATION:          The Compensation Committee of PSF shall be responsible
                         for the administration and interpretation of all plan
                         provisions.

                                                                               3

<PAGE>

                             PREMIUM STANDARD FARMS
                         LONG TERM INCENTIVE PLAN (LTIP)
                                     SUMMARY

PURPOSE

The senior leadership of PSF wanted to create a total compensation rewards
program that encouraged key executives to stay with the Company over a period of
time and to commit to strategic business objectives designed to give the Company
a competitive edge in the market place while encouraging long-term growth and
profitability. When achieved, PSF would reward key executives in such a way to
ensure our long-term compensation practices are competitive with long-term plans
offered by both public and private companies. Further, the plan is designed to
encourage teamwork among top executives while providing opportunities to be
individually recognized and rewarded for exceptional effort and performance.

ELIGIBILITY

Senior managers selected by the PSF Compensation Committee are eligible to
participate in the LTIP. Selected participants are charged with the
responsibility of providing superior leadership and accountability for long-term
earnings growth.

PERFORMANCE PERIOD

The LTIP period begins on April 1, 2004 and concludes on March 31, 2007. The
plan is a rolling three year plan based on three years of performance.

PERFORMANCE MEASUREMENT

The LTIP uses Return on Net Assets (RONA) as the singular performance
measurement on the incentive portion during the entire LTIP performance period.

RONA as a performance measurement will include both operating and non-operating
earnings (before interest and taxes) and will be determined after accruing for
the cost of this long-term plan (post-accrual earnings). Deferred taxes will be
excluded from the RONA calculation.

PARTICIPANT'S SHARE OF THE POOL

All eligible executives are assigned a percentage of base pay that will be paid
if the RONA goals are met. The percentage is usually granted by the CEO at the
beginning of the LTIP period. Once assigned, each participating executive can
compute their individual annual amount by multiplying their percentage by their
annual salary.

                                                                               4
<PAGE>

PARTICIPANT'S LTIP AWARDS

All LTIP awards are divided into two sections:  Incentive and Discretionary.

Incentive

The incentive portion of the LTIP is determined at the beginning of the LTIP
period and represents two-thirds of the participants eligible payment. The
incentive portion of the LTIP is awarded based on RONA achievement.

Discretionary Pool

The discretionary portion of the LTIP is determined at the conclusion of the
LTIP period and represents one-third of the participants eligible payment. The
discretionary portion of the LTIP is based on the assessment of the CEO at the
conclusion of the LTIP period and is generally determined by the participants'
overall performance during the LTIP period. Since this portion of the LTIP is
completely discretionary, it may be more, less, or the same as what was computed
using one-third of the participants total Pool as a base.

VESTING

Vesting of a Participants Incentive Pool interest is based on continued
employment with Premium Standard Farms:

     o    One-Third of Incentive Pool vests at end of 1st Year (3/31/05)

     o    One-Third of Incentive Pool vests at end of 2nd Year (3/31/06)

     o    One-Third of Incentive Pool vests at end of 3rd Year (3/31/07)

     o    There is no vesting schedule associated with the Discretionary portion
          of the LTIP. All discretionary awards pay out shortly after the
          conclusion of the LTIP period provided the participant has continued
          employment with the Company.

Full vesting rights are accorded executives who leave the Company due to death,
disability or at normal retirement age during the performance period. Executives
that transfer to ContiGroup or another company under PSF Holdings Inc. will
retain a pro-rata interest in the PSF LTIP assuming all other criteria are met.

Special vesting and funding rules apply if the Company is sold or in the event
of an initial public offering (IPO) during the performance period. Should this
occur the PSF Compensation Committee would review the circumstances and
determine the appropriate course of action to take at that time.

                                                                               5

<PAGE>

DEFERRED COMPENSATION

LTIP awards received at the conclusion of the LTIP period can be completely or
partially deferred however, the decision to defer compensation must be made at
least by the end of the calendar year preceding the actual award declaration.
The conditions and provisions of this benefit are detailed in the PSF Deferred
Compensation Plan Summary Plan Description. Contact the Vice President of Human
Resources for a copy.

ADMINISTRATION

The Compensation Committee of the Board of Directors shall approve the
administration of the LTIP. The Compensation Committee shall have the sole
responsibility for the interpretation of all LTIP requirements and the payment
of LTIP benefits. While the Compensation Committee generally expects the earning
expectations and the thresholds to remain in tact during the entire LTIP period,
they do reserve the right to alter or modify the earnings expectations and RONA
thresholds during the LTIP period in the event of unforeseen and extraordinary
events. Additionally, the Compensation Committee may modify the provisions of
the LTIP where there are major capital infusions or major withdrawal of capital
during the LTIP period. The Compensation Committee also has the right to add and
delete participants, subject to vesting, at their discretion.

                                                                               6<PAGE>
                                                                    EXHIBIT 10.4

                          PREMIUM STANDARD FARMS, INC.
                                 EXECUTIVE LEVEL
                               SEVERANCE PAY PLAN

                                  PLAN DOCUMENT

              (AS AMENDED AND RESTATED EFFECTIVE FEBRUARY 1, 2003)

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                                TABLE OF CONTENTS
<TABLE>
<CAPTION>

                                                                          Page

<S>                                                                       <C>
ESTABLISHMENT OF THE PLAN....................................................1

PURPOSE OF THE PLAN..........................................................1

ELIGIBLE EMPLOYEES...........................................................1

ELIGIBILITY REQUIREMENTS.....................................................2

CONDITIONS OF INELIGIBILITY..................................................2

BASE SEVERANCE PAY...........................................................3

SUPPLEMENTAL SEVERANCE PAY AND SUPPLEMENTAL SEVERANCE BENEFITS...............3

PAYMENT OF SEVERANCE PAY.....................................................4

WAIVER AND RELEASE AGREEMENT.................................................5

PLAN ADMINISTRATION..........................................................5

AMENDMENT/TERMINATION/VESTING................................................6

NO ASSIGNMENT................................................................6

RECOVERY OF PAYMENTS MADE BY MISTAKE.........................................6

CONFIDENTIAL INFORMATION/COOPERATION.........................................6

REPRESENTATIONS CONTRARY TO THE PLAN.........................................7

NO EMPLOYMENT RIGHTS.........................................................7

PLAN FUNDING.................................................................7

APPLICABLE LAW...............................................................8

SEVERABILITY.................................................................8

MANDATED PAYMENTS............................................................8

PLAN YEAR....................................................................8

MISCELLANEOUS PROVISIONS.....................................................8

</TABLE>

<PAGE>

                          PREMIUM STANDARD FARMS, INC.
                                 EXECUTIVE LEVEL
                               SEVERANCE PAY PLAN

ESTABLISHMENT OF THE PLAN

PREMIUM STANDARD FARMS, INC. (hereinafter the "COMPANY") established the PREMIUM
STANDARD FARMS, INC. EXECUTIVE LEVEL SEVERANCE PAY PLAN (hereinafter the
"PLAN"), effective December 1, 1999 for the benefit of eligible employees of the
Company. The following provisions constitute an amendment and restatement of the
Plan effective February 1, 2003.

The Plan is an unfunded welfare benefit plan for purposes of the Employee
Retirement Income Security Act of 1974, as amended (hereinafter "ERISA") and a
severance pay plan within the meaning of United States Department of Labor
regulations section 2510.3-2(b). The Plan supersedes any prior formal or
informal severance plans, programs or policies of the Company covering eligible
employees.

PURPOSE OF THE PLAN

The purpose of the Plan is to provide an eligible employee with the opportunity
to receive base severance pay, supplemental severance pay and supplemental
severance benefits for a specified period of time in the event that his/her
employment is involuntarily terminated due to (i) lack of work, (ii)
rearrangement of work, (iii) reduction in workforce, or (iv) position
elimination, all as determined in the sole discretion of the Plan Administrator.

ELIGIBLE EMPLOYEES

The Plan is applicable only to eligible employees of the Company. For all
purposes of the Plan, "ELIGIBLE EMPLOYEE" means a person based in the United
States in an employee-employer relationship with the Company who on his/her date
of termination of employment with the Company is in the Company job
classification as Chief Executive Officer, President, or Chief Financial
Officer.

"Eligible employee" does not include, and the Plan is not applicable to, any
employee or individual who: (i) is covered by a written employment agreement
which contains a severance provision, is covered by a written severance
agreement or is covered by another severance pay plan sponsored by the Company,
(ii) is an independent contractor, (iii) is a consultant, (iv) is a person
performing services for the Company under an independent contractor or
consultant agreement, purchase order, supplier agreement or any other form of
agreement which the Company enters into for services, (v) any other individual
who is compensated, directly or indirectly, by the Company and with respect to
whom compensation is not treated by the Company at the time of payment as being
subject to statutorily required payroll tax withholding, such as withholding of
Federal and/or state income tax and/or withholding of the employee's share of
Social Security Tax, or (vi) is a contract employee, or any employee classified

<PAGE>

by the Company other than as Chief Executive Officer, President, or Chief
Financial Officer.

ELIGIBILITY REQUIREMENTS

In order for an eligible employee to be eligible to receive Plan base severance
pay, supplemental severance pay, and supplemental severance benefits, an
eligible employee must meet the following eligibility requirements: (i) he/she
must remain in the employ of the Company through the date of termination of
employment designated in writing by the Company, (ii) through the date of
termination of employment, he/she must fulfill the normal responsibilities of
his/her position, including meeting regular attendance, workload and other
standards of the Company, and (iii) he/she must submit the signed Waiver and
Release Agreement required by the Plan on or within forty-five (45) days after
his/her date of termination of employment (but not before his/her date of
termination of employment) and (iv) must not revoke the signed Waiver and
Release Agreement.

CONDITIONS OF INELIGIBILITY

An employee of the Company shall not be eligible for base severance pay,
supplemental severance pay and supplemental severance benefits under the Plan
if:

         (a)      the eligible employee is not or ceases to be an eligible
                  employee as defined in the Plan;

         (b)      the employee's employment with the Company terminates by
                  reason of retirement, resignation, failure to report for work,
                  death or discharge for cause, as determined in the sole
                  discretion of the Company;

         (c)      the employee's employment with the Company terminates under
                  any other circumstances other than meeting the eligibility
                  requirements of the Plan;

         (d)      the employee is entitled to a benefit from a long term
                  disability benefit plan sponsored by the Company;

         (e)      employment with the Company is involuntarily terminated after
                  the employee is offered and refuses a position with the
                  Company and such position pays similar base pay (i.e., the
                  current base pay level or a greater base pay level or within
                  ten percent (10%) of the current base pay level if the
                  employee is changed to a lesser base pay level);

                                       2
<PAGE>

         (f)      the employee is employed in a Company division, department,
                  operational unit, function or facility which is sold, leased
                  or otherwise divested and the employee is offered comparable
                  employment by the successor entity. For all purposes of the
                  Plan, "OFFERED COMPARABLE EMPLOYMENT" means an offer of a
                  position providing comparable responsibilities, base salary
                  and benefits to the eligible employee's then current position
                  with the Company, as determined by the Plan Administrator;

         (g)      the employee's employment with the Company is terminated under
                  the terms of an individual separation arrangement or a group
                  reorganization/ restructuring benefit plan or program
                  sponsored by the Company which provides total separation pay
                  equal to or greater than the base and supplemental severance
                  pay provided hereunder; or

         (h)      the Plan is terminated.

The foregoing list of conditions is intended to be illustrative and may not be
all inclusive; the Plan Administrator will determine in the Plan Administrator's
sole discretion whether an eligible employee is eligible for severance pay under
the Plan.

For all purposes under the Plan, "DISCHARGE FOR CAUSE" means termination of the
employee's employment because of (a) negligence or misconduct by the employee in
the performance of his/her duties for the Company, (b) non-performance by the
employee of his/her duties for the Company, (c) the employee's conviction for or
admission of a felony offense, or the employee's indictment for a criminal
offense involving or relating to the business of the Company, (d) the employee's
act of fraud, dishonesty, or embezzlement with respect to the Company, or (e)
the employee's misconduct which, in the judgment of the Company, harms the
reputation of the Company or causes the employee to be unable to perform his/her
duties.

BASE SEVERANCE PAY

Each eligible employee who is eligible for severance pay under the Plan shall be
entitled to receive as base severance pay two (2) weeks of pay.

For all purposes of the Plan, a "WEEK OF PAY" for an eligible employee shall be
determined by using his/her regular annual base salary compensation rate on
his/her date of termination of employment with the Company divided by fifty-two
(52).

SUPPLEMENTAL SEVERANCE PAY AND
SUPPLEMENTAL SEVERANCE BENEFITS

In addition to the base severance pay which an eligible employee is entitled to
receive under the Plan, in exchange for providing the Company with an
enforceable Waiver and Release Agreement in a form acceptable to the Company,
each eligible employee who is eligible for severance pay under the Plan is
eligible to receive as supplemental severance pay and supplemental severance
benefits the following:

                                       3

<PAGE>

         (a)      Supplemental Severance Pay:

                  Supplemental severance pay shall be fifty (50) weeks of pay.

         (b)      Supplemental Severance Benefits:

                  An eligible employee shall be eligible to continue his/her
                  coverage under the Company sponsored health benefits plan at
                  the contribution rate paid by active employees of the Company
                  for the period which ends upon the earlier of (A) fifty-two
                  (52) weeks following his/her date of termination of employment
                  with the Company or (B) the date he/she becomes covered as an
                  employee under another employer's group health plan, program
                  or contract.

                  Thereafter, an eligible employee may elect to exercise his/her
                  applicable COBRA continuation rights to further continue
                  his/her health benefits under the Company sponsored health
                  benefits plan by paying the required COBRA premium rate.

                  All of the terms and conditions of the Company sponsored
                  health benefits plan, as amended from time to time, shall be
                  applicable to an eligible employee (and his/her eligible
                  dependents, if applicable) participating in any form of
                  continuation coverage under the Company sponsored health
                  benefits plan.

The Chairman of the Company, acting in the Chairman's sole discretion may, in
writing, enhance the amount of supplemental severance pay or supplemental
severance benefits which an eligible employee is eligible to receive over the
amounts described above and/or make available one or more additional forms of
supplemental severance benefit.

The consideration for the voluntary Waiver and Release Agreement shall be the
supplemental severance pay and supplemental severance benefits which the
eligible employee would otherwise not be eligible to receive.

PAYMENT OF SEVERANCE PAY

Severance pay generally will be paid in a lump sum following the eligible
employee's date of termination of employment, however any supplemental severance
pay and any supplemental severance benefits which become payable will be paid
only after the seven (7) day revocation period for a signed Waiver and Release
Agreement has passed. The Company reserves the right in its sole discretion to
pay severance pay in installments in accordance with the Company's regular
payroll payment schedule. All legally required taxes and any sums owing to the
Company shall be deducted from Plan severance pay and supplemental severance
benefits payments.

If an eligible employee has received his/her supplemental severance pay in one
lump sum and is then reemployed by the Company during a period of time during
which

                                       4
<PAGE>

he/she would have been receiving supplemental severance pay if paid to him/her
in installments, he/she shall be required to repay to the Company that portion
of the lump sum payment attributable to the period of time from the date his/her
reemployment begins to the date he/she would have received his/her last
installment payment of supplemental severance pay. In the event that an eligible
employee who is receiving payment of supplemental severance pay under the Plan
in installments is then reemployed by the Company, the payment of supplemental
severance pay under the Plan shall cease as of the date his/her reemployment
begins. In addition, the payment and/or availability of supplemental severance
benefits under the Plan to an eligible employee shall cease as of the date
his/her reemployment with the Company begins.

WAIVER AND RELEASE AGREEMENT

In order to receive the supplemental severance pay and supplemental severance
benefits available under the Plan, an eligible employee must submit a signed
Waiver and Release Agreement form to the Plan Administrator on or within forty
five (45) days after his/her date of termination of employment (but not before
his/her date of termination of employment). The current form of the required
Waiver and Release Agreement form is attached hereto as Attachment I. An
eligible employee may revoke his/her signed Waiver and Release Agreement within
seven (7) days of his/her signing the Waiver and Release Agreement.

Any such revocation must be made in writing and must be received by the Plan
Administrator within such seven (7) day period. An eligible employee who timely
revokes his/her Waiver and Release Agreement shall not be eligible to receive
any supplemental severance pay and supplemental severance benefits under the
Plan. An eligible employee who timely submits a signed Waiver and Release
Agreement form and who does not exercise his/her right of revocation shall be
eligible to receive supplemental severance pay and supplemental severance
benefits under the Plan.

Eligible employees shall be advised to contact their personal attorney at their
own expense to review the Waiver and Release Agreement form if they so desire.

PLAN ADMINISTRATION

The Company's Chairman and Chief Executive Officer acting together shall serve
as the "PLAN ADMINISTRATOR" of the Plan and the "NAMED FIDUCIARY" within the
meaning of such terms as defined in ERISA. Notwithstanding the foregoing
sentence, in any circumstance involving a claim under the Plan by the Chief
Executive Officer, a member of the Board of Directors of the Company shall
substitute for the Chief Executive Officer and shall serve along with the
Chairman as Plan Administrator for purposes of such claim. Except as otherwise
provided herein, the Plan Administrator shall have the discretionary authority
to determine eligibility for Plan severance pay and supplemental severance
benefits and to construe the terms of the Plan, including the making of factual
determinations. The decisions of the Plan Administrator shall be final and
conclusive with respect to all questions concerning the administration of this
Plan. The Plan Administrator will determine in the Plan Administrator's sole
discretion whether an

                                       5

<PAGE>

employee is an eligible employee and is eligible for severance pay and
supplemental severance benefits under the Plan.

The Plan Administrator may delegate to other persons responsibilities for
performing certain of the duties of the Plan Administrator under the terms of
this Plan and may seek such expert advice as the Plan Administrator deems
reasonably necessary with respect to the Plan. The Plan Administrator shall be
entitled to rely upon the information and advice furnished by such delegatees
and experts, unless actually knowing such information and advice to be
inaccurate or unlawful. The Plan Administrator shall establish and maintain a
reasonable claims procedure, including a procedure for appeal of denied claims.
In no event shall an eligible employee or any other person be entitled to
challenge a decision of the Plan Administrator in court or in any other
administrative proceeding unless and until the claim and appeals procedures
established under this Plan have been complied with and exhausted.

In the event of a group termination, as determined in the sole discretion of the
Plan Administrator, the Plan Administrator shall furnish affected eligible
employees with such additional information as may be required by law.

AMENDMENT/TERMINATION/VESTING

Eligible employees do not have any vested right to severance pay or supplemental
severance benefits under the Plan and the Company reserves the right in its sole
discretion to amend or terminate the Plan at any time either by resolution of
its Board of Directors or in writing signed by the Chief Executive Officer of
the Company, provided, however, that no amendment nor termination shall reduce
severance pay which has commenced being provided to an eligible employee.
Eligible employees under the Plan shall be furnished with not less than thirty
(30) days prior written notice of the content and effective date of any
amendment to or termination of the Plan.

NO ASSIGNMENT

Severance pay and any supplemental severance benefits payable under the Plan
shall not be subject to anticipation, alienation, pledge, sale, transfer,
assignment, attachment, execution, encumbrance, lien, or charge, and any attempt
to cause such severance pay or supplemental severance benefits to be so
subjected shall not be recognized, except to the extent required by law.

RECOVERY OF PAYMENTS MADE BY MISTAKE

An eligible employee shall be required to return to the Company any severance
pay payment, or portion thereof, and reimburse the Company for the cost of any
supplemental severance benefits made or provided by a mistake of fact or law.

CONFIDENTIAL INFORMATION/COOPERATION

Eligible employees may have had access to trade secrets and other confidential
and proprietary information (hereinafter "CONFIDENTIAL INFORMATION") with regard
to the

                                       6

<PAGE>

business of the Company. Recognizing that the disclosure or improper use of such
Confidential Information or the breach of any restrictive covenant agreement(s)
covering the eligible employee will cause serious and irreparable injury to the
Company, eligible employees with such access and/or restrictive covenant
agreement(s) acknowledge that (i) they will not at any time, directly or
indirectly, disclose Confidential Information to any third party or otherwise
use such Confidential Information for their own benefit or the benefit of
others, (ii) they will not breach such restrictive covenant agreement(s), and
(iii) payment of severance pay and supplemental severance benefits under the
Plan shall cease if an eligible employee discloses or improperly uses such
Confidential Information or breaches such restrictive covenant agreement(s).

Each eligible employee shall cooperate with the Company and its legal counsel in
connection with any current or future investigation or litigation relating to
any matter to which the eligible employee was involved or of which the eligible
employee has knowledge or which occurred during the eligible employee's
employment. Such assistance shall include, but not be limited to, depositions
and testimony and shall continue until such matters are resolved. In addition,
an eligible employee shall not in any way disparage the Company nor any person
associated with the Company to any person, corporation, or other entity.

REPRESENTATIONS CONTRARY TO THE PLAN

No employee, officer, or director of the Company has the authority to alter,
vary, or modify the terms of the Plan except by means of an authorized written
amendment to the Plan. No verbal or written representations contrary to the
terms of the Plan and its written amendments shall be binding upon the Plan, the
Plan Administrator, or the Company.

NO EMPLOYMENT RIGHTS

This Plan shall not confer employment rights upon any person. No person shall be
entitled, by virtue of the Plan, to remain in the employ of the Company and
nothing in the Plan shall restrict the right of the Company to terminate the
employment of any eligible employee or other person at any time.

PLAN FUNDING

No eligible employee shall acquire by reason of the Plan any right in or title
to any assets, funds, or property of the Company. Any severance pay which
becomes payable under the Plan is an unfunded obligation and shall be paid from
the general assets of the Company. No employee, officer, director or agent of
the Company personally guarantees in any manner the payment of Plan severance
pay or supplemental severance benefits.

                                       7
<PAGE>

APPLICABLE LAW

This Plan shall be governed and construed in accordance with ERISA and in the
event that any reference shall be made to State law, the laws of the State of
Missouri shall apply, without regard to its conflicts of law provisions.

SEVERABILITY

If any provision of the Plan is found, held or deemed by a court of competent
jurisdiction to be void, unlawful or unenforceable under any applicable statute
or other controlling law, the remainder of the Plan shall continue in full force
and effect.

MANDATED PAYMENTS

The severance pay and supplemental severance benefits available under the Plan
are the maximum made available by the Company in the event of involuntary
termination of employment. To the extent that a federal, state or local law
requires the Company to make payment to an eligible employee because of
involuntary termination of employment, or in accordance with a plant closing
type law, the severance pay and supplemental severance benefits available under
the Plan will be reduced by the amount of such required payment.

PLAN YEAR

The ERISA plan year of this Plan shall be the twelve month period commencing on
January 1 of each year.

MISCELLANEOUS PROVISIONS

In order for an eligible employee to commence receiving severance pay under the
Plan, (i) he/she shall be required to return all Company property (including,
but not limited to, Confidential Information, Company car, customer lists, keys,
credit cards, access cards, personal digital assistants, mobile telephones,
documents and records, identification cards, equipment, computers, software, and
pagers), (ii) complete and submit all expense reimbursement requests, and (iii)
repay any outstanding bills, advances, debts, and amounts due to the Company, as
of his/her date of termination of employment with the Company.

All pay and other benefits (except Plan severance pay and supplemental severance
benefits) payable to an eligible employee as of his/her date of termination of
employment with the Company according to the established policies, plans, and
procedures of the Company shall be paid in accordance with the terms of those
established policies, plans, and procedures. In addition, any benefit
continuation or conversion rights which an eligible employee has as of his/her
date of termination of

                                       8

<PAGE>

employment with the Company according to the established policies, plans, and
procedures of the Company shall be made available to him/her.

                                    PREMIUM STANDARD FARMS, INC.

                                    By   /s/ John Meyer
                                      ------------------------------------------
                                         John Meyer
                                         Chief Executive Officer

                                       9
<PAGE>

                                                                    ATTACHMENT I

                          PREMIUM STANDARD FARMS, INC.
                                 EXECUTIVE LEVEL
                               SEVERANCE PAY PLAN

                          WAIVER AND RELEASE AGREEMENT

         (1) In consideration for the supplemental severance pay and
supplemental severance benefits to be provided to me under the terms of the
PREMIUM STANDARD FARMS, INC. EXECUTIVE LEVEL SEVERANCE PAY PLAN, I, on behalf of
myself and my heirs, executors, administrators, attorneys and assigns, hereby
waive, release and forever discharge PREMIUM STANDARD FARMS, INC. (hereinafter
referred to as the "Company") together with the Company's parent, subsidiaries,
divisions and affiliates, whether direct or indirect, its and their joint
ventures and joint venturers (including their respective directors, officers,
employees, shareholders, partners and agents, past, present, and future), and
each of its and their respective successors and assigns (hereinafter
collectively referred to as "Releasees"), from any and all known or unknown,
suspected and unsuspected actions, causes of action, claims or liabilities of
any kind which have been or could be asserted against the Releasees arising out
of or related to my employment with and/or separation from employment with the
Company and/or any of the other Releasees up to and including the date of this
Waiver and Release Agreement, including but not limited to:

         (a)      claims, actions, causes of action or liabilities arising under
                  Title VII of the Civil Rights Act, as amended, the Age
                  Discrimination in Employment Act, as amended ("ADEA"), the
                  Employee Retirement Income Security Act, as amended, the
                  Rehabilitation Act, as amended, the Americans with
                  Disabilities Act, as amended, the Family and Medical Leave
                  Act, as amended, Worker Adjustment and Retraining Notification
                  Act, as amended, and/or any other federal, state, municipal,
                  or local employment discrimination statutes or ordinances
                  (including, but not limited to, claims based on age, sex,
                  attainment of benefit plan rights, race, religion, national
                  origin, marital status, sexual orientation, ancestry,
                  harassment, parental status, handicap, disability,
                  retaliation, and veteran status);

         (b)      claims, actions, causes of action or liabilities arising under
                  any other federal, state, municipal, or local statute, law,
                  ordinance or regulation; and/or

         (c)      any other claim whatsoever including, but not limited to,
                  claims for severance pay, claims for bonus, claims for expense
                  reimbursement, claims based upon breach of contract, wrongful
                  termination, defamation, intentional infliction of emotional
                  distress, tort, personal injury, invasion of privacy,
                  violation of public policy, negligence and/or any other common
                  law, statutory, regulatory or other claim whatsoever arising
                  out of or

<PAGE>

                  relating to my employment with and/or separation from
                  employment with the Company and/or any of the other Releasees.

Excluded from this Release is any claim or right which cannot be waived by law,
including all claims arising after the date of this Release and the right to
file a charge with or participate in an investigation conducted by any federal,
state, or local administrative agency.

     (2) I also agree never to sue any of the Releasees or become party to a
lawsuit on the basis of any claim of any type whatsoever arising out of or
related to my employment with and/or separation from employment with the Company
and/or any of the other Releasees, except I may bring a lawsuit to challenge
this Waiver and Release Agreement under the ADEA.

     (3) I further acknowledge and agree that if I breach the provisions of
paragraph (2) above, then (a) the Company shall be entitled to apply for and
receive an injunction to restrain any violation of paragraph (2) above, (b) the
Company shall not be obligated to continue payment of the supplemental severance
pay and availability of supplemental severance benefits to me, (c) I shall be
obligated to pay to the Company its costs and expenses in enforcing this Waiver
and Release Agreement and defending against such lawsuit (including court costs,
expenses and reasonable legal fees), and (d) as an alternative to (c), at the
Company's option, I shall be obligated upon demand to repay to the Company all
but $100 of the supplemental severance pay and cost of the supplemental
severance benefits paid or made available to me. I further agree that the
foregoing covenants in this paragraph (3) shall not affect the validity of this
Waiver and Release Agreement and shall not be deemed to be a penalty nor a
forfeiture.

     (4) To the extent permitted by law, I further waive my right to any
monetary recovery should any federal, state, or local administrative agency
pursue any claims on my behalf arising out of or related to my employment with
and/or separation from employment with the Company and/or any of the other
Releasees. I also acknowledge that I have not suffered any on-the-job injury for
which I have not already filed a claim.

     (5) To the extent permitted by law, I further waive, release and discharge
Releasees from any reinstatement rights which I have or could have.

     (6) I also promise that I shall not at any time or in any way disparage the
Company and/or any of the other Releasees to any person, corporation, entity or
other third party whatsoever.

     (7) I further agree that if I breach the Confidential
Information/Cooperation provisions of the Plan or the provisions of paragraphs
(5) and/or (6) above, then (a) the Company shall be entitled to apply for and
receive an injunction to restrain such breach, (b) the Company shall not be
obligated to continue payment of the supplemental severance pay and availability
of supplemental severance benefits to me, and (c) I shall be obligated to pay to
the Company its costs and expenses in enforcing the Confidential

                                       2
<PAGE>

Information/Cooperation provisions of the Plan and the provisions of paragraphs
(5) and (6) above (including court costs, expenses and reasonable legal fees).

     (8) I acknowledge that I have been given at least forty-five (45) days to
consider this Waiver and Release Agreement thoroughly.

     (9) I acknowledge that I have been advised in writing to consult with an
attorney prior to signing this Waiver and Release Agreement.

     (10) I understand that I may revoke this Waiver and Release Agreement
within seven (7) days after its signing and that any revocation must be made in
writing and submitted within such seven (7) day period to the Plan
Administrator. I further understand that if I revoke this Waiver and Release
Agreement, I shall not receive the supplemental severance pay nor the
supplemental severance benefits available under the Plan.

     (11) I also understand that the supplemental severance pay and supplemental
severance benefits which I will receive in exchange for signing and not later
revoking this Waiver and Release Agreement are in addition to anything of value
to which I already am entitled.

     (12) I FURTHER UNDERSTAND THAT THIS WAIVER AND RELEASE AGREEMENT INCLUDES A
RELEASE OF ALL KNOWN AND UNKNOWN, SUSPECTED AND UNSUSPECTED CLAIMS TO DATE.

     (13) I acknowledge and agree that if any provision of this Waiver and
Release Agreement is found, held or deemed by a court of competent jurisdiction
to be void, unlawful or unenforceable under any applicable statute or
controlling law, the remainder of this Waiver and Release Agreement shall
continue in full force and effect.

     (14) This Waiver and Release Agreement in all respects shall be
interpreted, enforced and governed under applicable federal law and in the event
reference shall be made to State law, the internal laws of the State of Missouri
shall apply.

                                       3

<PAGE>

     (15) I further acknowledge and agree that I have carefully read and fully
understand all of the provisions of this Waiver and Release Agreement and that I
voluntarily enter into this Waiver and Release Agreement by signing below.

                                 -----------------------------------------------
                                 (Name of Eligible Employee - Please Print)

                                  ----------------------------------------------
                                 (Signature of Eligible Employee)

                                 -----------------------------------------------
                                 (Date)

                                 PLEASE RETURN TO:
                                 Vice President of Human Resources
                                 Premium Standard Farms, Inc.
                                 423 West 8th Street, Suite 200
                                 Kansas City, MO 64105

                                       4

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