Document:

<PAGE>

                                                                   Exhibit 10.19

                               LAND O'LAKES, INC.

                   EXECUTIVE ANNUAL VARIABLE COMPENSATION PLAN

                           - C O N F I D E N T I A L -

                             PROPOSED DECEMBER, 2001

                          EFFECTIVE ON JANUARY 1, 2002

     THIS DOCUMENT IS A SUMMARY OF THE LAND O'LAKES, INC. EXECUTIVE ANNUAL
     VARIABLE COMPENSATION PLAN. THE PROVISIONS OF THE PLAN ARE PRESENTED IN
     OUTLINE FORM. LAND O'LAKES RESERVES THE RIGHT TO TERMINATE AND/OR MAKE ANY
     REVISIONS OR INTERPRETATIONS TO THIS PLAN, AS APPROPRIATE.

<PAGE>

                   EXECUTIVE ANNUAL VARIABLE COMPENSATION PLAN

                                     SUMMARY

PURPOSE AND OBJECTIVE

The purpose of the Variable Compensation Plan for executives is to aid in
achieving a total customer focus and to promote the company's profitable growth
and service to its owners.

In addition, there will be three major objectives of this plan:

              To recognize and reward the achievement of business results.

              To integrate business strategies with the compensation system and
              alignment of individual efforts in achieving overall success for
              the major businesses and the company.

              To provide a variable compensation component of total compensation
              for executives which is competitive within industry for similar
              positions and responsibilities.

DEFINITIONS

The following terms and definitions apply specifically to the provisions
contained within this plan.

"THE COMPANY" --- This refers to Land O'Lakes, Inc.

"THE PLAN" --- The Executive Annual Variable Compensation Plan which is the
focus of this document.

"TARGETS" --- Target is used to specify financial goals established each year
for Land O'Lakes and each of its major business units.

"PARTICIPANTS" --- Land O'Lakes officers who meet the eligibility provisions to
participate in this plan.

"PLAN YEAR" --- The term or length of period covered commencing January 1 and
expiring December 31 each calendar year corresponding to the Company's fiscal
year.

"VARIABLE COMPENSATION AWARD OR AWARDS" --- The payments that are made from this
plan based upon business performance.

"INDIVIDUAL PERFORMANCE COMMITMENTS (GOALS)" --- Specific annual priorities or
business strategies applicable to the Individual Performance Commitment section
of the plan and with the company Performance Management System.

                                      -2-

<PAGE>

"SENIOR OFFICERS" --- The President/CEO and direct reports representing the
highest organization level within each major business function.

"BASE SALARY" --- The annualized base salary in effect as of the conclusion of
the plan year.

ADMINISTRATION

This plan is administered by the Land O'Lakes President, with the assistance of
the Vice President of Human Resources. The President, Vice President of Human
Resources, and respective senior officers will be responsible for administering
the program for each separate business group.

The Executive Committee of the Land O'Lakes Board of Directors will have
responsibility for the following:

              Annual approval of the Plan.
              Review and report on the annual results.
              Review and approve the President's annual earnings target and
              goals.
              Review President's performance results and determine President's
              annual award.

PARTICIPATION/ELIGIBILITY

Participation in the program is limited to employee officers of Land O'Lakes and
approved by the President. The President may exclude an officer from
participation for business reasons.

Employees who meet eligibility criteria for this plan may be placed in a
separate and distinct plan if business needs warrant; however, no person can
participate in two annual variable compensation plans at the same time.

                                      -3-

<PAGE>

MAXIMUM AWARD OPPORTUNITIES

The maximum award opportunities available under this plan are illustrated as
follows:

<TABLE>
<CAPTION>
<S>     <C>                                 <C>                           <C>
         Position                              Maximum Award                  Excess Potential Award
         --------------------------------------------------------------------------------------------
         Senior Officers                     60% of Base Salary                 96% of Base Salary
         Vice Presidents                     50% of Base Salary                 80% of Base Salary
</TABLE>

The excess award opportunities are attainable once the maximums from the company
formula, the target performance section, and individual commitment section of
the plan are reached in a given year. The excess award is calculated by
multiplying the results by the applicable maximum excess award. The base salary
as of the conclusion of the plan year will be used for the calculation of
awards.

OPERATION OF THE PLAN

The plan year will correspond to the Company's fiscal year and commence on
January 1 and conclude December 31 for each year the plan is operational. Awards
from this plan each year are dependent upon a combination of three elements of
performance: 1) company overall results, 2) financial targets established for
business performance, and 3) Individual Performance Commitments (Goals).

A minimum of eight percent (8%) after-tax return on equity (ROE) is the
threshold performance level required to trigger any payments from the plan. The
Land O'Lakes equity total at the beginning of the plan year will be used to
determine the ROE for the plan year.

PERFORMANCE/AWARD DETERMINATIONS

When the company profit threshold of 8% after-tax ROE is achieved, the three
performance sections of the plan will operate to determine the award amounts.
The weighting scheme for performance elements of this plan will be as follows
for all participants:

                         Performance Measurement Weight

<TABLE>
<CAPTION>
<S>               <C>              <C>   <C>          <C>  <C>                  <C>
                    Company                Target           Indv. Perf.
                   Performance            Financial         Commitments
                     Formula               Results            (Goals)            Total
                     -------               -------             ------            -----

        ff               30%          +        55%        +       15%              = 100%*
</TABLE>

*Payments above can occur with exceptional performance in the company and target
sections of the Plan, as noted in those sections.

                                      -4-

<PAGE>

COMPANY PERFORMANCE FORMULA

The company performance measurement for determining the overall company results
portion of the award will be based upon the company after-tax return on equity
(ROE). The Company Performance Formula is as follows:

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------- ----------------------------------
                                 COMPANY PERFORMANCE FORMULA                                                   MAXIMUM
<S>               <C>     <C>      <C>      <C>      <C>     <C>      <C>      <C>     <C>      <C>      <C>      <C>      <C>
ROE After Tax      <8%      8%       10%      12%      14%     16%      18%      20%     22%      24%      26%      28%      30%
% Awarded          0        8%       9%       12%      18%     21%      24%      27%     30%      35%      40%      50%      60%

------------------ -------- -------- -------- -------- ------- -------- -------- ------- -------- -------- -------- -------- -------
</TABLE>

The actual percentage award will be interpolated between the ROE thresholds
(e.g. 8-10%, 10-12%, etc.).

TARGET FINANCIAL RESULTS

The target portion of the plan will be designated for financial measures for
corporate and business unit results as determined prior to the plan year. The
Board of Directors will establish the target for the President's plan. The
President and the Senior Officers will establish measurements and targets for
each business group. The President will establish the target objectives
applicable to all staff vice presidents.

Senior Officers may establish the portion of the target section to be used for
overall group results and specific businesses within the group. The following
target range will be applicable to all businesses and corporate results for
payment from this section of the plan (target = 1.0 of agreed upon business
performance):

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------- -------- --------------------------
                                 TARGET PERFORMANCE RANGE                                                  MAXIMUM
                                 ------------------------                                                  -------
<S>                  <C>     <C>      <C>      <C>      <C>     <C>      <C>      <C>     <C>      <C>      <C>      <C>
                      <.85     .85      .90      .95      1.0     1.05     1.1      1.15    1.2      1.3      1.4      1.5
% Awarded             0        17%      22%      28%      33%     39%      44%      50%     55%      65%      75%      85%

--------------------- -------- -------- -------- -------- ------- -------- -------- ------- -------- -------- -------- --------
</TABLE>

INDIVIDUAL PERFORMANCE COMMITMENTS (GOALS)

The Individual Performance Commitments section of the Plan will operate
independently of company minimum or other plan provisions once an 8% ROE is
achieved. A Plan participant's Performance Commitments will be identified during
the completion of the Individual Performance Plan as part of the LOL Performance
Management Process. This document will be completed by 12/31/01 for the year
2002.

Using the Individual Performance Commitment Plan document, certain Commitments
that are critical to the success of strategic business goals should be
identified for inclusion in the Variable Pay Plan. This will usually number 3-5
out of the total Commitments contained within an Individual's Performance
Commitment Plan. In addition, the percent to be awarded to each eligible
Commitment should be recorded in the left column of the Performance Commitment
Plan form. (The total percent eligible for all Variable Pay Plan Commitments
should equal 15%).

                                      -5-

<PAGE>

Quarterly, the manager and employee will review the Individual Commitment Plan
to ensure all Commitments remain current with the strategic focus of the
business. Revisions to this document will be made as appropriate, at that time.

AWARD APPROVAL PROCESS

Originals of all Individual Commitment Plans (Goals) and Financial Goals will be
established prior to the beginning of the Plan year and will be retained by the
Vice President, Human Resources and returned at the conclusion of the Plan year
to the managers of the Plan participants for processing.

The final award granted will be determined by the participant's immediate
superior, approved by the senior officer and President based upon the results
compared to the original financial targets and Individual Performance
Commitments (Goals) established at the beginning of the plan year.

PARTIAL-YEAR PARTICIPATION

Employees who may be transferred from a nonparticipating position into a
position eligible for participation during a plan year, will be eligible to
receive an award based upon the portion of the plan year in which the employee
participated. The percentage of base salary which a new participant is eligible
will be prorated based upon the percentage of full months participation in this
plan.

Employees who may be in a "part-time" employment status which is a work schedule
less than forty hours per week will have the award reduced by the percentage of
actual work hours less than forty. Participants who terminate, or are
terminated, during the plan year will forfeit all rights to any awards for the
current plan year.

Employees hired during the plan year will be eligible to participate, if
approved by the President, for the portion of the year in which they were
employed.

Participants who retire during the plan year will be eligible to participate for
the portion of the year in which they were an active at work employee.

PAYMENT OF AWARDS

Variable compensation awards are earned as of the last day of the plan year, and
are payable as soon as performance results are determined and award
recommendations are approved. It will be an objective to distribute earned
awards as soon as possible but no later than the end of the first quarter
following the conclusion of the plan year.

                                      -6-

<PAGE>

A participant may accept the award in either lump sum cash payment, or may defer
part or all of the award until a future date. Participants electing to defer
compensation amounts may do so by participating in the company's Executive
Deferred Compensation Plan and being subject to all of the requirements and
provisions of that plan.

The company will deduct all payments for federal and state taxes, and for
contributions to other employee benefit programs, as required.

NON-RECURRING EVENTS

Unique nonrecurring business events which have a substantial impact on Land
O'Lakes' financial results in a given year may be excluded from the calculations
for determining awards from this plan. This could include major gains or losses
from such events as acquisitions (including planned short-term losses) or
divestitures, lawsuits and casualty losses.

Amounts to be excluded will be determined by the President and reported to the
Executive Committee of the Board.

OTHER CONDITIONS

The President reserves the right to increase, reduce or withhold awards to
individuals where unusual circumstances warrant with a report of such deviations
to the Executive Committee of the Land O'Lakes Board of Directors.

Land O'Lakes also reserves the right to amend or terminate this plan without
consent of the participants. Previously earned variable compensation awards will
not be affected by termination and/or amendment of the plan.

                                      -7-<PAGE>

                                                                   Exhibit 10.20

                               LAND O'LAKES, INC.
                            LONG TERM INCENTIVE PLAN

Land O'Lakes, Inc. (the "Company"), a Minnesota cooperative association, hereby
establishes the Land O'Lakes, Inc. Cooperative Value Incentive Plan (the "Plan")
in order to provide deferred compensation to certain key employees of the
Company effective January 1, 2001. The Company has determined that it is in its
interest to provide certain key employees with financial incentives to reward
the employees for their performance and to encourage long-term commitment to
employment with the Company. These financial incentive awards shall be
determined under the terms of this Plan.

                                    ARTICLE 1
                                   DEFINITIONS

         Section 1.1 Definitions. When used in this document with initial
capital letters, the following terms have the meanings indicated unless a
different meaning is plainly required by the context:

         "Board of Directors" or "Board" means the Board of Directors of the
Company.

         "Deferred Compensation Plan" means the Land O'Lakes, Inc. Non-Qualified
Deferred Compensation Plan.

         "Disability" means a medically determinable physical or mental
condition which is expected to result in death or to be of a long continued and
indefinite duration and which renders a Participant unable to engage in any
employment or occupation for remuneration for which the Participant is
reasonably qualified by reason of the Participant's training, education and
experience. The existence or nonexistence of such Disability shall be
established by the certificate of a medical doctor selected by or satisfactory
to the Company.

         "Economic Commitment" means a Participant's financial stake in the
Company as required under Section 3.6.

         "Executive Committee" means the Executive Committee of the Board, to
which the Board has delegated authority for administration of the Plan.

         "Incentive Award" means an award made by the Company to a Participant
under this Plan as described in Article 3.

         "Option" means an option to purchase Units as described in Section 3.1.

         "Participant" means any employee or individual described in Section
2.1.

         "Participant's Beneficiary" has the meaning set forth in Section 6.3.

         "Plan" means the Land O'Lakes, Inc. Cooperative Value Incentive Plan,
as set forth herein, including any amendments hereto, which is maintained by the
Company primarily for the purpose of providing financial incentives for certain
key employees.

         "Plan Year" means the given fiscal year of the Company for which
Incentive Awards are available. Specific Plan Years shall be designated by the
specific fiscal year in question.

<PAGE>

         "Retirement" means a voluntary termination of employment by a
Participant on or after the date that will enable the Participant to be eligible
to receive an "early" or "normal" retirement benefit under the Company's
Employee Retirement Plan.

         "Strike Price" means the price at which a Unit may be purchased as
provided in Section 3.4.

         "Unit" means a performance unit used to value contributions made, and
benefits received, by Participants under the Plan.

                                    ARTICLE 2
                                  PARTICIPATION

         Section 2.1 Eligibility. The employees of the Company who are eligible
to become Participants in the Plan are the Chief Executive Officer of the
Company, officers of the Company who have attained the level of a Vice President
or above, and any other employees of the Company who are designated by the Chief
Executive Officer as eligible to become Participants in the Plan. Persons who
are residents of California or any other state(s) determined by the Chief
Executive Officer (at his/her sole discretion), will not be eligible to
participate in the Plan.

                                    ARTICLE 3
                           NATURE OF INCENTIVE AWARDS

         Section 3.1 Description of Incentive Awards. Annual Incentive Awards
will be made in the form of an Option (an "Option") to purchase performance
Units ("Units") all as further provided in this Plan. In general, a Participant
will receive an Option to purchase a specified number of Units with respect to a
particular Plan Year. The Executive Committee shall be responsible for
determining the amount of the annual Incentive Award for the Chief Executive
Officer. The Chief Executive Officer shall be responsible for determining the
level and annual Incentive Award for all other Participants (including those new
employees of the Company who become Participants during a Plan Year). In
general, the number of Options available to a Participant each year as an
Incentive Award shall be within the following guidelines:

<TABLE>
<CAPTION>
             Level of Participant                    Incentive Award
             --------------------                    ---------------
<S>          <C>                                     <C>
             Chief Executive Officer                 Amount determined by Executive Committee
             Level 1 Officer                         Options to Purchase up to 7,000 Units
             Level 2 Officer                         Options to Purchase up to 3,000 Units
             Level 3 Officer                         Options to Purchase up to 1,500 Units
             Level 4 Non-Officer                     Options to Purchase up to 1,500 Units
</TABLE>

Notwithstanding the foregoing, the Chief Executive Officer may make Incentive
Awards in excess of the amount set forth above. The Chief Executive Officer
shall report annually to the Executive Committee with regard to the
participating Participants and the Incentive Awards made to each Participant
under this Plan. The total of all Incentive Awards granted to Participants for a
given Plan Year shall not exceed Options to purchase 200,000 Units.

         Section 3.2 Vesting of Incentive Awards. The Options to purchase Units
granted under Section 3.1 shall vest over four (4) years with the first 25% of
the Options to be vested on December 31 of the Plan Year in which the Incentive
Award is made, and the remaining 75% of the Options vesting in 25% increments on
December 31 of the three (3) succeeding years. Notwithstanding the foregoing, in
the event a Participant's employment status with the Company changes, the
special vesting rules set forth in Article 5 shall apply.

                                       2

<PAGE>

         Section 3.3 Option Exercise Period. A Participant may exercise an
Option to purchase Units between the date the Option is vested and the March 31
following the ten (10) year anniversary date of the original grant of the
Incentive Award. The exercise of an Option to purchase Units must occur between
January 1 and March 31 of a given year. The Option may be exercised in whole or
in part. Options not exercised within the ten (10) year Option period shall
lapse and the Participant shall have no further rights with respect to lapsed
Options.

         Section 3.4 Valuation of Units. Units to be issued under the Plan shall
be initially valued as of December 31 of the year immediately preceding the year
for which the Incentive Award is granted. The initial valuation shall be used to
establish the price at which a Participant may exercise an Option to purchase
the Units (the "Strike Price"). The Strike Price shall be fixed at the time of
the Incentive Award, regardless of the date upon which the Option becomes vested
or is exercised by the Participant. The annual valuation of Units shall also be
used to establish the value of any Units to be redeemed that year, as further
provided in Articles 4 and 5. The valuation of Units shall be determined in
accordance with the following formula:

<TABLE>
<S>                        <C>                                <C>
                           Enterprise Value:                  8 x 5-Year Average EBIT
                                                              (Earnings Before Interest and Taxes)

                           Less:                              5-Year Average Long-Term
                                                              Debt and Capital Securities

                           Plus:                              5-Year Average Cash to Members
                                                              (Patronage Plus Equity Redemption)

                           Equals:                            Total Equity Value

                           Divided By:                        10-Million

                           Equals:                            Value per Unit
</TABLE>

         Section 3.5 Purchase of Units.

                  (a) A Participant may exercise his or her Option to purchase
         Units by providing written notice to the Company on a form provided by
         the Company. The written notice shall specify the number of Units to be
         purchased by the Participant and the specific Options to which the
         Units relate. The notice of an exercise of an Option shall specify the
         manner in which the Participant elects to pay for the Units as further
         provided in Section 3.5(b). The notice must be received by the Company
         within the January 1 through March 31 exercise period set forth in
         Section 3.3.

                  (b) Upon exercising an Option to purchase Units, the
         Participant shall pay to the Company an amount equal to the Strike
         Price multiplied times the number of Units to be purchased. The total
         purchase price may be paid by the Participant to the Company through
         any one of, or a combination of, the following methods:

                           (i)      A Participant may agree to reduce his/her
                                    deferred compensation account under the
                                    Deferred Compensation Plan. Such reductions
                                    shall first be taken from Participant's
                                    "mandatory deferrals" under the Deferred
                                    Compensation Plan and then from
                                    Participant's "elective deferrals" under the
                                    Deferred Compensation Plan.

                                       3

<PAGE>

                           (ii)     A Participant may utilize the appreciated
                                    value of Options to acquire Units for the
                                    Participant's account under the Plan. The
                                    value of the Units acquired will equal the
                                    appreciated value of the Options exchanged
                                    for the Units. It a Participant elects this
                                    method, the Participant will purchase Units
                                    by exchanging a selected number of Options
                                    for Units based on the following formula:

                                                U = (1 - SP/V) x O

                                    Where:

                                     U = Number of Units that may be acquired
                                         with the number of Options exchanged
                                     V = The current value of a Unit
                                     O = The number of Options exchanged
                                    SP = The Strike Price of an Option

                                    Example 1: If a Participant holds 1,000
                                    vested Options having a Strike Price of $100
                                    per Unit and the current value of Units is
                                    $160 per Unit, the Participant may exchange
                                    1,000 Options with an appreciated value of
                                    $60,000 ($60 x 1,000 Options) to acquire 375
                                    Units having a value of $60,000 (375 x
                                    $160).

                                    Example 2: If a Participant holds 1,000
                                    vested Options having a Strike Price of $100
                                    per Unit and the current value of Units is
                                    $200 per Unit, the Participant may exchange
                                    1,000 Options with an appreciated value of
                                    $100,000 ($100 x 1,000 Options) to acquire
                                    500 Units having a value of $100,000 (500 x
                                    $200).

                           (iii)    A Participant may elect to obtain a loan
                                    from the Company to purchase Units. The loan
                                    may be up to an amount equal to the
                                    appreciated value of the Options as measured
                                    by the difference of the Strike Price
                                    associated with the Option to be exercised
                                    and the current value of the Units
                                    (determined under Section 3.4). For example,
                                    if a Participant holds 1,000 vested Options
                                    having a Strike Price of $100 per Unit and
                                    the current value of the Units is $150 per
                                    Unit, the Participant may obtain a loan from
                                    the Company of up to $50,000. The
                                    Participant shall execute such documents as
                                    may be required by the Company in order to
                                    evidence the loan. The loan will be interest
                                    free to the Participant. The Participant
                                    shall be responsible for any tax
                                    consequences of the imputed income arising
                                    as a result of the interest free loan. Any
                                    loan for the purchase of Units must be
                                    repaid before any cash distribution is made
                                    to a Participant under the Plan. Any
                                    deficiency between the value of the Units
                                    that are redeemed and the amount of the loan
                                    with respect to such Units must be repaid by
                                    the Participant at the time the Units are
                                    redeemed.

                  (c) At such time as a Participant exercises an Option to
         purchase Units, the Company shall establish an "account" under the Plan
         in the name of the Participant to reflect the number of Units held by
         such Participant, and any loans outstanding with respect to such Units.

                                       4

<PAGE>

         Section 3.6 Economic Commitment. Each Participant will be expected to
maintain a financial stake in the Company (the "Economic Commitment") in order
to receive the benefits associated with the appreciation of Units. A
Participant's Economic Commitment shall be accomplished by (i) the purchase of
Units, in which case the Economic Commitment shall be measured by the then
current value of Units owned by the Participant, net of any loans to the
Participant by the Company for the purchase of Units; or (ii) the appreciation
in the value of vested Options, in which case the Economic Commitment shall be
measured by the difference between the Strike Price of the vested Options and
the current value of the Units if the Options are exercised; or (iii) a
combination of (i) and (ii). A Participant will be expected to achieve the
Economic Commitment within seven (7) years of becoming a Participant in the
Plan. The size of a Participant's Economic Commitment will be commensurate with
the Participant's level within the Company (such level to be determined by the
Chief Executive Officer pursuant to Section 3.1) as provided in the following
table:

<TABLE>
<CAPTION>
              Level of Participant                       Economic Commitment
              --------------------                       -------------------
<S>           <C>                                        <C>
              Chief Executive Officer                    3 x Base Compensation
              Level 1 Officer                            2 x Base Compensation
              Level 2 and 3 Officers                     1 x Base Compensation
              Level 4 Non-Officer                        No expected Economic Commitment
</TABLE>

As a Participant moves from one level to another, the amount of the Economic
Commitment and the number of years in which it is to be achieved shall be
revised accordingly. Notwithstanding the obligation to maintain the Economic
Commitment, in the event a Participant's employment status changes, the
provisions set forth in Article 5 of the Plan shall define the rights of the
Participant with respect to participation in the Plan. If a Participant has not
achieved the Economic Commitment within the seven (7) year period, or does not
maintain the Economic Commitment thereafter, no further Incentive Awards shall
be made under this Plan until the Economic Commitment has been achieved.

                                    ARTICLE 4
                                  DISTRIBUTIONS

         Section 4.1 Voluntary Distributions. A Participant who remains an
employee of the Company may request a distribution from the Plan through the
redemption of Units owned by the Participant. A request for a distribution must
be made between January 1 and March 31 of a given year. The value of a Unit will
be determined at the time of redemption as described in Section 3.4. The actual
distribution to a Participant upon redemption shall be equal to the then current
value of a Unit multiplied by the number of Units to be redeemed, net of any
loan from the Company for the purchase of Units. A request for distribution must
be made on forms to be provided by the Company and must specify the specific
Units to be redeemed. Until a Participant has achieved the required Economic
Commitment, the Participant may not redeem Units having a value in excess of 50%
of the appreciated value of the cumulative total of all Units previously
purchased by the Participant from the inception of the Plan. At such time as a
Participant has achieved the required Economic Commitment, a Participant may
redeem any Units in excess of the Economic Commitment.

         Section 4.2 Distribution Limitations.

                  (a) In the event that the Participant receives a distribution
         with respect to Units that were purchased through a reduction in the
         Participant's account under the Deferred Compensation Plan as provided
         in Section 3.5(b)(i) of this Plan, then upon such distribution the
         original purchase price for the Units will be recredited to the
         Participant's account under the Deferred Compensation Plan and the
         remaining value of the Units (the appreciation) shall be distributed in
         cash as provided in Section 4.3 of this Plan.

                                       5

<PAGE>

                  (b) In the event that the Participant receives a distribution
         with respect to Units that were purchased through an exchange of
         Options having an appreciated value as provided in Section 3.5(b)(ii)
         of this Plan, then upon such distribution the original purchase price
         for the Units will be retained in the Participant's account under this
         Plan and the remaining value of the Units (the appreciation) shall be
         distributed in cash as provided in Section 4.3 of this Plan. The
         portion of the value of the Units that is retained in a Participant's
         account under this paragraph shall be credited with a return that is
         equal to the return being earned by participants in the Deferred
         Compensation Plan.

         Section 4.3 Distribution Requirements.

                  (a) Subject to the limitations provided in Section 4.2,
         payment to or on behalf of a Participant with regard to a distribution
         under the Plan shall be made in a lump sum payment of cash. Upon
         payment, the Participant shall have no further interest in the Units
         that have been redeemed, and the Participant shall have no further
         right to any increase in the value of the Units.

                  (b) The Company shall have the right to deduct any federal or
         state taxes required by law to be withheld from all distributions made
         pursuant to the Plan.

                  (c) The payment by the Company to the Participant shall be
         made as soon as it is administratively feasible after a request for a
         distribution, unless Participant has made an election to defer such
         distribution under this Plan. If such an election has been made, no
         payment shall be made directly to the Participant, but the amount
         otherwise payable to the Participant shall be allocated to the Deferred
         Compensation Plan for the benefit of the Participant. A Participant's
         election under this subsection must be made at the time of, or prior
         to, the exercise of the Option to purchase the Units that are presently
         being redeemed. Further, in no event will any such election be
         effective if it precedes the Participant's termination of employment
         with the Company by less than one (1) year.

                  (d) Notwithstanding any other provision of the Plan to the
         contrary, if, at any time, a court or the Internal Revenue Service
         determines that an amount awarded under the Plan, but not yet
         distributed to a Participant, is includible in the gross income of a
         Participant and subject to tax, the Executive Committee may, in its
         sole discretion, permit a lump sum cash distribution of an amount equal
         to the amount determined to be included in the Participant's gross
         income. The number of Units held by a Participant shall be reduced on a
         "last in, first out" basis to the extent of any such distribution.

                                    ARTICLE 5
                           CHANGE IN EMPLOYMENT STATUS

         Section 5.1 Termination of Employment. In the event a Participant's
employment with the Company is terminated for any reason, except death,
Disability, or Retirement, the Participant shall cease to be a Participant in
the Plan as of the date of termination, except as otherwise provided in this
Section. Upon such termination of employment:

                  (a) Any Options of the Participant that are vested as of the
         date of termination of employment may be exercised at the earlier of:
         (i) the period of January 1 through March 31 of the year of
         termination; or (ii) if termination occurs after March 31 of a given
         year, the next succeeding January 1 through March 31 period. The
         Options shall be exercised as provided in Section 3.5 of the Plan.

                                       6

<PAGE>

                  (b) Any unvested Options held by the Participant shall be
         forfeited as of the date of the termination of employment.

                  (c) Any Units owned by the Participant (including those Units
         related to Options exercised following termination as provided above)
         must be redeemed by the Participant no later than March 31 of the year
         following the date of termination. Any Units held by the Participant
         that are not redeemed as of such date will be redeemed by the Company
         effective as of such date. Any redemption shall be in accordance with
         the procedure set forth in Section 4.1. Upon redemption, the valuation
         of the Units and the distribution to the Participant shall occur as set
         forth in Sections 3.4, 4.2, and 4.3, respectively.

         Section 5.2 Retirement. In the event a Participant's employment with
the Company is terminated as a result of the Participant's Retirement, the
Participant shall cease to be a Participant in the Plan as of the date of
Retirement, except as otherwise provided in this Section. Upon such termination
of employment:

                  (a) In the event that a Participant's termination of
         employment results from "normal" Retirement it shall be the general
         rule that any unvested Options will be permitted to vest in the normal
         sequence; provided that, the vesting schedule shall be accelerated with
         respect to the final year of vesting such that all Options shall vest
         no later than December 31 of the third year following the award. In the
         event a Participant's termination of employment results from "early"
         Retirement, it shall be the general rule that the Participant will
         forfeit any unvested Options. Notwithstanding the foregoing, the Chief
         Executive Officer (or the Executive Committee in the case of the
         Retirement of the Chief Executive Officer) shall have the discretion to
         depart from the general rules, in such manner as may be determined in
         his/her sole discretion, to permit all or any portion of the unvested
         Options to vest in the normal sequence or to cause any unvested Options
         to be forfeited by the Participant.

                  (b) Any Options of the Participant that are vested as of the
         date of Retirement must be exercised on or before the third March 31
         following the date of Retirement; provided that, if the Retirement
         occurs between January 1 and March 31, the Options must be exercised on
         or before the fourth March 31 following the date of Retirement. Vested
         Options must be exercised within the period of January 1 through March
         31 of a given year as provided in Section 3.5.

                  (c) Any Units owned by the Participant (including those Units
         related to Options exercised following Retirement) must be redeemed by
         the Participant no later than the third March 31 following the date of
         Retirement; provided that, if the Retirement occurs between January 1
         and March 31, the Units must be redeemed on or before the fourth March
         31 following the date of Retirement. Any Units not redeemed by the
         Participant as of such date will be redeemed by the Company as of such
         date. Any redemption shall be in accordance with the procedure set
         forth in Section 4.1. Upon redemption, the valuation of the Units and
         the distribution to the Participant shall occur as set forth in
         Sections 3.4, 4.2, and 4.3, respectively.

                                       7

<PAGE>

         Section 5.3 Disability. In the event that a Participant's employment
status with the Company has changed as a result of Participant's Disability, the
Participant shall cease to be a Participant in the Plan as of the date of such
status change, except as otherwise provided in this Section. Upon such status
change:

                  (a) Any Incentive Award made with respect to the year of the
         status change shall be prorated.

                  (b) Any Options previously issued to the Participant shall
         vest in the normal sequence based upon the date upon which they were
         issued; provided that, the vesting schedule shall be accelerated with
         respect to the final year of vesting such that all Options shall vest
         no later than December 31 of the third year following the award.

                  (c) Any Options of the Participant must be exercised on or
         before the third March 31 following the date of the status change;
         provided that, if the Status Change occurs between January 1 and March
         31, the Options must be exercised on or before the fourth March 31
         following the date of the status change. Vested Options must be
         exercised within the period of January 1 through March 31 of a given
         year as provided in Section 3.5.

                  (d) Any Units owned by the Participant (including those Units
         related to Options exercised following the status change) must be
         redeemed by the Participant no later than the third March 31 following
         the date of the status change; provided that, if the status change
         occurs between January 1 and March 31, the Units must be redeemed on or
         before the fourth March 31 following the date of the status change. The
         Company will redeem any Units not redeemed by the Participant as of
         such date. Any redemption shall be in accordance with the procedure set
         forth in Section 4.1. Upon redemption, the valuation of the Units and
         the distribution to the Participant shall occur as set forth in
         Sections 3.4, 4.2, and 4.3, respectively.

                  (e) In the event the disabled Participant returns to work
         prior to the third March 31 following the change of employment status,
         the provisions of this Section 5.3 shall no longer apply and the
         Participant's participation in the Plan shall be restored to the
         predisability condition.

         Section 5.4 Death. In the event that a Participant's employment with
the Company is terminated as a result of the Participant's death, the
Participant shall cease to be a Participant in the Plan as of the date of death,
except as otherwise provided in this Section. Upon Participant's death:

                  (a) Any unvested Options held in the name of the deceased
         Participant shall be forfeited as of the date of death.

                  (b) Any Options of the deceased Participant that were vested
         as of the date of Participant's death must be exercised by
         Participant's Beneficiary on or before March 31 following the
         Participant's death. Vested Options must be exercised within the period
         of January 1 through March 31 of a given year as provided in Section
         3.5.

                  (c) Any Units owned by the deceased Participant (including
         those Units related to Options exercised by the Participant's
         Beneficiary following death) must be redeemed on behalf of the
         Participant no later than the March 31 following the date of death. Any
         Units not redeemed on behalf of the deceased Participant as of such
         date will be redeemed by the Company as of such date. Any redemption
         shall be in accordance with the procedure set forth in Section 4.1.
         Upon redemption, the valuation of the Units and the distribution to the
         Participant shall occur as set forth in Sections 3.4, 4.2, and 4.3,
         respectively.

                                       8

<PAGE>

                                    ARTICLE 6
                               NON-TRANSFERABILITY

         Section 6.1 Anti-alienation of Options and Units. Options granted to a
Participant and Units purchased by a Participant, and any rights and privileges
pertaining thereto, may not be anticipated, alienated, sold, transferred,
assigned, pledged, encumbered, or subjected to any charge or legal process; and
no interest or right to receive a benefit may be taken, either voluntarily or
involuntarily, for the satisfaction of the debts of, or other obligations or
claims against, such person or entity, including claims for alimony, support,
separate maintenance and claims in bankruptcy proceedings.

         Section 6.2 Incompetent Participants. If any Participant has been
declared incompetent and a conservator or other person legally charged with the
care of such Participant or of his or her estate has been appointed, any
distribution under the Plan to which the Participant is entitled shall be paid
to such conservator or other person legally charged with the care of the
Participant or his or her estate. Except as provided above, when the Company has
determined that a Participant is unable to manage his or her affairs, the
Company may provide for such distribution or any part thereof to be made to any
other person or institution then contributing toward or providing for the care
and maintenance of such Participant. Any such distribution shall be a payment
for the account of such Participant and a complete discharge of any liability of
the Company and the Plan therefor.

         Section 6.3 Designated Beneficiary. In the event of a Participant's
death prior to the distribution of any amounts payable under the Plan, the
payment of any amounts on behalf of the Participant under the Plan shall be made
to the Participant's Beneficiary designated on a form provided to the
Participant by the Company (the "Participant's Beneficiary"). If no such
beneficiary has been designated, payments shall be made to the duly appointed
and qualified executor or other personal representative of the Participant to be
distributed in accordance with the Participant's will or applicable intestacy
law; or in the event that there shall be no such representative duly appointed
and qualified within six (6) months after the date of death of such deceased
Participant, then to such persons as, at the date of the Participant's death,
would be entitled to share in the distribution of such deceased Participant's
personal estate under the provisions of the applicable statute then in force
governing the descent of intestate property, in the proportions specified in
such statute.

                                    ARTICLE 7
                           ADMINISTRATION OF THE PLAN

         Section 7.1 Administrator. The administrator and named fiduciary of the
Plan shall be the Company.

         Section 7.2 Authority of Administrator. The Company shall have
authority, duty and power to interpret and construe the provisions of the Plan
as it deems appropriate, to temporarily suspend the Plan, to adopt, establish
and revise rules, procedures and regulations relating to the Plan, to determine
the conditions subject to which the value of any Incentive Awards that may be
made or payable, and to make any other determinations which it believes
necessary or advisable for the administration of the Plan. The Company shall
have the duty and responsibility of maintaining records, making the requisite
calculations and dispersing payments hereunder. The Company's determinations,
interpretations, regulations and calculations shall be final and binding on all
persons and parties concerned. The Chief Executive Officer of the Company shall
be the agent of the Plan for the service of legal process in accordance with
Section 502 of the Employee Retirement Income Security Act of 1974, as amended.

                                       9

<PAGE>

         Section 7.3 Operation of Plan. The Company shall be responsible for the
general operation and administration of the Plan and for carrying out the
provisions thereof. The Company shall be responsible for the expenses incurred
in the administration of the Plan. The Company shall also be responsible for
determining eligibility for payments and the amounts payable pursuant to the
Plan. The Company shall be entitled to rely conclusively upon all tables,
valuations, certificates, opinions and reports furnished by any actuary,
accountant, controller, counsel or other person employed or engaged by the
Company with respect to the Plan. The procedures for filing claims for payments
under the Plan are described below.

         Section 7.4 Claims Procedures.

                  (a) It is the intent of the Company to make distributions
         under the Plan without the Participant having to complete or submit any
         claims forms other than notices contemplated by the Plan. However, a
         Participant who believes he or she is entitled to a payment under the
         Plan may submit a claim for such payment in writing to the Company. Any
         claim must be made by the Participant or his or her beneficiary in
         writing and state the claimant's name and the nature of the payment to
         be made under the Plan on a form acceptable to the Company. If for any
         reason a claim under this Plan is denied by the Company, the Claims
         Manager shall deliver to the claimant a written explanation setting
         forth the specific reasons for the denial, specific references to the
         pertinent provisions under the Plan on which the denial is based, a
         description of any additional material or information necessary for the
         claimant to perfect the claim and an explanation of why such material
         or information is necessary, and information on the procedures to be
         followed by the claimant in obtaining a review of his or her claim, all
         written in a manner reasonably understandable to the claimant. For this
         purpose: (i) the claimant's claim shall be deemed to be filed when
         presented orally or in writing to the Claims Manager and (ii) the
         Claims Manager's explanation shall be in writing delivered to the
         claimant within 90 days of the date the claim is filed.

                  (b) The claimant shall have 60 days following his or her
         receipt of the denial of the claim to file with the Claims Manager a
         written request for review of the denial. For such review, the claimant
         or the claimant's representative may review pertinent documents and
         submit written issues and comments.

                  (c) The Claims Manager shall decide the issue on review and
         furnish the claimant with a copy within 60 days of receipt of the
         claimant's request for review of the claimant's claim. The decision on
         review shall be in writing and shall include specific reasons for the
         decision, written in a manner reasonably understandable to the
         claimant, as well as specific references to the pertinent provisions in
         the Plan on which the decision is based. If a copy of the decision is
         not so furnished to the claimant within such 60 days, the claim shall
         be deemed denied on review. In no event may a claimant commence legal
         action for benefits the claimant believes are due the claimant until
         the claimant has exhausted all of the remedies and procedures afforded
         the claimant by this Section 7.4.

                  (d) For claims procedures purposes, the "Claims Manager" shall
         be the Company.

         Section 7.5 Participant's Address. Each Participant shall keep the
Company informed of his or her current address and the current address of his or
her beneficiary. The Company shall not be obligated to search for any person. If
the location of a Participant is not made known to the Company within three (3)
years after the date on which payment of the Participant's benefits payable

                                       10

<PAGE>

under this Plan may be made, payment may be made as though the Participant had
died at the end of the three-year period. If, within one (1) additional year
after such three-year period has elapsed, or, within three (3) years after the
actual death of a Participant, the Company is unable to locate any designated
beneficiary of the Participant, then the Company shall have no further
obligation to pay any benefit hereunder to such Participant or designated
beneficiary and such benefits shall be irrevocably forfeited.

         Section 7.6 Liability. Notwithstanding any of the provisions of the
Plan to the contrary, neither the Company nor any individual acting as an
employee or agent of the Company shall be liable to any Participant or any other
person for any claim, loss, liability or expense incurred in connection with the
Plan, unless attributable to fraud or willful misconduct on the part of the
Company or any such employee or agent of the Company.

                                    ARTICLE 8
                            MISCELLANEOUS PROVISIONS

         Section 8.1 No Employment Rights. Neither the Plan nor any action taken
hereunder shall be construed as giving any employee any right to be retained in
the employ of the Company.

         Section 8.2 Unfunded and Unsecured. The Plan shall at all times be
considered entirely unfunded both for tax purposes and for purposes of Title I
of the Employee Retirement Income Security Act of 1974, as amended, and no
provision shall at any time be made with respect to segregating assets of the
Company for payment of any amounts hereunder. Any funds with respect to payment
to be made hereunder shall continue for all purposes to be part of the general
assets of the Company and available to the general creditors of the Company in
the event of the Company's bankruptcy (when the Company is involved in a pending
proceeding under the Federal Bankruptcy Code) or insolvency (when the Company is
unable to pay its debts as they mature). No Participant or any other person
shall have any interests in any particular assets of the Company by reason of
the right to receive a benefit under the Plan and to the extent the Participant
or any other person acquires a right to receive benefits under this Plan, such
right shall be no greater than the right of any general unsecured creditor of
the Company. The Plan constitutes a mere promise by the Company to make payments
to the Participants in the future. Nothing contained in the Plan shall
constitute a guaranty by the Company or any other person or entity that any
funds in any trust or the assets of the Company will be sufficient to pay any
benefit hereunder. Furthermore, no Participant shall have any right to a benefit
under the Plan except in accordance with the terms of the Plan.

         Section 8.3 Plan Provisions. Except when otherwise required by the
context, any singular terminology shall include the plural.

         Section 8.4 Severability. If a provision of the Plan shall be held to
be illegal or invalid, the illegality or invalidity shall not affect the
remaining parts of the Plan and the Plan shall be construed and enforced as if
the illegal or invalid provision had not been included.

         Section 8.5 Applicable Law. To the extent not preempted by the laws of
the United States, the laws of the State of Minnesota shall apply with respect
to this Plan.

         Section 8.6 Successor to Company. In the event there is a successor or
assignee to or of the Company, whether direct or indirect, by purchase, merger,
consolidation or otherwise, to all or substantially all (at least 85% of the
assets or the common stock) of the Company, the Company, in its sole discretion,
may either cash out or require such successor or assignee to assume and agree to
perform the Company's obligations under the Plan, in the same manner and to the

                                       11

<PAGE>

same extent that the Company would be required to perform if no such succession
or assignment had occurred or terminate the Plan pursuant to the provisions of
Article 10. If a successor or assignee assumes the Plan pursuant to this Section
8.6, the term "Company," as used in the Plan, shall mean the Company as
hereinbefore defined and any successor or assignee to the Company which by
reason hereof becomes bound by the terms and provisions of the Plan.

         Section 8.7 Authority of CEO. Except in cases where the
responsibilities are reserved to the Board or Executive Committee under this
Plan, the Chief Executive Officer of the Company (or his designee) may act on
behalf of the Company under this Plan.

                                    ARTICLE 9
                                    AMENDMENT

The Company reserves the power to alter, amend or wholly revise or terminate the
Plan at any time and from time to time by the action of the Board and the
interest of each Participant is subject to the powers so reserved. An amendment
shall be authorized by the Board or Executive Committee and shall be stated in
an instrument in writing signed in the name of the Company by a person or
persons authorized by the Board. After the instrument has been so executed, the
Plan shall be effectively amended in the manner therein set forth, and all
Participants shall be bound thereby. No amendment to the Plan may alter, impair,
or reduce the methodology for valuation of Incentive Awards (Options and Units)
of Participants that have been awarded under the Plan prior to the effective
date of such amendment without the written consent of the affected Participants.

                                   ARTICLE 10
                               TERMINATION OF PLAN

The Company may at any time terminate the Plan by action of the Board. No
further Incentive Awards will be granted after the date of termination of the
Plan. The Termination of the Plan shall not alter, impair, or reduce the
benefits of a Participant that have been awarded prior to the effective date of
such termination, without the written consent of the affected Participant.
Provided, however, upon termination of the Plan, the Company shall have the
option to redeem all outstanding interests of the Participants in the Plan. The
Company shall exercise such option by providing written notice to each
Participant. Upon providing such notice, all unvested Options outstanding under
the Plan shall immediately vest and each Participant shall have thirty (30) days
in which to exercise all, or a portion of, such Participant's outstanding
Options to purchase Units pursuant to the procedures set forth in Section 3.5.
The Participants shall forfeit any Options that are not exercised within such
thirty-day period. Thereafter, the Company shall redeem all outstanding Units
held by Participants (including those Units purchased by Participants within the
aforementioned thirty-day period) and the Participants shall have no further
rights or benefits under the Plan. The valuation of Units so redeemed and the
distribution to the Participants shall occur as set forth in Sections 3.4, 4.2,
and 4.3, respectively.

                                       12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}]]