Document:

Exhibit 10.6

 

CONAGRA INCENTIVES
AND DEFERRED COMPENSATION

CHANGE OF CONTROL
PLAN

 

1. Name and Purpose.

 

1.1 Name. The name of the plan
shall be the ConAgra Incentives and Deferred Compensation Change of Control
Plan (“Plan”).

 

1.2 Purpose. ConAgra has adopted,
established and/or entered into various long term and short-term incentive,
bonus and deferred compensation agreements, programs and plans. Additionally,
certain of such arrangements provide that all or a portion of the payments and
benefits under such arrangements shall be deferred, vested over future periods
and/or paid in ConAgra stock (restricted or unrestricted). The Board of
Directors of ConAgra has determined that the interests of ConAgra stockholders
will best be served by assuring employees that their incentive, bonus and
deferred compensation payments will remain intact during any event that could
result in a change of control of ConAgra. This Plan is intended to promote
stability among employees in order to serve the best interests of ConAgra
stockholders. Under this Plan, payments, benefits and deferred compensation
under the incentive, bonus, deferred compensation and similar type arrangements
shall be protected in the event of change of control of ConAgra.

 

2. Definitions.

 

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

 

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

 

2.2 “Change of Control” means:

 

(i) The acquisition (other than
from ConAgra) by any person, entity or “group,” within the meaning of Section
13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934 (the “Exchange
Act”), (excluding, for this purpose, ConAgra or its subsidiaries, or any
employee benefit plan of ConAgra or its subsidiaries which acquires beneficial
ownership of voting securities of ConAgra) of beneficial ownership (within the
meaning of Rule 13d-3 promulgated under the Exchange Act) of 30% or more of
either the then outstanding shares of common stock or the combined voting power
of ConAgra’s then outstanding voting securities entitled to vote generally in
the election of directors; or

 

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

 

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

 

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

 

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

 

34

 

Exhibit 10.6

 

2.5 “ConAgra Controlled Group”
means the controlled group of corporations as described in I.R.C. Section
414(b), which includes ConAgra.

 

2.6 “Covered Plans” means all
incentive, bonus, deferred compensation and similar type arrangements currently
or subsequently approved by the Committee or pursuant to authority delegated by
the Committee.

 

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

 

2.8 “Fiscal Year” means
ConAgra’s fiscal year. If a Fiscal Year is referred to with respect to a
Covered Plan that has a year different than ConAgra’s fiscal year, in this
instance Fiscal Year shall mean that applicable year.

 

2.9 “Nondiscretionary Plan”
means a Covered Plan under which the award, the incentive, or the payment for a
particular year is not subject to the discretion of a member of the ConAgra
Controlled Group, i.e., the award or payment is computed by a formula. A
“Discretionary Plan” means any Covered Plan that is not a Nondiscretionary
Plan.

 

2.10 “Participant” means a
person participating in a Covered Plan.

 

3. Effect of a Change of
Control.

 

In the event of a Change of
Control, the following shall apply, regardless of any provision of the Covered
Plans:

 

A. All payments, awards and
benefits under the Covered Plans shall be immediately nonforfeitable by the
Participants. This shall include, but not be limited to, any payment, award or
benefit that is deferred and any payment, award or benefit that is payable in
ConAgra stock.

 

B. Any Participant terminated
after a Change of Control, but prior to the date the Participant would
otherwise be eligible (if the provisions of this Plan did not apply) to receive
an award, payment or benefit under a Covered Plan shall receive a pro rata
award. The pro rata award shall be based upon the number of days the
Participant was employed by a member of the ConAgra Controlled Group during the
applicable Fiscal Year.

 

C. The method of, and the
factors used in, computing the awards, benefits and payments under each Covered
Plan may not be changed prior to the Fiscal Year after the Change of Control.
Also, any interest cost or overhead charges that relate directly or indirectly
to the Change of Control shall be ignored for computing the awards, benefits
and payments under each Covered Plan.

 

The following is a list of
example items that may not be changed with respect to the Covered Plans. The
list is not intended to be all inclusive, but is merely set forth for exemplary
purposes.

 

(1) Accounting methods and
procedures.

(2) Performance objectives,
guidelines and formulae (individual or group).

(3) Capital charges.

(4) Allocation and formulae
methods.

(5) Participants and
eligibility.

(6) Payment provisions, e.g.,
timing of payment and form of payment, except for the funding provisions of
Paragraph 4, below.

(7) Methods, procedures and
formulae for computing bonus pools.

(8) Sale, disposition or
transfer of all, or a significant portion, of the assets utilized in achieving
the original objectives of a Covered Plan.

 

If any changes are made to a
Covered Plan before the Fiscal Year following the Change of Control, each

 

35

 

Exhibit 10.6

 

Participant in a (1)
Nondiscretionary Plan shall receive an award, benefit or payment equal to the
maximum award, benefit or payment available under the applicable Covered Plan;
and (2) Discretionary Plan shall receive an award, benefit or payment for the
Fiscal Year of the Change of Control which is no less than the dollar amount of
the highest annual award, benefit or payment the Participant received for any
of the preceding three Fiscal Years.

 

D. No Covered Plan may be
terminated prior to the Fiscal Year following the Change of Control.

 

4. Funding. The awards,
benefits and payments contemplated under the Covered Plans shall be funded only
in accordance with the provisions of the applicable Covered Plan until a Change
of Control. Upon a Change of Control, the awards, benefits and payments that
are deferred according to the applicable Covered Plan shall be funded, in one
lump sum payment, through a trust. The transfer shall be made within 60 days
following the later of the date of the Change of Control or the date the award,
benefit or payment is computed under the normal administration of the
applicable Covered Plan. If the deferral under the applicable Covered Plan is
to be made in ConAgra stock, the appropriate number of shares of ConAgra stock
shall be transferred to the trust. ConAgra shall make up any award, benefit or
payment the Participant does not receive under the trust, e.g., if the funds in
the trust are insufficient to make the payments due to insufficient earnings in
the trust. A separate trust shall be established for each Participant who is
entitled to a deferred award, benefit or payment. The trustee of such trust
shall be a national or state chartered bank. If funding of the trust is not
made within the sixty day period described in this Paragraph 4, the
Participant’s deferred award, benefit or payment shall then be equal to 150%
multiplied by the amount of the deferred award, benefit or payment the
Participant would otherwise receive; provided, however, this increase is not intended
to remove ConAgra’s obligation to fund the trust.

 

5. Notice of Employees. The
Vice President of Human Resources of ConAgra shall notify the Participants of
the provisions of this Plan.

 

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

 

7. Qualified Plans. The Plan
shall neither apply to, nor have any effect on, a ConAgra plan intended to
qualify under Section 401(a) of the Internal Revenue Code of 1986, as amended.

 

8. Amendment. This Plan may be
amended from time to time by the Board; provided, however, no amendment shall
be effective prior to the beginning of the Fiscal Year following the date the
action is taken to amend this Plan.

 

9. Termination. This Plan may
be terminated by the Board; provided, however, the Plan may not be terminated
prior to the beginning of the Fiscal Year following the date the action is
taken to terminate this Plan.

 

36Exhibit 10.11

 

AMENDMENT NO. 1 TO THE

 

CONAGRA 2000 STOCK PLAN

 

Effective May 6, 2004, Section 5.2 of the
ConAgra 2000 Stock Plan is amended and restated in its entirety to read as
follows:

 

“5.2  Cancelled, Terminated, Forfeited or
Surrendered Awards.  Any shares of Stock
subject to an Award which for any reason are cancelled, terminated or otherwise
settled without the issuance of any Stock shall again be available for Awards
under the Plan.  In the event that any Award
is exercised through the delivery of Stock or in the event that withholding tax
liabilities arising from such Award are satisfied by the withholding of Stock
by the Company, the number of shares available for Awards under the Plan shall
be increased by the number of shares so surrendered or withheld.  Notwithstanding the immediately preceding
sentence, the number of shares available for Awards under the Plan shall not be
increased by the number of any previously issued shares surrendered in
connection with the exercise of an Award or in connection with the tax
withholding for an Award, more than ten years after the date of the most recent
shareholder approval of the Plan.”

 

37

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