Document:

Exhibit 10.38

                             RALCORP HOLDINGS, INC.
                            2002 INCENTIVE STOCK PLAN

                          Section I. General Provisions

A.    Purpose of Plan

      The purpose of the Ralcorp Incentive Stock Plan (the "Plan") is to enhance
the profitability and value of the Company for the benefit of its shareholders
by providing for stock options and other stock awards to attract, retain and
motivate directors, officers and other key employees who make important
contributions to the success of the Company.

B.    Definitions of Terms as Used in the Plan

      1.    "Affiliate" means any subsidiary, whether directly or indirectly
            owned, or parent of the Company, or any other entity designated by
            the Committee.

      2.    "Award" means a Stock Option granted under Section II of the Plan or
            Other Stock Award granted under Section III of the Plan.

      3.    "Board" means the Board of Directors of Ralcorp Holdings, Inc.

      4.    "Committee" means the Nominating and Compensation Committee of the
            Board of Directors of the Company or any successor committee the
            Board of Directors may designate to administer the Plan.

      5.    "Company" means Ralcorp Holdings, Inc.

      6.    "Employee" means any person who is employed by the Company or an
            Affiliate.

      7.    "Fair Market Value" of any class or series of Stock means the fair
            and reasonable value thereof as determined by the Committee
            according to prices in trades as reported on the New York Stock
            Exchange-Composite Transactions. If there are no prices so reported
            or if, in the opinion of the Committee, such reported prices do not
            represent the fair and reasonable value of the Stock, then the
            Committee shall determine Fair Market Value by any means it deems
            reasonable under the circumstances.

      8.    "Stock" means the Ralcorp Common Stock par value $.01 or any other
            authorized class or series of common stock or any such other
            security outstanding upon the reclassification of any of such
            classes or series of common stock, including, without limitation,
            any stock split-up, stock dividend, creation of targeted stock,
            spin-off or other distributions of stock in respect of stock, or any
            reverse stock split-up, or recapitalization of the Company or any
            merger or consolidation of the Company with any Affiliate.

C.    Scope of Plan and Eligibility

      Any Employee or director selected by the Board or Committee shall be
eligible for any Award contemplated under the Plan.

<PAGE>

D.       Authorization and Reservation

      The shares of Stock for which Awards may be granted under the Plan shall
be subject to the following:

      (a)   the shares of Stock with respect to which Awards may be made under
            the Plan shall be shares currently authorized but unissued or
            currently held or subsequently acquired by the Company as treasury
            shares, including shares purchased in the open market or in private
            transactions;

      (b)   subject to the following provisions of Paragraph D, the maximum
            number of shares of stock that may be delivered to participants and
            their beneficiaries under the Plan shall be equal to the sum of:

            (i) 1,500,000 shares of Stock; (ii) any shares of Stock available
            for future awards under any prior plan of the Company (the "Prior
            Plan") as of the effective date of this Plan; and (iii) any shares
            of Stock that are forfeited, expire or are canceled without delivery
            of shares of Stock or which result in the forfeiture of shares of
            Stock back to the Company under the Plan or the Prior Plan;

      (c)   to the extent any shares of Stock covered by an Award are not
            delivered to an Award recipient or beneficiary because the Award is
            forfeited or canceled or the shares of Stock are not delivered
            because the shares are used to satisfy the applicable tax
            withholding obligation, such shares shall not be deemed to have been
            delivered for purpose of determining the maximum number of shares of
            Stock available for delivery of the Plan;

      (d)   if the exercise price of any Stock Option granted under the Plan or
            all Prior Plans is satisfied by tendering shares of Stock to the
            Company, only the number of shares of Stock issued net of the shares
            of Stock tendered shall be deemed delivered for purposes of
            determining the maximum number of shares of Stock available under
            the Plan; and

      (e)   the total number of shares of Stock that may be issued to any one
            participant during the term of Plan shall not exceed 1,000,000
            shares of Stock.

E.    Administration of the Plan

      1.    The Committee shall administer the Plan and, in connection
            therewith, it shall have full power to grant Awards, construe and
            interpret the Plan, establish rules and regulations and perform all
            other acts it believes reasonable and proper, including the power to
            delegate responsibility to others to assist it in administering the
            Plan.

      2.    The Committee shall include three or more members of the Board of
            the Company. Its members shall be appointed by and serve at the
            pleasure of the Board.

      3.    The determination of those eligible to receive Awards, and the
            amount and type of each Award shall rest in the sole discretion of
            the Committee or the Board, subject to the provisions of the Plan.

                            Section II. Stock Options

A.    Description

      The Committee or the Board may grant options with respect to any class or
series of Stock ("Stock Options") that qualify as "Incentive Stock Options"
under Section 422A of the Internal Revenue Code of 1986, as amended, and it may
grant Stock Options that do not so qualify.

                                       2
<PAGE>

B.    Terms and Conditions

      1.    Each Stock Option shall be set forth in a written agreement
            containing such terms and conditions as the Committee or the Board
            may determine, subject to the provisions of the Plan.

      2.    Except as set forth below in this paragraph, the purchase price of
            any shares exercised under any Stock Option must be paid in full
            upon such exercise. The payment shall be made in such form, which
            may be cash or Stock, as the Committee or the Board may determine.
            The Committee may permit a participant to pay the exercise price
            upon the exercise of a Stock Option by irrevocably authorizing a
            third party to sell shares of Stock (or a sufficient portion of
            shares) acquired upon exercise of the Stock Option and remit to the
            Company a sufficient portion of the sale proceeds to pay the entire
            exercise price and any tax withholding resulting from such exercise.

      3.    No Incentive Stock Option may be exercised after the expiration of
            ten (10) years from the date such option is granted.

      4.    The exercise price of each Stock Option shall be established by the
            Committee or shall be determined by a method established by the
            Committee at the time the Stock Option is granted. The exercise
            price shall not be less than 100% of the Fair Market Value of a
            share of Stock on the date of grant of the Award; provided, however,
            that if the Award is granted in connection with the recipient's
            hiring, promotion or similar event, the Stock Option exercise price
            may not be less than the Fair Market Value of the Stock on the date
            on which the recipient is hired or promoted (or similar event) if
            the grant of the Stock Option occurs not more than 180 days after
            the date of such hiring, promotion or other event.

      5.    In the case of an Incentive Stock Option, the aggregate Fair Market
            Value (determined as of the time the Stock Option is granted) of the
            appropriate class or series of Stock with respect to which Stock
            Options are exercisable for the first time by any Employee during
            any calendar year (under all such plans of his employer corporation
            and its parent and subsidiary corporations) shall not exceed
            $100,000.

                         Section III. Other Stock Awards

      In addition to Stock Options, the Committee or the Board may grant Other
Stock Awards payable in any class or series of Stock upon such terms and
conditions as the Committee or the Board may determine, subject to the
provisions of the Plan. Other Stock Awards may include, but are not limited to,
the following types of Awards:

1.    Restricted Stock Awards. The Committee or the Board may grant Restricted
      Stock Awards, each of which consists of a grant of shares of any class or
      series of Stock subject to terms and conditions determined by the
      Committee or the Board in each entity's discretion, subject to the
      provisions of the Plan. Such terms and conditions shall be set forth in
      written agreements. The shares of Stock granted will be restricted and may
      not be sold, pledged, transferred or otherwise disposed of until the lapse
      or release of restrictions in accordance with the terms of the agreement
      and the Plan. Prior to the lapse or release of restrictions, all shares of
      Stock are subject to forfeiture in accordance with Section IV of the Plan.
      Shares of Stock issued pursuant to a Restricted Stock Award can be issued
      for no monetary consideration. No more than 500,000 shares of Stock
      available for Awards may be used for the grant of Restricted Stock

                                       3
<PAGE>

2.    Stock Related Deferred Compensation. The Committee or the Board may, in
      its discretion, permit the deferral of payment of an Employee's cash bonus
      or other cash compensation in the form of either cash or any class or
      series of Stock (or Stock equivalents, each corresponding to a share of
      such Stock) under such terms and conditions as the Committee or the Board
      may prescribe. Payment of such compensation may be deferred for such
      period or until the occurrence of such event as the Committee or the Board
      may determine. All deferrals made in any class or series of Stock (or
      Stock equivalents) shall be paid on distribution in Stock.. If a deferral
      is permitted in the form of Stock or Stock equivalents, the number of
      shares of Stock or number of Stock equivalents deferred will be determined
      by dividing the amount of the Employee's bonus or other cash compensation
      being deferred by the closing price of the appropriate class or series of
      Stock, as reported by the New York Stock Exchange-Composite Transactions,
      on the date in question. Deferrals in any class or series of Stock or
      Stock equivalents cannot be transferred into other investment options.
      Additional rights or restrictions may apply in the event of a change in
      control of the Company.

                        Section IV. Forfeiture of Awards

A.    The Committee or the Board may include in any Award any conditions of
      forfeiture it may deem appropriate. The Committee or the Board also, after
      taking into account the relevant circumstances, may waive any condition of
      forfeiture stated in any Award contract.

B.    In the event of forfeiture, the recipient shall lose all rights in and to
      the Award. Except in the case of Restricted Stock Awards as to which the
      restrictions have not lapsed, this provision, however, shall not be
      invoked to force any recipient to return any Stock already received under
      an Award.

C.    Such determinations as may be necessary for application of this section,
      including any grant of authority to others to make determinations under
      this section, shall be at the sole discretion of the Committee or the
      Board, and its determinations shall be conclusive.

                           Section V. Death of Awardee

Upon the death of an Award recipient, the following rules apply:

A.    A Stock Option, to the extent exercisable on the date of his death, may be
      exercised at any time within six (6) months, or such longer period not
      exceeding three years as the Committee or the Board may determine, after
      the recipient's death, but not after the expiration of the term of the
      Stock Option, by the recipient's designated beneficiary or personal
      representative or the person or persons entitled thereto by will or in
      accordance with the laws of descent and distribution.

B.    In the case of any Other Stock Award, the Stock due shall be determined as
      of the date of the recipient's death, and the Company shall issue the
      appropriate number of shares of the appropriate class or series of Stock.
      The issuance of shares of such Stock shall be made to recipient's
      designated beneficiary or personal representative or the person or persons
      entitled thereto by will or in accordance with the laws of descent and
      distribution.

                                       4
<PAGE>

C.    An Award recipient may file with the Committee a written designation of a
      beneficiary or beneficiaries (subject to such limitations as to the
      classes and number of beneficiaries and contingent beneficiaries as the
      Committee and the Board may from time to time prescribe) to exercise, in
      the event of the death of the recipient, a Stock Option, or to receive, in
      such event, any Other Stock Awards. The Committee and the Board reserve
      the right to review and approve beneficiary designations. A recipient may
      from time to time revoke or change any such designation or beneficiary and
      any designation of beneficiary under the Plan shall be controlling over
      any other disposition, testamentary or otherwise; provided, however, that
      if the Committee or the Board shall be in doubt as to the right of any
      such beneficiary to exercise any Stock Option or to receive any Other
      Stock Award, the Committee or the Board, as the case may be, may determine
      to recognize only an exercise by the legal representative of the
      recipient, in which case the Company and the Committee and the Board and
      the members thereof shall not be under any further liability to anyone.

                     Section VI. Other Governing Provisions

A.    Transferability

      Except as otherwise noted herein, no Award shall be transferable other
than by beneficiary designation, will or the laws of descent and distribution,
and any right granted under an Award may be exercised during the lifetime of the
holder thereof only by him or by his guardian or legal representative.

B.    Rights as a Shareholder

      A recipient of an Award shall, unless the terms of the Award provide
otherwise, have no rights as a shareholder, with respect to any Stock Options or
shares which may be issued in connection with the Award until the issuance of a
Stock certificate for such shares, and no adjustment other than as stated herein
shall be made for dividends or other rights for which the record date is prior
to the issuance of such Stock certificate.

C.    General Conditions of Awards

      No director, Employee or other person shall have any right with respect to
this Plan, the shares reserved or in any Award, contingent or otherwise, until
written evidence of the Award shall have been delivered to the recipient and all
the terms, conditions and provisions of the Plan applicable to such recipient
have been met.

D.    Reservation of Rights of Company

      The selection of an Employee for any Award shall not give such person any
right to continue as an Employee and the right to discharge any Employee is
specifically reserved.

E.    Acceleration

      The Committee or the Board may, in its sole discretion, accelerate the
date of exercise of any Award.

F.    Adjustments

      Upon any stock split-up, spin-off, stock dividend, issuance of any
targeted stock, combination or reclassification with respect to any outstanding
class or series of Stock, or consolidation, merger or sale of all or
substantially all of the assets of the Company, appropriate adjustments shall be
made to the shares reserved under Section I.D. of the Plan and the terms of all
outstanding Awards.

                                       5
<PAGE>

G.    Withholding of Taxes

      The Company shall deduct from any payment, or otherwise collect from the
recipient, any taxes required to be withheld by federal, state or local
governments in connection with any Award. The recipient may elect, subject to
approval by the Committee or the Board, to have shares withheld by the Company
in satisfaction of such taxes, or to deliver other shares of Stock owned by the
recipient in satisfaction of such taxes. The number of shares to be withheld or
delivered shall be calculated by reference to the Fair Market Value of the
appropriate class or series of Stock on the date that such taxes are determined.

H.    No Warranty of Tax Effect

      Except as may be contained in the terms of any Award, no opinion is
expressed nor warranties made as to the effect for federal, state, or local tax
purposes of any Award.

I.    Amendment of Plan

      The Board of Directors of the Company may, from time to time, amend,
suspend or terminate the Plan in whole or in part, and if terminated may
reinstate any or all of the provisions of the Plan, except that no amendment,
suspension or termination may (i) apply to the terms of any Award (contingent or
otherwise) granted prior to the effective date of such amendment, suspension or
termination without the recipient's consent or (ii) increase the shares of Stock
available for Awards.

J.    Construction of Plan

      The place of administration of the Plan shall be in the State of Missouri,
and the validity, construction, interpretation, administration and effect of the
Plan and of its rules and regulations, and rights relating to the Plan, shall be
determined solely in accordance with the laws of the State of Missouri.

K.    Elections of Corporate Officers

      Notwithstanding anything to the contrary stated herein, any election or
other action with respect to an Award of a recipient subject to Section 16 of
the Securities Exchange Act of 1934 will be null and void if any such election
or other action would cause said recipient to be subject to short-swing profit
recovery under Section 16.

                      Section VII. Effective Date and Term

            This Plan shall be effective upon adoption by the shareholders of
the Company. The Plan shall continue in effect until January 31, 2012, when it
shall terminate. Upon termination, any balances in the share reserve shall be
canceled, and no Awards shall be granted under the Plan thereafter. The Plan
shall continue in effect, however, insofar as is necessary to complete all of
the Company's obligations under outstanding Awards to conclude the
administration of the Plan.

                                       6Exhibit 10.41

                FORM OF 2002 NON-QUALIFIED STOCK OPTION AGREEMENT

      Ralcorp Holdings, Inc. (the "Company"), effective January 31, 2002, grants
this Non-Qualified Stock Option to <<Name>> ("Optionee") to purchase a total of
<<Number>> shares of its $.01 par value Common Stock (the "Common Stock") at a
price of $25.09 per share pursuant to the Ralcorp Holdings, Inc. 2002
Incentive Stock Plan (the "Plan"). Subject to the provisions of the Plan and the
following terms, Optionee may exercise this option from time to time by
tendering to the Company written notice of exercise together with the purchase
price in either cash, or in shares of Common Stock of the Company at their fair
market value as determined by the Nominating and Compensation Committee of the
Company's Board of Directors (the "Committee"), or in both cash and such shares.

      NOW THEREFORE, the Company and Optionee agree, for and in consideration of
the terms hereof, as follows:

1.    Normal Exercise - This Option becomes exercisable at the rate of 25% of
      the total shares on January 31, 2005, 2006, 2007 and 2008. This Option
      remains exercisable through January 30, 2012, unless Optionee is no longer
      employed by the Company, in which case the Option is exercisable only if
      permitted by, and in accordance with, the provisions of paragraph 2 below.

2.    Accelerated Exercise - Notwithstanding the above, this Option shall become
      exercisable before the normal exercise dates set forth in paragraph 1
      above upon the occurrence of any of the events set forth below while
      Optionee is employed by the Company. This Option shall become exercisable
      in full on the date of such event and shall remain exercisable for the
      periods set forth below or until January 30, 2012, whichever occurs first.
      Thereafter, the unexercised portion of this Option is forfeited and may
      not be exercised.

      a.    Death of Optionee (exercisable for three years).
      b.    Declaration of Optionee's total and permanent disability
            (exercisable for three years).
      c.    Voluntary termination of Optionee's employment at or after
            attainment of age 62 (exercisable for three years).
      d.    Involuntary termination of employment of Optionee, other than a
            Termination for Cause (exercisable for six months).
      e.    Occurrence of a Change in Control (exercisable for six months after
            the Optionee's voluntary or involuntary termination of employment
            following the Change in Control).

<PAGE>

3.    Forfeiture - This paragraph sets forth the circumstances under which this
      Option will be forfeited. All shares not exercisable shall be forfeited
      upon the occurrence of any of the following events (any of which is
      referred to as a "Forfeiture Event"):

      a.    Optionee is Terminated for Cause;
      b.    Optionee voluntarily terminates prior to age 62;
      c.    Optionee engages in competition with the Company; or
      d.    Optionee engages in any of the following actions:

            (i)   intentional misconduct in the performance of Optionee's job
                  with the Company or any subsidiary;
            (ii)  being openly critical in the media of the Company or any
                  subsidiary or its directors, officers, or employees or those
                  of any subsidiary;
            (iii) pleading guilty or nolo contendere to any felony or any charge
                  involving moral turpitude;
            (iv)  misappropriating or destroying Company or subsidiary property
                  including, but not limited to, trade secrets or other
                  proprietary property;
            (v)   improperly disclosing material nonpublic information regarding
                  the Company or any subsidiary;
            (vi)  after ceasing employment with the Company, inducing or
                  attempting to induce any employee of the Company or any
                  Subsidiary to leave the employ of the Company or any
                  subsidiary;
            (vii) after ceasing employment with the Company, hiring any person
                  who was a manager level employee of the Company or any
                  subsidiary; or
            (viii) inducing or attempting to induce any customer, supplier,
                  lender, or other business relation of the Company or any
                  subsidiary to cease doing business with the Company or any
                  subsidiary.

      Upon the occurrence of a Forfeiture Event, those portions of this Option
      not exercisable at the time of a Forfeiture Event will be forfeited and
      may not be exercised. Notwithstanding any other provision of this Option,
      any portion of this Option exercisable (either in accordance with the
      normal exercise dates set forth in paragraph 1 or pursuant to an
      acceleration of exercisability under paragraph 2) at the occurrence of a
      Forfeiture Event shall remain exercisable for seven days following the
      occurrence of a Forfeiture Event. Therefore, any exercisable portion of
      this Option that is not exercised within such seven day period will be
      forfeited and may not be exercised. The Committee or entire Board of
      Directors may waive any condition of forfeiture described in this
      paragraph.

<PAGE>

4.    Change in Control - In the case of a Change in Control (other than a
      transaction in which the Company is the continuing or surviving
      corporation and which does not result in the outstanding shares of Common
      Stock being converted into or exchanged for different securities, cash or
      other property, or any combination thereof), Optionee shall have the right
      (subject to the provisions of the Plan and any limitation applicable to
      the Option contained herein) thereafter and during the term of the Option,
      to receive upon exercise thereof the Acquisition Consideration (as defined
      below) receivable upon the Change in Control by a holder of the number of
      shares of Common Stock which would have been obtained upon exercise of the
      Option or portion thereof, as the case may be, immediately prior to the
      Change in Control.

5.    Definitions - For purposes of this Agreement, the following terms have the
      meanings as set forth below:

      a.    "Acquisition Consideration" - Shall mean the kind and amount of
            shares of the surviving or new corporation, cash, securities,
            evidence of indebtedness, other property or any combination thereof
            receivable in respect of one share of the Common Stock upon
            consummation of a Change in Control. In the case of a Change in
            Control resulting from the event set forth in paragraph 5(b)(i), the
            value of the Acquisition Consideration shall be equal to the highest
            price paid by such person for a share of the Company's Common Stock
            during the two-year period preceding the date on which such person
            became the beneficial owner of more than 50% of the Company's Common
            Stock. If such price is paid in the form of non-cash consideration,
            the value of the Acquisition Consideration shall be equal to the
            fair market value of such consideration at the time of the purchase
            of such share.

      b.    "Change in Control" - Shall mean when (i) a person, as defined under
            the securities laws of the United States, acquires beneficial
            ownership of more than 50% of the outstanding voting securities of
            the Company; or (ii) the directors of the Company, immediately
            before a business combination between the Company and another
            entity, or a proxy contest for the election of directors, shall as a
            result of such business combination or proxy contest, cease to
            constitute a majority of the Board of Directors of the Company or
            any successor to the Company.

      c.    "Termination for Cause" - Shall mean the Optionee's termination of
            employment with the Company because of the willful engaging by the
            Optionee in gross misconduct; provided, however, that a termination
            for cause shall not include termination attributable to (i) poor
            work performance, bad judgment or negligence on the part of the
            Optionee, (ii) an act or omission believed by the Optionee in good
            faith to have been in or not opposed to the best interests of the
            Company and reasonably believed by the Optionee to be lawful, or
            (iii) the good faith conduct of the Optionee in connection with a
            Change in Control (including opposition to or support of such Change
            in Control).

<PAGE>

6.    This Agreement shall be governed by the laws of the State of Missouri
      without reference to the conflict of laws provisions thereof.

7.    No amendment or modification of this Option shall be valid unless the same
      shall be in writing and signed by the Company and Optionee. The foregoing,
      however, shall not prevent the Company from amending or modifying the Plan
      except that no such amendment or modification shall adversely affect the
      Optionee's rights under this Option Agreement.

ACKNOWLEDGED                            RALCORP HOLDINGS, INC.
AND ACCEPTED:

___________________________________     BY: ____________________________________
Optionee                                    R. W. Lockwood
                                            Secretary

___________________________________
Date

___________________________________
Location

___________________________________
S.S.#

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