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                                                                   Exhibit 10.16

                              PIERRE HOLDING CORP.
                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT (the "Agreement") is made and entered into as
of the 11th day of May, 2004, by and between Pierre Holding Corp., a Delaware
corporation (the "Company"), and Robert C. Naylor, a resident of the State of
Ohio ("Executive").

                                   WITNESSETH:

         WHEREAS, the Board of Directors of the Company has determined that it
is in the best interests of the Company and its Subsidiaries to retain the
services of Executive as Senior Vice President of Sales and Marketing of the
Company and Pierre Foods, Inc., an indirect wholly-owned Subsidiary of the
Company ("Pierre Foods"); and

         WHEREAS, the Company wishes to assure itself of the services of the
Executive as provided in this Agreement, and the Executive wishes to serve in
the employ of the Company and its Subsidiaries in the capacity and on the terms
and conditions hereinafter provided.

         NOW, THEREFORE, in consideration of the premises and the mutual
covenants contained herein, the parties agree as follows:

                                    ARTICLE I
                              EMPLOYMENT AND DUTIES

         Section 1.1    EMPLOYMENT. As of the Effective Date, the Company hereby
employs Executive, and Executive accepts employment with the Company and its
Subsidiaries as an employee of the Company and its Subsidiaries, upon the terms
and subject to the conditions hereinafter set forth.

         Section 1.2    DUTIES. Executive shall serve as Senior Vice President
of Sales and Marketing of the Company and Pierre Foods and shall (a) be
primarily responsible for all sales, marketing, and new product development
activities of the Company and its Subsidiaries, (b) develop policies, strategies
and plans to identify and capitalize on growth and profitability opportunities
within all sales divisions, and (c) train, evaluate and set performance
standards for sales and marketing division managers, develop and implement
expense budgets for marketing and sales functions, direct development of sales
plans and market and sales incentive programs, and direct and coordinate
activities of the sales and marketing personnel. Executive will report directly
to the President and Chief Executive Officer of the Company and to the Board of
Directors of the Company (the "Board"). Executive agrees to devote his best
efforts to the performance of his duties for the Company and its Subsidiaries,
and shall perform such duties in a diligent, trustworthy, and business-like
manner, all for the purpose of advancing the business of the Company and its
Subsidiaries. Executive acknowledges that his primary office location shall be
in the principal operations offices of the Company in Cincinnati, Ohio.
Executive further acknowledges that due to the nature of his duties with respect
to marketing and sales he will be required to spend considerable time away from
his office dealing with customers, vendors, and suppliers and handling marketing
promotions and new product development. For purposes of this Agreement,
Subsidiaries shall mean any corporation or other entity of which the securities
or other ownership interests having the voting power to elect a majority of the
board of directors or

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other governing body are at the time of determination, owned by the Company,
directly or through one or more Subsidiaries.

                                   ARTICLE II
                               TERMS OF EMPLOYMENT

         Section 2.1    TERM. Except as otherwise provided in Section 2.2, the
term of Executive's employment under this Agreement shall be for one (1) year
(the "Initial Term"), beginning on the Effective Date, and shall be
automatically renewed thereafter for successive one (1) year terms (each a
"Renewal Term") unless either party gives to the other written notice no fewer
than sixty (60) days prior to the expiration of the Initial Term, or any Renewal
Term, that it does not wish to extend Executive's employment for a successive
one-year term. The Initial Term and any Renewal Term, if any, shall be referred
to herein as "the term".

         Section 2.2    TERMINATION. The employment of Executive hereunder shall
terminate prior to the expiration of the term hereof in the following manner:

         a.    DEATH OR DISABILITY. Immediately upon the death of Executive
during the term of his employment hereunder or, at the option of the Company, in
the event of Executive's disability, upon thirty (30) days' notice to Executive.
The Executive will be considered "disabled" if, as a result of incapacity due to
physical or mental illness or injury, Executive shall be unable to perform the
material duties of his position on a full time basis for a period of two (2)
consecutive months or if the Executive shall become eligible to currently
receive disability payments under the disability policy referenced in Section
3.2e hereunder, even after reasonable accommodations for such disability or
incapacity provided by the Company and its Subsidiaries or if providing such
accommodations would be unreasonable, all as determined by the Board in its
reasonable good faith judgment. Executive shall cooperate in all respects with
the Company if a question arises as to whether he has become disabled
(including, without limitation, submitting to an examination by a medical doctor
or other health care specialist selected by the Company and authorizing such
medical doctor or such other health care specialist to discuss Executive's
condition with the Company).

         b.    FOR CAUSE. For "Cause" immediately upon written notice by the
Company to the Executive after compliance in full by the Company with paragraph
3 of this subsection b below. For purposes of this Agreement:

               1.     "CAUSE" shall mean, with respect to Executive one or more
of the following: (i) the commission of a felony or the commission of any other
act or omission involving dishonesty or fraud with respect to the Company or any
of its Subsidiaries or any of their customers or suppliers, (ii) reporting to
work under the influence of alcohol or illegal drugs, the use of illegal drugs
(whether or not at the workplace) or other repeated conduct causing the Company
or any of its Subsidiaries substantial public disgrace or disrepute or
substantial economic harm, (iii) substantial and repeated willful failure to
perform duties as reasonably directed by the Board or the Company's President
(provided that the failure shall not be related to poor job performance or the
overall underperformance of the Company), (iv) any act or omission aiding or
abetting a competitor, supplier or customer of the Company or any of its
Subsidiaries to the material disadvantage or detriment of the Company and its
Subsidiaries, (v) willful breach of

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fiduciary duty, gross negligence or willful misconduct with respect to the
Company or any of its Subsidiaries or (vi) any other willful material breach of
this Agreement which is not cured to the Board's reasonable satisfaction within
15 days after written notice thereof to Executive.

               2.     For purposes of this subsection b, no act, or failure to
act, on the Executive's part shall be considered "willful" unless unilaterally
done by him not in good faith and without reasonable belief that his action or
omission was not in the best interest of the Company and its Subsidiaries.

               3.     Notwithstanding the foregoing, the Executive shall not be
deemed to have been terminated for Cause unless and until there shall have been
delivered to him a copy of a resolution duly adopted by the affirmative vote of
not less than a majority of the entire authorized membership of the Board of
Directors at a meeting of the Board called and held for the purpose, finding
that in the good faith opinion of the Board the Executive was guilty of conduct
set forth in any of clauses (i) through (vi) of paragraph 1 above and specifying
the particulars thereof in detail.

         c.    WITHOUT CAUSE. At any time after commencement of employment, the
Company may, without Cause, terminate the Executive's employment, effective upon
written notice from the Company to the Executive.

         d.    RESIGNATION FOR GOOD REASON. By the Executive upon thirty (30)
days written notice to the Company of the resignation of the Executive for Good
Reason (as defined below). For purposes of this Agreement, the term "Good
Reason" shall mean:

               1.     Without his express written consent, the assignment to the
Executive of any duties materially inconsistent with his positions, duties,
responsibilities and status with the Company and its Subsidiaries as described
in Section 1.2 hereof, or a material change in his reporting responsibilities,
titles or offices, or any removal of the Executive from or any failure to
re-elect the Executive to any of such positions, except in connection with the
termination of his employment for Cause or as a result of his death or
disability or by the Executive other than for Good Reason;

               2.     A material breach of this Agreement by the Company which
is not cured to the Executive's reasonable satisfaction within 15 days after
written notice thereof to the Company; or

               3.     The relocation of the Executive's primary office from the
Cincinnati, Ohio metropolitan area without the express written consent of the
Executive.

         e.    RESIGNATION WITHOUT GOOD REASON. By the Executive upon thirty
(30) days written notice to the Company of resignation without Good Reason. In
such event, the provision of 4.2 hereof shall not apply unless the Company
agrees to make the payments under Section 2.3 e subject to the terms therein
(the "Non-Compete Option").

         Section 2.3    OCCURRENCES UPON TERMINATION. Upon termination of the
employment term under this Agreement, Executive shall be subject to the
following:

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         a.    CESSATION OF SALARY AND BENEFITS. The obligation of the Company
and its Subsidiaries to provide Executive all compensation and benefits as
provided herein shall discontinue at the termination date of the employment term
under this Agreement, except as otherwise required herein or by law.

         b.    PAYMENT OF BONUS. Except in the case of termination by the
Company for Cause and resignation by the Executive without Good Reason,
Executive, or his estate if deceased, shall be entitled to payment of any bonus
declared or granted to the Executive prior to termination which remains unpaid
as of such time and a pro rata portion of any bonus payable for the fiscal year
during which the termination occurred, based upon the portion of such fiscal
year Executive was employed by the Company or its Subsidiaries and the
performance of the Company and its Subsidiaries for the full fiscal year during
which the termination occurs.

         c.    SURRENDER OF COMPANY PROPERTY. Promptly upon termination of
Executive's employment, Executive or Executive's personal representative shall
return to the Company (a) all Confidential Information (hereinafter defined);
(b) all other records, designs, patents, business plans, financial statements,
manuals, memoranda, lists, correspondence, reports, records, charts, advertising
materials, and other data or property delivered to or compiled by Executive by
or on behalf of the Company and its Subsidiaries that pertain to the business of
the Company and its Subsidiaries, whether in paper, electronic, or other form;
and (c) all keys, credit cards, vehicles, and other property of the Company and
its Subsidiaries. Executive shall not retain or cause to be retained any copies
of the foregoing. Executive hereby agrees that all of the foregoing shall be and
remain the property of the Company and its Subsidiaries and be subject at all
times to its discretion and control.

         d.    BENEFITS. With respect to any incentive plans, deferred
compensation arrangements or other plans or programs in which the Executive is
participating at the time of termination of his employment, the Executive's
rights and benefits under each such plan shall be determined in accordance with
the terms, conditions, and limitations of the plan and any separate agreement
executed by the Executive which may then be in effect.

         e.    TERMINATION WITHOUT CAUSE; DEATH/DISABILITY; RESIGNATION FOR GOOD
REASON; NON-COMPETE OPTION; NONRENEWAL. During the Initial Term, or any Renewal
Term, if the Executive's employment is terminated by the Company without Cause
or the Executive voluntarily terminates his employment with the Company for Good
Reason, or Executive's employment is terminated by reason of death or
disability, or if the Company elects not to renew Executive's employment
pursuant to Section 2.1 above, or if Employee resigns without Good Reason or
elects not to renew his employment pursuant to Section 2.1 (and in either case
the Company elects the "Non-Compete Option"), then the Company shall continue to
pay to the Executive or his estate as special severance payments hereunder the
Executive's then current base salary as provided in Section 3 payable in regular
installments over a period of one year after termination in accordance with the
normal payroll practices of the Company or its Subsidiaries, but if and only if,
Executive has executed and delivered to the Company a general release (the
"RELEASE") in customary form and substance reasonably satisfactory to the
Company and the Release has become effective, and only so long as Executive has
not revoked or breached the provisions of the Release or breached the provisions
of Article IV hereof.

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         In addition, the Company and its Subsidiaries shall maintain in full
force and effect for the continued welfare benefit of the Executive, for the
term of this one-year period after such termination, all employee welfare
benefit plans and programs or arrangements in which the Executive was entitled
to participate immediately prior to the date of termination, provided that his
continued participation is possible under the general terms and provisions of
such plans and programs. It being understood that such employee welfare benefits
do not include club memberships or annual medical exams. In the event that the
Executive's participation in any such plan or program is barred, the Company
shall arrange to provide the Executive with benefits substantially similar to
those to which he is entitled to receive under such plans and programs. The
Company represents that it will cause to be set aside all necessary funds to
satisfy its obligations hereunder.

                                   ARTICLE III
                            COMPENSATION AND BENEFITS

         Section 3.1    COMPENSATION. As compensation for services rendered to
the Company and its Subsidiaries hereunder during the term of this Agreement,
the Company or a Subsidiary will compensate Executive as follows:

         a.    BASE SALARY. Commencing on the Effective Date hereof, the Company
shall pay the Executive an annual base salary of Two Hundred and Fifty Thousand
and No/Dollars ($250,000.00), pro rated for periods of less than 12 months, or
as increased from time to time by the Board of Directors of the Company. Such
base salary shall be paid in bi-weekly installments in accordance with the
payroll schedule followed by the Company or a Subsidiary (less applicable
withholding and other deductions). Base salary shall be reviewed and adjusted by
the Company at least annually. Notwithstanding the foregoing sentence,
Executive's base salary shall be increased annually to at least equal the CPI
increase for the prior twelve months. The Company may not reduce the Executive's
base salary at any time during the term of this Agreement.

         b.    BONUS. In addition to any other compensation or consideration
payable to the Executive hereunder, the Executive shall be entitled to receive
such bonuses as may be approved by the Executive Compensation Committee and
ratified by the Board based on such meritorious performance or such other
criteria measuring the performance of the Executive as may be determined from
time to time, which will be based upon the bonus program for senior executives
in place for Pierre Foods as of the date of this Agreement and subject to annual
performance goals set by the Board.

         Section 3.2    BENEFITS. In addition to, and not in lieu of, base
salary, bonus or other compensation payable to the Executive, during the term of
employment hereunder, the Executive shall be entitled to participate in all of
the Company's and its Subsidiaries' employee benefit programs for which senior
executive employees of the Company and its Subsidiaries are generally eligible,
which shall include the benefits and programs set forth on EXHIBIT A hereto.

         Section 3.3    REIMBURSEMENT OF EXPENSES. The Company or a Subsidiary
shall reimburse the Executive for all reasonable out-of-pocket expenses incurred
by the Executive in the course of his duties in accordance with normal Company
policies.

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         Section 3.4    AUTOMOBILE ALLOWANCE. The Executive shall be provided by
the Company or Subsidiary with an automobile for his use, and the associated
expenses of maintenance, repairs and fuel.

                                   ARTICLE IV
                      CONFIDENTIAL INFORMATION/NON-COMPETE
                               COVENANT/INVENTIONS

         Section 4.1    COVENANT NOT TO DISCLOSE CONFIDENTIAL INFORMATION.
During Executive's position with the Company and its Subsidiaries (including
Pierre Foods, Inc. prior to the Effective Date) and during the term of this
Agreement, Executive has and will become acquainted with confidential and
proprietary information of the Company and its Subsidiaries, in whatever form,
whether oral, written, or electronic including, but not limited to, manner of
operation, manufacturing processes and know-how, plant design, customer names
and representatives, customer files, customer lists, customer specifications and
requirements, product recipes, product pricing, special customer matters, sales
methods and techniques, merchandising concepts and plans, business plans,
sources of supply and vendors, terms and conditions of business relationships
with vendors, agents and brokers, promotional materials and information,
financial matters, mergers, acquisitions, personnel matters and confidential
processes, designs, formulas, ideas, plans, devices and materials and other
similar matters that are kept confidential (any and all such information being
referred to herein as "Confidential Information"). The parties agree that the
use of Confidential Information against the Company and its Subsidiaries would
seriously damage business of the Company and its Subsidiaries. Accordingly,
Executive agrees that he (individually or in concert with others) during or
after the term of this Agreement:

         a.    Shall not, directly or indirectly, use any Confidential
Information for any purpose other than to benefit the Company and its
Subsidiaries, except with the prior, express and written consent of the Company
or as required by law;

         b.    Shall not, directly or indirectly, divulge, publish or otherwise
reveal or allow to be revealed any Confidential Information as to any individual
or entity except with the prior, express and written consent of the Company or
as required by law;

         c.    Shall refrain from any action or conduct that might reasonably or
foreseeably be expected to compromise the confidentiality or proprietary nature
of any Confidential Information; and

         d.    Shall have no rights to apply for, or to obtain any patent,
copyright or other form of intellectual property protection regarding, any
Confidential Information.

         This restriction shall not apply to any Confidential Information that
(i) becomes known generally to the public through no fault of the Executive;
(ii) is required by applicable law, legal process, or any order or mandate of a
court or other governmental authority to be disclosed; or (iii) is reasonably
believed by Executive, based upon the advice of legal counsel, to be required to
be disclosed in defense of a lawsuit or other legal or administrative action
brought against Executive; PROVIDED, that in the case of clauses (ii) or (iii),
Executive shall give the Company reasonable advance written notice of the
Confidential Information intended to be disclosed and

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the reasons and circumstances surrounding such disclosure, in order to permit
the Company to seek a protective order or other appropriate request for
confidential treatment of the applicable Confidential Information.

         Section 4.2    COVENANT NOT TO COMPETE.

         a.    COVENANT. Executive hereby stipulates, covenants and agrees that,
during the Restrictive Period (as defined below), he, individually or in concert
with others, shall not, directly, or indirectly, other than on behalf of the
Company and its Subsidiaries, Without the Company's prior, express and written
consent:

               1.     Engage in Competition (as defined below) in the Territory
(as defined below) with the Company or any Subsidiary or any of their respective
successors or assigns; or

               2.     Employ or solicit the employment of any individual who is
at the time or was at any time during the twelve complete calendar months
immediately preceding, an employee of the Company or any Subsidiary.

         b.    CERTAIN DEFINITIONS. As used in this Section, the following terms
shall have the following meanings:

               1.     "Business" shall mean the processing and distribution of
fully-cooked branded and private label protein and bakery products and
microwaveable sandwiches.

               2.     "Competition" shall mean:

               (i)      Engaging in the Business in the Territory with a Contact
Person;

               (ii)     Assisting any individual or entity, whether in a
financial, managerial, employment, advisory or other material capacity, to
engage in the Business in the Territory with a Contact Person; or

               (iii)    Owning any interest in, or organizing an entity that
engages in, the Business in the Territory with a Contact Person; provided,
however, that nothing herein shall preclude Executive, directly or indirectly,
from holding not more than one percent of the outstanding shares of common stock
of any company whose shares of common stock are listed on a national securities
exchange or authorized for quotation by NASDAQ.

               3.     "Contact Person" shall be (i) any customer, vendor,
supplier, agent, distributor or broker having a principal manufacturing plant or
principal office located within the Territory with which or with whom the
Executive has had contact on behalf of the Company or any Subsidiary at any time
during the eighteen (18) month period preceding the Termination Date, or (ii)
any customer, agent, distributor or broker having a principal manufacturing
plant or principal office located in the Territory doing business with the
Company or any Subsidiary within the eighteen (18) months preceding the
Termination Date who or which made or brokered purchases of product from the
Company or any Subsidiary or made or brokered product on behalf of the Company
or any Subsidiary which purchases or sales were in excess of 3% of the revenues
of the Company or any Subsidiary during such period.

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               4.     "Restrictive Period" shall mean the one-year period
beginning on the Termination Date.

               5.     "Territory" shall mean all fifty states in the United
States, the District of Columbia and all possessions of the United States and
all provinces of Canada. Executive acknowledges that the Company and its
Subsidiaries conducts significant sales of its product in all of the
aforementioned Territory.

               6.     "Termination Date" shall mean the date upon which the
employment of the Executive was terminated by resignation or other voluntary
action, or involuntarily by the Company, whether with or without cause.

         Section 4.3    INVENTIONS.

         a.    Executive shall disclose promptly to the Company any and all
significant conceptions and ideas for inventions, improvements, and valuable
discoveries, whether patentable or not, that are conceived or made by Executive,
solely or jointly with another, during the period of employment or within one
year thereafter, and that are directly related to the business or activities of
the Company and its Subsidiaries and that Executive conceives as a result of his
employment by the Company and its Subsidiaries, regardless of whether or not
such ideas, inventions, or improvements qualify as "works for hire". Executive
hereby assigns and agrees to assign all his interests therein to the Company or
its nominee. Whenever requested to do so by the Company, Executive shall execute
any and all applications, assignments, or other instruments that the Company
shall deem necessary to apply for and obtain patent registrations in the United
States or any foreign country or to otherwise protect the Company's and its
Subsidiaries interest therein.

         b.    In accordance with the Delaware Labor Law Section 805, Executive
is hereby advised that this paragraph 4.3 regarding the Company's and its
Subsidiaries' ownership of Inventions does not apply to any invention for which
no equipment, supplies, facilities or trade secret information of the Company or
any Subsidiary was used and which was developed entirely on Executive's own
time, unless (i) the invention relates to the business of the Company or any
Subsidiary or to the Company's or any Subsidiary's actual or demonstrably
anticipated research or development or (ii) the invention results from any work
performed by Executive for the Company or any Subsidiary.

         Section 4.4    ENFORCEMENT AND REMEDIES.

         a.    Executive further covenants, agrees, and recognizes that because
the breach or threatened breach of the covenants, or any of the, contained in
Section 4.1 or 4.2 or 4.3 will result in immediate and irreparable injury to the
Company and its Subsidiaries, the Company and its Subsidiaries shall be entitled
to a preliminary and permanent injunction restraining Executive from any
violation of Section 4.1 or 4.2 or 4.3 to the fullest extent allowed by law, in
addition to any other rights available at law, in equity or otherwise.

         b.    Executive further covenants, agrees and recognizes that in the
event of a violation of any of the covenants and agreements contained in
Sections 4.1 and 4.2 and 4.3 hereof, the Company, shall be entitled to an
accounting of all profits, compensation, commissions,

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remunerations or benefits which Executive directly or indirectly has realized as
a result of, growing out of or in connection with any such violation and shall
be entitled to receive all such other amounts to which Executive would be
entitled as damages under law or at equity.

         Section 4.5    ACKNOWLEDGEMENT OF ADEQUATE CONSIDERATION. The parties
stipulate and agree that the payment and other benefits owed to Executive by the
Company and its Subsidiaries under this Agreement and the performance of the
Company's obligations hereunder constitute sufficient consideration to support
enforcement of the covenants of this Agreement.

         Section 4.6    ACKNOWLEDGEMENT OF REASONABLENESS. Executive has
carefully read and considered the provisions of this Agreement in consultation
with attorneys of his choice and agrees that the restrictions set forth herein
are fair and reasonably required for the protection of the Company and its
Subsidiaries and are legally binding and enforceable and the enforcement thereof
will not impair Executive's ability to earn a livelihood. In the event that any
provisions relating to any of the Restrictive Period, the Territory or the
Contact Persons shall be declared by a court of competent jurisdiction to exceed
the maximum time period or maximum geographical area or other restraint such
court deems reasonable and enforceable under applicable law, the time period or
area of restriction or other restraint considered reasonable and enforceable by
the court shall thereafter be the applicable Restrictive Period, Territory, or
other Contact Persons under this Agreement.

                                    ARTICLE V
                            MISCELLANEOUS PROVISIONS

         Section 5.1    WAIVER OF BREACH OR VIOLATION. The waiver by either
party of a breach or violation of any provision of this Agreement shall not
operate as or be construed to be a waiver of any subsequent breach of any
provision of this Agreement.

         Section 5.2    NOTICES. All notices required or permitted to be given
under this Agreement will be sufficient if furnished in writing, sent by
registered mail or express overnight carrier service to the last known residence
of the Executive.

         Section 5.3    INDEMNIFICATION. In the event Executive is made a party
to any threatened or pending action, suit, or proceeding, whether civil,
criminal, administrative or legislative (other than an action by the Company or
any Subsidiary against Executive, and excluding any action by Executive against
the Company or any Subsidiary), by reason of the fact that he is or was
performing services under this Agreement or as an officer or director of the
Company or any Subsidiary, then, to the fullest extent permitted by applicable
law, the Company shall indemnify the Executive against all expenses (including
reasonable attorney's fees), judgments, fines, and amounts paid in settlement,
as actually and reasonably incurred by Executive in connection therewith. Such
indemnification shall continue as to Executive even if he has ceased to be an
employee, officer, or director of the Company or any Subsidiary and shall inure
to the benefit of his heirs and estate. To the fullest extent permitted under
applicable law, the Company shall advance to Executive all reasonable costs and
expenses directly related to the defense of such actions, suit or proceeding
within 20 days after written request therefore by Executive to the Company. In
the event that both Executive and the Company are made party to the same
third-party action, complaint, suit, or proceeding, the Company will engage
competent legal

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representation, and Executive agrees to use the same representation; PROVIDED,
that if counsel selected by the Company shall have a conflict of interest that
prevents counsel from representing Executive, Executive may engage separate
counsel and the Company shall pay all reasonable attorney's fees of such
separate counsel. The provisions of this Section are in addition to, and not in
derogation of, the indemnification provisions of the Company's By-law. The
foregoing indemnification also shall be applicable to Executive in his capacity
as an officer, director, or representative of any subsidiary of the Company or
any entity controlled by or affiliated with the Company.

         Section 5.4    CONFIDENTIALITY; COVENANT NOT TO DISPARAGE. Each party
covenants and agrees with the other not to disclose the existence or terms of
this Agreement to any person at any time for any purpose, except that (a) either
party may make such disclosures confidentially to the party's lawyers and
accountants in connection with the rendition of their professional services or
as otherwise required by law and (b) the Company may make such disclosures as it
deems to be required by applicable securities laws. Each party covenants and
agrees with the other not to disparage the reputation of the other.

         Section 5.5    GOVERNING LAW. This Agreement is made in and shall be
interpreted, construed, and governed according to the laws of the State of
Delaware. Section 5.6 HEADINGS. The paragraph and section headings contained in
this agreement are for convenience only and shall in no manner be construed as
part of this Agreement.

         Section 5.7    LEGAL CONSTRUCTION. In case any one or more of the
provisions contained in this Agreement shall for any reason be held to be
invalid, illegal, or unenforceable in any respect, such invalidity, illegality,
or unenforceability shall not affect any other provision, and this Agreement
shall be construed as if such invalid, illegal, or unenforceable provision had
never been included in the Agreement.

         Section 5.8    PRIOR AGREEMENTS SUPERSEDED. As of the Effective Date,
this Agreement constitutes the sole agreement of the parties with respect to
employment of the Executive and supersedes any prior understandings or written
or oral arrangements between the parties respecting the subject hereunder,
including, without limitation, the Employment Agreement, dated as of December
31, 2001, between the Executive and Pierre Foods, Inc., but not with respect to
any breach of such agreement prior to the Effective Date.

         Section 5.9    ASSIGNMENT. The Executive may not assign his rights or
delegate his duties or obligations hereunder without the written consent of the
Company.

         Section 5.10   ENFORCEMENT. In the event either party resorts to legal
action to enforce the terms and provisions of the Arbitration award, the
prevailing party shall be entitled to recover the costs of such action so
incurred, including, without limitation, reasonable attorney's fees.

         Section 5.11   GENDER AND NUMBER. Whenever the context hereof requires,
the gender of all words shall include the masculine, feminine, and neuter and
the number of all words shall include the singular and plural.

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         Section 5.12   AMENDMENTS AND AGREEMENT EXECUTION. This Agreement may
be modified or amended only in writing, signed by the Executive and the Company.

         Section 5.13   COUNTERPARTS. This Agreement (and any written amendment
thereto) may be executed in one or more counterparts, each of which shall be
deemed to be an original but all of which together will constitute one and the
same instrument.

         Section 5.14   EXECUTIVE'S HEIRS. This Agreement shall inure to the
benefit of and be enforceable by the Executive's personal or legal
representatives, executors, administrators, successors, heirs, distributees,
devisees and legatees. Notwithstanding any other provision herein to the
contrary, if the Executive should die while any amounts would still be payable
to him hereunder if he had continued to live, all such amounts shall be paid in
accordance with the terms of this Agreement to his designee or, if there be no
such designee, to his estate.

         Section 5.15   EFFECTIVE DATE. This Agreement shall become effective
automatically without any further actions by the Company or Executive
immediately upon the closing of the acquisition of PFMI by the Company pursuant
to the Purchase Agreement (the "EFFECTIVE DATE"), and this Agreement shall
terminate and shall be of no further force and effect if the Purchase Agreement
is terminated prior to the Effective Date in accordance with its terms.

         Section 5.16   EQUITY ARRANGEMENTS. In connection with the closing of
the transactions under the Purchase Agreement, Executive shall participate in
the Company's equity as set forth in the term sheet attached hereto as EXHIBIT
B. Executive hereby agrees that he will enter into appropriate agreements
necessary to effect the foregoing equity arrangements in a manner consistent
with the investment in the Company by Madison Dearborn Capital Partners IV, L.P
and its affiliates. Notwithstanding the provisions of Section 5.15 above, this
Section 5.16 shall be in full force and effect and enforceable commencing on the
date of this Agreement.

         IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first above written.

EXECUTIVE:                                          COMPANY:

                                                    PIERRE HOLDING CORP.

 /s/ Robert C. Naylor                               By:  /s/ Robin P. Selati
---------------------------------------                 ------------------------
Robert C. Naylor                                    Name: Robin P. Selati
                                                         -----------------------
                                                    Its:  President
                                                         -----------------------<Page>

                                                                   Exhibit 10.17

                                                                  EXECUTION COPY

                               PIERRE FOODS, INC.

                           DEFERRED COMPENSATION PLAN

                                    ARTICLE I
                                  INTRODUCTION

         1.1   NAME. The name of this Plan shall be the "Pierre Foods, Inc.
Deferred Compensation Plan." Unless otherwise expressly provided herein, the
capitalized terms used in this Plan shall have the meanings set forth in Article
II.

         1.2   PURPOSE. The purpose of this Plan is to reward certain employees
of the Company and its Affiliates for their performance of past services. The
Plan will terminate when all Deferred Stock Bonuses have been distributed.
Accordingly, the Plan is intended to constitute a Bonus Program (as defined in
DOL Reg. Section 2510.3.2(c)) which is exempt from the requirements of ERISA.

         1.3   ADMINISTRATION OF THE PLAN. The Plan shall be administered by the
Committee. The duties and authority of the Committee under the Plan shall
include (i) the interpretation of the provisions of the Plan, (ii) the adoption
of any rules and regulations which may become necessary or advisable in the
operation of the Plan, (iii) the making of such determinations as may be
permitted or required pursuant to the Plan and (iv) the taking of such other
actions as may be required for the proper administration of the Plan in
accordance with its terms. Any decision of the Committee with respect to any
matter within the authority of the Committee shall be final, binding and
conclusive upon the Company and upon each Participant, former Participant,
designated beneficiary, and each Person claiming under or through any
Participant or designated beneficiary. No additional authorization or
ratification by the Board of Directors or stockholders of the Company shall be
required. Any action taken by the Committee with respect to any one or more
Participants shall not be binding on the Committee as to any action to be taken
with respect to any other Participant. A member of the Committee may be a
Participant, but no member of the Committee may participate in any decision
directly affecting his rights or the computation of his benefits as an
individual Participant under the Plan. Each determination required or permitted
under the Plan shall be made by the Committee in the sole and absolute
discretion of the Committee made in good faith.

                                   ARTICLE II
                                   DEFINITIONS

         2.1   "ACCOUNT" means a bookkeeping account maintained by the Company
for a Participant's Deferred Stock Bonus under the Plan.

         2.2   "AFFILIATE" of any Person means any other Person, directly or
indirectly controlling, controlled by or under common control with such Person.

         2.3   "AMENDMENT AND WAIVER" means the Amendment to the Employment
Agreement between the Company and Robert C. Naylor and the related Waiver of
Payment, dated as of May

<Page>

11, 2004 and the Third Amendment to Incentive Agreement between the Company and
Norbert E. Woodhams, Sr. and the related Waiver of Payment, dated as of May 11,
2004.

         2.4   "CODE" means the Internal Revenue Code of 1986, as amended.

         2.5   "COMMITTEE" means the persons who have been designated by the
Board of Directors of the Company to administer the Plan. If no persons have
been designated by the Board of Directors of the Company to administer the Plan,
the full Board of Directors of the Company shall constitute the Committee for
purposes of this Plan.

         2.6   "COMPANY" means Pierre Foods, Inc., a North Carolina corporation,
or its successors or assigns under the Plan.

         2.7   "DEFERRED STOCK BONUS" means the amount of shares of Preferred
Stock (as determined from a Participant's Amendment and Waiver or otherwise)
which are allocated to a Participant's Account in accordance with Article III.

         2.8   "EFFECTIVE DATE" means June 30, 2004.

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

         2.10  "HOLDING" means Pierre Holding Corp., a Delaware corporation.

         2.11  "PARTICIPANT" means any eligible employee of the Company or its
Affiliates or any other Person who is participating under the Plan pursuant to
Article III.

         2.12  "PERSON" means an individual, a partnership, a corporation, a
limited liability company, an association, a joint stock company, a trust, a
joint venture, an unincorporated organization and a governmental entity or any
department, agency or political subdivision thereof.

         2.13  "PLAN" means this "Pierre Foods, Inc. Deferred Compensation
Plan," as amended from time to time.

         2.14  "PREFERRED STOCK" means shares of Class A Preferred Stock, par
value $0.01 per share, of Holding.

                                   ARTICLE III
                               PLAN PARTICIPATION

         3.1   ELIGIBILITY AND PARTICIPATION. Each Person who executed an
Amendment and Waiver and such other Persons as the Committee may allow (each, a
"PARTICIPANT") shall be entitled to participate in this Plan. The Participants
and the amount of each Participant's Deferred Stock Bonus shall be listed on
EXHIBIT A attached hereto.

         3.2   DEFERRED STOCK BONUS ACCOUNT. The Committee shall establish and
maintain an Account with respect to each Participant who has received a Deferred
Stock Bonus. The Participant's Account shall be a bookkeeping account maintained
by the Company and shall

                                        2
<Page>

reflect the amount of the Deferred Stock Bonus that has been allocated to each
Participant. The amount of any deemed earnings, gains and losses in each
Participant's Account shall be credited or charged to his Account in accordance
with Article IV.

                                   ARTICLE IV
                              EARNINGS ON ACCOUNTS

         4.1   DEFERRED STOCK BONUS RECEIPTS. Each Account shall be deemed to
receive all interest, dividends, earnings and other property which would have
been received with respect to the Preferred Stock deemed to be held in such
Account if such Account were actually invested in such Preferred Stock. Cash
deemed received with respect to the Preferred Stock shall be credited to the
Account as of the date it would have been available for reinvestment if the
Account were actually invested in the Preferred Stock. No actual investment in
Preferred Stock is required and such investment shall be solely for the
Company's own account, and the Participant shall have no right, title or
interest therein. Accordingly, each Participant is solely an unsecured creditor
of the Company with respect to any amount distributable to him under the Plan.

                                    ARTICLE V
                             ESTABLISHMENT OF TRUST

         5.1   ESTABLISHMENT OF TRUST. The Company may, in its sole discretion,
establish a grantor trust (as described in Section 671 of the Code) for the
purpose of accumulating assets to provide for the obligations hereunder. The
assets and income of such trust shall be subject to the claims of the general
creditors of the Company. The establishment of such a trust shall not affect the
Company's liability to pay benefits hereunder, except that any such liability
shall be offset by any payments actually made to a Participant under such a
trust. In the event such a trust is established, the amount to be contributed
thereto shall be determined by the Company and the investment of such assets
shall be made in accordance with the trust document.

         5.2   STATUS OF TRUST. Participants shall have no direct or secured
claim in any asset of the trust or in specific assets of the Company and will
have the status of general unsecured creditors of the Company for any amounts
due under this Plan. The assets and income of the trust will be subject to the
claims of the Company's creditors as provided in the trust document.

                                   ARTICLE VI
                            DISTRIBUTION OF ACCOUNTS

         6.1   VESTING. A Participant's Account shall be 100% vested and
nonforfeitable and shall be distributable to the Participant or, in the event of
the Participant's death, to his beneficiary, as provided in Section 6.2 below,
subject however to the provisions of this Plan (including those provisions
limiting a Participant's rights to those of an unsecured creditor of the
Company); PROVIDED that a Participant and the Company may agree upon some other
basis upon which such Participant will vest in such Participant's Account.

         6.2   TIMING OF DISTRIBUTIONS. Each Participant's Account shall be
distributable as soon as administratively practicable following the earliest of:

                                        3
<Page>

                (i)   the liquidation and dissolution of the Company or Holding
or the redemption (whether in cash or in kind) of a material portion of the
outstanding Preferred Stock, but in the event of a redemption of less than all
of the outstanding Preferred Stock, each Participant's account shall be
distributable only in the same proportion as the proportion of redeemed
Preferred Stock bears to the total Preferred Stock outstanding;

                (ii)  at the time provided in Section 6.4;

                (iii) such Participant's termination of employment because of
death or disability; provided that, in the event that the Company has
established a grantor trust under Section 5.1, the assets of which consist
entirely or in part of securities issued by the Company (or an Affiliate of the
Company), payment under this subsection (iv) will not be made unless and until
such time as the Company (or such Affiliate) redeems a sufficient amount of such
securities from the grantor trust so that the redemption proceeds are equal to
the Participant's Account, as long as the purpose of such redemption is to
provide cash proceeds to make such distribution to such Participant. If the
Company (or such Affiliate) redeems some securities from the grantor trust
pursuant to this subsection (iv), but not a sufficient number to enable the
trustee to distribute to the Participant his entire Account, and the purpose of
such redemption is to provide cash proceeds to make such distribution to such
Participant, then the Company will direct the trustee to make a payment equal to
such redemption proceeds, and payment of the balance of the Participant's
Account will be deferred until otherwise provided hereunder or until the Company
(or such Affiliate) redeems an additional amount of such securities from the
grantor trust for the purpose of providing cash proceeds to make such
distribution to such Participant. For purposes of this subsection (iv),
disability shall mean "Disability" as defined in any employment agreement in
effect between the applicable Participant and the Company or any Affiliate, or
if such Participant is not a party to an employment agreement in which
Disability is defined then, disability shall mean Participant's inability to
perform the essential duties, responsibilities and functions of his position
with the Company or any Affiliate as a result of any mental or physical
disability or incapacity even with reasonable accommodations of such disability
or incapacity provided by the Company or if providing such accommodations would
be unreasonable, all as determined by the Board of Directors in its reasonable
good faith judgment. Each Participant shall cooperate in all respects with the
Company if a question arises as to whether he has become disabled (including,
without limitation, submitting to an examination by a medical doctor or other
health care specialists selected by the Company and authorizing such medical
doctor or such other health care specialist to discuss Participant's condition
with the Company);

                (iv)  in the event that the Company has established a grantor
trust under Section 5.1, the assets of which consist entirely or in part of
securities issued by the Company (or an Affiliate of the Company), and if any of
such securities are redeemed by the Company (or such Affiliate) and the purpose
of such redemption is not to provide cash proceeds to make a distribution to any
particular Participant (whether pursuant to subsection (iv) or otherwise), a pro
rata portion of such redemption proceeds, up to the amount of his Account, will
be paid to each Participant, with his share being the proportion that his
Account hereunder bears to the aggregate Account of all Participants; or

                (v)   June 30, 2016.

                                        4
<Page>

Notwithstanding the above, as provided in Section 6.4, the Committee in its
discretion (which the Committee will not be obligated to exercise in any
instance or instances) may accelerate the distribution of the Account of any
Participant who has terminated employment to such date as the Committee
determines, and such distribution will be made on or as soon as administratively
practicable following such date.

         6.3   FORM OF DISTRIBUTION OF ACCOUNTS. Each Participant's Account will
be distributed to him in cash or in kind (as requested by the Participant,
provided that the Committee reserves the right to determine the form of
distribution in its sole discretion) in a lump sum payment. The lump sum
distribution will be made on the date provided in Section 6.2.

         6.4   INVOLUNTARY DISTRIBUTIONS. Notwithstanding the foregoing
provisions of this Article VI, the Committee may on its own initiative authorize
and direct the Company to distribute to any Participant (or to a designated
beneficiary in the event of the Participant's death) all or any portion of the
Participant's Account. Such payment would be specifically authorized and
directed in the event that there is a change in tax law, a published ruling or
similar announcement issued by the Internal Revenue Service, a regulation issued
by the Secretary of the Treasury, a decision by a court of competent
jurisdiction involving a Participant or a beneficiary, or a closing agreement
made under Section 7121 of the Code that is approved by the Internal Revenue
Service and involves a Participant, and the Committee determines that a
Participant has or will recognize income for federal income tax purposes with
respect to amounts deferred under this Plan prior to the time such amounts
otherwise would be paid to the Participant.

         6.5   DESIGNATION OF BENEFICIARIES. Each Participant may name any
Person (who may be named concurrently, contingently or successively) to whom the
Participant's Account under the Plan is to be paid if the Participant dies
before such Account is fully distributed. Each such beneficiary designation will
revoke all prior designations by the Participant, shall not require the consent
of any previously named beneficiary, shall be in a form prescribed by or
otherwise acceptable to the Committee and will be effective only when filed with
the Committee during the Participant's lifetime. If a Participant fails to
designate a beneficiary before his death, as provided above, or if the
beneficiary designated by a Participant dies before the date of the
Participant's death or before complete payment of the Participant's Account, the
Committee, in its discretion, may pay the Participant's Account to either (i)
one or more of the Participant's relatives by blood, adoption or marriage and in
such proportions as the Committee determines, or (ii) the legal representative
or representatives of the estate of the last to die of the Participant and his
designated beneficiary.

                                   ARTICLE VII
                            AMENDMENT AND TERMINATION

         7.1   AMENDMENT. The Company, in its discretion, shall have the right
to amend the Plan from time to time, except that no such amendment shall,
without the consent of the Participant to whom a Deferred Stock Bonus or other
deferred compensation has been credited to any Account under this Plan,
adversely affect the right of the Participant (or his beneficiary) to receive
payments of such deferred compensation under the terms of this Plan.

                                        5
<Page>

         7.2   PLAN TERMINATION. The Company may, in its discretion, terminate
the Plan at any time. However, no termination of this Plan shall alter the right
of a Participant (or his beneficiary) to payments of deferred compensation
previously credited to such Participant's Accounts under the Plan.
Notwithstanding the preceding sentence or Section 7.1, in connection with the
Plan's termination (or in any amendment adopted in connection with such
termination), as provided in Section 6.4, the Company may provide that each
Participant's Account under the Plan will be distributed as soon as may be
practicable to the Participant (or, if applicable, beneficiary).

                                  ARTICLE VIII
                               GENERAL PROVISIONS

         8.1   NON-ALIENATION OF BENEFITS. A Participant's rights to the amounts
credited to his Accounts under the Plan shall not be grantable, transferable,
pledgeable or otherwise assignable, in whole or in part, by the voluntary or
involuntary acts of any person, or by operation of law, and shall not be liable
or taken for any obligation of such person; PROVIDED that a Participant may
transfer to the Company such Participant's rights to the amounts credited to his
Accounts under the Plan. Any such attempted grant, transfer, pledge or
assignment contrary to the provisions of the prior sentence shall be null and
void and without any legal effect.

         8.2   WITHHOLDING FOR TAXES. Notwithstanding anything contained in this
Plan to the contrary, the Company (or any of its Affiliates) or the trustee
appointed under Article V, as appropriate, shall withhold from any distribution
made under the Plan such amount or amounts as may be required for purposes of
complying with the tax withholding provisions of the Code or any state income
tax act for purposes of paying any income, estate, inheritance or other tax
attributable to any amounts distributable or creditable under the Plan, or
otherwise require the Participant to contribute such amount in cash in the case
of an in-kind distribution.

         8.3   IMMUNITY OF COMMITTEE MEMBERS. The members of the Committee may
rely upon any information, report or opinion supplied to them by any officer of
the Company or any legal counsel, independent public accountant or actuary, and
shall be fully protected in relying in good faith upon any such information,
report or opinion. No member of the Committee shall have any liability to the
Company or any Participant, former Participant, designated beneficiary, person
claiming under or through any Participant or designated beneficiary or other
person interested or concerned in connection with any decision made by such
member of the Committee pursuant to the Plan which was based upon any such
information, report or opinion if such member of the Committee relied thereon in
good faith, or for any other action or omission of the Committee member made in
good faith in connection with the operation of this Plan.

         8.4   PLAN NOT TO AFFECT EMPLOYMENT RELATIONSHIP. Neither the adoption
of the Plan nor its operation shall in any way affect the right and power of the
Company or its Affiliates to dismiss or otherwise terminate the employment or
change the terms of the employment or amount of compensation of any Participant
at any time for any reason or without cause. By accepting any payment under this
Plan, each Participant, former Participant, designated beneficiary and each
Person claiming under or through such Person, shall be conclusively bound by any
action or decision taken or made under the Plan by the Committee.

                                        6
<Page>

         8.5   ASSUMPTION OF COMPANY LIABILITY. The obligations of the Company
under the Plan may be assumed by any Affiliate of the Company, in which case
such Affiliate shall be obligated to satisfy all of the Company's obligations
under the Plan, and the Company shall be released from any continuing obligation
under the Plan, provided however that the Company shall not be released from any
continuing obligation under the Plan to Participants with Accounts under the
Plan as of the date of such assignment. At the Company's request, a Participant
or designated beneficiary shall sign such documents as the Company may require
in order to effectuate the purposes of this Section.

         8.6   SUBORDINATION OF RIGHTS. At the Committee's request, each
Participant or designated beneficiary shall sign such documents as the Committee
may require in order to subordinate such Participant's or designated
beneficiary's rights under the Plan to the rights of such other creditors of the
Company as may be specified by the Committee.

         8.7   NOTICES. Any notice required to be given by the Company or the
Committee hereunder shall be in writing and shall be delivered in person or by
registered or certified mail, return receipt requested. Any notice given by
registered mail shall be deemed to have been given upon the date of registration
or certification by the Post Office, correctly addressed to the last known
address (as appearing in the records of the Committee or the Company) of the
person to whom such notice is to be given.

         8.8   GENDER AND NUMBER; HEADINGS. Wherever any words are used herein
in the masculine gender they shall be construed as though they were also used in
the feminine gender in all cases where they would so apply; and wherever any
words are used herein in the singular form they shall be construed as though
they were also used in the plural form in all cases where they would so apply.
Headings of sections and subsections of the Plan are inserted for convenience of
reference and are not part of the Plan and are not to be considered in the
construction thereof.

         8.9   CONTROLLING LAW. The Plan shall be construed in accordance with
the laws of the State of Delaware, to the extent not preempted by any applicable
federal law.

         8.10  SUCCESSORS. The Plan is binding on all Persons entitled to
benefits hereunder and their respective heirs and legal representatives, on the
Committee and its successor and on the Company and its Affiliates and their
successors, whether by way of merger, consolidation, purchase or otherwise.

         8.11  SEVERABILITY. If any provision of the Plan shall be held illegal
or invalid for any reason, such illegality or invalidity shall not affect the
remaining provisions of the Plan, and the Plan shall be enforced as if the
invalid provisions had never been set forth therein.

         8.12  ACTION BY COMPANY. Any action required or permitted by the
Company under the Plan shall be by resolution of its Board of Directors or by a
duly authorized committee of its Board of Directors, or by a person or persons
authorized by resolution of its Board of Directors or such committee.

         8.13  REVIEW OF BENEFIT DETERMINATIONS. If a claim for benefits made by
a Participant or his or her beneficiary is denied, the Committee shall within 90
days (or 180 days if special

                                        7
<Page>

circumstances require an extension of time) after the claim is made furnish the
person making the claim with a written notice specifying the reasons for the
denial. Such notice shall also refer to the pertinent Plan provisions on which
the denial is based, describe any additional material or information necessary
for properly completing the claim and explain why such material or information
is necessary, and explain the Plan's claim review procedures. If requested in
writing, the Committee shall afford each claimant whose claim has been denied a
full and fair review of the Committee's decision and, within 60 days (120 days
if special circumstances require additional time) of the request for
reconsideration of the denied claim, the Committee shall notify the claimant in
writing of the Committee's final decision.

                                    * * * * *

                                        8
<Page>

                                    EXHIBIT A

<Table>
<Caption>
              PARTICIPANT                          AMOUNT
              -----------                          ------
<S>                                             <C>
Norbert E. Woodhams, Sr.                        $ 2,790,000

Robert C. Naylor                                $ 2,070,000
</Table>

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