Document:

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                                                                    Exhibit 10.8

                                                                [Execution Copy]

                              EMPLOYMENT AGREEMENT

      THIS AGREEMENT made and entered into as of the 10th day of April, 2001, by
and among MICHAEL FOODS, INC., a Minnesota corporation (the "Company") BILL L.
GOUCHER (the "Executive") and for the purposes of Section 8 hereof, M-Foods
Holdings, Inc., a Delaware corporation and controlling entity of the Company
("Holdings").

      WHEREAS, Executive has served as President of an operating company
subsidiary of Michael Foods, Inc.; and

      WHEREAS, Company and Executive have agreed to enter into this Agreement
effective as of the date hereof.

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

      1. Employment and Duties. Company shall employ Executive to serve as
President of M.G. Waldbaum Company and in such capacity Executive shall perform
such duties as the bylaws provide and as the CEO of the Company may from time to
time determine.

      2. Term. This Agreement shall be effective as of the date hereof (the
"Effective Date") and shall continue until the second anniversary of a Change in
Control (as defined below), unless earlier terminated as provided herein (the
"Employment Period"). The Employment Period may be extended thereafter upon the
written agreement of the parties hereto.

      3. Annual Base Salary. For all services by Executive, the Company agrees
to pay to Executive an annual base salary of at least $275,000 (the "Annual Base
Salary").

      4. Additional Benefits and Working Facilities.

            a. Annual Bonus. During the Employment Period, the Executive shall
      participate in such bonus arrangements as may be approved by the
      Compensation Committee of the Board (the "Compensation Committee") (the
      aggregate of all payments made under such bonus arrangements being herein
      referred to as the "Annual Bonus"). Executive's aggregate bonus
      opportunity will be no less than 100% of Annual Base Salary and the
      "Target Bonus" will be no less than 62.5% of Annual Base Salary or greater
      as determined by the Compensation Committee. The Annual Bonus shall be
      paid within two and one-half months of the end of the fiscal year of the
      Company to which it relates.

            b. Other Benefits. Executive shall be entitled to participate in all
      compensation, incentive, employee benefit, welfare and other plans,
      practices, policies and programs and fringe benefits, including vacation
      policy (collectively, "Employee Benefit Plans") on a basis

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      no less favorable than that provided to any other executive officer of the
      Company.

            c. Expenses. The Company shall reimburse Executive for all
      reasonable expenses incurred by Executive in connection with the Company's
      business, including but not limited to, expenses of travel and
      entertainment, upon presentation of itemized statements therefor.

      5. Termination of Employment.

            a. Death or Disability. The Executive's employment shall terminate
      automatically upon the Executive's death during the Employment Period. If
      the Company determines in good faith that the Disability of the Executive
      has occurred during the Employment Period (pursuant to the definition of
      Disability set forth below), it may give to the Executive written notice
      in accordance with Section 12 of this Agreement of its intention to
      terminate the Executive's employment. In such event, the Executive's
      employment with the Company shall terminate effective on the 30th day
      after receipt of such notice by the Executive (the "Disability Effective
      Date"), provided that, within the 30 days after such receipt, the
      Executive shall not have returned to full-time performance of the
      Executive's duties. For purposes of this Agreement, "Disability" shall
      mean a determination by the Company in its sole discretion that Executive
      is unable to perform his job responsibilities as a result of chronic
      illness, physical, mental or any other disability for a period of six
      months or more.

            b. With or Without Cause. The Company may terminate the Executive's
      employment during the Employment Period with or without Cause. For
      purposes of this Agreement, "Cause" shall mean:

                  (i) the continued failure of the Executive to perform
            substantially the Executive's duties with the Company or one of its
            affiliates (other than any such failure resulting from incapacity
            due to physical or mental illness), after a written demand for
            substantial performance is delivered to the Executive by the Board
            which specifically identifies the manner in which the Board believes
            that the Executive has not substantially performed the Executive's
            duties, or

                  (ii) the willful engaging by the Executive in illegal conduct
            or gross misconduct which is materially and demonstrably injurious
            to the Company, or

                  (iii) conviction of a felony or guilty or nolo contendere plea
            by the Executive with respect thereto.

For purposes of this provision, no act or failure to act, on the part of the
Executive, shall be considered "willful" unless it is done, or omitted to be
done, by the Executive in bad faith or without reasonable belief that the
Executive's action or omission was in the best interests of the Company.

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Any act, or failure to act, based upon authority given pursuant to a resolution
duly adopted by the Board or upon the instructions of the Chief Executive
Officer (while the Executive does not serve as such) or based upon the advice of
counsel for the Company shall be conclusively presumed to be done, or omitted to
be done, by the Executive in good faith and in the best interests of the
Company. The cessation of employment of the Executive shall not be deemed to be
for Cause unless and until there shall have been delivered to the Executive a
copy of a resolution duly adopted by the affirmative vote of not less than 75%of
the entire membership of the Board (excluding the Executive) at a meeting of the
Board called and held for such purpose (after reasonable notice is provided to
the Executive and the Executive is given an opportunity, together with counsel,
to be heard before the Board) finding that, in the good faith opinion of the
Board, the Executive is guilty of the conduct described in subparagraph (i),
(ii) or (iii) above, and specifying the particulars thereof in detail.

            c. Good Reason. The Executive's employment may be terminated by the
      Executive for Good Reason. For purposes of this Agreement, "Good Reason"
      shall mean in the absence of a written consent of the Executive:

                  (i) upon, or in anticipation of, a Change in Control, the
            assignment to the Executive of any duties inconsistent with the
            Executive's title and position (including status, offices and
            reporting requirements), authority, duties or responsibilities as
            contemplated by Section 1 of this Agreement, or any other action by
            the Company which results in a diminution in such position,
            authority, duties or responsibilities, excluding for this purpose an
            isolated, insubstantial and inadvertent action not taken in bad
            faith and which is remedied by the Company promptly after receipt of
            notice thereof given by the Executive; provided that after a Change
            in Control the Company shall have the flexibility to appoint the
            Executive to a reporting relationship different from that which
            existed prior to the Change in Control, to make an immaterial change
            in Executive's duties, or to change the Executive's title provided
            that Executive shall not have a stature less than that of an
            operating company President, and it is understood that equivalent
            positions may have different titles;

                  (ii) any failure by the Company to comply with any of the
            provisions of Section 3 of this Agreement or the failure by the
            Company to increase such Annual Base Salary each year after a Change
            in Control by an amount which at least equals on a percentage basis,
            the mean average percentage increase in base salary for all
            employees similarly situated during the two full calendar years
            immediately preceding a Change in Control, other than an isolated,
            insubstantial and inadvertent failure not occurring in bad faith and
            which is remedied by the Company promptly after receipt of notice
            thereof given by the Executive;

                  (iii) the failure of the Company upon a Change in Control to
            (A) continue in effect any employee benefit plan, compensation plan,
            welfare benefit plan or material fringe benefit plan in which
            Executive is participating immediately prior to

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            such Change in Control or the taking of any action by the Company
            which would adversely affect Executive's participation in or reduce
            Executive's benefits under any such plan, unless Executive is
            permitted to participate in other plans providing Executive with
            substantially equivalent benefits, or (B) provide Executive with
            paid vacation in accordance with the most favorable past practice of
            the Company as in effect for Executive immediately prior to such
            Change in Control;

                  (iv) after, or in anticipation of, a Change in Control, any
            purported termination by the Company of the Executive's employment
            otherwise than as expressly permitted by this Agreement for Cause,
            death or Disability;

                  (v) any failure by the Company to comply with and satisfy
            Section 11(c) of this Agreement; or

                  (vi) after, or in anticipation of, a Change in Control, any
            requirement that the Executive (A) be based anywhere more than 50
            miles from the office where the Executive is currently located or
            (B) travel on Company business to an extent substantially greater
            than the Executive's current travel obligations.

            d. Notice of Termination. Any termination by the Company or by the
      Executive shall be communicated by Notice of Termination to the other
      party hereto given in accordance with Section 12(b) of this Agreement. For
      purposes of this Agreement, a "Notice of Termination" means a written
      notice which (i) indicates the specific termination provision in this
      Agreement relied upon, (ii) to the extent applicable, sets forth in
      reasonable detail the facts and circumstances claimed to provide a basis
      for termination of the Executive's employment under the provisions so
      indicated and (iii) if the Date of Termination (as defined below) is other
      than the date of receipt of such notice, specifies the termination date
      (which date shall be not more than 30 days after the giving of such
      notice). The failure by the Executive or the Company to set forth in the
      Notice of Termination any fact or circumstance which contributes to a
      showing of Good Reason or Cause shall not waive any right of the Executive
      or the Company, respectively, hereunder or preclude the Executive or the
      Company, respectively, from asserting such fact or circumstance in
      enforcing the Executive's or the Company's rights hereunder.

            e. Date of Termination. "Date of Termination" means (i) if the
      Executive's employment is terminated by the Company other than for
      Disability, the date of receipt of the Notice of Termination or any later
      date specified therein within 30 days of such notice, (ii) if the
      Executive's employment is terminated by reason of death or Disability, the
      date of death of the Executive or the Disability Effective Date, as the
      case may be, and (iii) if the Executive's employment is terminated by the
      Executive, 30 days after the giving of such notice by the Executive
      provided that the Company may elect to place the Executive on paid leave
      for all or any part of such 30-day period.

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            f. Change in Control. "Change in Control" means the consummation of
      a transaction, whether in a single transaction or in a series of related
      transactions that are consummated contemporaneously (or consummated
      pursuant to contemporaneous agreements), with any other party or parties
      on an arm's-length basis, pursuant to which (a) such party or parties,
      directly or indirectly, acquire (whether by merger, stock purchase,
      recapitalization, reorganization, redemption, issuance of capital stock or
      otherwise) more than 50% of the voting stock of the Company, (b) such
      party or parties, directly or indirectly, acquire assets constituting all
      or substantially all of the assets of the Company and its subsidiaries on
      a consolidated basis, or (c) prior to an initial public offering of the
      Company Common Stock pursuant to an offering registered under the 1933
      Act, Vestar Capital Partners IV, L.P. a Delaware limited partnership and
      its affiliates cease to have the ability to elect, directly or indirectly,
      a majority of the Board of Directors of the Company.

      6. Obligations of the Company upon Termination.

            a. Death or Disability. If, during the Employment Period the
      Executive's employment shall terminate on account of death or Disability:

                  (i) the Company shall pay to the Executive or his estate or
            beneficiaries in a lump sum in cash within 30 days after the Date of
            Termination the sum of (x) the Executive's Annual Base Salary
            through the Date of Termination to the extent not theretofore paid,
            and (y) the product of (1) the Target Bonus and (2) a fraction, the
            numerator of which is the number of whole and partial months in the
            fiscal year in which the Date of Termination occurs through the Date
            of Termination and the denominator of which is 12, to the extent not
            theretofore paid (the sum of the amounts described in clauses (x)
            and (y) shall be hereinafter referred to as the "Accrued
            Obligations");

                  (ii) to the extent not theretofore paid or provided, the
            Company shall timely pay or provide to the Executive or his estate
            or beneficiaries any other amounts or benefits required to be paid
            or provided or which the Executive is eligible to receive under any
            plan, program, policy or practice of or contract or agreement with
            the Company and its affiliated companies through the Date of
            Termination (such other amounts and benefits shall be hereinafter
            referred to as the "Other Benefits"); and

                  (iii) the Company shall pay to the Executive or his estate or
            beneficiaries in a lump sum in cash within 30 days after the Date of
            Termination an amount equal to the Executive's current Annual Base
            Salary.

            b. By the Company for Cause; By the Executive Other than for Good
      Reason. If the Executive's employment is terminated for Cause or the
      Executive terminates his

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      employment without Good Reason during the Employment Period, this
      Agreement shall terminate without further obligations to the Executive
      other than the obligation to pay to the Executive (i) his Annual Base
      Salary through the Date of Termination to the extent theretofore unpaid
      and (ii) the Other Benefits.

            c. By the Company Other than for Cause, Death or Disability; By the
      Executive for Good Reason. If, during the Employment Period, but prior to
      a Change in Control, the Executive's employment is terminated by the
      Executive for Good Reason or by the Company other than for Cause, and
      other than on account of death or Disability:

                  (i) the Company shall pay to the Executive in a lump sum in
            cash within 30 days after the Date of Termination the sum of:

                        (A) the amount of Executive's Annual Base Salary through
                  the Date of Termination to the extent not theretofore paid;
                  and

                        (B) an amount equal to the Executive's current Annual
                  Base Salary; and

                  (ii) the Company shall provide the Executive with the Other
            Benefits.

            d. After, or in Anticipation of a Change in Control By the Company
      Other than for Cause or By the Executive for Good Reason. If the
      Executive's employment shall be terminated by the Company other than for
      Cause or the Executive terminates his employment for Good Reason in
      anticipation of or within two years following a Change in Control:

                  (i) the Company shall pay to the Executive in a lump sum in
            cash within 30 days after the Date of Termination the sum of:

                        (A) the Accrued Obligations; and

                        (B) an amount equal to the product of (x) two and (y)
                  Executive's current Annual Base Salary; and

                  (ii) the Company shall provide the Executive with the Other
            Benefits.

      7. Noncompetition and Nonsolicitation. Executive acknowledges that in the
course of his employment with the Company he will become familiar with the
Company's and its subsidiaries' trade secrets and other confidential information
concerning the Company and such subsidiaries and that his services will be of
special, unique and extraordinary value to the Company and its subsidiaries.
Therefore, Executive agrees that:

            a. Noncompetition. During the period commencing on the Effective
      Date and

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      ending on the second anniversary of the date Executive's employment with
      the Company terminates (such period the "Restricted Period"), Executive
      shall not, for himself or on behalf of any other person, firm,
      partnership, corporation, or other entity, engage, directly or indirectly,
      as an executive, agent, representative, consultant, partner, shareholder
      or holder of any other financial interest, in any business that competes
      with the Company in the business of the production, distribution or sales
      of eggs or egg products (a "Competing Business"), it being understood and
      agreed that Executive shall not be in violation of this restriction where
      Executive is employed by a person, firm, partnership, corporation, or
      other entity engaged in a variety of activities, including the Competing
      Business, so long as Executive is not engaged in or responsible for the
      Competing Business of such entity. Nothing herein shall prohibit Executive
      from being a passive owner of not more than 2% of the outstanding publicly
      traded stock of any class of a Competing Business so long as Executive has
      no active participation in the business of such entity, except to the
      extent permitted above. Executive acknowledges that this Agreement, and
      specifically, this Section 7, does not preclude Executive from earning a
      livelihood, nor does it unreasonably impose limitations on Executive's
      ability to earn a living. In addition, Executive agrees and acknowledges
      that the potential harm to the Company of its non-enforcement outweighs
      any harm to Executive of its enforcement by injunction or otherwise.

            b. Nonsolicitation. During the Restricted Period, Executive shall
      not directly or indirectly through another entity (i) induce or attempt to
      induce any employee of the Company or its subsidiaries to leave the employ
      of the Company or its subsidiaries, or in any way interfere with the
      relationship between the Company or any of its subsidiaries and any
      employee thereof, (ii) knowingly hire any person who was an employee of
      the Company or any of its subsidiaries within 180 days prior to the time
      such employee was hired by Executive, (iii) induce or attempt to induce
      any customer, supplier, licensee or other business relation of the Company
      or any of its subsidiaries to cease doing business with the Company or its
      subsidiaries or in any way interfere with the relationship between any
      such customer, supplier, licensee or business relation and the Company or
      any subsidiary or (iv) directly or indirectly acquire or attempt to
      acquire an interest in any business relating to the business of the
      Company or any of its subsidiaries and with which the Company or any of
      its subsidiaries has entertained discussions or has requested and received
      information relating to the acquisition of such business by the Company or
      its subsidiaries in the one-year period immediately preceding Executive's
      termination of employment with the Company.

            c. Enforcement. The parties to this Agreement hereby agree and
      stipulate that (i) the restrictions contained in this Agreement are
      reasonable and necessary in order to protect the Company's and its
      subsidiaries' legitimate business interests and (ii) in the event of any
      breach or violation of this Agreement or of any provision hereof by
      Executive, the Company and its subsidiaries will have no adequate remedy
      at law and will suffer irreparable loss and damage thereby. The parties
      hereby further agree and stipulate that in the event of any such breach or
      violation, either threatened or actual, the Company's and its
      subsidiaries' rights shall include, in addition to any and all other
      rights available to the Company and its

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      subsidiaries at law or in equity, the right to seek and obtain any and all
      injunctive relief or restraining orders available to it in courts of
      proper jurisdiction, so as to prohibit, bar, and restrain any and all such
      breaches or violations by Executive. The prevailing party to any legal
      action, arbitration or other proceeding commenced in connection with
      enforcing any provision of this Section 7, including without limitation,
      obtaining the injunctive relief provided by this Section 7 shall be
      entitled to recover all court costs, reasonable attorneys' fees, and
      related expenses incurred by such party. Executive further agrees that no
      bond need be filed in connection with any request by the Company and its
      subsidiaries for a temporary restraining order or for temporary or
      preliminary injunctive relief.

            d. Additional Acknowledgments. Executive acknowledges that the
      provisions of this Section 7 are in consideration of: (i) employment with
      the Company, (ii) the issuance by M- Foods Investors, LLC, a Delaware
      corporation and affiliate of the Company ("Investors"), to Executive of
      Investors' Class B Units (the "Class B Units") and Investors' Class C
      Units pursuant to the terms of that certain Management Stock Purchase and
      Unit Subscription Agreement, dated as of the date hereof, by and between
      Investors and Executive (the "Management Stock Purchase and Unit
      Subscription Agreement"), and (iii) additional good and valuable
      consideration as set forth in this Agreement. In addition, Executive
      acknowledges (i) that the business of the Company and its subsidiaries is
      national in scope and without geographical limitation and (ii)
      notwithstanding the state of incorporation or principal office of the
      Company or any of its subsidiaries, or any of their respective executives
      or employees (including the Executive), it is expected that the Company
      will have business activities and have valuable business relationships
      within its industry throughout the United States. Executive acknowledges
      that he has carefully read this Agreement and has given careful
      consideration to the restraints imposed upon Executive by this Agreement,
      and is in full accord as to their necessity for the reasonable and proper
      protection of confidential and proprietary information of the Company and
      its subsidiaries now existing or to be developed in the future. Executive
      expressly acknowledges and agrees that each and every restraint imposed by
      this Agreement is reasonable with respect to subject matter, time period
      and geographical area.

      8. Deferral of Certain Compensation. In connection with the Executive's
agreement to cancel all of his options to acquire Company Common Stock pursuant
to the terms of that certain Option Cancellation Agreement, dated as of the date
hereof, by and between the Executive and the Company, the Company shall (a) pay
to Executive an amount equal to $394,052.60 (the "Cancellation Payment") and (b)
rollover an amount equal to $1,440,000 (the "Deferred Amount") to an unfunded,
unsecured nonqualified deferred compensation arrangement established for this
purpose (the "Deferred Account"). Each of the Executive, the Company and
Holdings agrees that Holdings, through an intercompany transfer, shall assume
all obligations associated with the Deferred Amount. The Cancellation Payment
shall be paid by the Company to the Executive on the Effective Date, or as soon
as reasonably practicable thereafter.

      With respect to the Deferred Account, the Deferred Amount shall be deemed
to be invested

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(i.e., an actual investment will not be made), as of the Effective Date, in (A)
14,400 Class A Units of Investors (the "Investors A Units") and (B) 14,400 Class
A Units (the "Dairy A Units") of M-Foods Dairy Holdings, LLC, a Delaware limited
liability company ("Dairy Holdings"). Holdings shall credit Executive's Deferred
Account with certain of the distributions that would be received by the Deferred
Account if such Deferred Account were actually invested in the manner set forth
in the preceding sentence in Investors A Units and Dairy A Units, the extent of
such crediting to be in accordance with the calculations set forth in the
following two paragraphs. All amounts in the Executive's Deferred Account shall
be subject to the claims of the creditors of Holdings.

      With respect to the Investors A Units, Holdings shall credit Executive's
Deferred Account with any distributions made in respect of such Investors A
Units pursuant to or in accordance with Sections 4.4(a)(i) and 4.4(a)(ii) of the
Investors' Amended and Restated Limited Liability Company Agreement, dated April
10, 2001 (the "Investors LLC Agreement"). In the event Investors distributes
non-cash property to holders of Investors A Units pursuant to Sections 4.4(a)(i)
or 4.4(a)(ii) of the Investors LLC Agreement, Holdings shall credit Executive's
Deferred Account in an amount equal to the fair market value of such property,
as determined by the Management Committee of Investors. Executive's Deferred
Account shall not be credited with any distributions made in respect of
Investors A Units pursuant to or in accordance with any subsections of Section
4.4 of the Investors LLC Agreement other than Sections 4.4(a)(i) and 4.4(a)(ii)
thereof. In the event that Investors A Units are sold by one or more holders of
Investors A Units to a buyer unrelated on the date hereof to the holders of
Investors A Units, Holdings shall credit Executive's Deferred Account with an
amount equal to the result of (x) the percentage of outstanding Investors A
Units being purchased by an unrelated buyer (including, for purposes of this
percentage calculation, the number of Investors A Units deemed held by the
Deferred Account and any other unfunded, unsecured nonqualified deferred
compensation arrangements similarly established to be deemed to hold Investors A
Units) multiplied by (y) the number of Investors A Units deemed held in the
Deferred Account multiplied by (z) the lesser of (i) the amount of cash or fair
market value of any property, as determined by the Management Committee of
Investors, received by holders of Investors A Units in exchange for an Investors
A Unit and (ii) the sum of the Unreturned Capital and Unpaid Preferred Return
(as such terms are defined in the Investors LLC Agreement) of an Investors A
Unit (assuming such Investors A Unit was issued on the Closing Date, as such
term is defined in the Executive's Management Stock Purchase and Unit
Subscription Agreement); it being understood and agreed that any distribution
made pursuant to this sentence shall, with respect to future distributions,
reduce the number of Investors A Units deemed held by the Deferred Account by
the percentage described in subclause (x) of this sentence.

      With respect to the Dairy A Units, Holdings shall credit Executive's
Deferred Account with any distributions made in respect of such Dairy A Units
pursuant to or in accordance with Sections 4.4(a)(ii) and 4.4(a)(iii) of the
Limited Liability Company Agreement of Dairy Holdings, dated April 10, 2001 (the
"Dairy Holdings LLC Agreement"). In the event Dairy Holdings distributes
non-cash property to holders of Dairy A Units pursuant to Sections 4.4(a)(ii) or
4.4(a)(iii) of the Dairy Holdings LLC Agreement, Holdings shall credit
Executive's Deferred Account in an amount equal to the fair market value of such
property, as determined by the Management Committee of Dairy

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Holdings. Executive's Deferred Account shall not be credited with any
distributions made in respect of Dairy A Units pursuant to or in accordance with
any subsections of Section 4.4 of the Dairy Holdings LLC Agreement other than
Sections 4.4(a)(ii) and 4.4(a)(iii) thereof. In the event that Dairy A Units are
sold by one or more holders of Dairy A Units to a buyer unrelated on the date
hereof to the holders of Dairy A Units, Holdings shall credit Executive's
Deferred Account with an amount equal to the result of (x) the percentage of
outstanding Dairy A Units being purchased by an unrelated buyer (including, for
purposes of this percentage calculation, the number of Dairy A Units deemed held
by the Deferred Account and any other unfunded, unsecured nonqualified deferred
compensation arrangements similarly established to be deemed to hold Dairy A
Units) multiplied by (y) the number of Dairy A Units deemed held in the Deferred
Account multiplied by (z) the lesser of (i) the amount of cash or fair market
value of any property, as determined by the Management Committee of Dairy
Holdings, received by holders of Dairy A Units in exchange for a Dairy A Unit
and (ii) the sum of the Unreturned Capital and Unpaid Preferred Return (as such
terms are defined in the Dairy Holdings LLC Agreement) of a Dairy A Unit
(assuming such Dairy A Unit was issued on the Closing Date, as such term is
defined in the Dairy Unit Subscription Agreement, dated as of the date hereof,
between Dairy Holdings and the Executive (the "Dairy Unit Subscription
Agreement")); it being understood and agreed that any distribution made pursuant
to this sentence shall, with respect to future distributions, reduce the number
of Dairy A Units deemed held by the Deferred Account by the percentage described
in subclause (x) of this sentence.

      Executive shall receive from Holdings distributions from his Deferred
Account, in the amount indicated, upon the occurrence of the following events:
(i) upon a Change in Control, Executive shall receive a total distribution of
the amount then deemed held in the Deferred Account; (ii) upon the tenth
anniversary of the date hereof, Executive shall receive a total distribution of
the amount then deemed held in the Deferred Account; (iii) upon the purchase by
Investors of any of Executive's Class B Units pursuant to Section 7.2 of the
Executive's Management Stock Purchase and Unit Subscription Agreement, Executive
shall receive a distribution from the Deferred Account equal to the result of
(x) the percentage of Executive's Class B Units being purchased by Investors
multiplied by (y) the number of Investors A Units deemed held in the Deferred
Account multiplied by (z) the lesser of (A) the fair market value of an
Investors A Unit, as determined by the Management Committee of Investors and (B)
the sum of the Unreturned Capital and Unpaid Preferred Return (as such terms are
defined in the Investors LLC Agreement) of an Investors A Unit (assuming such
Investors A Unit was issued on the Closing Date, as such term is defined in the
Executive's Management Stock Purchase and Unit Subscription Agreement); it being
understood and agreed that any distribution made pursuant to clause (iii) of
this sentence shall, with respect to future distributions, reduce the number of
Investors A Units deemed held by the Deferred Account by the percentage
described in subclause (x) of such clause (iii); and (iv) upon the purchase by
Dairy Holdings of any of Executive's Class B Units pursuant to Section 7.2 of
the Executive's Dairy Unit Subscription Agreement, Executive shall receive a
distribution from the Deferred Account equal to the result of (x) the percentage
of Executive's Class B Units being purchased by Dairy Holdings multiplied by (y)
the number of Dairy A Units deemed held in the Deferred Account multiplied by
(z) the lesser of (A) the fair market value of a Diary A Unit, as determined by
the Management Committee of Dairy Holdings and (B) the sum of the Unreturned
Capital and Unpaid Preferred

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Return (as such terms are defined in the Dairy Holdings LLC Agreement) of a
Dairy A Unit (assuming such Dairy A Unit was issued on the Closing Date, as such
term is defined in the Executive's Dairy Unit Subscription Agreement); it being
understood and agreed that any distribution made pursuant to clause (iv) of this
sentence shall, with respect to future distributions, reduce the number of Dairy
A Units deemed held by the Deferred Account by the percentage described in
subclause (x) of such clause (iv). The form of payment made with respect to any
of the foregoing distributions shall be a cash payment except that (1) in the
event of a Change in Control in which the consideration effecting such Change in
Control is non-cash consideration, such distribution may be made in the form of
such non-cash consideration, the fair market value of which shall be determined
by the Management Committee of Investors, and (2) in the event of a distribution
of the type described in clause (iii) or (iv) above, if, with respect to
Holdings, any of the Cash Deferral Conditions (as such term is defined in the
Executive's Management Stock Purchase and Unit Subscription Agreement) exists,
the portion of the cash payment so affected may be made by the delivery of
Holdings' unfunded and unsecured promise to pay Executive the portion of the
cash payment so affected in cash, together with interest, at the first date on
which the Cash Deferral Conditions no longer exist. The interest on such delayed
cash payment will accrue annually at the "prime rate" published by The Wall
Street Journal on the date Holdings delivers its unfunded and unsecured promise.

      9. Non-exclusivity of Rights. Nothing in this Agreement shall prevent or
limit the Executive's continuing or future participation in any plan, program,
policy or practice provided by the Company or any of its affiliated companies
and for which the Executive may qualify, nor shall anything herein limit or
otherwise affect such rights as the Executive may have under any contract or
agreement with the Company or any of its affiliated companies. Amounts which are
vested benefits or which the Executive is otherwise entitled to receive under
any plan, policy, practice or program of or any contract or agreement with the
Company or any of its affiliated companies at or subsequent to the Date of
Termination shall be payable in accordance with such plan, policy, practice,
program, contract or agreement except as explicitly modified by this Agreement;
provided that the Executive shall not be eligible for severance benefits under
any other program or policy of the Company.

      10. Full Settlement. The Company's obligation to make the payments
provided for in this Agreement and otherwise to perform its obligations
hereunder shall not be affected by any set-off, counterclaim, recoupment,
defense or other claim, right or action which the Company may have against the
Executive or others. In no event shall the Executive be obligated to seek other
employment or take any other action by way of mitigation of the amounts payable
to the Executive under any of the provisions of this Agreement, and such amounts
shall not be reduced whether or not the Executive obtains other employment. The
Company agrees to pay as incurred, to the full extent permitted by law, all
legal fees and expenses which the Executive may reasonably incur as a result of
any contest (regardless of the outcome thereof) pursued or defended against in
good faith by the Executive regarding the validity or enforceability of, or
liability under, any provision of this Agreement or any guarantee of performance
thereof (including as a result of any contest by the Executive about the amount
of any payment pursuant to this Agreement), plus in each case interest

                                      -11-
<PAGE>

on any delayed payment at the applicable Federal rate provided for in Section
7872(f)(2)(A) of the Code.

      11. Successors.

            a. This Agreement is personal to the Executive and without the prior
      written consent of the Company shall not be assignable by the Executive
      otherwise than by will or the laws of descent and distribution. This
      Agreement shall inure to the benefit of and be enforceable by the
      Executive's legal representatives.

            b. This Agreement shall inure to the benefit of and be binding upon
      the Company and its successors and assigns.

            c. The Company will require any successor (whether direct or
      indirect, by purchase, merger, consolidation or otherwise) to all or
      substantially all of the business and/or assets of the Company to assume
      expressly and agree to perform this Agreement in the same manner and to
      the same extent that the Company would be required to perform it if no
      such succession had taken place. As used in this Agreement, "Company"
      shall mean the Company as hereinbefore defined and any successor to its
      business and/or assets as aforesaid.

      12. Miscellaneous.

            a. This Agreement shall be governed by and construed in accordance
      with the laws of the State of Minnesota, without reference to principles
      of conflict of laws. The captions of this Agreement are not part of the
      provisions hereof and shall have no force or effect. This Agreement may
      not be amended or modified otherwise than by a written agreement executed
      by the parties hereto or their respective successors and legal
      representatives.

            b. All notices and other communications hereunder shall be in
      writing and shall be given by hand delivery to the other party or by
      registered or certified mail, return receipt requested, postage prepaid,
      addressed as follows:

                   If to the Executive:

                   Bill L. Goucher
                   3060 Quinwood Lane
                   Plymouth, MN 55441

                   If to the Company:

                   Michael Foods, Inc.
                   5353 Wayzata Boulevard

                                      -12-
<PAGE>

                   324 Park National Bank Building
                   Minneapolis, Minnesota 55416
                   Attention: Secretary

                   with a copy to:

                   Vestar Capital Partners IV, L.P.
                   245 Park Avenue
                   41st Floor
                   New York, NY 10167
                   Attention: General Counsel

or to such other address as either party shall have furnished to the other in
writing in accordance herewith. Notice and communications shall be effective
when actually received by the addressee.

            c. Whenever possible, each provision of this Agreement will be
      interpreted in such manner as to be effective and valid under applicable
      law, but if any provision of this Agreement is held to be invalid, illegal
      or unenforceable in any respect under any applicable law or rule in any
      jurisdiction, such invalidity, illegality or unenforceability will not
      affect any other provision or any other jurisdiction, but this Agreement
      will be reformed, construed and enforced in such jurisdiction as if such
      invalid, illegal or unenforceable provision had never been contained
      herein.

            d. The Company may withhold from any amounts payable under this
      Agreement such Federal, state, local or foreign taxes as shall be required
      to be withheld pursuant to any applicable law or regulation.

            e. The Executive's or the Company's failure to insist upon strict
      compliance with any provision of this Agreement or the failure to assert
      any right the Executive or the Company may have hereunder, including,
      without limitation, the right of the Executive to terminate employment for
      Good Reason pursuant to Section 5(c) of this Agreement, shall not be
      deemed to be a waiver of such provision or right or any other provision or
      right of this Agreement.

            f. From and after the Effective Date this Agreement shall supersede
      any other employment agreement between the parties with respect to the
      subject matter hereof.

            g. Subject to the provisions of Section 5(d), there shall be no
      limitation on the ability of the Company to terminate the Executive at any
      time with or without Cause.

                                    * * * * *

                                      -13-
<PAGE>

      IN WITNESS WHEREOF, the Executive has hereunto set the Executive's hand
and, pursuant to the authorization from its Board of Directors, the Company has
caused these presents to be executed in its name on its behalf, all as of the
day and year first above written.

                                  ______________________________________________
                                  Bill L. Goucher

                                  MICHAEL FOODS, INC.

                                  By:___________________________________________

                                  Title:________________________________________

                                  M-FOODS HOLDINGS, INC.

                                  By:___________________________________________

                                  Title:________________________________________<PAGE>
                                                                    Exhibit 10.9

                                                                [Execution Copy]

                               MICHAEL FOODS, INC.

                                  SEVERANCE AND
                              DEFERRED COMPENSATION
                                    AGREEMENT

      AGREEMENT, made effective April 10, 2001, by and among Michael Foods,
Inc., a Minnesota corporation (the "Company"), James Mohr ("Employee") and, for
purposes of Section 4 hereof, M-Foods Holdings, Inc., a Delaware corporation
("Holdings").

                             Preliminary Statements:

1.    The Company considers the establishment and maintenance of a sound and
      vital management team essential to protecting and enhancing its best
      interest and the best interests of the Company's shareholders.

2.    In this connection, the Company recognizes that the possibility of a
      change in control of the Company exists and that such possibility and the
      uncertainty and questions which it may raise among management personnel,
      may result in the departure or distraction of such personnel to the
      detriment of the Company and the Company's shareholders.

3.    Accordingly, the Company has adopted a Severance Plan for Eligible
      Employees of Michael Foods, Inc. and its subsidiaries, as amended (the
      "Plan"), and the Board of Directors of the Company ("Board") has directed
      management of the Company to implement such Plan.

4.    In addition, the Company recognizes the Employee's substantial
      contribution to the growth and success of the Company and for this reason
      has decided to make certain changes in the Employee's compensation
      arrangements, which the Board has determined will reinforce and encourage
      the continued attention and dedication to the Company of the Employee as a
      member of the Company's senior management in the best interests of the
      Company and its shareholders.

NOW, THEREFORE, in consideration of the mutual covenants and conditions
contained herein and in order to induce Employee to remain in the Company's
employ, the parties hereto hereby agree as follows:

1.    Participation in Plan. Employee is hereby designated a "Key Employee" for
      purposes of the Plan and is eligible for the severance benefits provided
      therein. Such benefits shall be in lieu of any further salary payments to
      Employee for periods subsequent to termination of employment, to the
      extent Employee becomes eligible for such severance payments by reason of
      termination of employment.

<PAGE>

2.    Term. This Agreement shall commence on the date hereof and shall continue
      in effect until the Plan has been terminated. From and after the date
      hereof, this Agreement shall supersede any other agreement between the
      parties hereto with respect to the subject matter hereof.

3.    Plan. This Agreement hereby incorporates by reference the terms(1) and
      conditions of the Plan which shall be binding upon Employee.

4.    Deferral of Certain Compensation. In connection with the Employee's
      agreement to cancel all of his options to acquire Company Common Stock
      pursuant to the terms of that certain Option Cancellation Agreement, dated
      as of the date hereof, by and between the Employee and the Company, the
      Company shall (a) pay to Employee an amount equal to $129,990 (the
      "Cancellation Payment") and (b) rollover an amount equal to $384,000 (the
      "Deferred Amount") to an unfunded, unsecured nonqualified deferred
      compensation arrangement established for this purpose (the "Deferred
      Account"). Each of the Employee, the Company and Holdings agrees that
      Holdings, through an intercompany transfer, shall assume all obligations
      associated with the Deferred Amount. The Cancellation Payment shall be
      paid by the Company to the Employee on the Effective Date, or as soon as
      reasonably practicable thereafter.

      With respect to the Deferred Account, the Deferred Amount shall be deemed
      to be invested (i.e., an actual investment will not be made), as of the
      Effective Date, in (A) 3,840 Class A Units (the "Investors A Units") of
      M-Foods Investors, LLC, a Delaware limited liability company ("Investors")
      and (B) 3,840 Class A Units (the "Dairy A Units") of M-Foods Dairy
      Holdings, LLC, a Delaware limited liability company ("Dairy Holdings").
      Holdings shall credit Employee's Deferred Account with certain of the
      distributions that would be received by the Deferred Account if such
      Deferred Account were actually invested in the manner set forth in the
      preceding sentence in Investors A Units and Dairy A Units, the extent of
      such crediting to be in accordance with the calculations set forth in the
      following two paragraphs. All amounts in the Employee's Deferred Account
      shall be subject to the claims of the creditors of Holdings.

      With respect to the Investors A Units, Holdings shall credit Employee's
      Deferred Account with any distributions made in respect of such Investors
      A Units pursuant to or in accordance with Sections 4.4(a)(i) and
      4.4(a)(ii) of the Investors' Amended and Restated Limited Liability
      Company Agreement, dated April 10, 2001 (the "Investors LLC Agreement").
      In the event Investors distributes non-cash property to holders of
      Investors A Units pursuant to Sections 4.4(a)(i) or 4.4(a)(ii) of the
      Investors LLC Agreement, Holdings shall credit Employee's Deferred Account
      in an amount equal to the fair market value of such property, as
      determined by the Management Committee of Investors. Employee's Deferred
      Account shall not be credited with any distributions made in respect of
      Investors A Units pursuant to or in accordance with any subsections of
      Section 4.4 of the Investors LLC Agreement other than Sections 4.4(a)(i)
      and 4.4(a)(ii) thereof. In the event that Investors A Units are sold by

------------

(1) All definitions contained herein will be conformed to substantially mirror,
as appropriate, the definitions contained in (the "Management Stock Purchase and
Unit Subscription Agreement").

<PAGE>

      one or more holders of Investors A Units to a buyer unrelated on the date
      hereof to the holders of Investors A Units, Holdings shall credit
      Employee's Deferred Account with an amount equal to the result of (x) the
      percentage of outstanding Investors A Units being purchased by an
      unrelated buyer (including, for purposes of this percentage calculation,
      the number of Investors A Units deemed held by the Deferred Account and
      any other unfunded, unsecured nonqualified deferred compensation
      arrangements similarly established to be deemed to hold Investors A Units)
      multiplied by (y) the number of Investors A Units deemed held in the
      Deferred Account multiplied by (z) the lesser of (i) the amount of cash or
      fair market value of any property, as determined by the Management
      Committee of Investors, received by holders of Investors A Units in
      exchange for an Investors A Unit and (ii) the sum of the Unreturned
      Capital and Unpaid Preferred Return (as such terms are defined in the
      Investors LLC Agreement) of an Investors A Unit (assuming such Investors A
      Unit was issued on the Closing Date, as such term is defined in the
      Employee's Management Stock Purchase and Unit Subscription Agreement,
      dated as of the date hereof, by and between the Employee and Investors
      (the "Management Stock Purchase and Unit Subscription Agreement")); it
      being understood and agreed that any distribution made pursuant to this
      sentence shall, with respect to future distributions, reduce the number of
      Investors A Units deemed held by the Deferred Account by the percentage
      described in subclause (x) of this sentence.

      With respect to the Dairy A Units, Holdings shall credit Employee's
      Deferred Account with any distributions made in respect of such Dairy A
      Units pursuant to or in accordance with Sections 4.4(a)(ii) and
      4.4(a)(iii) of the Limited Liability Company Agreement of Dairy Holdings,
      dated April 10, 2001 (the "Dairy Holdings LLC Agreement"). In the event
      Dairy Holdings distributes non-cash property to holders of Dairy A Units
      pursuant to Sections 4.4(a)(ii) or 4.4(a)(iii) of the Dairy Holdings LLC
      Agreement, Holdings shall credit Employee's Deferred Account in an amount
      equal to the fair market value of such property, as determined by the
      Management Committee of Dairy Holdings. Employee's Deferred Account shall
      not be credited with any distributions made in respect of Dairy A Units
      pursuant to or in accordance with any subsections of Section 4.4 of the
      Dairy Holdings LLC Agreement other than Sections 4.4(a)(ii) and
      4.4(a)(iii) thereof. In the event that Dairy A Units are sold by one or
      more holders of Dairy A Units to a buyer unrelated on the date hereof to
      the holders of Dairy A Units, Holdings shall credit Employee's Deferred
      Account with an amount equal to the result of (x) the percentage of
      outstanding Dairy A Units being purchased by an unrelated buyer
      (including, for purposes of this percentage calculation, the number of
      Dairy A Units deemed held by the Deferred Account and any other unfunded,
      unsecured nonqualified deferred compensation arrangements similarly
      established to be deemed to hold Dairy A Units) multiplied by (y) the
      number of Dairy A Units deemed held in the Deferred Account multiplied by
      (z) the lesser of (i) the amount of cash or fair market value of any
      property, as determined by the Management Committee of Dairy Holdings,
      received by holders of Dairy A Units in exchange for a Dairy A Unit and
      (ii) the sum of the Unreturned Capital and Unpaid Preferred Return (as
      such terms are defined in the Dairy Holdings LLC Agreement) of a Dairy A
      Unit (assuming such Dairy A Unit was issued on the Closing Date, as such
      term is defined in the Dairy Unit Subscription Agreement, dated as of the
      date hereof, between Dairy Holdings and the Employee (the "Dairy Unit
      Subscription

<PAGE>

      Agreement")); it being understood and agreed that any distribution made
      pursuant to this sentence shall, with respect to future distributions,
      reduce the number of Dairy A Units deemed held by the Deferred Account by
      the percentage described in subclause (x) of this sentence.

      Employee shall receive from Holdings distributions from his Deferred
      Account, in the amount indicated, upon the occurrence of the following
      events: (i) upon a Change in Control, Employee shall receive a total
      distribution of the amount then deemed held in the Deferred Account; (ii)
      upon the tenth anniversary of the date hereof, Employee shall receive a
      total distribution of the amount then deemed held in the Deferred Account;
      (iii) upon the purchase by Investors of any of Employee's Class B Units
      pursuant to Section 7.2 of the Employee's Management Stock Purchase and
      Unit Subscription Agreement, Employee shall receive a distribution from
      the Deferred Account equal to the result of (x) the percentage of
      Employee's Class B Units being purchased by Investors multiplied by (y)
      the number of Investors A Units deemed held in the Deferred Account
      multiplied by (z) the lesser of (A) the fair market value of an Investors
      A Unit, as determined by the Management Committee of Investors and (B) the
      sum of the Unreturned Capital and Unpaid Preferred Return (as such terms
      are defined in the Investors LLC Agreement) of an Investors A Unit
      (assuming such Investors A Unit was issued on the Closing Date, as such
      term is defined in the Employee's Management Stock Purchase and Unit
      Subscription Agreement); it being understood and agreed that any
      distribution made pursuant to clause (iii) of this sentence shall, with
      respect to future distributions, reduce the number of Investors A Units
      deemed held by the Deferred Account by the percentage described in
      subclause (x) of such clause (iii); and (iv) upon the purchase by Dairy
      Holdings of any of Employee's Class B Units pursuant to Section 7.2 of the
      Employee's Dairy Unit Subscription Agreement, Employee shall receive a
      distribution from the Deferred Account equal to the result of (x) the
      percentage of Employee's Class B Units being purchased by Dairy Holdings
      multiplied by (y) the number of Dairy A Units deemed held in the Deferred
      Account multiplied by (z) the lesser of (A) the fair market value of a
      Diary A Unit, as determined by the Management Committee of Dairy Holdings
      and (B) the sum of the Unreturned Capital and Unpaid Preferred Return (as
      such terms are defined in the Dairy Holdings LLC Agreement) of a Dairy A
      Unit (assuming such Dairy A Unit was issued on the Closing Date, as such
      term is defined in the Employee's Dairy Unit Subscription Agreement); it
      being understood and agreed that any distribution made pursuant to clause
      (iv) of this sentence shall, with respect to future distributions, reduce
      the number of Dairy A Units deemed held by the Deferred Account by the
      percentage described in subclause (x) of such clause (iv). The form of
      payment made with respect to any of the foregoing distributions shall be a
      cash payment except that (1) in the event of a Change in Control in which
      the consideration effecting such Change in Control is non-cash
      consideration, such distribution may be made in the form of such non-cash
      consideration, the fair market value of which shall be determined by the
      Management Committee of Investors, and (2) in the event of a distribution
      of the type described in clause (iii) or (iv) above, if, with respect to
      Holdings, any of the Cash Deferral Conditions (as such term is defined in
      the Employee's Management Stock Purchase and Unit Subscription Agreement)
      exists, the portion of the cash payment so affected may be made by the
      delivery of Holdings' unfunded and unsecured promise to pay Employee the
      portion of the cash payment so affected in cash,

<PAGE>

      together with interest, at the first date on which the Cash Deferral
      Conditions no longer exist. The interest on such delayed cash payment will
      accrue annually at the "prime rate" published by The Wall Street Journal
      on the date Holdings delivers its unfunded and unsecured promise.

5.    Binding Agreement. This Agreement shall inure to the benefit of and be
      enforceable by the Employee's personal or legal representatives,
      executors, administrators, successors, heirs, distributes, devisees and
      legatees. If the Employee should die while any amounts would still be
      payable to the Employee hereunder if the Employee had continued to live,
      all such amounts, unless otherwise provided herein, shall be paid in
      accordance with the terms of this Agreement to the Employee's devisee,
      legatee, or other designee or, if there be no such designee, to the
      Employee's estate.

6.    Notice. For the purpose of this Agreement, notices and all other
      communications provided for herein shall be in writing and shall be deemed
      to have been duly given when personally delivered, telecopied (with
      confirmation of receipt), one day after deposit with a reputable overnight
      delivery service (charges prepaid) and three days after deposit in the
      U.S. Mail (postage prepaid and return receipt requested) to, if to the
      Company, the address then- provided by the Company as its corporate
      headquarters and, if to the Employee, the address shown on the unit
      register of Investors.

7.    Employee at Will. Nothing in this Agreement or in the Plan shall be
      construed as to make the Employee anything other than an Employee at Will
      of the Company. The Company may terminate the Employee's employment with
      or without cause, however defined, either before or after a Change in
      Control as defined in the Plan.

8.    Miscellaneous. No provisions of this Agreement may be modified, waived, or
      discharged unless such waiver, modification or discharge is agreed to in
      writing and signed by the Employee and such officer as may be authorized
      by the Board. No waiver by either party hereto, at any time of any breach
      by the other party hereto of or compliance with any condition or provision
      of this Agreement to be performed by such other party, shall be deemed a
      waiver of similar or dissimilar provisions or conditions at the same, or
      at any prior or subsequent, time. No agreements or representations, oral
      or otherwise, express or implied, with respect to the subject matter
      hereof have been made by either party which are not set forth expressly in
      this Agreement. It is intended that the benefits payable hereunder shall
      be considered paid to the Employee for the Employee's past services to the
      Company and continuing services from the date hereof.

9.    Validity. The invalidity or unenforceability of any provisions of this
      Agreement shall not affect the validity or enforceability of any other
      provisions of this Agreement, which shall remain in full force and effect.
      The validity of this Agreement and the interpretation thereof shall be
      governed by and construed in accordance with the laws of the State of
      Minnesota.

<PAGE>

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

                                       MICHAEL FOODS, INC.

                                       By: _____________________________________

                                       Its: ____________________________________

                                       M-FOODS HOLDINGS, INC.

                                       By: _____________________________________

                                       Its: ____________________________________

                                       _________________________________________
                                                      James Mohr

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