Document:

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                                 EXHIBIT 10.6

                         COMMERCE NATIONAL CORPORATION
                      STOCK APPRECIATION RIGHTS AGREEMENT

     THIS AGREEMENT is made this _________ day of __________________, 1999, by
and between Commerce National Corporation, a Florida corporation having offices
at Winter Park, Florida (the "Company"), and GUY D. COLADO (the "Director).

                                  INTRODUCTION

     To encourage the Director to remain a director of the Company, the Company
is willing to provide to the Director an opportunity to share in the
appreciation of the Company's Common Stock. The Company will provide a deferred
benefit equal to the Stock Appreciation Account value at the termination of the
plan. The Company's Board of Directors will award at inception and annually
thereafter, in its sole discretion, phantom stock to the Director. The phantom
shares will be valued at the Company's Equity Per Share determined by dividing
the Company's Equity by the number of shares of common stock outstanding. The
appreciation in value of the Director's phantom shares will be credited to the
Director's Stock Appreciation Account each year. The Stock Appreciation Account
shall be an accounting device to record phantom stock appreciation. At various
triggering events, the Company will pay the value of the Stock Appreciation
Account in cash from its general assets.

                                   AGREEMENT

     The Director, the Company and the Company agree as follows:

                                   Article 1
                                  Definitions

     1.1  Definitions.  Whenever used in this Agreement, the following words and
phrases shall have the meanings specified:

          1.1.1     "Agreement" means this instrument, including all amendments
thereto.

          1.1.2     "Anniversary Date" means December 31 of each Plan Year.

          1.1.3     "Applicable Percentage" means the number of Plan Years from
the Effective Date divided by ten, but in no event greater than 100%.

          1.1.4     "Change of Control" means: any merger of the Company with,
or acquisition of the Company by, another entity, whether or not the Company is
the surviving entity; or any Board composition change such that individuals who
constitute the Board of Directors of the Company on the effective date hereof
(the "Incumbent Board") cease for any reason to constitute at least a majority
thereof, provided that any person becoming a director subsequent to the date
hereof whose election was approved by a vote of at least three-quarters
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of the directors comprising the Incumbent Board shall be considered as though he
or she were a member of the Incumbent Board.

          1.1.5     "Company" means Commerce National Corporation.

          1.1.6     "Discount Rate" means the annual rate of 7.5%.

          1.1.7     "Effective Date" means January 1, 1999.

          1.1.8     "Equity" means the Company's equity as reported under
generally accepted accounting principles.

          1.1.9     "Equity Per Share" means the Company's Equity divided by the
number of shares of common stock outstanding. Notwithstanding the foregoing, at
such time that the Company's common stock becomes actively traded on a
recognized securities exchange, from that date forward the market value per
share will become the measure of Equity Per Share for purposes of this
Agreement.

          1.1.10    "Initial Value" means the Equity Per Share as of the
beginning of the Plan Year in which a phantom stock award is made to the
Director times the number of phantom shares awarded in that Plan Year. If the
basis for the measure of Equity Per Share changes from Equity value to market
value during the Plan Year, Initial Value for phantom stock awards during the
Plan Year should be calculated on the Equity value basis.

          1.1.11    "Normal Termination Date" means the earlier of Plan
Termination or Termination of Service as a director.

          1.1.12    "Plan Year" means the calendar year. The first Plan Year
shall commence on the Effective Date.

          1.1.13    "Plan Termination" means the last day of the tenth Plan
Year.

          1.1.14    "Sales Multiple" means a fraction in which the numerator is
the sales price paid for any of the Company's common stock or, in the case of a
sale of substantially all of the Company's assets, the sales price paid for the
Company's assets, and the denominator shall be the book value of such common
stock or assets. If there is a merger or consolidation in which stock is used to
purchase the common stock or assets of the Company, then a qualified appraiser
chosen by the Company shall be hired to determine the fair market value of the
acquirer's stock exchanged for the Company's stock or assets. The appraised
value shall then be the sales price. Notwithstanding the foregoing, if the stock
used to purchase the common stock or assets of the Company is actively traded on
a recognized securities exchange, the trade price on the last trading day prior
to the merger will be used to determine sales price in lieu of an appraised
value.

          1.1.15    "Termination of Service" means the Director ceasing to serve
as a director of the Company for any reason whatsoever, voluntary or
involuntary, other than by reason of an approved leave of absence.
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                                   Article 2
                              Phantom Stock Award

     2.1  Initial Phantom Stock Award. The Board of Directors hereby awards two
hundred sixty (260) phantom shares to the Director as of the Effective Date of
this Agreement.

     2.2  Future Annual Phantom Stock Awards. As long as the Director is serving
as a member of the Board of Directors on the first day of future Plan Years an
additional two hundred sixty (260) phantom shares will be awarded to the
Director as of the first day of such Plan Year. No future annual phantom stock
awards will be awarded beyond the Normal Termination Date.

     2.3  Meeting Attendance Phantom Stock Awards. An additional twenty-four
(24) phantom shares will be awarded to the Director for each Board of Directors
meeting attended by the Director as a member of the Board. A maximum of two
hundred forty (240) meeting-attendance phantom shares may be awarded to the
Director in a Plan Year under this Section 2.3. The phantom shares will be
awarded as of the first day of the Plan Year in which the Board of Directors
meeting occurred. No meeting-attendance phantom stock awards will be awarded for
meetings occurring later than the Normal Termination Date.

     2.4  Adjustment to Number of Phantom Shares. If the outstanding shares of
the Company's stock as a whole are increased, decreased, or changed into, or
exchanged for, a different number or kind of shares or securities of the
Company, whether through merger, consolidation, acquisition, reorganization, re-
capitalization, reclassification, stock dividend, stock split, combination of
shares, exchange of shares, change in corporate structure or the like, an
appropriate and proportionate adjustment shall be made in the number of phantom
shares outstanding and future phantom shares to be awarded under this Agreement
so that the total value of the Director's phantom shares is not effected by
reason of the transaction other than as provided in Section 2.5.

     2.5  Additional Phantom Shares for Common Stock Dividends. Additional
phantom shares will be awarded to compensate for cash dividends paid holders of
the Company's common stock. The number of additional phantom shares to be
awarded under this Section 2.4 will be determined by multiplying the cash
dividend per common share by the Director's total number of phantom shares and
then dividing that resulting number by the Equity Per Share at the beginning of
the Plan Year.

     2.6  Adjustment of Phantom Shares following a Change of Control. In the
event of a Change of Control where the Corporation's stock is valued at a
premium, an increase in the number phantom shares in Director's Stock
Appreciation Account shall be made to reflect such transaction premium by
multiplying the number of shares outstanding by the Sales Multiple.

     2.7  Adjustment of Phantom Shares following a contribution of capital. In
the event additional capital is contributed to the Company by the existing
shareholders without the issuance of additional common shares, a reduction in
the number of phantom shares in the Director's Stock Appreciation Account shall
be made to reflect such capital contribution.
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                                   Article 3
                          Stock Appreciation Account

     3.1  Establishing and Crediting. The Company shall establish a Stock
Appreciation Account on its books for the Director, and shall credit to the
Stock Appreciation Account the following amounts:

          3.1.1  Initial Appreciation. On the first Anniversary Date after a
     phantom stock award the phantom shares then awarded shall be valued at the
     Equity Per Share on the Anniversary Date. Any increase in value from the
     Initial Value of such shares shall be credited to the Stock Appreciation
     Account.

          3.1.2  Future Appreciation. On each Anniversary Date the Director's
     total number of phantom shares, other than phantom shares awarded in the
     Plan Year, shall be valued at the Equity Per Share on the Anniversary Date.
     The change in value from the prior Anniversary Date shall be added to or
     subtracted from the Stock Appreciation Account. In no event will the value
     of the Stock Appreciation Account in regard to any phantom share be reduced
     below zero.

     3.2  Statement of Accounts. The Company shall provide to the Director,
within 120 days of the end of each Plan Year that this Agreement is in effect, a
statement setting forth the number of phantom shares to the Director's credit
and the cash value of the Stock Appreciation Account balance.

     3.3  Accounting Device Only. The Stock Appreciation Account is solely a
device for measuring amounts to be paid under this Agreement. The Stock
Appreciation Account is not a trust fund of any kind. The Director is a general
unsecured creditor of the Company for the payment of benefits. The benefits
represent the mere Company promise to pay such benefits. The Director's rights
are not subject in any manner to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance, attachment, or garnishment by the Director's
creditors.

                                   Article 4
                               Lifetime Benefits

     4.1  Full Term Benefit. If the Director still serves as a director on the
Normal Termination Date, the Company shall pay to the Director the benefit
described in this Section 4.1 in lieu of any other benefit under this Agreement.

          4.1.1  Amount of Benefit. The benefit under this Section 4.1 is the
     Stock Appreciation Account balance on the Normal Termination Date.

          4.1.2  Payment of Benefit. The Company shall pay the benefit to the
     Director in a lump sum within sixty (60) days following the Normal
     Termination Date; provided, however, that the Director may elect to receive
     the benefit payable hereunder in annual installments, not to exceed ten
     (10) years, by filing with the Company a written election form. Such
     election must be received by the Company at least 12 months prior to the
     Director's Normal Termination Date. In the event the Director elects to
     receive such annual
<PAGE>

     installments, the Company shall credit interest at 7.5% on the remaining
     account balance during any applicable installment period.

     4.2  Early Termination Benefit. If the Director terminates service before
the Plan Termination Date, and for reasons other than death or following a
Change of Control, the Company shall pay to the Director the benefit described
in this Section 4.2 in lieu of any other benefit under this Agreement.

          4.2.1  Amount of Benefit. The benefit amount under this Section 4.2 is
     the Stock Appreciation Account Director's Normal Termination Date.

          4.2.2  Payment of Benefit. The Company shall pay the benefit to the
     Director in a lump sum within sixty (60) days following the Normal
     Termination Date.

     4.3  Change of Control Benefit. If the Director terminates service
following a Change of Control before the Plan Termination Date, the Company
shall pay to the Director the benefit described in this Section 4.3 in lieu of
any other benefit under this Agreement.

          4.3.1  Amount of Benefit. The benefit amount under this Section 4.3 is
     the Stock Appreciation Account balance at the Director's Normal Termination
     Date after the adjustment described in Section 2.5.

          4.3.2  Payment of Benefit. The Company shall pay the benefit to the
     Director in a lump sum within sixty (60) days following the Normal
     Termination Date; provided, however, that the Director may elect to receive
     the benefit payable hereunder in annual installments, not to exceed ten
     (10) years, by filing with the Company a written election form. Such
     election must be received by the Company at least 12 months prior to the
     Director's Normal Termination Date. In the event the Director elects to
     receive such annual installments, the Company shall credit interest at 7.5%
     on the remaining account balance during any applicable installment period.

     4.4  Hardship Distribution. Upon the Company's determination (following
petition by the Director) that the Director has suffered an unforeseeable
financial emergency, the Company may distribute to the Director all or a portion
of the Stock Appreciation Account balance as determined by the Company, but in
no event shall the distribution be greater than the lessor of the amount
necessary to relieve the financial hardship or the vested balance of the Stock
Appreciation Account calculated as described in Section 4.2.1. An unforeseeable
financial emergency means that an event arising from the death of a family
member, divorce, sickness, injury, catastrophe or similar event outside the
control of the Director occurs and the Company's Board of Directors, in its sole
discretion, approves of, in writing, of the hardship distribution.

                                   Article 5
                                Death Benefits

     5.1  Death During Active Service. If the Director dies before the Plan
Termination Date while in the active service of the Company, the Company shall
pay to the Director's beneficiary the benefit described in this Section 5.1 in
lieu of any other benefit under this Agreement.
<PAGE>

          5.1.1  Amount of Benefit. The benefit under this Section 5.1 is the
     balance in the Stock Appreciation Account as of the Director's Normal
     Termination Date.

          5.1.2  Payment of Benefit. The Company shall pay the benefit to the
     Directors beneficiary in a lump sum within sixty (60) days following the
     Director's Normal Termination Date.

                                   Article 6
                                 Beneficiaries

     6.1  Beneficiary Designations. The Director shall designate a beneficiary
by filing a written designation with the Company. The Director may revoke or
modify the designation at any time by filing a new designation. However,
designations will only be effective if signed by the Director and accepted by
the Company during the Director's lifetime. The Director's beneficiary
designation shall be deemed automatically revoked if the beneficiary predeceases
the Director, or if the Director names a spouse as beneficiary and the marriage
is subsequently dissolved. If the Director dies without a valid beneficiary
designation, all payments shall be made to the Director's estate.

     6.2  Facility of Payment. If a benefit is payable to a minor, to a person
declared incompetent, or to a person incapable of handling the disposition of
his or her property, the Company may pay such benefit to the guardian, legal
representative or person having the care or custody of such minor, incompetent
person or incapable person. The Company may require proof of incompetence,
minority or guardianship as it may deem appropriate prior to distribution of the
benefit. Such distribution shall completely discharge the Company from all
liability with respect to such benefit.

                                   Article 7
                              General Limitations

     Notwithstanding any provision of this Agreement to the contrary, the
Company shall not pay any benefit under this Agreement:

     7.1  Excess Parachute Payment. To the extent the benefit would create an
excise tax under the parachute rules of Section 280G of the Internal Revenue
Code.

     7.2  Termination for Cause. If the Company terminates the Director's
service as a director for:

          7.2.1  Personal dishonesty,
          7.2.2  Incompetence,
          7.2.3  Willful misconduct,
          7.2.4  Breach of fiduciary duty involving personal profit,
          7.2.5  Intentional failure to perform stated duties,
          7.2.6  Willful violation of any law, rule or regulation (other than
     traffic violation or similar offenses or final cease-and-desist order; or
          7.2.7  Acts which the Board reasonably finds in good faith to be
     inimical to the best interests of the Company.
<PAGE>

                                   Article 8
                         Claims and Review Procedures

     8.1  Claims Procedure. The Company shall notify the Director, the
Director's beneficiary or any other person which makes a claim under this
Agreement (the "Claimant") in writing, within ninety (90) days of his or her
written application for benefits, of his or her eligibility or ineligibility for
benefits under the Agreement. If the Company determines that the Claimant is not
eligible for benefits or full benefits, the notice shall set forth (1) the
specific reasons for such denial, (2) a specific reference to the provisions of
the Agreement on which the denial is based, (3) a description of any additional
information or material necessary for the Claimant to perfect his or her claim,
and a description of why it is needed, and (4) an explanation of the Agreement's
claims review procedure and other appropriate information as to the steps to be
taken if the Claimant wishes to have the claim reviewed. If the Company
determines that there are special circumstances requiring additional time to
make a decision, the Company shall notify the Claimant of the special
circumstances and the date by which a decision is expected to be made, and may
extend the time for up to an additional ninety-day period.

     8.2  Review Procedure. If the Claimant is determined by the Company not to
be eligible for benefits, or if the Claimant believes that he or she is entitled
to greater or different benefits, the Claimant shall have the opportunity to
have such claim reviewed by the Company by filing a petition for review with the
Company within sixty (60) days after receipt of the notice issued by the
Company. Said petition shall state the specific reasons which the Claimant
believes entitle him or her to benefits or to greater or different benefits.
Within sixty (60) days after receipt by the Company of the petition, the Company
shall afford the Claimant (and counsel, if any) an opportunity to present his or
her position to the Company verbally or in writing, and the Claimant (or
counsel) shall have the right to review the pertinent documents. The Company
shall notify the Claimant of its decision in writing within the sixty-day
period, stating specifically the basis of its decision, written in a manner
calculated to be understood by the Claimant and the specific provisions of the
Agreement on which the decision is based. If, because of the need for a hearing,
the sixty-day period is not sufficient, the decision may be deferred for up to
another sixty-day period at the election of the Company, but notice of this
deferral shall be given to the Claimant.

                                   Article 9
                          Amendments and Termination

     This Agreement may be amended or terminated only by a written agreement
signed by the Company and the Director.

                                  Article 10
                                 Miscellaneous

     10.1 Binding Effect. This Agreement shall bind the Director and the
Company, and their beneficiaries, survivors, executors, administrators and
transferees.
<PAGE>

     10.2  No Guarantee of Service. This Agreement is not an employment policy
or contract. It does not give the Director the right to remain a director of the
Company, nor does it interfere with the Company's right to discharge the
Director. It also does not require the Director to remain a director nor
interfere with the Director's right to terminate service at any time.

     10.3  Non-Transferability. Benefits under this Agreement cannot be sold,
transferred, assigned, pledged, attached or encumbered in any manner.

     10.4  Tax Withholding. The Company shall withhold any taxes that are
required to be withheld from the benefits provided under this Agreement.

     10.5  Applicable Law. The Agreement and all rights hereunder shall be
governed by the laws of the State of Florida, except to the extent preempted by
the laws of the United States of America. Nothing contained herein shall be
deemed to obligate the Company to make a payment hereunder in violation of any
statute, regulation, or regulatory order or directive applicable to the Company.

     10.6  Named Fiduciary. For purposes of the Employee Retirement Income
Security Act of 1974, the Company shall be the fiduciary of this Agreement.

     10.7  Reorganization. The Company shall not merge or consolidate into or
with another company, or reorganize, or sell substantially all of its assets to
another company, firm, or person unless such succeeding or continuing company,
firm, or person agrees to assume and discharge the obligations of the Company
under this Agreement. Upon the occurrence of such event, the term "Company" as
used in this Agreement shall be deemed to refer to the successor or survivor
company.

     10.8  Unfunded Arrangement. The Director and beneficiary are general
unsecured creditors of the Company for the payment of benefits under this
Agreement. The benefits represent the mere promise by the Company to pay such
benefits. The rights to benefits are not subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance, attachment, or
garnishment by creditors. Any insurance on the Director's life is a general
asset of the Company to which the Director and beneficiary have no preferred or
secured claim.

     10.9  Entire Agreement. This Agreement constitutes the entire agreement
between the Company and the Director as to the subject matter hereof. No rights
are granted to the Director by virtue of this Agreement other than those
specifically set forth herein.

     10.10 Administration. The Company shall have powers which are necessary to
administer this Agreement, including but not limited to:

           10.10.1  Interpreting the provisions of the Agreement;

           10.10.2  Establishing and revising the method of accounting for the
                    Agreement;

           10.10.3  Maintaining a record of benefit payments; and
<PAGE>

          10.10.4   Establishing rules and prescribing any forms necessary or
     desirable to administer the Agreement.

     10.11  Designated Fiduciary. For purposes of the Employee Retirement Income
Security Act of 1974, if applicable, the Company shall be the named fiduciary
and plan administrator under the Agreement. The named fiduciary may delegate to
others certain aspects of the management and operation responsibilities of the
plan including the employment of advisors and the delegation of ministerial
duties to qualified individuals.

     IN WITNESS WHEREOF, the Director and a duly authorized Company officer have
signed this Agreement.

DIRECTOR:                        COMPANY:
                                 COMMERCE NATIONAL CORPORATION

_____________________________    By_____________________________
GUY D. COLADO                    Title__________________________
<PAGE>

                         NATIONAL COMPANY OF COMMERCE
                      STOCK APPRECIATION RIGHTS AGREEMENT
                                 GUY D. COLADO
                         BENEFICIARY DESIGNATION FORM

I designate the following as beneficiary of any death benefits under the
National Company of Commerce Phantom Stock Appreciation Agreement:

Primary: _______________________________________________________________________

________________________________________________________________________________

Contingent: ____________________________________________________________________

________________________________________________________________________________

Note: To name a trust as beneficiary, please provide the name of the trustee(s)
      and the exact name and date of the trust agreement.
              -----

I understand that I may change these beneficiary designations by filing a new
written designation with the Company. I further understand that the designations
will be automatically revoked if the beneficiary predeceases me, or, if I have
named my spouse as beneficiary, in the event of the dissolution of our marriage.

Signature  _________________________________

Date  ____________________________

Accepted by the Company this _______ day of ________________, 199__.

By _______________________________________

Title _____________________________
<PAGE>

                         NATIONAL COMPANY OF COMMERCE
                      STOCK APPRECIATION RIGHTS AGREEMENT
                                 GUY D. COLADO

                              OPTIONAL ELECTIONS

The following elections must be received by the Company twelve (12) or more
months prior to the Director's Normal Termination Date. If the Normal
Termination Date occurs within twelve (12) months of the date the election is
received by the Company, the installment elections will not be effective and the
relevant payments under this Agreement will be paid in a lump sum as otherwise
provided in the Agreement.

              Full Term Benefit - Installment Payment Election:
              -------------------------------------------------

I hereby elect to receive installment payments under Section 4.1.2 in lieu of
the lump sum payment otherwise called for. The installment payments will be made
annually on the first business day of the month following the Normal Termination
Date in equal annual amounts, including interest at 7.5% per year, for the
duration entered below.

          Number of annual installments elected: ________ (not greater than 10)

          Signature of Director: ______________________  Date: ________________

          Accepted by the Company this _______ day of ________________, ______.

                     By  _______________________________________

                     Title _____________________________

          Change of Control Benefit - Installment Payment Election:
          ---------------------------------------------------------

I hereby elect to receive installment payments under Section 4.3.2 in lieu of
the lump sum payment otherwise called for. The installment payments will be made
annually on the first business day of the month following the Normal Termination
Date in equal annual amounts, including interest at 7.5% per year, for the
duration entered below.

          Number of annual installments elected: _________ (not greater than 10)

          Signature of Director: ______________________  Date: _________________

          Accepted by the Company this _______ day of ________________, ______.

                     By  _______________________________________

                     Title _____________________________<PAGE>

                                                                   EXHIBIT 10.21

                                   AGREEMENT
                                   ---------

     AGREEMENT (this "Agreement"), dated as of February 2, 2000, by and among C.
Mickey Skinner (the "Executive"), and New World Pasta Company, a Delaware
corporation (the "Company") and, for purposes of Sections 4(d) and 5(a) only,
Joseph Littlejohn & Levy Inc. ("JLL").

          WHEREAS, the Executive has been employed by the Company pursuant to an
employment agreement, dated as of January 28, 1999 (the "Employment Agreement");

          WHEREAS, the employment of the Executive as Chairman of the Board and
Chief Executive Officer of the Company ("Chairman and CEO") shall terminate
effective as of 12:01 a.m. local time in Naples, Florida on February 28, 2000
(the "Termination Date");

          WHEREAS, the Executive is entitled under the Employment Agreement to
the continuation of his salary and benefits after a termination under certain
conditions;

          WHEREAS, the Executive will continue as an employee of the Company
solely on the terms set forth in this Agreement; and

          WHEREAS, the Executive and the Company now desire fully and finally to
settle all matters arising out of the Employment Agreement and the termination
of Executive's employment as Chairman and CEO, including without limitation, any
rights or obligations under the Employment Agreement and under any employee
benefit plans or programs of the Company, that have arisen or might arise
between them and to specify the terms and conditions under which the Executive
will continue employment with the Company.

          NOW, THEREFORE, in consideration of the promises and of the release,
representations, covenants and obligations herein contained, the parties hereto
agree as follows:

     1.   Termination of Employment Agreement. The Executive and the Company
          -----------------------------------
hereby agree that the Employment Agreement shall terminate effective as of the
later of the Effective Date (defined below) or the Termination Date and shall
have no
<PAGE>

further force and effect. As of the later of the Effective Date or the
Termination Date, the Executive shall cease to be the Chairman and Chief
Executive Officer of the Company. Notwithstanding the foregoing, following the
later of the Effective Date or the Termination Date, to the fullest extent
permitted by law and the terms of any applicable benefit plans or arrangements,
the Executive shall continue as any employee of the Company and shall serve as
Chairman Emeritus of the Company and shall perform the duties set forth in
Section 2 below solely for the compensation and benefits provided for in this
Agreement. The Effective Date is the eighth business day following the execution
of this Agreement by all parties, provided the Revocation Period referred to in
Section 5(c) has expired and the Executive has not revoked his agreement hereto.

     2.   Duties. During the first twelve months beginning on the later of the
          ------
Effective Date or the Termination Date (the "Interim Period") (and thereafter
only as and to the extent agreed to by the Company and the Executive), the
Executive will use reasonable efforts to assist his immediate successor as
Chairman and Chief Executive Officer of the Company, upon his immediate
successor's reasonable written or oral request, in his successor's transition
into such positions and will, at his immediate successor's written or oral
request, cooperate to the fullest extent reasonably practicable in providing a
smooth transition for the Company to a new Chairman and Chief Executive Officer
and will, at his immediate successor's written or oral request, use reasonable
efforts to introduce his immediate successor into the Restricted Business (as
defined below).

          The Executive also agrees that during the Interim Period, he will
provide upon written or oral request, reasonable assistance to the Company in
retaining key employees and maintaining customer and industry contacts and
relationships as may be requested by the Board and during the Interim Period, he
will, upon written or oral request, engage in such other reasonable transition
activities as the Board may reasonably request consistent with such position.

          Executive shall devote such time and attention to his duties under
this Agreement as are commensurate with his position and his duties. Executive
may, to the extent feasible and consistent with the terms of this Agreement,
perform his duties to the Company in Florida. Nothing contained herein shall
require the Executive to devote any specified number of hours to the performance
of such duties. The parties understand that the time which the Executive will
devote to his duties should decline dramatically over the course of the year.

                                       2
<PAGE>

     3.   Salary; Fringe Benefits; Equity Compensation.
          --------------------------------------------

          (a)  Whether or not the Executive is considered to be an employee of
the Company, on and after the later of the Effective Date or the Termination
Date and subject to Section 3(a)(iii) hereof, the Company shall pay or shall
cause to be paid to the Executive and shall provide benefits to the Executive as
follows:

               (i)     The Company shall pay to the Executive (or his estate,
     heirs and personal representative should the Executive die or become
     Disabled (as defined below) the following amounts during the indicated
     periods ("Salary"), which amounts shall be payable in accordance with the
     Company's regular payroll practice (but not less often than semi-monthly):
     (A) from the later of the Effective Date or the Termination Date through
     January 27, 2002 at a rate of $400,000 per annum; and (B) from January 28,
     2002 through January 27, 2004 at a rate of $250,000 per annum.

               (ii)    The Company shall provide or arrange to provide to the
     Executive the following benefits (collectively the "Benefits"):

               (1)     Vacation, Holidays and Sick Leave. During the Interim
                       ---------------------------------
                       Period, to the extent the Executive is required to
                       perform services under this Agreement, Executive shall be
                       entitled to paid vacation, paid holidays and sick leave
                       in accordance with the Company's standard policies for
                       its senior executive officers in effect as of the date
                       hereof. The benefits to be provided under this Section
                       3(a)(ii)(1) shall terminate on the Executive's death
                       unless earlier terminated as provided under Section
                       3(a)(iii).

               (2)     Business Expenses. Executive shall be reimbursed for all
                       -----------------
                       reasonable and necessary business expenses incurred
                       during the Interim Period, by (i) him in connection with
                       his employment (including, without limitation, expenses
                       for first-class air travel on all Company business) and
                       (ii) his spouse in connection with her accompaniment of
                       Executive on business trips where it is customary for
                       Executive's spouse to attend, in each case, upon timely
                       submission by Executive of receipts and other
                       documentation as required by the Internal Revenue

                                       3
<PAGE>

                       Code of 1986, as amended (the "Code") and in accordance
                       with the Company's normal expense reimbursement policies.
                       The benefits to be provided under this Section
                       3(a)(ii)(2) shall terminate on the Executive's death or
                       Disability unless earlier terminated as provided under
                       Section 3(a)(iii).

                  (3)  Health, Welfare and Pension Benefits. Executive and
                       ------------------------------------
                       eligible members of his family shall be eligible to
                       participate fully in all: (a) health and dental benefits
                       and insurance programs; (b) life and short and long term
                       disability benefits and insurance and (c) pension and
                       retirement benefits all as available to senior executive
                       officers of the Company generally, which benefits
                       (excluding all retirement plans other than Section 401(k)
                       savings plans) shall not be materially less favorable in
                       the aggregate than those similar benefits available to
                       senior executives of the Company as of the date hereof.
                       The benefits to be provided under this Section
                       3(a)(ii)(3) shall terminate on the Executive's death
                       unless earlier terminated as provided under Section
                       3(a)(iii). Notwithstanding the foregoing, the benefits to
                       be provided pursuant to clause (a) above shall be
                       provided to the Executive's spouse until the earlier of
                       her death or termination pursuant to Section 3(a)(iii).

                  (4)  Membership Dues; Tax Returns; etc. The Company shall
                       ----------------------------------
                       reimburse Executive for (i) annual membership dues and
                       assessments at one (1) country club of Executive's choice
                       not to exceed $12,000 per year (increased annually by the
                       increase in the Consumer Price Index for the preceding
                       year), (ii) reimburse the Executive for the cost of
                       annual personal income tax return preparation in an
                       amount not to exceed $2,000 per year, and (iii) an annual
                       physical. The benefits to be provided under clauses (i)
                       and (ii) above shall terminate on the date which is one
                       year after the Executive's death, unless earlier
                       terminated as provided under Section 3(a)(iii) and the
                       benefits to be provided under clause (iii) shall
                       terminate on the date of the

                                       4
<PAGE>

                       Executive's death, unless earlier terminated as provided
                       under Section 3(a)(iii).

                  (5)  Car Allowance. The Executive shall be paid an allowance
                       -------------
                       of $1,200.00 per month for an automobile to be used by
                       Executive. The benefits to be provided under this Section
                       3(a)(ii)(5) shall terminate on the date which is one year
                       after the Executive's death unless earlier terminated as
                       provided under Section 3(a)(iii).

                  (6)  D&O Coverage. The Company shall maintain director and
                       ------------
                       officer liability insurance for its officers and
                       directors, in such amount as the Company Board believes
                       is reasonably necessary.

                  (7)  Accommodations. During the Interim Period, and to the
                       --------------
                       extent the Executive is required to be at the Company's
                       headquarters, the Company shall provide Executive with
                       reasonable accommodations at the Company's headquarters
                       commensurate with his position to enable the Executive to
                       perform his duties hereunder.

               (iii)   The Company's obligations to pay Salary pursuant to
     Section 3(a)(i) or to provide Benefits under Section 3(a)(ii) of this
     Agreement shall terminate on the earlier of (i) 11:59 p.m. local time in
     Naples, Florida, on January 27, 2004, or (ii) if the Executive materially
     breaches his obligations under Sections 2, 4 or 5 of this Agreement and, to
     the extent curable, the Executive fails to cure such breach within twenty
     (20) business days after his receipt of written notice from the Company of
     such breach (which notice shall specify the details of such breach with
     particularity), 11:59 p.m. local time in Naples, Florida, on the twentieth
     (20th) business day after his receipt of the written notice from the
     Company referred to above; provided, however, that the termination of the
     Company's obligations pursuant to this subparagraph (iii) shall not be
     construed to relieve the Company of its obligations to make Salary and
     provide the Benefits to which the Executive was entitled through the date
     of termination provided for in this paragraph (iii).

               (iv)    Disability means that either (A) the Executive has become
     unable to perform his normal duties by reason of physical or mental illness
     or accident for any twelve (12) consecutive month period, or (B) the
     Company receives written opinions from both a physician for the Company and
     a physician for Executive that Executive will be so disabled.

                                       5
<PAGE>

               (v)     The Parties agree that the Company is obligated to
     provide the Executive with the Benefits set forth in Section 3(a),
     notwithstanding the eligibility requirements of any benefit plan or
     arrangement and if the Executive is not eligible to receive any of the
     Benefits under any such plan or arrangement, the Company shall nevertheless
     continue to provide the Executive with the Benefit in question either
     directly or through a plan which is permitted to provide the Executive with
     the Benefit in question.

     (b)       The Company agrees that the options held by the Executive to
acquire 18,888 shares of Common Stock of the Company at $10.00 per share (the
"Options") pursuant to the New World Pasta 1999 Stock Option Plan and the Stock
Option Agreement entered into pursuant thereto (collectively, the "Plan") are,
notwithstanding the terms of the Plan, (i) fully vested, (ii) exercisable at any
time or from time to time on or after the later of the Effective Date or the
Termination Date and prior to January 28, 2009 and (iii) are not subject to
Section 5(c), 6(c)(iv) or 6(d) of the Plan. The Executive acknowledges and
agrees that all other options or rights to acquire any equity interest in the
Company or any payment with respect thereto shall expire as of the later of the
Effective Date or the Termination Date and Executive is not entitled to any
additional consideration in respect thereof. Notwithstanding the foregoing, in
the event that the Company's obligations to pay Salary and Benefits terminate
prior to January 27, 2004, pursuant to clause (ii) of Section 3(a)(iii), all
options outstanding on the date of such termination shall automatically expire.

     (c)       The Executive hereby acknowledges that, except as set forth in
subparagraphs (a) or (b) above, his participation in all other of the Company's
employee benefit plans and programs (including any and all option and equity
incentive plans), and all perquisites previously provided to the Executive
ceased as of the Termination Date.

     (d)       All of the foregoing Salary payments and Benefits shall be
subject to any applicable federal, state and local tax withholding.

4.   Noncompetition; Confidentiality, etc.
     -------------------------------------

     (a)       Non-Competition Covenants.
               -------------------------

                                       6
<PAGE>

          (i)      Executive will not for any period during which Executive is
     receiving payments from the Company pursuant to this Agreement, engage in
     Competition (as defined herein) with the Company.

          (ii)     Without limiting the generality of the foregoing, during any
     period during which Executive is receiving payments from the Company
     pursuant to this Agreement, Executive will not, directly or indirectly, for
     his benefit or for the benefit of any other person or entity, do any of the
     following: (a) solicit from any customer doing business with the Company
     during the twelve (12) months immediately preceding the later of the
     Effective Date or the Termination Date, Restricted Business; (b) solicit
     from any potential customer of the business of the Company, Restricted
     Business which has been the subject of a written or oral bid, offer or
     proposal by the Company, or of substantial preparation by the Company with
     a view to making such a bid, proposal or offer during the three (3) months
     immediately preceding the Date of Termination; (c) solicit the employment
     or services of, any person who is employed by or is a consultant to the
     Company; or (d) otherwise wrongfully interfere with the business or
     accounts of the Company, including through the making of any false
     statements or comments of a defamatory or disparaging nature to third
     parties regarding the Company or any of its officers, directors, personnel,
     stockholders, products or services.

          (iii)    Executive further acknowledges and agrees that due to the
     uniqueness of his services and the confidential nature of the information
     he possesses, the covenants set forth in this Section 4(a) are reasonable
     and necessary for the protection of the business and goodwill of the
     Company; and it is the intention of the parties hereto that this Section
     4(a) shall be enforceable to the fullest extent permissible under the laws
     and public policies applied in each jurisdiction in which such enforcement
     is sought. Accordingly, it is the intention of the parties hereto that if,
     in the opinion of any court of competent jurisdiction, any provision or
     clause set forth in this Section 4(a) is not reasonable in any respect,
     including, without limitation, with respect to the scope of the time, place
     or manner restrictions set forth herein, such court shall have the right,
     power and authority to modify any and all such provisions and clauses as to
     such court shall appear not unreasonable and to enforce the remainder of
     this Section 4(a) as so modified.

                                       7
<PAGE>

          (iv)     "Competition" means engaging in, or otherwise directly or
     indirectly being employed by or acting as a consultant or lender to, or
     being a director, officer, employee, principal, licensor, trustee, broker,
     agent, stockholder, member, owner, joint venturer or partner of, or
     permitting a name to be used in connection with the activities of any other
     business or organization which engages, directly or through Affiliates it
     controls, in the Restricted Business, provided that, it will not be a
     violation for Executive to (a) become the registered or beneficial owner of
     up to one percent (1%) of any class or series of the capital stock of a
     publicly traded corporation that is engaged in Competition or (b) acquire
     up to one percent (1%) of any issue of publicly traded debt securities of a
     corporation that is engaged in Competition, it being understood that
     Executive may not actively participate in the business of any such
     corporation, by reason of such ownership or acquisition or otherwise, until
     such time as this covenant expires.

          (v)      "Restricted Business" means the manufacturing, distribution,
     marketing or sale of pasta or egg noodle products or any other business
     which constitutes more than 10% of the consolidated revenues of the company
     during the fiscal year ending immediately prior to any such determination
     or the Termination Date, as the case may be.

     (b)  Confidentiality Covenant.

          (i)      Until January 27, 2011, Executive will not, directly or
     indirectly, whether individually, as a director, stockholder, owner,
     partner, member, officer, employee, principal or agent of any business, or
     in any other capacity, make known, disclose, furnish, make available or
     utilize any of the Company's confidential information, other than in the
     proper performance of the duties contemplated by this Agreement, or as
     required by law; provided that, prior to disclosing any of the confidential
     information required by law, Executive will promptly notify the Company so
     that the Company may seek a protective order or other appropriate remedy.
     Immediately after the Interim Period, Executive will return all
     confidential information, including all photocopies, extracts and summaries
     thereof, and any such information stored electronically on tapes, computer
     disks or in any other manner to the Company at any time upon request by the
     Company; provided, however, that Executive may retain one copy of such
     information and may use such information in connection with (a) any dispute
     with the Company

                                       8
<PAGE>

          or (b) any action brought against Executive where such information is
          relevant. Confidential Information does not include any information
          available to or already in the hands of the public, any information
          known to Executive prior to January 28, 1999, any information
          disclosed to Executive by a third party who is not under a duty of
          confidentiality with respect to such information or any information
          independently developed by Executive without the use of Confidential
          Information of the Company.

               (ii)    Company will not disclose any information concerning the
          Executive to any person including but not limited to the reason for
          any termination of employment of the Executive, provided however, that
          the Company may disclose such information to its insurers as and to
          the extent they have a need to know such information and provided
          further that the Company may disclose such information as and to the
          extent necessary and relevant to any dispute between the Company and
          the Executive and as and to the extent such disclosure is required by
          law.

          (c)  The Executive agrees that he shall not, at any time, make any
     comment or statement that is defamatory, disparaging or otherwise critical
     of the Company, or any of their subsidiaries, or any of their respective
     products, operations, management, employees or stockholders.

          (d)  The Company and JLL shall not, and each shall use reasonable
efforts to cause its executive officers and directors, employees and attorneys
not to, make any comment or statement that is defamatory, disparaging or
otherwise critical of the Executive.

   5.   Mutual Release.
        --------------

          (a)  Except as set forth in paragraph (b) of this Section 5, the
Executive, on behalf of himself, any and all family members, heirs, executors,
administrators, legal representatives and assignees of his rights under this
Agreement, on the one hand, and the Company and JLL, for and on behalf of their
respective partners, shareholders, members, directors and managers, on the other
hand, hereby voluntarily, knowingly, willingly, irrevocably and unconditionally
mutually release and forever discharge each other, including each of the other's
respective associates, stockholders, subsidiaries, successors, heirs, assigns,
agents, directors, officers, employees, representatives, lawyers and all persons
acting by, through, under or in concert with them, or any of them, of and from
any and all charges, complaints, claims, liabilities, obligations, promises,

                                       9
<PAGE>

agreements, causes of action, rights, costs, losses, debts and expenses of any
nature whatsoever, known or unknown (the "Claims"), which against them the other
party or his or its successors or assigns ever had, now have or hereafter can,
shall or may have (either directly, indirectly, derivatively or in any other
representative capacity), based upon the Employment Agreement, the Executive's
employment by the Company, and the termination of such employment and the
Employment Agreement, including any rights or claims the other party may have
based on any facts or events relating thereto, whether known or unknown, that
occurred on or before the Effective Date, and including, without limitation, a
release of any rights or claims the Executive may have based on the Civil Rights
Act of 1866, as amended; the Civil Rights Act of 1991, as amended; the Age
Discrimination in Employment Act of 1967, as amended (the "ADEA"); Title VII of
the Civil Rights Act of 1964, as amended; the Americans with Disabilities Act of
1990; the Equal Pay Act of 1963; any and all laws of any state concerning wages,
employment and discharge; any state, local, or municipal fair employment
statutes or laws; and any other law, rule, regulation or ordinance pertaining to
employment, terms and conditions of employment, or termination of employment.
This release by the Executive also includes, without limitation, all Claims
arising under the Company's employee benefit plans and programs now in effect or
hereafter adopted.

          (b)  Nothing herein shall be deemed to affect (i) the Executive's or
the Company's rights under this Agreement or (ii) the Executive's rights to
indemnification under the Company's charter, by-laws or the laws of the State of
Delaware or (iii) the Executive's rights to Base Salary or benefits under the
Employment Agreement up to the later of the Effective Date or the Termination
Date except as provided in Section 2(b) with respect to options.

          (c) The Executive acknowledges that the Company has advised the
Executive to discuss all aspects of this Agreement with legal counsel prior to
entering thereunto and that the Executive has availed himself of this right to
the extent he desires, and that he has carefully read and fully understands all
of the provisions of this Agreement. The Executive acknowledges that he is
entering into this Agreement, including the release and waiver set forth above,
knowingly and voluntarily, in exchange for good and valuable consideration.
Further, the Executive acknowledges that he has been given at least twenty-one
(21) days to consider the terms of this Agreement and in particular the waiver
of his rights under the ADEA as contained in Section 5 but may execute and
return this Agreement prior thereto. Once the Executive has executed this
Agreement, he shall have seven (7) additional days from such execution to revoke
his consent to the waiver of his rights under the ADEA (the "Revocation
Period"). If no such revocation occurs, the Executive's waiver of rights under
the ADEA shall become effective upon the expiration of the Revocation Period. In
the event that the Executive revokes his

                                       10
<PAGE>

waiver of rights under the ADEA within the Revocation Period, this Agreement
shall not be effective in whole or in part.

          (d)  The Executive represents that, in executing this Agreement, he
has not relied and does not rely upon any representation or statement of the
Company not set forth herein with regard to the subject matter, basis or effect
of this Agreement or otherwise.

     6.   No Mitigation. The Company agrees that the Executive is not required
          -------------
to seek other employment or to attempt in any way to reduce any amounts payable
to the Executive by the Company pursuant to Section 3 hereof. Further, the
amount of any payment or benefit provided for in this Agreement shall not be
reduced by any compensation earned by the Executive as the result of employment
by another employer or by retirement benefits.

     7.   Remedies; Notices.
          -----------------

          (a)  In the event of a claimed breach by the Company of this
Agreement, the Executive shall be entitled to institute legal proceedings to
obtain damages for any such breach; provided, however, that if such claimed
breach involves failure to pay money, the Company shall be entitled to have ten
(10) business days to cure such breach after receiving written notice from the
Executive of such claimed breach. In the event of a claimed breach by the
Executive of the terms of this Agreement, the Executive shall have the right,
during the twenty (20) business day period commencing on the date on which the
Company delivers notice to him of such claimed breach, to cure any such breach
(if curable) and if the claimed breach is not cured during such period or is not
curable, the Company shall be entitled to institute legal proceedings to obtain
damages for any such breach, or, in case of a claimed breach of Sections 4 or 5,
to enforce the specific performance of such section and to enjoin any further
violation thereof.

          (b)  For the purposes of this Agreement, notices, demands and all
other communications required or permitted in this Agreement shall be in writing
and shall be deemed to have been duly given when delivered or (unless otherwise
specified) mailed by United States certified mail, return receipt requested,
postage prepaid, addressed, if to the Executive, to:

          C. Mickey Skinner
          685 Woodthrush Way
          Hummelstown, PA  17036-8500

                                       11
<PAGE>

          and

          C. Mickey Skinner
          6975 Green Tree Drive
          Naples, FL  34108

          with a copy to:

          Maslon Edelman Borman & Brand, LLP
          3300 Norwest Center
          Minneapolis, Minnesota 55402
          Attn: Larry A. Koch

and, if to the Company, as follows:

          New World Pasta Company
          85 Shannon Road
          Harrisburg, Pennsylvania  17112
          Attn:  General Counsel

          with a copy to:

          Joseph Littlejohn & Levy
          450 Lexington Avenue
          Suite 3350
          New York, New York  10017
          Attn:  Mr. David Y. Ying

or to such other address as any party may have furnished to the others in
writing in accordance herewith, except that notices of change of address shall
be effective only upon receipt.

          (c)  Arbitration. Notwithstanding any other provision of this
               -----------
     Agreement, in the event a dispute arises out of or pertaining to this
     Agreement, the Executive may, by written notice to the Company, require
     that such dispute be submitted to binding arbitration pursuant to the rules
     of the American Arbitration Association in Philadelphia, Pennsylvania
     (including reasonable discovery as determined by the arbitrator) and the
     order of such arbitrator shall be conclusive, final and binding on all
     parties hereto and may be entered as a judgment in any court having
     jurisdiction over the parties. In the event that Executive requires the
     Company to submit such dispute to arbitration and

                                       12
<PAGE>

     diligently pursues such arbitration, the Company shall continue to pay
     Executive his Salary and provide the Benefits to be paid or provided to
     Executive under this Agreement until the earlier of (i) a determination by
     the arbitrator and (ii) the period provided for payment pursuant Sections
     3(a) without regard to clause (ii) of Section 3(a)(iii); provided, however,
     that Executive shall promptly repay to the Company all amounts paid to him
     pursuant to this sentence (including the cost of all benefits provided) in
     the event that the Executive does not prevail in such arbitration.
     Executive acknowledges and agrees that in the event that he does not comply
     with his obligations pursuant to the immediately preceding sentence, the
     Company may set off such amount against any obligations owed to Executive.

     8.   Modification; Waiver or Discharge. This Agreement is entered into
          ---------------------------------
between the Company and the Executive for the benefit of each of them. No
provisions of this Agreement may be modified, waived or discharged unless such
waiver, modification or discharge is agreed to in writing signed by the
Executive and the Company. No waiver by any party hereto at any time of any
breach by any 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.

     9.   Validity. The invalidity or unenforceability of any provision or
          --------
provisions of this Agreement shall not affect the validity or enforceability of
any other provision of this Agreement, which shall remain in full force and
effect; provided, however, that if any one or more of the terms incorporated in
Section 4 by reference to the Employment Agreement shall for any reason be held
to be excessively broad with regard to time, duration, geographic scope or
activity, that term shall not be deleted but shall be reformed and construed in
a manner to enable it to be enforced to the maximum extent allowable under
applicable law.

     10.  Entire Agreement. This Agreement sets forth the entire agreement of
          ----------------
the parties hereto in respect of the subject matter contained herein and
supersedes all prior agreements, promises, covenants, arrangements,
communications, representations or warranties, whether oral or written, by any
officer, employee or representative of any party hereto (including the
Employment Agreement). The Stockholders Agreement between New World Pasta, LLC
and Miller Pasta, LLC dated January 28, 1999 shall not be effected by this
Agreement.

     11.  Binding Effect. This Agreement shall be binding upon the parties
          --------------
and their respective heirs, representatives, successors, transferees and
permitted assigns. Any successor to the Company (whether direct or indirect and
whether by purchase, lease, merger, consolidation, liquidation or otherwise) to
all or substantially all of the

                                       13
<PAGE>

Company's business and/or assets shall be bound by, and shall assume in writing
the obligations under this Agreement in the same manner and to the same extent
as the Company would be required to perform such obligations in the absence of a
succession. For purposes of this Agreement, the term "Company" shall include any
successor to their business and/or assets which executes and delivers the
assumption agreement described in this Section 11 or which becomes bound by the
terms of this Agreement by operation of law.

     12.  Counterparts. This Agreement may be executed in several counterparts,
          ------------
each of which shall be deemed to be an original but all of which together shall
constitute one and the same instrument.

     13.  Headings. The headings contained herein are for reference purposes
          --------
only and shall not in any way affect the meaning or interpretation of this
Agreement.

     14.  Governing Law. The validity, interpretation, construction and
          -------------
performance of this Agreement shall be governed by the laws of the State of
Delaware without regard to principles of conflicts of laws.

          IN WITNESS WHEREOF, the parties have executed this Agreement on the
date and year first above written.

                                     NEW WORLD PASTA COMPANY

                                     By:  /s/ David Y. Ying
                                        ---------------------------
                                           Name:
                                           Title:

                                     C. MICKEY SKINNER

                                       /s/ C. Mickey Skinner
                                     ------------------------------

                                     JOSEPH LITTLEJOHN & LEVY INC.
                                     For purposes of Section 4(d) and 5(a) only

                                     By:  /s/ David Y. Ying
                                        ---------------------------
                                           Name: David Y. Ying
                                           Title: Senior Managing Director

                                       14

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