Document:

<PAGE>   1
                                LABOUR CONTRACT

which was concluded by and between
BANKNET ADATATVITELI ES MUSZAKI FEJLESZTO KORLATOIT FELELOSSEGU TARSASAG
Seat:                         1121 Budapest, Konkoly-Thege ut 29-33.,
                              building XXXI.
Registration number:          01 09 160172
Tax registration number:      10644209-2-01
Chamber registration nr.      103685
Social Security reg. nr.      60907-4
Statistical number:           10644209-9305-113-01
as the Employer (hereinafter: the "EMPLOYER") - represented by its Founder:
Dynamic 1-T, Inc. (seat: Suite 400, 10200 W 44 Avenue, Wheat Ridge, Colorado
80033, USA; represented by Mr. Patrick D. Doyle, member of the Board of
Directors) - and

MR. PETER BERECZ
Identity card number:         AU-VI. 955836
Mother's name:                Siska Erzsebet
Social Security number:       020557278
Tax number:                   8326932930
Residential address:          1213 Budapest, Puli Setany 14.
as the Employee (hereinafter: the "EMPLOYEE")
-hereinafter collectively referred to as the "PARTIES"-
at the place and on the date below, on the following terms conditions:

PREAMBLE
--------

The Parties establish that a labour contract was concluded between them on
March 29, 2000 based on which the Employee commenced to work on April 14, 2000
at the Employer as a General Manager.

The Parties establish that Dynamic 1-T, Inc., the Founder of the Employer
(hereinafter: the "FOUNDER") appointed the Employee to fulfill the position of
the Managing Director of the Employer for a period of two (2) years from May
24, 2000, which appointment the Employee accepted on May 24, 2000.

Therefore, the Parties agree to terminate the previous labour contract signed
on March 29, 2000 and conclude a new labour contract (hereinafter: this
"LABOUR CONTRACT") as of the date of this Labour Contract.

The terms and conditions of this Labour Contract are the following:

                                                                               1
<PAGE>   2
1.   ENGAGEMENT, PLACE AND SCHEDULE OF WORK
-------------------------------------------

1.1  ENGAGEMENT

The Employer employs the Employee for a definite period of time, from May 24,
2000 to May 24, 2002 as Managing Director. The Employee's duties are described
in detail in the Employee's work description attached to this Labour Contract
as Annex 1.

The Parties state that for the purposes of Act XXII of 1992 on the Hungarian
Labour Code (hereinafter: the "LABOUR CODE") the Employee qualifies as an
"executive officer" of the Employer.

1.2  PLACE OF WORK

The Employee will work at the seat of the Employer located in 1121 Budapest,
Konkoly-Thego 29-33, ut building XXXI, unless the nature of the work requires
otherwise.

1.3  SCHEDULE OF WORK

The Employee will work 40 hours per week. The Employee will determine his own
work schedule as well as the time away from work (vacation) in accordance with
the provisions set forth in this Labour Contract.

Accordingly, the Employee will not be entitled to remuneration for work
performed outside of official working hours.

2.  TERM
--------

2.1  This Labour Contract will be effective from May 24, 2000 to May 24, 2002.

2.2  Taking into consideration that the Employee's company law appointment by
the Founder to be the Managing Director of the Employer is for a period of two
(2) years, the Parties agree that they will hold discussions in order to
conclude a new employment contract six months before the termination of this
Labour Contract (i.e.; May 24, 2002) the latest.

3.   SALARY
-----------

3.1  The Employee's salary is the HUF equivalent of US$ 60,000 [United States
Dollars Sixty Thousand]. The payment made in HUF is to be calculated by using
the selling rate of Exchange of OTB Bank valid on the last working day of each
month.

                                                                            2
<PAGE>   3
3.2  The Employee's salary is to be paid to the Employee by the Employer by
bank transfer to the Bank account of the Employee by the HUF equivalent of
US$5,000 kept by OTP Bank. The Employer shall pay 70% of the salary to account
number 1177-3054-5299 and 30% of the salary to account number 1177-3212 0434
5389 on the last working day of the month.

3.3  The Employer shall review the Employee's salary annually, and based on the
Employee's performance and the Employee's achievements, the Employer may
increase the Employee's salary.

3.4  The Employee shall be provided with a fully funded company car for business
and personal use.

4.   EMPLOYER'S REPRESENTATIVE

4.1  The parties establish that regarding Sections 150(1)j) and 172(1) of Act
CXLIV of 1997 on Companies, approving the conclusion of this Labour Contract
(i.e. as a contract to be concluded with the managing director of a company)
falls within the exclusive competence of the Founder.

Accordingly, Mr. Patrick D. Doyle, the member of the Board of Directors of the
Founder, shall exercise the rights of the Employer.

5.   MODIFICATION

The parties can only modify this Labour Contract by mutual consent in writing.

6.   TERMINATION

6.1  Since the employment is established for a definite period of two (2)
years, the employment can only be terminated by mutual consent of the parties
or by extraordinary notice with immediate effect.

The parties establish that the Employer may also terminate the employment if
the Employer pays the Employee one year's salary, or his average salary for the
period remaining from the employment if such period is less than one year.

6.2  The agreement terminating the employment relationship by mutual consent
shall be made in writing.
                                                                               3
<PAGE>   4
6.3  The Employer or the Employee may terminate the employment relationship by
extraordinary notice if the other party:
a) violates his substantive obligations arising from the employment relationship
intentionally or with gross negligence, or
b) otherwise demonstrates behaviour that makes the continuation of the
employment relationship impossible.

Extraordinary notice is justified especially, but not exclusively, in the
following cases:

a) working under the influence of alcohol;
b)unjustified absence exceeding 3 days or more occasions;
c)negligent work, or not working in accordance to the prescriptions or orders;
d)willingly causing damage;
e)committing a crime;
f)in case of sub point 11.4;
g)in case of sub point 12.2.

The right of extraordinary notice shall be exercised within fifteen (15) days
of learning the reason that serves as its basis, but not more than within three
(3) years of the occurrence of such reasons, or in the event of a criminal
offense up to the end of the period prescribed in statute of limitations.

7. RULES FOR THE TERMINATION OF EMPLOYMENT

7.1 Upon termination of employment, the Employee shall be paid his work wages
and other emoluments on the last day spent in work.

7.2 Upon the termination of employment the Employer shall present the Employee
with a certificate.

The certificate shall contain:

a) the Employee's personal data;
b) the Employee's TAJ number;
c) the period spent in the Employer's employment;
d) any debt to be deducted from the Employee's wages on the basis of an
enforceable ruling or the law, as well as the person entitled thereto;
e) the amount of sick leave used by the Employee in the year the employment
ceases.

The Employer shall also certify that the Employee's wages are not encumbered by
any debt as specified in point b).

7.3 Upon the Employee's request, upon the termination of his employment, and
within a year thereof, the Employer shall provide a work certificate.

                                                                               4

<PAGE>   5
The work certificate shall contain:
a) the position filled by the Employee with the Employer;
b) an appraisal of the Employee's work.

The Employer shall only provide information concerning the circumstances
contained in point b) upon the Employee's express request.

8. SETTLEMENT UPON TERMINATION

8.1 On termination of the employment the Employee shall hand over his work, all
work equipment and documents according to the Employer's request to the
designated person, and the Employee is obliged to make such settling.

The Employee shall initiate the hand-over at the latest on the last day of the
employment and the hand-over should be organised by the Parties in such a way
that it is concluded by the last day of the employment.

The Employee shall be at the Employer's service until the end of the hand-over.
The Employee is responsible for any damage sustained by the Employer due to the
inappropriate hand-over (e.g. keeping back of information, documents etc.).

9. OBLIGATIONS OF THE EMPLOYER

9.1 The Employer shall, by adherence to the regulations pertaining thereto,
ensure conditions for healthy and safe work.

9.2 The Employer shall:
a) organize work so that the Employee may exercise his rights arising from
employment and fulfill his obligations thereof;
b) provide the Employee with the information and guidance required for carrying
out his work;
c) ensure the acquisition of knowledge required for performing work.

9.3 The Employer shall pay all justifiable expenses to the Employee, which
occurred in connection with the employment.

10. OBLIGATIONS OF THE EMPLOYEE

10.1 The Employee shall:
a) appear at the prescribed place and time in a condition fit for work and
spend his work time at work and during this time be at the Employee's disposal
for the purpose of performing work;

                                                                               5
<PAGE>   6
b) perform his work with the expected professional expertise and care in
accordance with the regulations, stipulations and instructions pertaining to
his work;
c) co-operate with his co-workers and perform his work in a way and, generally
speaking demonstrate a behavior that will not endanger the health and physical
safety of others, disturb their work, cause damage to them or elicit their
disapproval;
d) fulfil his work duties personally.

10.2 The Employee declares that he is aware all of the regulations on managing
directors and of the obligations stemming from this position and of the Deed of
Foundation of the Employer.

10.3 The Employee is obliged to perform his job with the increased care
expectable from persons holding such positions, in the best interests of the
Employer. The Employee is liable to the Employer according to the regulations
of civil law for damage to the Employer by culpably violating the law, the Deed
of Foundation, resolutions passed by the Founder of the Employer, this Labour
Contract and his job obligations.

11. NON-COMPETITION
-------------------

11.1 The Employee may only conclude additional commissions, entrepreneurial
contracts or establish any other legal relations aiming additional employment
relationship with third parties or other employment-related legal relationships
with the prior written content of the Employer. This provision shall not apply
to legal relationships established for the purpose of scientific or educational
activities under copyright protection.

Upon signing this Labour Contract, the Employee declares that he is not in any
legal relationship as defined in this sub point with any third party.

11.2  The Employee:
-  shall not acquire shares in a company which is engaged in the same or
similar activities or is in regular business contact with the Employer, with
the exception of the acquisition of stock in a public company limited by shares;
-  shall not conclude any transactions falling within the scope of the
Employer's activities on his own behalf; and
-  shall report if a close relative (see: Subsection (2) of Section 139 of the
Labour Code) has become a member of a company which is engaged in the same or
similar activities or is in regular business contact with the Employer, or has
established an employment relationship or other employment-related legal
relationship with an employer engaged in such activities.

                                                                             6

<PAGE>   7
11.3 In the event of the violation of the prohibitions set forth in sub point
11.2 by the Employee, the Employer shall be entitled:
- to demand compensation; or
- to demand that the Employee to relinquish to the Employer the agreement
concluded for himself in lieu of compensation; or
- to demand that the Employee surrender his profit originating from a deal
concluded on another's behalf or to transfer his claim thereto to the Employer.

The Employer may enforce its claims described above within three months of the
time when the person exercising the Employer's rights gains knowledge of the
Employee's action in violation of the prohibition in this sub point, or within
one year of the inception of such claim.

11.4 The Employer shall be entitled to terminate the employment relationship of
the Employee if a close relative of the Employee has become a member of a
company which is engaged in the same or similar activities or is in regular
business contact with the Employer, or has established an employment
relationship or other employment-related legal relationship with an employer
engaged in such activities.

12. CONFIDENTIALITY
-------------------

12.1 The Employee is obliged to treat and maintain information concerning
industrial (business) secrets that he learns of in the course of his work as
well as all information pertaining to the Employer, his clients and his
activities as confidential in the course of performing and after the
termination of this Labour Contract.

In addition to this, the Employee shall not relate to unauthorised person
information he has learned in connection with the fulfilment of his position
and the revealing of which would have detrimental consequences for the Employer.

12.2 In the case of a breach of the confidentiality obligation by the Employee,
the Employer is entitled to terminate this Labour Contract with immediate
effect and to claim for any damage suffered.

13. HOLIDAYS
------------

13.1 Basic holiday is twenty workdays.

The twenty days increases to
a) twenty-one days upon the employee's turning twenty-five;
b) twenty-two days from his turning twenty-eight;
c) twenty-three day from his turning thirty-one;

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<PAGE>   8
d)  twenty-four days from his turning thirty-three;
e)  twenty-five days from his turning thirty-five;
f)  twenty-six from his turning thirty-seven;
g)  twenty-seven from his turning thirty-nine;
h)  twenty-eight from his turning forty-one;
i)  twenty-nine from his turning forty-three;
j)  thirty from his turning forty-five.

The Employee shall first be entitled to a leave of greater duration in the year
he turns the age specified above.

14.  STOCK OPTION

14.1  Provided that the Employee remains an employee of the Employer until May
24, 2001, the Employee will be offered stock options in respect of 50,000
shares in Dynamic IT Inc., a NASDAQ listed company.

As soon as the Stock Option Plan is introduced, the Employer will inform the
Employee about the Stock Option Plan and its conditions.

15.  CLOSING PROVISIONS

15.1 This Labour Contract will be governed by and construed in accordance with
the laws of Hungary and the parties stipulate the jurisdiction of the Capital
Labour Court of Budapest.

15.2 Annex 1 constitutes an inseparable part of this Labour Contract.

15.3 This Labour Contract is signed in two (2) copies.

This Labour Contract has been signed in full compliance with the contractual
intentions of the Parties.

London May 24, 2000                     Budapest, May 24, 2000

/s/ Patrick D. Doyle                    /s/ Peter Berecz
----------------------------------      --------------------------------
EMPLOYER                                EMPLOYEE
BANKNET KFT.                            MR. PETER BERECZ
Represented by
Dynamic I-T, Inc.
Name: Mr. Patrick D. Doyle
Position: member of the Board of Directors
                                                                               8
<PAGE>   9
                                    ANNEX 1
                                WORK DESCRIPTION

JOB:                Managing Director
REPORTING TO:       the Founder
PLACE OF WORK:      Budapest, Hungary

WORK DESCRIPTION:

-    The Managing Director carries out the administration of the Employer's
     business and represents the Employer in relation to third parties, before
     courts and other authorities. The duties of the Managing Director include
     every activity which is not prohibited by law and which does not fall
     within the exclusive competency of the Founder.

-    The Managing Director manages the day-to-day operations of the Employer
     and ensures the smooth implementation of approved business plans.

-    The Managing Director works with the Founder on all aspects of the
     Employer's future development.

-    The Managing Director is obliged to follow the policies and guidelines and
     the code of business conduct adopted by the Founder's Board of Directors.

-    The Managing Director is entitled to exercise the Employer's rights in
     relation to the employees of the Employer (i.e. BankNet Kft.)

     The Founder may deprive the Managing Director of his competence at any
     time and may instruct him in writing.

     Budapest, May 24, 2000

     /s/ Patrick D. Doyle                       /s/ Peter Berecz
     --------------------------------           --------------------------------
     EMPLOYER                                   EMPLOYEE
     BANKNET KFT.                               MR. PETER BERECZ
     Represented by
     Dynamic I-T, Inc.
     Name: Mr. Patrick D. Doyle
     Position: member of the Board of Directors

                                                                               9<PAGE>   1
                                                                   EXHIBIT 10(i)

                                          April 18, 2001

PERSONAL AND CONFIDENTIAL

To Potential Fiscal 2002 Bonus Plan Participants

                        DEFERRAL OF FISCAL 2002 PRO-RATA BONUS

Bonus awards under Ralston Purina's various annual incentive programs will be
made at the time of the proposed merger with Nestle, which is expected to close
by December 31, 2001. Bonuses will be calculated based on an evaluation of both
business and personal performance for the fiscal year period ending as of the
effective date of the merger.

If the closing of the proposed merger occurs prior to September 30, 2001, fiscal
2001 pro-rata bonus awards will be made for the period October 1, 2000 through
the date of the closing. If the transaction is finalized on September 30, 2001,
full fiscal-year bonus amounts will be awarded. In either of these situations,
if you are awarded a bonus, the bonus deferral election you made in December
2000 will govern whether the payment is made in cash or deferred under the terms
of the Deferred Compensation Plan for Key Employees.

If the closing occurs after September 30, 2001, pro-rata bonus awards will be
determined for the short fiscal year running from October 1, 2001 through the
date of the closing. If you wish to defer a fiscal 2002 pro-rata bonus that may
be awarded to you, THE ENCLOSED ELECTION FORM MUST BE COMPLETED AND POSTMARKED
OR FAXED BY APRIL 30, 2001.

IN THE EVENT THAT THE MERGER WITH NESTLE DOES NOT TAKE PLACE, NEW DEFERRAL
ELECTION MATERIALS WILL BE TIMELY DISTRIBUTED TO ADDRESS THE DEFERRAL OF THE
FISCAL 2002 BONUS.

In general, deferring compensation provides the advantage of postponing payment
of tax and of allowing any earnings on the deferred amount to accumulate tax
free until distributed. Ralston Purina's Deferred Compensation Plan for Key
Employees offers the following features:

-     A company match contribution of 25% ON BONUS DOLLARS YOU DEFER INTO THE
      RALSTON PURINA EQUITY OPTION. Deferrals into the Equity Option will
      convert to the Prime Rate Option upon the occurrence of certain types of
      change in control of the Company, including the proposed merger with
      Nestle.

-     Nine investment funds which mirror the returns of the Vanguard mutual
      funds available in the Savings Investment Plan, and the Prime Rate Option.

-     Payment distribution options that provide 5 and 10 year ANNUAL INSTALLMENT
      PAYMENTS if you have an appropriate election on file.

-     Transaction flexibility including DAILY INVESTMENT REALLOCATIONS, Internet
      access to account balance information, and quarterly account statements.
<PAGE>   2
Deferral of Fiscal 2002 Pro-rata Bonus
April 18, 2001
Page Two

Please review the enclosed information, plan prospectus and prospectus
supplements carefully. Then, using the pre-addressed envelope provided, return
the 2002 Pro-rata Bonus Deferral Election form to Clark/Bardes Consulting,
Compensation Resource Group (CRG), the plan record-keeper. PLEASE COMPLETE AND
RETURN A FORM REGARDLESS OF WHETHER OR NOT YOU WISH TO REQUEST A DEFERRAL. YOU
SHOULD KEEP A COPY OF THE COMPLETED FORM FOR YOUR RECORDS. YOUR ELECTION FORM
MUST BE POSTMARKED OR FAXED TO CRG NO LATER THAN APRIL 30, 2001. You may not
change your election to defer any pro-rata fiscal 2002 bonus award after April
30, 2001.

If you have questions, please contact CRG at 800-405-0911 or Pat Robbins,
Manager, Compensation at 314-982-5889.

/s/ Ron Sheban

Ron Sheban
Ralston Purina Company
Compensation and Benefits Planning
Telephone 314-982-2325

Enclosures
<PAGE>   3
DEFERRED COMPENSATION PLAN SUMMARY

Ralston Purina Company is pleased to offer you this opportunity to participate
in the Ralston Purina Deferred Compensation Plan for Key Employees. Deferring
compensation provides an opportunity for you to allocate a certain amount of
your pre-tax savings to help you accumulate assets for planned events during the
time you are working and beyond.

HIGHLIGHTS

During this enrollment period, you will have the opportunity to:

      -  Defer pre-tax compensation as follows:

         -  Defer up to 100% of your 2002 pro-rata bonus

      -  Elect to receive your 2002 pro-rata bonus deferrals in one or more
         of the following:

         -  A short-term lump-sum payout in January of the first calendar
            year following the effective date of the deferral (e.g. January,
            2002, if the pro-rata bonus is awarded in calendar year 2001)

         -  An intermediate-term lump-sum payout at some fixed date, which is
            at least 3 years after deferral, or

         -  A long-term payout at retirement or termination

      -     Select 5- or 10-year annual installment payments if you defer long
            term and have an appropriate election on file.

      -     Transfer existing unrestricted deferred compensation account
            balances among eleven available investment funds.

                                      - - -

THIS MATERIAL COVERS MAJOR PROVISIONS OF THE RALSTON PURINA DEFERRED
COMPENSATION PLAN FOR KEY EMPLOYEES. MORE DETAILED INFORMATION IS AVAILABLE FROM
THE PLAN DOCUMENT AND PLAN PROSPECTUS. IF THERE IS A DISCREPANCY BETWEEN THIS
INFORMATION AND THE PLAN PROSPECTUS OR PLAN DOCUMENT, THE PLAN DOCUMENT WILL
GOVERN. THE PLAN DOCUMENT IS ON FILE IN THE COMPENSATION DEPARTMENT, ST. LOUIS.
<PAGE>   4
WHY DEFER COMPENSATION?

The plan offers flexibility to help you meet your present and future financial
needs.

SAVING FOR RETIREMENT

When it comes to retirement planning, your qualified Retirement Plan and 401(k)
Savings Investment Plan (SIP) are just a part of the story. Current federal
income tax dollar limits restrict your yearly SIP savings and qualified
Retirement Plan benefits. Internal Revenue Code discrimination testing may
result in further reductions to your pre-tax saving opportunity in the SIP.

The Deferred Compensation Plan is a nonqualified plan, which means that it is
not subject to the same IRS and federal income tax limits as the SIP and
Retirement Plans. The plan allows you to supplement your pension and SIP savings
by deferring and investing your bonus and salary BEFORE federal and state income
and local taxes are deducted, and compound that pre-tax income, tax-free, until
the money is paid to you. Because your account balance is based on your pre-tax
deferral amount plus pre-tax earnings, your account balance grows faster than if
you invested your after-tax income in similar investments outside the plan.

      FOR EXAMPLE:

      If you are in a 40% tax bracket and defer $10,000 into the Plan, you have
      an immediate tax savings of $4,000 in the year you defer. In addition, you
      have $10,000 in your deferred compensation account on which tax-deferred
      earnings accumulate.

SAVING FOR SHORTER-TERM GOALS

In addition to providing a source of income for retirement, the plan offers a
source of income for shorter-term goals including helping to fund a child's
college education or financing a new home purchase.
<PAGE>   5
ALLOCATION OF DEFERRED AMOUNTS

When you make your deferral election, you allocate the amount to one or more of
the following "measurement" funds in whole percentage increments, with the total
equaling 100%:

      -     Prime Rate Option

      -     Ralston Purina Equity Option*

      -     Vanguard Wellington Fund

      -     Vanguard 500 Index Fund

      -     Vanguard Windsor II Fund

      -     Vanguard Small-Cap Index Fund

      -     Vanguard International Growth Fund

      -     Vanguard LifeStrategy Income Fund

      -     Vanguard LifeStrategy Conservative Growth Fund

      -     Vanguard LifeStrategy Moderate Growth Fund

      -     Vanguard LifeStrategy Growth Fund

* NOTE: DEFERRALS INTO THE RALSTON PURINA EQUITY OPTION WILL CONVERT TO THE
PRIME RATE OPTION UPON THE OCCURRENCE OF A CHANGE IN CONTROL OF THE COMPANY, AS
DEFINED IN THE DEFERRED COMPENSATION PLAN FOR KEY EMPLOYEES. THE PROPOSED MERGER
CONSTITUTES A CHANGE IN CONTROL UNDER THE PLAN.

Under the terms of the Plan, you do not own shares or units of the measurement
funds you select. The funds are used only as a means for measuring the return on
your deferred compensation. Your account is credited with investment returns
based on these funds, reflecting a bookkeeping entry only and will not represent
an actual investment made on your behalf.

DEFERRED AMOUNTS WILL EARN RETURNS (WHICH MAY BE POSITIVE OR NEGATIVE) AS IF
THEY HAD BEEN INVESTED AT THE NET ASSET VALUE (NET OF INVESTMENT ADVISORY FEES)
OF THE MEASUREMENT FUNDS.

-  With the exception of the Prime Rate Option, all account balances will be
   valued daily based on the performance of the measurement funds as of the
   close of business day on the valuation date, at the closing price quoted on
   the New York Stock Exchange.

-  The Prime Rate Option will be valued based on the average of the daily close
   of business prime rates as established by the Morgan Guaranty Trust Company
   of New York.

In selecting your measurement funds, you should consider the effect your
selections will have on your overall asset portfolio. To help you in this
process, you should read the prospectuses for the Vanguard measurement funds.
Prospectuses for the Vanguard Funds can be requested by contacting Vanguard
Participant Services at 800-523-1188.
<PAGE>   6
CREDITING YOUR ACCOUNT

PRO-RATA BONUS

If you elect to defer all or a portion of your fiscal year 2002 pro-rata bonus,
that amount will be credited to your account(s) effective as of a date prior to
the closing of the merger transaction between Ralston Purina and Nestle. Special
bonuses awarded immediately prior to the closing shall be subject to your
deferral election. Special bonuses paid at any other time shall not be eligible
for deferral. An election to defer is subject to the approval of the Chief
Executive Officer and the Human Resources Committee.

COMPANY MATCH ON PRO-RATA BONUS

Pro-rata fiscal 2002 bonus awards, and all special bonuses eligible for
deferral, will be credited with a 25% match if you elected to defer them into
the Equity Option.

VESTING

If you are a participant not yet vested in your Company matching deferral
account, you will become fully vested in all Company matching deferrals if you
remain employed with Ralston Purina Company or one of its subsidiaries on the
effective date of the merger of Ralston Purina and Nestle. If the merger does
not occur, the normal vesting schedule for Company matching deferrals, as
described in the prospectus, will continue to apply.
<PAGE>   7
TYPES OF DISTRIBUTIONS

If you elect to defer a pro-rata bonus that may be awarded to you, you may
choose whether you want to receive this deferral amount, plus the earnings
credited on such deferral, in the form of a short-term, intermediate-term or
long-term payout. The following chart summarizes distribution options under the
Plan:

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
 DEFERRALS            PURPOSE            WHEN RECEIVED      PAYMENT OPTIONS
--------------------------------------------------------------------------------
<S>                   <C>                <C>                <C>
 SHORT-TERM           When you need      January of the     Lump sum only
                      income the         calendar year
                      following year     following the
                                         year in which
                                         the bonus is
                                         deferred
--------------------------------------------------------------------------------
 INTERMEDIATE-TERM    For shorter-term   January of the     Lump sum only
                      financial needs    calendar year at
                      such as college    least 3 years
                      or a home          following the
                      purchase           date the bonus is
                                         deferred
--------------------------------------------------------------------------------
 LONG-TERM            For long-term or   Retirement or      Lump sum or 5-
                      retirement income  termination of     or 10- year
                                         employment         annual
                                                            installment
                                                            payments*
--------------------------------------------------------------------------------
</TABLE>

* TO RECEIVE PAYMENTS THROUGH THE 5- OR 10-YEAR ANNUAL INSTALLMENT OPTION, YOU
MUST HAVE A TIMELY INSTALLMENT ELECTION FORM ON FILE.

SHORT-TERM

Short-term deferral allows you to defer your pro-rata bonus until January of the
calendar year following the year in which the bonus is deferred. Short-term
deferrals can ONLY be allocated to the Prime Rate Option. Interest on the amount
is credited at the prime rate under the terms of the Prime Rate Option. YOUR
PAYMENT IS ONLY AVAILABLE IN A LUMP SUM.

INTERMEDIATE-TERM

Intermediate-term deferrals are available to help you meet shorter-term
financial needs such as helping to fund a child's college education, financing a
future home purchase, or meeting other foreseeable financial obligations, and
can be allocated to any of the available funds.

Intermediate-term deferrals provide you with access to all or a portion of your
annual deferral amount, plus earnings, at any point in the future but no earlier
than January of the calendar year at least 3 years from the date the bonus is
deferred. YOUR PAYMENT IS ONLY AVAILABLE IN A LUMP SUM. However, a Company
matching deferral on an intermediate-term deferral into the Equity Option will
be paid upon your termination of employment in accordance with the lump-sum or
installment form of payment applicable to the remainder of your accounts in the
Plan.
<PAGE>   8
TYPES OF DISTRIBUTIONS (CONT.)

LONG-TERM

Long-term deferrals provide you with access to your account at retirement or
termination of employment and can be allocated to any of the available funds.
Long-term distribution options vary as follows:

      -  WHEN YOU LEAVE THE COMPANY, you can receive a benefit from the Plan in
         a lump sum or in annual installments over a period of 5 or 10 years if
         you had a timely installment election form on file. Only long-term and
         Company matching deferrals are eligible for 5- or 10-year installment
         payments. If installments are elected, the unpaid balance will continue
         to accrue earnings based on your investment selections. If no such
         installment election has been made, you will receive your distribution
         in lump sum. Distributions (other than with respect to short- or
         intermediate-term deferrals) will begin no later than 60 days following
         the date of your retirement or termination.

      -  IF YOU DIE WHILE ACTIVELY EMPLOYED, your beneficiary will receive a
         lump-sum payment equal to your account balance, unless a timely
         installment election is in place at the time of your death.

      -  IF YOU DIE WHILE RECEIVING INSTALLMENT PAYMENTS, your beneficiary will
         continue receiving the balance of those installment payments.
<PAGE>   9
TAX IMPLICATIONS OF DEFERRAL

AT THE TIME OF DEFERRAL

Amounts you defer under the Plan will not be taxed for federal income tax
purposes in the year they are earned and would have otherwise been paid to you.
However, FICA tax (Social Security - up to taxable wage base - and
Medicare HI) is withheld. In addition, earnings credited in accordance with the
Plan will not be taxed for federal income tax purposes until the year they are
distributed.

FICA taxes must be withheld at the time your deferrals are earned and credited
to your account balance. IRS rules require that your deferral amounts are
considered wages at the time that they ARE EARNED, regardless of when paid, for
the purpose of calculating FICA taxes (Social Security and Medicare HI tax
components). If, at the time of deferral, your wages for the year have exceeded
the taxable wage base for Social Security ($80,400 for 2001), the Social
Security portion of FICA (6.2%) will not apply to your deferred bonus or
deferred salary. If the taxable wage base for Social Security has not been met
at the time of deferral, FICA will be withheld from any cash compensation with
respect to your deferred amounts. Since no taxable wage base limit applies to
the Medicare HI component, your deferred compensation will be subject to
Medicare HI withholding tax of 1.45%. The Ralston Purina Equity Option Company
match amount, if any, will also be subject to FICA in the year you turn age 50.
Upon the closing of the merger, all unvested Company matching accounts vest and
will also be subject to FICA at that time. Earnings on deferred amounts are
never subject to FICA taxes.

UPON DISTRIBUTION

Your annual deferral amounts and earnings accrued on such amounts are taxed as
current income for state income and local tax purposes, as applicable, upon
distribution. Special income tax averaging is not available. All FICA should
have been withheld at the time of your deferral or (with respect to the Company
match) your attainment of age 50 or upon occurrence of the merger when all
unvested Company matching accounts vest, and no additional FICA should be due.
Please note that under law, installment payments made over 10 years may not be
subject to state income taxes, if paid to you when you are residing in a state
that imposes no income tax; however, lump sum payments, in such case, may be
subject to taxes imposed by the state in which you were employed when such
deferred compensation was earned. This issue should be discussed with your tax
advisor.
<PAGE>   10
PLAN ADMINISTRATION

ACCOUNT STATEMENTS

You will receive an account statement quarterly as soon as practicable following
the close of each calendar quarter. Clark/Bardes Consulting, Compensation
Resource Group, Inc. (CRG) assists the Company with the administration of the
plan and will prepare the statements.

Also, CRG provides an Internet system so that you can access your account 24
hours a day from your computer. The Internet system allows you to access your
current balance and make certain changes, such as allocating your account
balance to different funds. For more information, contact CRG at:

      -  SERVICE CENTER: 800-405-0911

      -  WEBSITE: crgworld.com (an I.D. and password is required)

LOANS AND WITHDRAWALS

You may not take loans from the Plan and may not roll over distributions to an
IRA or another tax-qualified retirement plan. Hardship withdrawals are allowed
in very limited circumstances at the plan administrator's discretion in cases of
an unforeseeable emergency creating a serious and immediate financial hardship.

BENEFICIARY

You must designate a beneficiary to receive your deferral amount in the event
that you die and your account is not paid. You may designate any individual or
entity you wish to be your beneficiary.

PLAN IS UNFUNDED

Federal law requires that the deferred compensation accounts remain "unfunded".
If you have an account balance in this Plan, you will be an unsecured general
creditor of Ralston Purina Company for the amount of your account balance. The
Company has established a Grantor Trust, the assets of which are subject to the
claims of the creditors of the Company, to help meet its benefits obligations.

ASSIGNMENT OF BENEFITS

You cannot in any way sell, assign, hypothecate, alienate, encumber, or in any
way transfer or convey in advance of receipt, any of your rights under the Plan.
<PAGE>   11
HOW DEFERRED COMPENSATION AFFECTS OTHER BENEFITS

RETIREMENT PLAN

The Ralston Purina Retirement Plan definition of "final average earnings"
includes deferred compensation. Therefore, under the terms of that Plan, your
pension benefit will be calculated including deferred bonuses, as long as their
inclusion does not violate IRS nondiscrimination rules governing qualified plans
or other IRS limits. Deferred bonuses will be included in benefit earnings for
purposes of the Retirement Plan in the calendar year in which they are awarded.

SIP

If you are a participant in the Savings Investment Plan (SIP), any bonus
deferred under the Deferred Compensation Plan will not be included in your
compensation for purposes of computing your SIP contribution or the Company
matching SIP contribution. Please note, however, that your SIP contributions are
deducted from the cash payments of short-term deferrals (but not from payments
of intermediate-term deferrals) if you are an active employee at the time of the
payout.

SOCIAL SECURITY

Distributions made from the Plan will not directly affect your Social Security
benefits. For purposes of Social Security, these distributions are considered
"earned" when they are credited to your account; therefore, they do not
constitute earned income under the earnings test when they are distributed to
you. However, because the distributions will be considered gross income for
income tax purposes, they may have the effect of subjecting your Social Security
benefits to income taxation.
<PAGE>   12
ENROLLMENT

If you wish to defer your fiscal 2002 pro-rata bonus into the Plan, you must
complete an election form and send it to CRG no later than APRIL 30, 2001.

To defer, complete the following steps:

      1. FILL OUT THE ENCLOSED DEFERRAL ELECTION FORM.

         First, in the DEFERRAL ELECTION section, indicate HOW MUCH, if any, of
         the pro-rata bonus you may be awarded that YOU WOULD LIKE TO DEFER into
         the Plan. If you choose not to defer, please check the "No Deferral"
         box, sign and return the form.

         Then, make your DEFERRAL TERM ELECTION by indicating whether you want
         your fiscal 2002 pro-rata deferral to be paid out 1) in January of the
         first calendar year following the effective date of the deferral (e.g.
         January, 2002 if the pro-rata bonus is awarded in calendar 2001), 2) at
         some future date under the intermediate-term deferral, or 3) at
         retirement or termination of employment.

         Next, under FUND ALLOCATION, select the fund(s) to which you would like
         to direct your deferrals. NOTE: IF YOU ELECT TO DEFER 100% OF YOUR
         PRO-RATA BONUS TO JANUARY OF THE FIRST CALENDAR YEAR FOLLOWING THE
         EFFECTIVE DATE OF THE DEFERRAL (E.G. JANUARY, 2002 IF THE PRO-RATA
         BONUS IS AWARDED IN CALENDAR 2001), DO NOT COMPLETE THE FUND ALLOCATION
         SECTION, WHICH ONLY APPLIES TO INTERMEDIATE- AND LONG-TERM DEFERRALS.
         All short-term deferrals are allocated to the Prime Rate Option and are
         not subject to the Company match.

         If you would like to initially elect or change the form of distribution
         in the event of retirement or termination of employment (which excludes
         short- and intermediate-term deferrals), complete the PAYMENT FORM
         section indicating if you want a lump-sum or installment payments over
         5 or 10 years. This election applies to your entire deferred
         compensation account balance (other than short- and intermediate-term
         deferrals noted above) and only applies to distributions made at least
         one year following the date this form is completed. IF YOU DO NOT WISH
         TO CHANGE YOUR CURRENT FORM OF DISTRIBUTION, YOU DO NOT NEED TO
         COMPLETE THIS SECTION. If no installment payment election form is in
         effect at the time of distribution the payment will be made in the form
         of a lump sum.

         Finally, complete the ACKNOWLEDGEMENT section of the form.

         If you would like to change your current beneficiary designation,
         contact CRG at 800-405-0911. Your beneficiary will receive your
         benefits in the event you die before your account is paid. You may
         elect anyone you wish as your beneficiary.

      2. SIGN AND DATE THE DEFERRAL ELECTION FORM.

      3. RETURN THE COMPLETED ELECTION FORM IN THE PRE-ADDRESSED ENVELOPE TO
         CRG. RETAIN A COPY FOR YOUR RECORDS. TO BE EFFECTIVE, YOUR ELECTION
         FORM MUST BE POSTMARKED NO LATER THAN APRIL 30, 2001. WHILE FACSIMILE
         COPIES OF THE ELECTION FORM WILL BE ACCEPTED THROUGH THE DEADLINE, A
         SIGNED COPY MUST ALSO BE MAILED TO CRG AT THE FOLLOWING ADDRESS:

                  CLARK/BARDES CONSULTING, COMPENSATION RESOURCE GROUP
                  ATTN:  LAURA POPE
                  633 W. 5TH STREET, 52ND FLOOR
                  LOS ANGELES, CA 90071
                  FAX NUMBER: 213-438-6600
<PAGE>   13
There are eleven options available under the Deferred Compensation Plan by which
investment returns are measured: nine Vanguard funds, the Prime Rate Option, and
the Ralston Purina Equity Option. An abbreviated capsule description of each
investment option and its historical returns are outlined below. Before deciding
which option(s) to select, you should read the Plan prospectus and the fund
prospectuses for the relevant Vanguard measurement funds which provide
additional details. NOTE THAT, UNDER THE TERMS OF THE DEFERRED COMPENSATION PLAN
FOR KEY EMPLOYEES, THESE FUNDS ARE USED FOR MEASUREMENT PURPOSES ONLY. YOUR
ACCOUNT WILL BE CREDITED WITH INVESTMENT RETURNS BASED ON THESE FUNDS, BUT WILL
BE REFLECTED AS A BOOKKEEPING ENTRY ONLY AND WILL NOT REPRESENT AN ACTUAL
INVESTMENT MADE ON YOUR BEHALF.

The fund performance data shown below constitutes part of a prospectus covering
securities that have been registered under the Securities Act of 1933, and is
intended to be incorporated in and made part of the Prospectus dated May 1, 1999
for the Ralston Purina Company Deferred Compensation Plan for Key Employees. The
date of this Prospectus Supplement is March 30, 2001.

AVERAGE ANNUALIZED RETURNS AS OF DECEMBER 31, 2000

<TABLE>
<CAPTION>
                                                             1 YEAR     5 YEARS     10 YEARS
                                                             ------     -------     --------
<S>                                                         <C>        <C>         <C>
RALSTON PURINA EQUITY OPTION* .........................      25.87%      13.51%      12.06%
Common stock of Ralston Purina Company.

PRIME RATE OPTION .....................................       9.23%       8.46%       7.88%
Interest based on the average prime rates established
by Morgan Guaranty Trust Company of New York.

VANGUARD WELLINGTON FUND ..............................      10.40%      13.09%      14.00%
The fund's assets are divided between common stocks
and bonds, with an average of 65% of assets in stocks
and 35% in bonds.  The fund invests in dividend-paying
large and mid-capitalization stocks of
well-established companies whose prospects are
improving but whose values have yet to be recognized
in the marketplace.

VANGUARD 500 INDEX FUND ...............................      -9.06%      18.31%      17.35%
The fund holds all of the 500 stocks that make up the
Standard & Poor's 500 Index in proportion to their
weighting in the index. The fund attempts to match the
performance of the index, a widely recognized
benchmark of U.S. stock market performance, and it
remains fully invested in stocks at all times. Though
the fund seeks to match the index, its performance
typically can be expected to fall short by a small
percentage representing operating costs.

VANGUARD WINDSOR II FUND ..............................      16.86%      16.06%      16.81%
The fund invests in a diversified group of
out-of-favor stocks of large-capitalization
companies.  The stocks are, as a group, selling at
prices below the overall market average compared to
their dividend income and future return potential.

VANGUARD SMALL-CAP INDEX FUND .........................      -2.67%      11.43%      16.19%
The fund attempts to match the performance of the
Russell 2000 Index, an unmanaged index of small
companies.  The fund invests in a large sampling of
stocks that matches certain characteristics of the
index (such as industry weightings, market
capitalization, and dividend yield).  Though the fund
seeks to match the index, its performance typically
can be expected to fall short by a small percentage
representing operating costs.

VANGUARD INTERNATIONAL GROWTH FUND ....................      -8.60%      10.02%      10.30%
The fund invests in stocks of high-quality, seasoned
companies based outside the United States.  It invests
60% to 70% of its assets in companies with sustainable
competitive advantages and strong prospects for
long-term growth.

VANGUARD LIFESTRATEGY INCOME FUND .....................       8.06%       9.11%        N/A
This fund seeks a high level of income.  It invests
its net assets in a combination of four different
Vanguard funds: a stock fund, two bond funds, and an
asset allocation fund.

VANGUARD LIFESTRATEGY CONSERVATIVE GROWTH FUND ........       3.12%      10.69%        N/A
This fund seeks a high level of income and moderate
long-term growth of capital. It  invests its net
assets in a combination of five different Vanguard
funds: a domestic stock fund, an international stock
fund, two bond funds, and an asset allocation fund.

VANGUARD LIFESTRATEGY MODERATE GROWTH FUND ............      -0.88%      12.27%        N/A
This fund seeks a reasonable level of income and
long-term growth of capital and income. It invests its
net assets in a combination of four different Vanguard
funds: a bond fund, a domestic stock fund, an
international stock fund, and an asset allocation fund.

VANGUARD LIFESTRATEGY GROWTH FUND .....................      -5.44%      13.70%        N/A
This fund seeks long-term growth of capital and
income. It invests its net assets in a combination of
four different Vanguard funds: a bond fund, a domestic
stock fund, an international stock fund, and an asset
allocation fund.
</TABLE>
<PAGE>   14
FUND PERFORMANCE
PAGE TWO

* On April 1, 2000, the Company issued a dividend of one share of common stock
of Energizer Holdings, Inc. for every three shares of Ralston Purina Company
Common Stock then held. On April 1, 1998, the Company issued a dividend of one
share of common stock of Agribrands International, Inc. for every ten shares of
Ralston Purina Company Common Stock then held. On March 31, 1994, the Company
issued a dividend of one share of common stock of Ralcorp Holdings, Inc. for
every three shares of Ralston Purina Company Common Stock then held. The
Energizer, Agribrands, and Ralcorp shares received are assumed to be liquidated,
with the proceeds from such sales being reinvested in Ralston Purina Company
Common Stock, for purposes of the above average annualized returns.

On July 30, 1993, the Company recapitalized its former single class of common
stock by redesignating it as Ralston-RPG Group Stock ("RPG") and distributing
Ralston-CBG Group Stock ("CBG"). The ten year average annualized returns shown
above reflect the rate of return for the single class of common stock from
January 1, 1991 through July 30, 1993, and reflect a capitalization-weighted
combination of RPG and CBG Stock from August 2, 1993 (the date of initial
issuance of RPG and CBG stocks) until May 15, 1995. On May 15, 1995, each share
of CBG stock was exchanged for 0.0886 shares of Ralston-RPG stock; the shares of
RPG stock received upon the exchange are included in the overall performance of
RPG subsequent to that date. The rates of return shown subsequent to May 15,
1995 reflect the single class of Ralston common stock.

On January 16, 2001, the Company announced a merger whereby Nestle S.A. will
acquire all of the outstanding shares of Ralston Purina for $33.50 per share in
cash upon the completion of the merger.
<PAGE>   15
                  2002 PRO-RATA BONUS DEFERRAL ELECTION

Please submit my request as follows with respect to any fiscal 2002 pro-rata
bonus, or any special bonus, awarded immediately prior to the closing (the
"fiscal 2002 Bonus") that I may earn from Ralston Purina Company or its
affiliates. I understand that an election to defer, once made, is IRREVOCABLE,
and subject to the approval of the Chief Executive Officer and Human Resources
Committee.

--------------------------------------------------------------------------------
DEFERRAL ELECTION  PLEASE CHECK BOX BELOW IF YOU WISH TO DEFER A
                   PORTION OF THE FISCAL 2002 BONUS YOU MAY BE AWARDED.
--------------------------------------------------------------------------------

[ ] Deferral       I elect to defer ______%, or all up to $_________, or
                   defer all in excess of $__________ of my fiscal 2002 Bonus.

[ ] No Deferral    I elect not to defer my fiscal 2002  Bonus.

--------------------------------------------------------------------------------
DEFERRAL TERM      SELECT THE PERIOD OVER WHICH YOU ELECT TO DEFER YOUR
                   FISCAL 2002 BONUS.  PERCENTAGES MUST TOTAL 100%.
--------------------------------------------------------------------------------

I elect to receive __________% of my fiscal 2002 Bonus deferral amounts as a
short-term payout in January of the first calendar year following the effective
date of the deferral (e.g. January, 2002 if the pro-rata bonus is awarded in
calendar 2001) with interest calculated under the terms of the Prime Rate
Option, PAYABLE IN A LUMP SUM. IF YOU CHOOSE TO DEFER 100% OF YOUR BONUS
SHORT-TERM, DO NOT COMPLETE THE FUND ALLOCATION SECTION BELOW.

I elect to receive _______% of my fiscal 2002 Bonus deferral amounts as an
intermediate-term payout in the January following ______ years (minimum of 3)
from the date the deferral is effected. For example, if the merger with Nestle
occurs by December 31, 2001, you may receive payment as early as January, 2005.
Such amount shall be PAYABLE IN A LUMP SUM ONLY.

I elect to receive _______% of my fiscal 2002 Bonus deferral amounts as a
retirement or termination payment.

FUND ALLOCATION    PLEASE ALLOCATE BONUS DEFERRALS IN WHOLE PERCENTAGE
                   INCREMENTS. TOTALS MUST EQUAL 100%. THIS SECTION APPLIES
                   ONLY TO INTERMEDIATE AND LONG-TERM DEFERRALS. ALL
                   SHORT-TERM DEFERRALS ARE AUTOMATICALLY CREDITED WITH
                   INTEREST UNDER THE TERMS OF THE PRIME RATE OPTION.

IMPORTANT NOTE: A 25% COMPANY MATCH IS PROVIDED ON DEFERRALS INTO THE RALSTON
PURINA EQUITY OPTION. DEFERRALS INTO THE RALSTON PURINA EQUITY OPTION WILL
CONVERT TO THE PRIME RATE OPTION UPON THE OCCURRENCE OF A CHANGE IN CONTROL OF
THE COMPANY, AS DEFINED IN THE DEFERRED COMPENSATION PLAN FOR KEY EMPLOYEES.

<TABLE>
<CAPTION>
                                                            BONUS ALLOCATION
<S>                                                         <C>
Ralston Purina Equity Option                                     _______%

Prime Rate Option                                                _______%

Vanguard Wellington Fund                                         _______%

Vanguard 500 Index Fund                                          _______%

Vanguard Windsor II Fund                                         _______%

Vanguard Small-Cap Index Fund                                    _______%

Vanguard International Growth Fund                               _______%

Vanguard LifeStrategy Income Fund                                _______%

Vanguard LifeStrategy Conservative Growth Fund                   _______%

Vanguard LifeStrategy Moderate Growth Fund                       _______%

Vanguard LifeStrategy Growth Fund                                _______%

                                                                   100  %
                                                                 _______
</TABLE>
<PAGE>   16
--------------------------------------------------------------------------------
 PAYMENT FORM       CHECK ONE BOX BELOW TO SELECT A PAYMENT OPTION. IF YOU
                    HAVE AN EFFECTIVE DISTRIBUTION ELECTION FORM ON FILE, AND
                    YOU DO NOT WANT TO CHANGE YOUR CURRENT DISTRIBUTION FORM,
                    THIS SECTION DOES NOT HAVE TO BE COMPLETED; RATHER THAT
                    ELECTION FORM WILL CONTINUE TO APPLY.
--------------------------------------------------------------------------------

 This election will apply to all Deferred Compensation Plan distributions (other
 than with respect to short- and intermediate-term deferrals, which are payable
 only in a lump sum). This payment form election will apply only to
 distributions made one year following the date this form is completed.

<TABLE>
<S>          <C>                   <C>                        <C>
 CHECK ONE:  [ ] Lump Sum Payment  [ ] 5 Annual Installments  [ ] 10 Annual Installments
</TABLE>

 ACKNOWLEDGEMENT    I UNDERSTAND AND AGREE THAT MY PARTICIPATION IN THE PROGRAM
                    WILL BE SUBJECT TO THE TERMS AND CONDITIONS OF THE PROGRAM.
                    I UNDERSTAND THAT ANY DEFERRAL ELECTION THAT I MAKE IS
                    IRREVOCABLE AND CANNOT BE CHANGED.

Signature of Participant              Social Security Number

Name (Print or Type)                  Today's Date

Department                            Location/Floor #

Home Street Address                      City             State      Zip

--------------------------------------------------------------------------------
   MAIL OR FAX TO CLARK/BARDES CONSULTING - COMPENSATION RESOURCE GROUP, INC.
                            (CRG) - ATTN: LAURA POPE
                633 W. 5TH STREET - 52ND FLOOR - LOS ANGELES, CA
                      90071-2086 - FAX NUMBER: 213-438-6600

       THIS FORM MUST BE POSTMARKED OR FAXED NO LATER THAN APRIL 30, 2001
--------------------------------------------------------------------------------
<PAGE>   17
                              PROSPECTUS SUPPLEMENT

      This document shall constitute a supplement to the Ralston Purina Company
Deferred Compensation Plan for Key Employees Prospectus dated May 1, 1999. The
date of this Prospectus Supplement is December 1, 2000.

REFERENCES TO CO-CHIEF EXECUTIVE OFFICERS. All references in the May 1, 1999
Prospectus to co-Chief Executive Officers shall now mean Chief Executive
Officer.

SHORT-TERM DEFERRALS. Short-term deferrals will be credited to the Prime Rate
Fund and may not be transferred to other deferral options in the Plan.

THE PARAGRAPH REGARDING FORFEITURES AND PENALTIES IS REVISED AS FOLLOWS:

      VESTING AND FORFEITURE. A participant shall be fully vested in his or her
      Company Matching Deferral upon termination of employment if the
      participant has attained age 50 or is involuntarily terminated at any age,
      other than for cause. A participant shall forfeit his or her Company
      Matching Deferral if the participant is terminated for cause at any age or
      voluntarily terminates employment prior to age 50. In the event of a
      Change of Control of the Company or an Acceleration of Payment, all
      Company Matching Deferrals will become vested and non-forfeitable.

MEASUREMENT FUND DESCRIPTIONS.  Revised fund descriptions for certain
of the Measurement Fund Options are provided below:

   -  LifeStrategy Conservative Growth Fund. The Vanguard LifeStrategy
      Conservative Growth Fund invests its net assets in a combination of five
      different Vanguard mutual funds: two bond funds, a U.S. equity fund, an
      international equity fund and an asset allocation fund. Designed as a
      balanced "fund of funds", the objective of the LifeStrategy Conservative
      Growth Fund is to provide investors with a prudent investment program,
      seeking a high level of income and moderate long-term growth of capital.
      The LifeStrategy Conservative Growth Fund incurs no direct expenses,
      instead bearing its share of the expenses of the underlying mutual funds
      in which it invests. No assurance can be given that the LifeStrategy
      Conservative Growth Fund will achieve its objective.

   -  LifeStrategy Moderate Growth Fund. The Vanguard LifeStrategy Moderate
      Growth Fund invests its net assets in a combination of four different
      Vanguard mutual funds: a bond fund, a U.S. equity fund, an international
      equity fund and an asset allocation fund. Designed as a balanced "fund of
      funds", the objective of the LifeStrategy Moderate Growth Fund is to
      provide investors with a prudent investment program, seeking growth of
      capital and a low to moderate level of current income. The LifeStrategy
      Moderate Growth Fund incurs no direct expenses, instead bearing its share
      of the expenses of the underlying mutual funds in which it invests. No
      assurance can be given that the LifeStrategy Moderate Growth Fund will
      achieve its objective.
<PAGE>   18
   -  LifeStrategy Growth Fund. The Vanguard LifeStrategy Growth Fund invests
      its net assets in a combination of four different Vanguard mutual funds: a
      bond fund, a U.S. equity fund, an international equity fund and an asset
      allocation fund. Designed as a balanced "fund of funds", the objective of
      the LifeStrategy Growth Fund is to provide investors with a prudent
      investment program, seeking long-term growth of capital and some current
      income. The LifeStrategy Growth Fund incurs no direct expenses, instead
      bearing its share of the expenses of the underlying mutual funds in which
      it invests. No assurance can be given that the LifeStrategy Growth Fund
      will achieve its objective.

   -  Small-Cap Index Fund. The Vanguard Small-Cap Index Fund (the "Small
      Capitalization Fund") seeks investment results that parallel the
      performance of the unmanaged Russell 2000 Small Stock Index, a broadly
      diversified index consisting of the 2000 smallest companies out of the
      3,000 largest U.S. companies. The Fund is invested in the common stocks of
      a statistically selected sample of small company stocks, which is designed
      to balance industry weightings, market capitalization, price/earnings
      ratio, dividend yields and other characteristics, such as yield, price to
      earnings and debt to asset ratios, in order to roughly duplicate those of
      the Russell 2000 Index. Small company stocks have historically been more
      volatile than the stock market as a whole. For this reason, the Small
      Capitalization Fund should be considered only by investors willing to
      assume above average interim risks in search of above average long-term
      capital appreciation. The yield on the Fund will generally decrease or
      increase from year to year in accordance with market conditions. No
      assurance can be given that the Small-Cap Index Fund will achieve its
      objective.

                                      - - -

      THIS DOCUMENT CONSTITUTES A SUPPLEMENT TO THE PROSPECTUS COVERING
      SECURITIES THAT HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933.

                                       2
<PAGE>   19
                              PROSPECTUS SUPPLEMENT

      This document shall constitute a supplement to the Ralston Purina Company
Deferred Compensation Plan for Key Employees Prospectus dated May 1, 1999. The
date of this Prospectus Supplement is January 30, 2001.

The Deferred Compensation Plan for Key Employees (the "Plan") has been amended
effective January 15, 2001 to incorporate the following changes:

   Each Deferred Compensation Plan participant who is employed by Ralston Purina
   Company at the time of a change in control of the Company (e.g. when the
   Nestle merger occurs) will be fully vested in his or her company-match
   accounts and, the Fixed Benefit Option, as applicable.

   Effective January 30, 2001, the Ralston Purina Equity Option will be valued
   based on the daily closing price quoted on the New York Stock Exchange
   Composite Index on the day of the transaction. Previously, a 10-day average
   price was used to value Ralston Purina Equity Option accounts. Examples of
   transactions include transfer of account balances between accounts and
   payment distributions at retirement or termination of employment.

   Upon the merger with Nestle, participants will be credited with $33.50 for
   each share equivalent credited to their Ralston Purina Equity Option and the
   proceeds will be credited to the Prime Rate Option. In accordance with
   pre-existing Plan provisions, the Ralston Purina Equity Option will be
   eliminated coincident with the merger.

   All participants will now have the opportunity to elect to receive benefits
   upon retirement or termination of employment in the form of five or ten-year
   installment payments regardless of whether the participant has attained age
   50 at the time of termination.

   At the time any investment fund options under the Plan are changed following
   a change in control of the Company, the Plan must be brought into conformity
   with the investment guidelines set forth in Attachment A hereto, and such
   guidelines shall be maintained as long as there are participant balances
   remaining within the Plan.

                                      - - -

THIS DOCUMENT CONSTITUTES A SUPPLEMENT TO THE PROSPECTUS COVERING SECURITIES
THAT HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933.
<PAGE>   20
                                                                    ATTACHMENT A

           INVESTMENT ELECTION QUALITY MAINTENANCE STANDARDS
            FOR DEFERRED COMPENSATION PLAN FOR KEY EMPLOYEES
               AND THE EXECUTIVE SAVINGS INVESTMENT PLAN

At the time any plan investment fund choices are changed by the Plan
Administrator following a Change of Control, the Deferred Compensation Plan for
Key Employees and the Executive Savings Investment Plan shall conform with the
following guidelines which would be maintained irrevocably as long as there are
participant balances remaining within these plans.

For participants with deferred balances, the above captioned plans shall always
incorporate a broad selection of investment choices which cover the spectrum of
investor characteristics taking into account risk and return. These investment
choices should continue to include the "Prime Rate" Fund with interest crediting
according to the current prime rate and for other funds should mirror publicly
traded mutual funds which have received a "3" (average) Morningstar rating or
better. Any fund whose Morningstar rating has fallen below "3" would mandatorily
have to be replaced within a period of sixty days following two successive
ratings below "3" by Morningstar.

Investment offerings in addition to the Prime Rate Fund must include and at all
times mirror mutual funds conforming to the following standards:

         A.    At least two fixed income funds, the first being a fund seeking
               stability of principal (constant net asset value of $1.00 per
               share) and a high level of current income consistent with 2 to 3
               year average maturity and the second being a fixed income fund
               mirroring the Lehman Aggregate Bond Index.

         B.    At least one balanced fund comprising highly liquid equities and
               fixed income securities pursuing three investment objectives:

               (1)   conservation of capital,

               (2)   reasonable current income and

               (3)   profits without undue risk

         C.    At least four equity funds one of which must mirror the S&P 500
               Index, one of which must be Growth oriented, one of which must be
               Value oriented and the third of which should invest in
               international equities or be structured as a global fund. If only
               the minimum 4 equity offerings are offered, then both the
               Growth-oriented and the Value-oriented funds shall be
               predominantly comprised of mid to large capitalization equities.

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