Document:

<PAGE>
                                                                   Exhibit 10.05

[DIAMOND LOGO]

                    MANAGEMENT PERFORMANCE INCENTIVE PROGRAM

I.   PURPOSE:

The Management Performance Incentive Program has been developed in order to
reward employees for outstanding performance in achieving Diamond's short and
long-term organizational objectives. The incentive program is constituted by a
two-phase program:

A.   Profit Sharing Program

     This program is intended to reward employees for contribution towards
     maximizing the cooperative's annual return and for the effective execution
     of each individual's job requirements.

B.   Goal Achievement Program

     The goal achievement program is designed to reward outstanding performance
     in achieving specified outlined strategic goals and objectives associated
     in enhancing the profitability and the long-term viability of the Diamond
     association.

II.  ELIGIBILITY FOR CONSIDERATION:

To be eligible for consideration for the incentive program, you must be employed
by July 1 to participate in a partial program. The degree of participation to
the program would be proportionate to the portion of the year in which the
individual is employed by Diamond in excess of 6 months and period covered.

III. PROGRAM DESCRIPTION:

A.   Goal Achievement Program:

     At the beginning of each calendar year, supervisors will submit each
     employee's goal achievement program which requires approval by the
     department vice president and president.

B.   Profit Sharing

     The profit share program shall trigger when the Diamond adjusted crop
     return exceeds the independent field price by 1 cent a pound.

C.   Program Scoring

     The goal achievement program will be measured on a scale of 0-200
     consisting of 5 key objectives. Each participant will define no more than 5
     key objectives based on the strategic thrust of their individual position.
     The objectives should be challenging and measurable.
<PAGE>
At the beginning of the year, program objectives will be identified on the
Management Performance Incentive Plan Appraisal Form and approved by the
President/CEO. Program objectives for the President/CEO will be approved by the
Board of Directors.

As a guide:

<TABLE>
<CAPTION>
                          Points
                          ------
<S>                       <C>
Exceptional                 200
Strong Performance          150
Meeting Expectation         100
Improvement Opportunity      50
Unsatisfactory                0
</TABLE>

A participant's score may range from 0-200. Ratings below 75 reflect poor
performance and a rating above 150 denotes exceptionally strong performance.

As a guide:

1.   Below 100 is appropriate for a participant who failed to satisfactorily
     achieve one or more significant program objective indicating, among other
     things, lack of effort, focus or the ability to prioritize.

2.   100 is appropriate for a participant who has satisfactorily achieved 100%
     of their program objectives. The majority of the objectives were solid in
     nature and not considered highly innovative. All objectives were
     accomplished on time and met expectations.

3.   100 to 135 us appropriate for a participant who has produced outstanding
     results on several objectives and satisfactorily achieved all others. Some
     of the objectives were innovative in nature.

4.   135 to 170 is appropriate for a participant who met all goals and produced
     results which are exceptional on the majority of program objectives. Most
     objectives were either considered stretch goals, innovative in nature or
     had significant impact on the company.

5.   170 to 200 is appropriate for a participant who produced exceptional
     results in virtually all objectives. In addition, program objectives were
     considered stretch goals, innovative in nature and recognized as generating
     results of rare quality, significant impact and had a high risk factor.

6.   Unique Contributions - A unique contribution is defined as an exceptional
     response to a significant unplanned event of some consequence. An increase
     (50 points maximum) to the program score reflects a participant's ability
     to respond to a significant number of unplanned activities that are not a
     part of basic job responsibilities or extensions of program objectives;
     that had significant impact on the business, and that required creativity
     and unique abilities for successful

                                        2
<PAGE>
     accomplishment. Unique contribution must be identified to and approved by
     the department vice president or the president.

                                     EXAMPLE
                   MANAGEMENT PERFORMANCE - APPRAISAL SUMMARY

<TABLE>
<CAPTION>
                                                                                    Total Weighted
Goal Achievement Program Rating:   Performance Rating       Weighted Value        Performance Rating
--------------------------------   ------------------       --------------       --------------------
<S>                                <C>                      <C>                  <C>
   Objective #1                            100          x         30%        =             30
   Objective #2                            150          x         20%        =             30
   Objective #3                            150          x         20%        =             30
   Objective #4                            100          x         20%        =             20
   Objective #5                            150          x         10%        =             15
                                                                 100%        =            125
   Extraordinary Contribution                                                              10
   TOTAL                                                                                  135
Bonus Calculation:*
Goal Achievement Rating                    135          =        3.4             % Bonus Contribution
Profit Share Bonus Premium                 135          =        3.4             % Bonus Contribution
Total Bonus Earned                                               6.8             % of Base Salary
</TABLE>

*    Calculation: Rating 135 / 200 maximum rating x 5% maximum bonus = 3.4%

     -    Bonus calculation uses the example of an employee who is eligible for
          the following bonus as a percentage of annual base salary:

                        5% Maximum Goal Achievement Bonus
                        5% Maximum Profit Share Bonus
                        ---------------------------------
                        10% Total Maximum Bonus

          Maximum bonus level is determined by job classification

IV.  APPROVAL PROCESS:

Each supervisor will tabulate the performance and the concurrent incentive
rewards for both profit sharing program and the goal achievement program which
is subsequently submitted to the respective department vice president and
president for ultimate approval. The goals and objectives established and the
earnings recommendation must be approved by the department vice president and
president.

V.   CALCULATION OF INCENTIVE PAYMENT:

Incentive payment is determined by multiplying the base salary of the individual
employee by the incentive reward that has been determined for each participant.

VI.  PAYMENT OF INCENTIVE REWARDS:

The payment incentive reward will be issued on the first Friday of December of
each year subject to final approval and crop pool audit.

                                        3[DIAMOND LOGO]

November 24,2003

To: Diamond Board Members
From: Jack Gilbert

The following material details a proposal to establish a long-term incentive
program for Diamond's top management. The concept and most details of this plan
were developed over this past year by Bill Allewelt, with my consultation.
However, the final product offered for your consideration reflects inputs from
members of the Board's Compensation Committee and Mike Mendes.

The objectives of this plan are threefold. First, to round out the existing
incentive programs that focus on single year performance and profitability by
adding another that rewards consistency of profitability over a four-year span.
Second, to make the rewards dependent upon the combined profitability of both
the Diamond pool and the Diamond Nut Company. And third, to weight more of total
management compensation to the potential from incentives.

Following are the fundamental principles of this proposal:

     -    The plan is exclusively profit sharing, rewarding profit performance
          only when earned over successive four-year periods.

     -    For a bonus to be earned in any given year, the Diamond pool return to
          growers for that year must average at least a one-cent margin over the
          published independent field price.

     -    For a bonus to be paid after each four-year period, the Diamond pool
          return to growers for the fourth year of that period must average at
          least a one-cent margin over the published independent field price.

          To determine the amount of bonus award earned each year, the after tax
profit (or loss) of the Diamond Nut Company will be added to (or subtracted
from) the dollar amount of the margin on the corresponding Diamond pool return,
so that the bonus qualifying margin in cents per pound will be computed from
this aggregated total; PROVIDED, HOWEVER, THAT IF THE DIAMOND NUT COMPANY
RECORDS A LOSS SOLELY BECAUSE OF EXPENSING EXTRAORDINARY AND NONRECURRING
MARKETING EXPENSES, THE BOARD MAY AUTHORIZE A BONUS COMPUTATION AND PAYMENT
BASED UPON ONLY THAT YEAR'S MARGIN ON THE DIAMOND POOL.

     -    This plan will apply only to the CEO and key management personnel
          nominated by the CEO, subject to annual approval of participants by
          the Board of Directors.

     -    The maximum four-year bonus potential for the CEO will be 100% of base
          compensation, the next senior officer, 50%, and all others 25%.

     -    To be eligible to receive a bonus under this plan, an individual must
          be in the employment of Diamond at the time bonus payments are
          distributed, or to have retired within the past year.

     -    This plan will initiate with the 2002 pool year, with the preceding
          three years receiving zero credit
<PAGE>
PROPOSED SCHEDULE FOR EARNING ANNUAL BONUS AWARDS
(Shown As Percentages of Base Salary)

A pool margin of at least one cent and up to two cents when aggregated with the
Diamond Nut Company profitability=5%
An aggregated margin of at least two cents and up to three cents=10%
An aggregated margin of at least three cents and up to four cents=15%
An aggregated margin of at least four cents and up to five cents=20%
And aggregated margin of at least five cents=25%

Following is an example of how the bonus would be calculated for the CEO based
upon the proposal for Pool Year 2002 and hypothetical assumptions thereafter.
Calculations for other participants would be at either one-half or one-quarter
of these percentages.

Years 1,2,3-0, Year 4, 5.2 cents (25%); Year 5, a loss (0); year 6, 2.3 cents
(10%); year 7, 4.5 cents (20%); year 8, 5.2 cents (25%); year 9, a loss (0);
year 10, 2.1 cents (10%); year 11, 5.8 cents; year 12, 5.1 cents (25%).

<TABLE>
<S>       <C>
Year 4    0+0+0+25= 25% of base salary bonus earned
Year 5    0+0+25+0=0
Year 6    0+25+0+10-35%
Year 7    25+0+10+20=55%
Year 8    0+10+20+25=55%
Year 9    10+20+25+0=0
Year 10   20+25+0+10-55%
Year 11   25+0+10+25=55%
Year 12   0+10+25+25=60%
</TABLE>

On the basis of current year compensation of the management group prospective
for this program, the maximum bonus payable to all participants would
approximate $800,000. To accomplish this, the aggregated margin of the Diamond
pool and the after tax profit of the Diamond Nut Company would have to equate to
the equivalent of at least five cents per pound of member walnuts (or
approximately $15,000,000 total margins) for each of four consecutive years.

The Compensation Committee joins me in recommending your approval of this
Incentive plan. It will be brought up for your consideration and action at the
executive session following close of our regular meeting on Tuesday, November
25.

/S/ JOHN J. GILBERT        12-02-03
--------------------   ------------------
JOHN J. GILBERT              DATE

                                        2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}]]