Document:

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                                                                   EXHIBIT 10.41

                               INCENTIVE AGREEMENT

         This INCENTIVE AGREEMENT is among Fresh Foods, Inc., a North Carolina
corporation (the "Company"), Pierre Foods, LLC, a North Carolina limited
liability company and wholly-owned subsidiary of the Company ("Pierre"), and
Norbert E. Woodhams (the "Executive").

         WHEREAS, the Company is evaluating the potential sale or other
disposition (whether by merger or consolidation or transfer of assets or equity
interests issued by the Company or by one or more subsidiaries of the Company)
of all or substantially all of the food processing operations presently
conducted by Pierre;

         WHEREAS, the aforementioned disposition (the "Disposition") is a
complex and demanding undertaking, which will challenge fully the energy,
resourcefulness and commitment of the Company's executives in a critical period
of the Company's corporate life; and

         WHEREAS, the Company wants to incentivize the Executive by promising to
compensate the Executive for the extraordinary efforts that will be required to
assist others in the execution of this extraordinary corporate transaction for
the benefit of the Company's shareholders;

         NOW, THEREFORE, in consideration of the covenants contained herein,
together with other valuable consideration, the receipt and legal sufficiency of
which are hereby acknowledged, the parties hereby agree as follows:

         1. SALARY. The Company hereby confirms the annual salary of the
Executive in the amount specified as such on SCHEDULE A to this Agreement. The
amount of such salary shall not be increased throughout the term of this
Agreement otherwise than pursuant to an amendment of this Agreement executed on
behalf of the Company by each of its Chief Executive Officer and its President.

         2. PAY-TO-STAY BONUS; NO GUARANTEED EMPLOYMENT. The Executive covenants
and agrees with the Company to use the best efforts of the Executive, during the
term of this Agreement, to consummate any Disposition recommended or approved by
the Company. The Executive further covenants and agrees with the Company not to
resign his position with the Company, during the term of this Agreement, without
the consent of the Company until the consummation of a Disposition. In
consideration of these covenants and agreements of the Executive, the Company
promises to pay to the Executive the amount specified as the "Pay-to-Stay Bonus"
on SCHEDULE A to this Agreement in the event that, during the term of this
Agreement, (i) a definitive agreement contemplating a Disposition (a "Definitive
Agreement") is executed and delivered or (ii) for any reason the Executive's
employment by the Company is terminated. Notwithstanding any provision of this
Agreement (or any other agreement), the Executive is and shall remain an
employee at will of the Company whose employment by the Company may be
terminated by the Company at any time, with or without cause.

         3. DISPOSITION BONUS. The Company will pay the Executive, by bank check
or other good funds, as a transaction success bonus, an amount specified as the
"Disposition Bonus" on

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SCHEDULE A to this Agreement in the event that, during the term of this
Agreement, (i) a Disposition is consummated or (ii) for any reason the
Executive's employment by the Company is terminated.

         4. OPERATING BONUSES. Regardless of the occurrence or nonoccurrence of
a Disposition, for each complete or partial fiscal quarter during the term of
this Agreement the Executive shall be eligible for operating bonuses as and to
the extent provided for in this Section. The Company will pay the Executive an
amount equal to 6.25% of the Executive's annual salary for each fiscal quarter
in which Pierre achieves operating income in an amount not less than the amount
budgeted by the Board of Directors of the Company for Pierre. The parties
acknowledge that the amounts of operating income so budgeted for Pierre through
the end of the current fiscal year are as follows: first fiscal quarter,
$4,803,259; second fiscal quarter, $4,976,411; third fiscal quarter, $6,915,232;
and fourth fiscal quarter, $5,908,162. If and to the extent that the operating
income for Pierre exceeds the budgeted amount, then, and in each such case, the
Company shall establish a bonus pool in an aggregate amount equal to 25% of the
excess. The Company will pay the Executive an amount equal to the percentage of
such bonus pool specified as the "Incremental Operating Bonus" on SCHEDULE A to
this Agreement. Each payment to be made to the Executive pursuant to this
Section shall be made not later than fourteen days after the date on which the
Company first publicly announces its results of operations for the relevant
fiscal quarter.

         5. SEVERANCE. The Company will pay the Executive, by bank check or
other good funds, the amount specified as "Severance" on SCHEDULE A to this
Agreement in the event that, during the term of this Agreement, (i) a
Disposition is consummated or (ii) for any reason the Executive's employment by
the Company is terminated.

         6. STOCK OPTIONS. The Executive presently holds stock options granted
by the Company with the characteristics described on SCHEDULE A to this
Agreement. This Agreement shall not be construed as having any effect on the
rights of the Executive under the stock option agreements and related stock
option plans that govern such stock options. The Board of Directors of the
Company and the Executive Compensation Committee of such Board have taken all
action necessary to accelerate the vesting of all such stock options upon the
consummation of a Pierre Disposition.

         7. TERM. This Agreement shall terminate on June 8, 2003. Thereafter,
the term shall automatically continue from year to year unless the Executive or
the Company gives written notice of termination 120 days prior to the end of the
term or any renewal term.

         8. COMPANY DETERMINATIONS FINAL. The "gross-up amounts" to be withheld
by the Company pursuant to Sections 2, 3 and 5 of this Agreement, and all
amounts to be paid and withheld pursuant to Section 4, shall be determined by
the Company. Every such determination by the Company shall be binding and
conclusive for all purposes in the absence of fraud.

         9. SEVERABILITY. The illegality, unenforceability or invalidity of any
one or more covenants, phrases, clauses, sentences or paragraphs of this
Agreement, as determined by a court of competent jurisdiction, shall not affect
the remaining portions of this Agreement, or any part thereof; and, in case of
any such illegality, unenforceability or invalidity, this Agreement shall be

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construed as if such covenants, phrases, clauses, sentences or paragraphs, to
the extent and only to the extent determined to be illegal, unenforceable or
invalid, had not been inserted.

         10. WAIVER OF BREACH. The waiver by either party of any breach of any
provision of this Agreement shall not operate or be construed as a waiver of any
subsequent breach of any provision of this Agreement.

         11. EMPLOYMENT AGREEMENT AND CHANGE IN CONTROL AGREEMENT TERMINATED.
The parties agree that the Employment Contract between Pierre and the Executive
dated as of March 4, 1998, as amended by that certain Amendment to Employment
Contract dated as of March 24, 1999, is hereby terminated in its entirety
without liability on the part of any party as a consequence thereof. The parties
further agree that the Change in Control Agreement between the Company and the
Executive dated as of June 9, 1998 (together with any and all amendments to and
restatements of such agreement, the "Change in Control Agreement") is hereby
terminated in its entirety without liability on the part of any party as a
consequence thereof. Without limiting the generality of the foregoing, the
Company shall have no liability to the Executive, upon a Disposition or
otherwise, pursuant to the Change in Control Agreement.

         12. ENTIRE AGREEMENT. This Agreement sets forth the entire
understanding between such parties relating to the Executive's employment by the
Company, including all compensation payable to the Executive for such
employment, and supersedes all previous understandings or agreements (written
and oral). This Agreement may be amended only by an agreement in writing, signed
by each of the Chief Executive Officer and the President of the Company (for the
Company) and by the Executive.

         13. GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with the laws of the State of North Carolina without regard to the
principles of conflict of laws thereof.

         14. NOTICES. Any notice that may be given hereunder shall be in writing
and shall be deemed to have been given on the earlier to occur of (a) actual
receipt or (b) the second business day after the same shall have been mailed by
certified mail, postage prepaid, return receipt requested: if to the Company,
then to Fresh Foods, Inc., P.O. Box 3967, Hickory, NC 28603, Attention: David R.
Clark; if to the Executive, then to the address specified on SCHEDULE A to this
Agreement; or, in any case, to such other address as the party to whom or to
which such notice is to be given shall have specified by notice given to the
other parties.

         15. SUCCESSORS, HEIRS AND ASSIGNS. This Agreement shall inure to the
benefit of and be binding upon the parties hereto, their successors, heirs and
assigns.

         16. COUNTERPARTS. This Agreement may be executed in counterparts, each
of which shall constitute an original and all of which, taken together, shall
constitute one and the same Agreement.

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         IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of August 18, 1999.

                         FRESH FOODS, INC.

                         By: /s/ JAMES C. RICHARDSON, JR.
                             ------------------------------------
                               James C. Richardson, Jr., Chief Executive Officer

                         By: /s/ DAVID R. CLARK
                             ------------------------------------
                               David R. Clark, President

                         PIERRE FOODS, LLC

                         By:  FRESH FOODS, INC.,
                               Its Sole Member and Manager

                               By: /s/ DAVID R. CLARK
                                   ------------------------------
                                    David R. Clark, President

                         THE EXECUTIVE:

                          /s/ NORBERT E. WOODHAMS
                         --------------------------------(SEAL)
                         Norbert E. Woodhams

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                                                                      SCHEDULE A

ANNUAL SALARY: $250,000

PAY-TO-STAY BONUS:

         Amount before income tax gross-up:                   $432,256

         Gross-up amount (to be withheld
            by the Company):                                  $367,744

         Total payment after gross-up:                        $800,000

DISPOSITION BONUS:

         Amount before income tax gross-up:                   $405,240

         Gross-up amount (to be withheld
            by the Company):                                  $344,760

         Total payment after gross-up:                        $750,000

INCREMENTAL OPERATING BONUS: 24.53%

SEVERANCE:

         Amount before income tax gross-up:                   $287,504

         Gross-up amount (to be withheld
            by the Company):                                  $244,595

         Total payment after gross-up:                        $532,099

STOCK OPTIONS:
<TABLE>
<CAPTION>

           NO.             EXERCISE PRICE            ORIGINAL GRANT DATE                EXPIRATION DATE
         ------            --------------            -------------------                ---------------
         <S>                     <C>                   <C>                                  <C>
         200,000                  $10.50                6-6-1998                             6-6-2008
</TABLE>

EXECUTIVE'S ADDRESS FOR NOTICES:

         Norbert E. Woodhams
         7312 Charter Cup Lane
         West Chester, OH  45069

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                     FIRST AMENDMENT TO INCENTIVE AGREEMENT

         This FIRST AMENDMENT TO INCENTIVE AGREEMENT (the "First Amendment")
between Fresh Foods, Inc., a North Carolina corporation (the "Company"), Pierre
Foods, LLC, a North Carolina limited liability company and wholly-owned
subsidiary of the Company ("Pierre"), and Norbert E. Woodhams (the "Executive")
is dated as of January 1, 2000.

         WHEREAS, the Company, Pierre and the Executive entered into a certain
Incentive Agreement dated as of August 18, 1999 (the "Incentive Agreement"); and

         WHEREAS, the Company, Pierre and the Executive desire to amend the
Incentive Agreement to modify the Executive's salary payable thereunder; and

         WHEREAS, the Company, Pierre and the Executive desire to amend the
Incentive Agreement to modify the operating bonuses payable thereunder;

         NOW, THEREFORE, in consideration of the covenants contained herein,
together with other valuable consideration, the receipt and legal sufficiency of
which are hereby acknowledged, the parties hereby agree as follows:

         1. The Incentive Agreement is hereby amended by deleting "$250,000"
specified as Annual Salary on Schedule A to the Incentive Agreement and
substituting "$300,000" in lieu thereof.

         2. The Incentive Agreement is hereby amended by deleting Paragraph 4,
entitled "Operating Bonuses," and replacing it with the following:

                           4. Operating Bonuses. The Executive shall be entitled
                  to a periodic bonus to be determined in accordance with the
                  Company's executive bonus plan as adopted and amended from
                  time to time by the Executive Compensation Committee and the
                  Board of Directors of the Company.

         3. This First Amendment shall be governed by and construed in
accordance with the laws of the State of North Carolina without regard to the
principles of conflict of laws thereof.

         4. This First Amendment may be executed in counterparts, each of which
shall constitute an original and all of which, taken together, shall constitute
one and the same instrument.

         5. Except as amended hereby, the Incentive Agreement shall remain in
full force and effect.

         6. This First Amendment shall inure to the benefit of and be binding
upon the parties hereto, their successors, heirs and assigns.

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

                                        FRESH FOODS, INC.

                                        By: /s/ James C. Richardson, Jr.
                                            ------------------------------------
                                            James C. Richardson, Jr.,
                                            Chief Executive Officer

                                        By: /s/ David R. Clark
                                            ------------------------------------
                                            David R. Clark, President

                                        PIERRE FOODS, LLC

                                        By: FRESH FOODS, INC.,
                                            Its Sole Member and Manager

                                            By: /s/ David R. Clark
                                                --------------------------------
                                                David R. Clark, President

                                        THE EXECUTIVE:

                                        /s/ Norbert E. Woodhams           (SEAL)
                                        ----------------------------------
                                        Norbert E. Woodhams

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                                                                  EXHIBIT 10.42

                 SEVERANCE, CONSULTING AND NONCOMPETE AGREEMENT

         THIS SEVERANCE, CONSULTING AND NONCOMPETE AGREEMENT (the "Agreement")
is entered into as of September 13, 1999 (the "Effective Date") among Claremont
Restaurant Group, LLC, a North Carolina limited liability company ("Claremont"),
Fresh Foods, Inc., a North Carolina corporation and the sole member and manager
of Claremont ("Fresh Foods"), HERTH Management, Inc., a North Carolina
corporation ("HERTH"), and James M. Templeton (the "Executive").

                              W I T N E S S E T H :

         WHEREAS, the Executive is an executive employee of Claremont, having
provided management services through HERTH, thereby acquiring an intimate
knowledge of the business and affairs of Claremont; and

         WHEREAS, the Executive and Fresh Foods entered into a certain Change in
Control Agreement dated as of August 29, 1997 (the "Change in Control
Agreement"); and

         WHEREAS, the Executive and Fresh Foods desire to terminate the Change
in Control Agreement and to set forth their agreement with respect to such
termination; and

         WHEREAS, the Executive, HERTH, Claremont and Fresh Foods desire to set
forth their agreement with respect to certain matters relating to the
Executive's employment, through HERTH, by Claremont; and

         WHEREAS, Claremont desires to engage the services of the Executive,
through HERTH, as a consultant in the event of a sale or other disposition of
Claremont by Fresh Foods and the Executive desires to be so engaged upon the
terms and conditions provided herein; and

         WHEREAS, the Executive, HERTH and Claremont desire to set forth their
agreement with respect to certain noncompete obligations of the Executive;

         NOW, THEREFORE, in consideration of the covenants contained herein,
together with other valuable consideration, the receipt and legal sufficiency of
which are hereby acknowledged, the parties hereby agree as follows:

         1. CHANGE IN CONTROL AGREEMENT TERMINATED. The parties agree that the
Change in Control Agreement is hereby terminated in its entirety without
liability on the part of any party as a consequence thereof. Without limiting
the generality of the foregoing, neither Fresh Foods nor Claremont shall have
any liability to the Executive, upon the sale of Claremont or Fresh Foods (or
otherwise), pursuant to the Change in Control Agreement.

         2. EXECUTIVE'S EMPLOYMENT TERMINATED. The parties agree that the
Executive's employment (through HERTH or otherwise) with any and all of
Claremont, Fresh Foods and their subsidiaries, is hereby terminated in its
entirety.
<PAGE>   2

         3. CONSULTING SERVICES. Claremont agrees to engage the Executive,
through HERTH, as a consultant as of the Effective Date, and the Executive
hereby accepts such engagement, in each case upon the terms and conditions set
forth in this Agreement. Throughout the term of this Agreement, the Executive
shall report to the President of Claremont (or, if none exists, then the
Manager(s) of Claremont) and shall perform such Consulting Services (as defined
in Section 4) as the President or such Manager(s), as the case may be (the
"Superior Officer"), may reasonably request.

         4. CONSULTING DUTIES. The Executive shall, to the extent reasonably
requested by the Superior Officer, at reasonable times and places (a) consult
with and advise Claremont on management of Claremont's restaurant operation and
franchising business and (b) market and promote Claremont's restaurant operation
and franchising business in the southeastern United States (collectively,
"Consulting Services"). The Executive need not devote more than twenty hours per
calendar week or 500 hours per calendar year to Consulting Services. Except as
otherwise provided in this Agreement, the Executive is not entitled to payment
of any fee or other compensation for his Consulting Services, but Claremont
shall reimburse him for the reasonable out-of-pocket expenses that he incurs
while performing Consulting Services upon presentation of receipts or other
documentation in reasonable detail.

         5. INDEPENDENT CONTRACTOR. Claremont, HERTH and the Executive hereby
agree that the Executive is an independent contractor, solely responsible for
the manner and form in which he performs Consulting Services. Nothing contained
herein shall be construed as creating an employer/employee, master/servant,
principal/agent, partnership, joint venture or other similar kind of
relationship. The Executive agrees that he will not take any action on behalf of
Claremont without specific instructions from, and the prior approval of, the
Superior Officer and that he does not have any right or power in any manner to
bind or commit Claremont to any contract or other obligation with any individual
or entity except upon the specific prior written approval of the Superior
Officer.

         6. TERM. This Agreement shall terminate five years from the Effective
Date, unless it is terminated earlier as provided elsewhere in this Section.
Claremont may, by written notice to each of the Executive and HERTH, terminate
this Agreement at any earlier date, it being understood that no termination of
this Agreement shall affect (1) the Executive's obligations under Sections 8 and
9 of this Agreement, which shall remain in full force and effect, or (2) the
obligations of Fresh Foods and Claremont under Section 7. This Agreement shall
in any event terminate upon the death of the Executive.

         7. COMPENSATION.

            (a) Fresh Foods shall pay to HERTH, for the benefit of the
         Executive, as a lump sum payment, an amount equal to the sum of

                (i) $315,000 plus

                (ii) an amount determined by Fresh Foods to be equal to the
            aggregate of any and all federal, state and local income tax and
            excise tax liabilities of the

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            Executive resulting from the payments due pursuant to clauses (i)
            and (ii) hereof; provided, however, that, if Fresh Foods determines
            that the total of all payments to HERTH for the benefit of the
            Executive under this Agreement after reduction for any and all
            federal, state and local income tax and excise tax liabilities of
            the Executive resulting therefrom (the "After-Tax Payments") would
            be increased by the limitation or elimination of any payment under
            this Section 7, then amounts payable under this Section 7 shall be
            reduced to the extent, and only to the extent, determined necessary
            by Fresh Foods to maximize the After-Tax Payments; and provided
            further that Fresh Foods shall withhold from all payments to be made
            to HERTH for the benefit of the Executive pursuant to this Agreement
            all taxes that, by applicable federal, state or local law, Fresh
            Foods determines that it is required to withhold.

         The payment required to be made to HERTH for the benefit of the
         Executive pursuant to the foregoing provisions of this Section 7 shall
         be made by bank check or other good funds on the Effective Date. The
         compensation payable pursuant to the foregoing provisions of this
         Section 7 is allocated as set forth on EXHIBIT A hereto among: (i)
         consideration for the Executive's consulting obligations, (ii)
         consideration for the Executive's noncompete obligations, (iii) a
         transaction success bonus and (iv) severance.

                  (b) COMPANY CAR. On the Effective Date, Fresh Foods and
         Claremont will transfer and convey to the Executive all of their right,
         title and interest in and to the motor vehicle currently used by the
         Executive for business purposes. Upon request by the Executive, Fresh
         Foods and Claremont will execute and deliver all such documents and
         take all such other actions as the Executive may reasonably request to
         better evidence such transfer and conveyance.

                  (c) INSURANCE PREMIUMS. On the Effective Date, Fresh Foods
         will deliver to the Executive a bank check in an amount equal to the
         present value, discounted at 4.5%, of all future premium payments due
         on the term life insurance policy (no. 0030026670-0) issued by Security
         Life and Trust Insurance Company insuring the Executive's life (such
         amount not to exceed $34,823.86).

         8. COVENANT NOT TO DISCLOSE CONFIDENTIAL INFORMATION. During the
Executive's prior positions with Claremont and Fresh Foods and during the term
of this Agreement, the Executive has and will become acquainted with
confidential information of Claremont, Fresh Foods and their affiliates,
including, but not limited to, customer files, customer lists, special customer
matters, sales methods and techniques, merchandising concepts and plans,
business plans, sources of supply and vendors, special business relationships
with vendors, agents and brokers, promotional materials and information,
financial matters, mergers, acquisitions, personnel matters and confidential
processes, designs, formulas, ideas, plans, devices and materials and other
similar matters that are kept confidential (any and all such information being
referred to herein as "Confidential Information"). The use of Confidential
Information against Claremont or Fresh Foods would seriously damage its
business. Accordingly, the Executive agrees:

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            (a) He shall not, directly or indirectly, use, divulge, publish or
         otherwise reveal or allow to be revealed any Confidential Information
         to any individual or entity except with the prior, express and written
         consent of either Claremont or Fresh Foods, as applicable, or as
         required by law;

            (b) He shall refrain from any action or conduct that might
         reasonably or foreseeably be expected to compromise the confidentiality
         or proprietary nature of any Confidential Information; and

            (c) He shall have no right to apply for, or to obtain any patent,
         copyright or other form of intellectual property protection regarding,
         any Confidential Information.

         9. COVENANT NOT TO COMPETE.

            (a) COVENANT. The Executive hereby stipulates, covenants and agrees
         that, during the Restrictive Period (as defined below), he shall not,
         directly or indirectly, other than on behalf of Claremont, without
         Claremont's prior, express and written consent:

               (i) Engage in Competition (as defined below) with Claremont or
            any of its successors or assigns; or

               (ii) Employ or solicit the employment of any individual who is,
            or has been, at any time during the Restrictive Period or during the
            twelve complete calendar months immediately preceding the Effective
            Date, an employee of Claremont.

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

               (i) "Business" shall mean the business conducted by Claremont at
            the Effective Date, including the business of restaurant operation
            and restaurant franchising, but excluding the business conducted by
            any entity in which the Executive has an equity interest at the
            Effective Date.

               (ii) "Competition" shall mean:

                    (1) Engaging in the Business within the Territory;

                    (2) Assisting any individual or entity, whether in a
               financial, managerial, employment, advisory or other material
               capacity, to engage in the Business within the Territory;
               provided, however, that nothing herein shall preclude the
               Executive, directly or indirectly, from leasing restaurant
               property to a tenant as a bona fide lessor; or

                    (3) Owning any interest in, or organizing an entity that
               engages in, the Business within the Territory; provided, however,
               that nothing herein

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               shall preclude the Executive, directly or indirectly, from
               holding not more than one percent of the outstanding shares of
               common stock of any company whose shares of common stock are
               listed on a national securities exchange or authorized for
               quotation by NASDAQ.

               (iii) "Restrictive Period" shall mean the five-year period
            beginning on the Effective Date.

               (iv) "Territory" shall mean the 25-mile radius from (A) any
            restaurant owned or franchised directly or indirectly by Claremont
            or (B) any other site used directly or indirectly by Claremont, to
            the extent that the business of the restaurant or site was assisted
            by the Executive during the term of his service to Fresh Foods or
            Claremont.

         10. ENFORCEMENT. In the event of any breach of this Agreement,
Claremont, Fresh Foods and their successors and assigns shall be entitled to any
and all of the following remedies in addition to such other remedies as they may
have in equity or at law:

            (a) In that a breach or anticipatory breach by the Executive of
         Section 8 or 9 of this Agreement will cause irreparable damage to
         Claremont or Fresh Foods, Claremont or Fresh Foods, as applicable,
         shall be entitled to an injunction restraining the Executive from
         attempting to violate, violating or continuing a violation of Section 8
         or 9 of this Agreement. The existence of any claim or cause of action
         on the part of the Executive against Claremont, Fresh Foods or their
         successors or assigns, whether arising from this Agreement or
         otherwise, shall in no way constitute a defense to the enforcement of
         Sections 8 and 9.

            (b) The Restrictive Period shall be extended by any time period
         during which the Executive is in violation of this Agreement.

         11. RELEASES.

            (a) The Executive hereby releases, discharges and acquits each of
         Claremont and Fresh Foods and each of their affiliates, subsidiaries,
         agents, employees, officers, directors, shareholders, attorneys,
         accountants, agents, representatives, successors and assigns
         (collectively referred to as the "Released Persons") of and from any
         and all claims, demands, actions, rights, causes of action, obligations
         and liabilities, known and unknown, that the Executive has against the
         Released Persons (or any of them) relating to or arising out of the
         Executive's employment (through HERTH or otherwise) by Claremont and
         Fresh Foods, including, but not limited to, wrongful discharge, breach
         of contract, tort, the Civil Rights Act, Age Discrimination in
         Employment Act, Employee Retirement Income Security Act or any other
         federal, state or local legislation or common law relating to
         employment or discrimination in employment or otherwise.

            (b) The Executive hereby releases, discharges and acquits the
         Released Persons of and from any and all claims, demands, actions,
         rights, causes of action,

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         obligations and liabilities, known and unknown, that the Executive has
         against the Released Persons (or any of them) relating to or arising
         out of his status as a shareholder of Fresh Foods.

         12. ACKNOWLEDGEMENT OF ADEQUATE CONSIDERATION. The parties stipulate
and agree that the payments and other benefits owed to the Executive and to
HERTH for the benefit of the Executive by Fresh Foods and Claremont under this
Agreement and the performance of Fresh Foods' and Claremont's obligations
hereunder constitute sufficient consideration to support enforcement of the
covenants of this Agreement.

         13. ACKNOWLEDGEMENT OF REASONABLENESS. The Executive has carefully read
and considered the provisions of this Agreement in consultation with attorneys
of his choice and agrees that the restrictions set forth herein are fair and
reasonably required for Claremont's protection. In the event that any provision
relating to the Restrictive Period or the Territory (or both) shall be declared
by a court of competent jurisdiction to exceed the maximum time period or
geographical area such court deems reasonable and enforceable under applicable
law, the time period or area of restriction considered reasonable and
enforceable by the court shall thereafter be the applicable Restrictive Period
or Territory under this Agreement.

         14. ATTORNEYS' FEES. Should it become necessary for Claremont or Fresh
Foods to institute legal proceedings as a result of a breach of any terms or
covenants contained in this Agreement, Claremont or Fresh Foods, as applicable,
shall, if it is the prevailing party in such litigation, be entitled to have and
recover from the non-prevailing party reasonable attorneys' fees plus court
costs in addition to any and all relief otherwise available to it, either at law
or in equity. Should it become necessary for the Executive or HERTH to institute
legal proceedings as a result of a breach of any terms or covenants contained in
this Agreement, the Executive or HERTH, as applicable, shall, if he or it is the
prevailing party in such litigation, be entitled to have and recover from the
non-prevailing party reasonable attorneys' fees plus court costs in addition to
any and all relief otherwise available to him, either at law or in equity.

         15. SEVERABILITY. The illegality, unenforceability or invalidity of any
one or more covenants, phrases, clauses, sentences or paragraphs of this
Agreement, as determined by a court of competent jurisdiction, shall not affect
the remaining portions of this Agreement, or any part thereof; and, in case of
any such illegality, unenforceability or invalidity, this Agreement shall be
construed as if such covenants, phrases, clauses, sentences or paragraphs, to
the extent and only to the extent determined to be illegal, unenforceable or
invalid, had not been inserted.

         16. WAIVER OF BREACH. The waiver by either party of any breach of any
provision of this Agreement shall not operate or be construed as a waiver of any
subsequent breach of any provision of this Agreement.

         17. ENTIRE AGREEMENT; NO EFFECT ON OPTIONS. This Agreement sets forth
the entire understanding between the parties relating to the subject matter
hereof and supersedes all previous and contemporaneous understandings or
agreements, written and oral. This Agreement may be modified only by an
agreement in writing, signed by all parties, purporting to modify it. This
Agreement shall not be construed as having any effect on the rights of the
Executive under

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<PAGE>   7

the stock option agreements and related stock option plans that govern stock
options that have been granted by Fresh Foods to the Executive and may be held
by the Executive at the Effective Date.

         18. GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with the laws of the State of North Carolina without regard to the
principles of conflict of laws thereof.

         19. NOTICES. Any notice that may be given hereunder shall be in writing
and shall be deemed to have been given on the earlier to occur of (a) actual
receipt or (b) the second business day after the same shall have been mailed by
certified mail, postage prepaid, return receipt requested, to the parties at the
addresses listed below:

         If to Claremont:                   Claremont Restaurant Group, LLC
                                            P.O. Box 3967
                                            Hickory, NC  28603
                                            Attention:  David R. Clark

         If to Fresh Foods:                 Fresh Foods, Inc.
                                            P.O. Box 3967
                                            Hickory, NC  28603
                                            Attention:  David R. Clark

         If to HERTH:                       HERTH Management, Inc.
                                            P.O. Box 3967
                                            Hickory, NC  28603
                                            Attention:  James C. Richardson, Jr.

         If to Executive:                   James M. Templeton
                                            P.O. Box 92
                                            Newton, NC  28658

or, in any case, to such other address as the party to whom or to which such
notice is to be given shall have specified by notice given to the other parties.

         20. SUCCESSORS, HEIRS AND ASSIGNS. This Agreement shall inure to the
benefit of and be binding upon the parties hereto, their successors, heirs and
assigns.

         21. COUNTERPARTS. This Agreement may be executed in counterparts, each
of which shall constitute an original and all of which, taken together, shall
constitute one and the same Agreement.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       7
<PAGE>   8

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the day and year first above written.

                                  CLAREMONT RESTAURANT GROUP, LLC

                                  By:   FRESH FOODS, INC.,
                                        Its Sole Member and Manager

                                        By: /s/ DAVID R. CLARK
                                            ---------------------------
                                              David R. Clark
                                              President

                                  FRESH FOODS, INC.

                                  By: /s/ DAVID R. CLARK
                                      --------------------------------
                                        David R. Clark
                                        President

                                  HERTH MANAGEMENT, INC.

                                  By: /s/ JAMES C. RICHARDSON, JR.
                                      --------------------------------
                                        James C. Richardson, Jr.
                                        President

                                 THE EXECUTIVE:

                                       /s/ JAMES M. TEMPLETON         (SEAL)
                                      --------------------------------
                                      James M. Templeton

                                       8
<PAGE>   9

                                    EXHIBIT A

<TABLE>
<CAPTION>
                                            DOLLAR AMOUNT PURSUANT                PERCENTAGE OF TOTAL
                                               TO SECTION 7(a)                  PAYMENTS PURSUANT TO
                                              (BEFORE ADJUSTMENT                SECTIONS 7(a) AND 7(b)
ALLOCATION CATEGORY                         UNDER SECTION 7(b))                  OF THIS AGREEMENT
-------------------                         ----------------------               ---------------------
<S>                                            <C>                                         <C>
Consulting                                     $    70,961                                 23%

Noncompete                                         236,538                                 75%

Transaction Success Bonus                                0                                  0%

Severance                                            7,501                                  2%
                                             -------------                                ---

         TOTAL                                  $  315,000                                100%
                                                ==========                               ====

</TABLE>

                                       9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00000-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00000-of-00352.parquet"}]]