PREMIUM STANDARD FARMS, INC.
FIRST AMENDMENT TO 1999 EQUITY INCENTIVE PLAN
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<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>c99942exv10w1.htm
<DESCRIPTION>FIRST AMENDMENT TO 1999 EQUITY INCENTIVE PLAN
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>EXHIBIT 10.1</B>
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>FIRST AMENDMENT<BR>
TO THE<BR>
PSF GROUP HOLDINGS, INC.<BR>
1999 EQUITY INCENTIVE PLAN</B>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>, Premium Standard Farms, Inc. (the &#147;Company&#148;) has heretofore adopted and maintains the
PSF Group Holdings, Inc. 1999 Equity Incentive Plan (the &#147;Plan&#148;); and
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>, the Board of Directors of the Company has authorized and directed the Company to
amend the Plan to permit alternative methods of paying the exercise price and withholding taxes in
connection with the exercise of options granted under the Plan.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>NOW, THEREFORE</B>, pursuant to the power of amendment contained in Section&nbsp;10.1 of the Plan, the
Plan is hereby amended as follows, effective November 11, 2005:
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;The second paragraph of Section&nbsp;5.6 of the Plan is hereby deleted, and the following
paragraph is inserted in lieu thereof:
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">Upon the exercise of any Option, the Exercise Price shall be payable to the
Company in full in cash or its equivalent, or in such other manner as may be
set forth in the applicable Award Agreement, either initially or as amended
from time to time.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;Section&nbsp;11.2 of the Plan is hereby amended to read as follows:
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">An Award Agreement may provide that (i)&nbsp;the Company shall withhold an amount
of cash which would otherwise be payable to a Participant, in the amount
necessary to satisfy any such obligation or (ii)&nbsp;the Participant may satisfy
any such obligation by any of the following means: (A)&nbsp;a cash payment to the
Company, or (B)&nbsp;in the case of the exercise of an option and except as may
be prohibited by applicable law, a cash payment by a broker-dealer
acceptable to the Company to whom the Participant has submitted an
irrevocable notice of exercise.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;The Plan is hereby amended by renumbering Sections&nbsp;13.5 and 13.6 and all references
thereto as Sections&nbsp;13.6 and 13.7, respectively, and by inserting a new Section&nbsp;13.5 to read as
follows:
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.5 <U>Compliance With Section&nbsp;409A of Code</U>. This Plan and all
Awards granted hereunder are intended to comply with the provisions of
section 409A of the Code, and shall be interpreted and construed
accordingly. The Company shall have the sole discretion and authority to
amend or terminate this Plan or any Award thereunder, unilaterally and at
any time, to satisfy any requirements of section 409A of the Code or
guidance provided by the U.S. Treasury Department to the extent applicable
to the Plan.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>IN WITNESS WHEREOF, </B>the Company has caused this Amendment to be executed by its duly
authorized officer this 11th day of November, 2005.
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    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">PREMIUM STANDARD FARMS, INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>

<TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/
Jeff Gough</TD>
    <TD>&nbsp;</TD>
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    <TD align="left">&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD colspan="2" align="left">Jeff Gough</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD colspan="2" align="left">Vice President Human Resources</TD>
    <TD>&nbsp;</TD>
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    <TD colspan="5">&nbsp;</TD>
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<P align="center" style="font-size: 10pt">2
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