EXHIBIT 10.16 ConAgra ConAgra, Inc. Corporate Headquarters Human Resources One ConAgra Drive Omaha, NE 68102-5001 Phone: (402) 595-4350 Gerald B. Vernon Senior Vice President Human Resources July 11, 1997 Mr. Philip B. Fletcher Chairman of the Board & CEO ConAgra, Inc. One ConAgra Drive Omaha, NE 68102-5001 Dear Phil: This letter will constitute an amendment of the terms and conditions of the special long-term incentive established for you by letter dated July 15, 1993, as amended and restated by letter dated July 15, 1996 (the "Incentive"). First, payment of the Incentive is currently conditioned on your remaining as Chief Executive Officer of ConAgra through May 31, 1998. That provision is hereby amended so that the Incentive is conditioned on your remaining as an executive officer of ConAgra through May 31, 1998. Second, the Incentive currently provides for payment to you following receipt by ConAgra of its audited financial statements for the fiscal year ending May 31, 1998. That provision is hereby amended so that payment to you will be made on September 1, 1998. Subject to the amendments referenced above, all of the other terms and conditions of your Incentive are hereby ratified and affirmed. If you are in agreement with the amendments set forth above, please so indicate by signing below and returning an executed original of this letter to me for placement in the files of the Human Resources Committee of ConAgra's Board of Directors. Sincerely, /s/ Gerald B. Vernon -------------------------- Gerald B. Vernon Accepted and Agreed to this 15th day of July, 1997 /s/ Philip B. Fletcher - ----------------------------- Philip B. Fletcher