AutoCoded Document







Exhibit
10.26




The
Ruddick Corporation Executive Bonus Insurance Plan




Summary



	General:	 	
Ruddick Corporation (the “Corporation”) established the Executive
Bonus Insurance Plan (“the Plan”) to help certain key employees
acquire life insurance protection for their families. Death benefit targets are
established by the Corporation for each eligible employee according to his or
her position, level and responsibilities.







		 	The
Plan was implemented as a successor to two other life insurance programs. The
previous programs, both named the Ruddick Corporation Senior Officers Insurance
Program, utilized different types of insurance policies and will continue for
certain participants, but generally only for participants who were retired from
the Corporation as of December 31, 2003.







		 	The
Plan will be established in two stages due to differences in the types of
insurance policies used in the previous programs. Stage one was implemented
effective January 1, 2004, and stage two is expected to be completed in early
2005.







	Product:	 	Whole life insurance policy







	Insurance Carrier:	 	Northwestern Mutual Life Insurance Company







	Policy owner:	 	Executive







	Death Benefit:	 	The death benefit is determined by the Corporation based on executive position, level and responsibilities.








	Premiums:	 	The Corporation makes the premium payments to the insurance company on an annual basis while the
participant is employed by the Corporation. Premiums are considered taxable wages to the participant in
the year of payment.







	Termination of
Employment:	 	The Corporation will cease making premium payments upon termination of the participant's
employment. The participant may keep the policy in force by paying the premium in cash, or from the policy
cash value, if it is sufficient.








	Rights of
the Corporation:	 	The Corporation reserves the right to amend, modify or terminate this Plan, wholly or partially, at any time and from time to time by action of its Board of Directors or its delegate.




















The
Ruddick Corporation Executive Bonus Insurance Plan




Frequently
Asked Questions




GENERAL PLAN
FEATURES




	1.
	What
type of Plan is the Executive Bonus Insurance Plan?







	 	The
Executive Bonus Insurance Plan (the “Plan”) is a voluntary life
insurance plan, made available to certain executives of the Company
(“Company” means Ruddick Corporation and its affiliates.) Coverage is
provided through an insurance policy underwritten by Northwestern Mutual Life
Insurance Company. Your participation in the Plan does not affect your
participation in or benefits from any other programs sponsored by the Company.







	2.
	What
are the advantages of the Plan?







	 	In
addition to the significant life insurance benefits provided, the Plan has the
following advantages:








	 	›
     
	You own the policy.







	 	›
     
	Policy cash values accumulate within the policy on a tax-deferred basis.







	 	›
     
	Your
coverage is portable and may continue after your employment with the Company terminates.








	 	›
     
	You control the policy after your employment with the Company ends.







	3.
	Who pays for the Plan?







	 	The
Company will pay a bonus to you equal to your annual premium (premium bonus).
The premiums are considered part of your taxable income and will be immediately
subject to income and employment taxes. Premium bonus and tax withholdings are
handled through the Company’s payroll system.







	 	The
Company will also make additional tax gross-up payments to offset the cost of
your taxes. The tax gross-up payment is calculated so that your net cost of
participation in the Plan is similar to that of the split dollar program, based
on the insurance carrier’s term insurance rates.




















	4.
	Who
owns the policy?







	 	You
own the policy and the cash value. As the policy owner, you have the right to
designate and change your beneficiary(ies). During your employment, all other
policy owner rights are restricted and must be exercised jointly by you and the
Company.







	 	Your
policy may be owned by an irrevocable trust in the event you want it utilized
for estate planning purposes. If you wish to have your trust apply for coverage,
please contact Judy Hilliard of The Todd Organization at (800) 849-0971 for the
appropriate forms.







	5.
	Will I
continue to have Group Universal Insurance?







	 	Yes,
your coverage of two and one-half times your base salary automatically provided
under the Key Employee Life Insurance Plan will continue. You also may continue
to elect supplemental term life insurance while employed.








ELIGIBILITY
AND ENROLLMENT




	6.
	How do
I participate in the Plan?







	 	You
enroll by completing the appropriate insurance application forms enclosed in
your enrollment package.







	 	The
Todd Organization has been chosen to administer the Executive Bonus Insurance
Plan. All personal information provided to Todd and Northwestern Mutual Life
Insurance Company is strictly confidential and is not shared with the Company.







	7.
	Am I
required to enroll in this plan?







	 	No,
the Plan is voluntary. But, if you do not enroll during the enrollment period,
you may not be able to enroll in the future.







	8.
	What
medical information is required?







	 	You
will have two life insurance policies issued under Northwestern Mutual Life
Insurance Company. Under the first policy, coverage is guaranteed if you are
considered “actively at work”. For the second policy you will need to
be underwritten. Depending on your age and coverage amount, the medical
requirements could range from lab work to a medical exam. Two policies are
necessary in order to provide coverage for your benefit. You will be notified of
any necessary medical requirements.



















	9.
	How do
I designate a beneficiary?







	 	You
name the person(s) or trust which you would like to receive the Executive Bonus
Insurance Plan benefit upon your death. You make your beneficiary designation at
the time you complete your enrollment application. You can change your
beneficiary designation at any time by completing a change of beneficiary form.
Please contact Judy Hilliard at The Todd Organization at (800) 849-0971 to
obtain the form.








COVERAGE
AMOUNTS



	10.
	How
is the amount of my coverage determined?







	 	Your
coverage amount is determined by your position with the Company, and is shown on
your personal illustration.








DEATH
BENEFITS



	11.
	Are
death benefits taxable?







	 	Based
upon current tax laws, death proceeds are income tax free. You will need to
consult with your tax advisor regarding any potential estate or gift tax impact.








DISABILITY



	12.
	What
if I become disabled?







	 	If
you become disabled during the premium payment period, the Company will continue
to make the premium and tax gross-up payments until the earlier of your age 65
or the date you are no longer determined to be disabled. The premium payments
will continue to be made by the Company as discussed in question #3 above.








CHANGE IN
CONTROL



	13.
	What
happens if there is a change in control?







	 	The
Company will continue premium payments to your age 65 if your employment is
terminated either voluntarily or involuntarily within two years following a
change in control.



















TERMINATION
OF EMPLOYMENT



	14.
	What
happens when I leave the Company?







	 	Premiums
will be paid only while the Company employs you (except as described above in
the event of your disability or a change in control). If, after your employment
terminates, the policy needs additional premiums to support the death benefit,
there are several options available to you:







	
	1.
	Continue the death benefit by paying premiums in cash.

	
	2.
	Continue the death benefit by paying premiums through policy loans.

	
	3.
	Reduce the policy death benefit so that dividends are sufficient to pay premiums.

	
	4.
	Convert to a reduced paid up life insurance policy, with no further premiums due.








OTHER
IMPORTANT INFORMATION



	15.
	What
information will I receive after I enroll?







	 	Once
your coverage is approved, you will receive your policy documentation. On an
annual basis, you will receive a benefit statement from Todd to confirm your
coverage amount and current policy cash value.







	The
information provided in this Brochure is a summary of the rules of
The Ruddick
Corporation Executive Bonus Insurance Plan.