Document:

Exhibit

Centuri Construction Group, Inc.
Executive Long-Term Incentive Plan (LTIP)

Effective: January 1, 2019

CONFIDENTIAL

Executive Summary

This Centuri Long-Term Incentive Plan (“LTIP” or the “Plan”) provides an opportunity for key-management level employees of Centuri Construction Group, Inc. (“Centuri”) and/or its affiliates to be rewarded for management decisions and actions that create long-term value for Centuri and/or its affiliates. Along with a competitive base-salary, benefits package and a short-term incentive plan (STIP), the LTIP completes key-management compensation by rewarding effective leadership over a multiyear period.

Eligible personnel can earn an LTIP cash-award for a Plan Year that will be determined using a three-year measurement period and an approximately three and one-half year cliff-vesting schedule. In addition, pursuant to the Southwest Gas Holdings, Inc. Omnibus Incentive Plan, Participants may be granted restricted stock units for a Plan Year based upon the three-year measurement period and the formulas contained in this Plan and in a stock award agreement executed by the Participant. The LTIP is intended to be an unfunded plan of deferred compensation for a select group of higher compensated and managerial employees of Centuri and its affiliated companies.

Table of Contents 
    
SECTION    PAGE
PLAN OBJECTIVES1
ELIGIBILITY AND TARGET LONG-TERM INCENTIVE OPPORTUNITY1
PLAN DESIGN WITH PERFORMANCE MEASURES AND GOALS    2
PLAN DESCRIPTION2
MEASURES AND MEASUREMENT PERIOD3
PARTICIPANTS3
VESTING AND PAYMENT3
DEFERRAL OF AN LTIP AWARD PAYMENT AND PAYMENT OF
DEFERRED AMOUNTS    7
LTIP CALCULATION AND EXAMPLE7
TERMS AND CONDITIONS8
GOVERNING TERMS AND CONDITIONS9

APPENDIX A: THREE-YEAR COMPOUNDED EV GROWTH (%) AND AWARD PERCENTAGES

Plan Objectives

		
	•
	Retain key executives for the long-term.

		
	•
	Connect long-term compensation to Centuri’s long-term strategy.

		
	•
	Incentivize key executives to act like owners.

Eligibility and Target Long-Term Incentive Opportunity 

With a view towards rewarding those executives and managers with significant influence over Centuri’s performance, eligibility for the Plan will be based upon such pay-grades (including appropriate executives and managers) as are selected by the Centuri Compensation Steering Committee (the “Committee”) which group shall be comprised of the Centuri President & CEO (the “Centuri CEO”), the Centuri Executive Vice- President/Chief Financial Officer, and the Centuri Senior Vice-President/Human Resources.

Each eligible executive will be required to execute an award agreement each year which will contain his or her Plan Year LTIP target incentive opportunity expressed as a percentage of Base Salary at both “Target” and “Maximum” performance (see below), with incentives based on attainment of earnings growth. An eligible executive’s Base Salary will be based on the executive’s salary as of the end of the calendar year preceding the Plan Year, and the executive’s target percentage will be based on his/her position as of the end of the calendar year preceding the Plan Year.

The term “Plan Year” or “year” means the calendar year. The Plan shall remain in effect from year to year until amended or terminated as provided herein.

An executive eligible to participate in the LTIP must be employed by Centuri, or one of Centuri’s affiliated companies, on the first day of the Plan Year. Notwithstanding the foregoing, during the three-year measurement period (each three-year measurement period a “Performance Period”) commencing at the beginning of a Plan Year, the Centuri CEO may designate one or more other executives as eligible to participate in the LTIP; provided, however, that any LTIP award payable to such designated executive shall be a prorated award, as determined by the Committee, with such proration based on the portion of the Performance Period in which the designated executive actually participates in the LTIP. The salary amount used for the proration will be the base salary for the year the executive began participation in the Plan.

The LTIP opportunity will be calculated based on the Participant’s target award percentage of Base Salary as shown in the Participant’s award agreement and the three-year compounded EV growth percentages and award percentages (Appendix A) for the Performance Period. The award agreements and Appendix A will be approved by the Committee and the Centuri Board of Directors (the “Board”) yearly.

Plan Design with Performance Measures and Goals 

The purpose of the LTIP is to align the interests (and motivate the actions) of Centuri’s key executives and managers with the interests of Centuri’s owners in growing Centuri’s earnings. The LTIP award is determined based upon Centuri’s 3-Yr compounded Enterprise Value (EV) growth (%) rate. Where EV is defined as:

Enterprise Value = (EBITDA x Multiplier) – Net Debt

The term “Net Debt” is defined as bank borrowings less cash. On an annual basis the management of Centuri will recommend a multiplier to the Board for approval. The multiplier will be a number approved by the Board for a particular Plan Year and shall be used in the calculation of Centuri’s 3-Yr compounded Enterprise Value (EV) growth (%) rate for such year.

All determinations of Centuri’s 3-Yr compounded Enterprise Value (EV) growth (%) rate for a Plan Year shall be made by the Committee, subject to policies and procedures approved by the Board, and shall be final and conclusive with respect to all executives participating in the LTIP for a particular Plan Year.

Plan Description 

Three-Year Compounded EV Growth (%)

At the beginning of a Plan Year, the Committee shall set a target three-year growth in EV goal, as a percent for Centuri. At the end of the three-year Performance Period, actual performance will be measured and compared against the pre-set goal.

Appendix A states the actual three-year compounded EV growth (%) and the award percentage applicable for different rates of actual three-year compounded EV growth (%) performance (actual performance is to be round down to the closest whole percentage). In the event that actual performance produces an EV growth (%) that straddles two percentages set forth in the “Award” column of Appendix A, the award percentage for such performance shall be the interpolated value of the two award percentages.

If the three-year compounded EV growth (%) for Centuri for the three-year Performance Period is less than the threshold indicated (i.e., the “Threshold”), then the LTIP award set forth in Appendix A shall be $0 dollars. This means that there is no LTIP payout award for such Plan Year if Centuri’s three-year compounded EV growth (%) comes in below Threshold. At or above the Threshold, the award starts at the percentage indicated of Target. The award increases until it caps out at the percentage indicated for performing at Maximum or better. Appendix A specifies the award percentage for performance levels between the minimum and maximum.

Measures and Measurement Period 

The objective of the LTIP is to grow Centuri’s EV year over year. Therefore, the measurement period for compounded earnings growth is three-years. This LTIP utilizes a three-year measurement period commencing on January 1 of a particular Plan Year, and any award earned will generally be paid out, if at all, in a lump sum payment occurring during the first six calendar months following the end of the three-year measurement period conditioned upon the LTIP participant’s continued employment through the payment date.

New three-year Performance Periods and any revision to Appendix A, will be created and implemented in the discretion of the Committee and subject to approval by the Board for each Plan Year.

Participants 

Pre-established for each participant are target payout amounts stated as a percent of Base Salary and shown in their award agreement. For purposes of this LTIP, the term “Base Salary” means an LTIP participant’s base salary as of the end of the calendar year preceding the Plan Year, as shown on the participant’s employer’s payroll system; provided, however, that in no event will “Base Salary” include overtime pay, disability pay, bonuses or any other type of incentive pay, cash or non- cash taxable or non-taxable fringe benefits including but not limited to car, club or other allowances, or any other supplemental compensation.

Vesting and Payment 

Vesting:

An LTIP participant’s LTIP award will remain 0% vested unless the participant remains an employee of Centuri, or one of its affiliated companies, on the payment date that the LTIP award for such Plan Year is paid to the participant. Vesting of the employment condition is accelerated in the event a participating executive incurs a Separation from Service due to death, Disability, or Retirement. The terms “Disability” “Retirement” and “Separation from Service” are defined in the Payment section below.

For example:

(1)    At the beginning of a Plan Year, the Committee sets the three-year target EV growth rate goal (subject to Board approval).

(2)    Prior to the payment date that an LTIP award for such Plan Year is paid to a participant while he/she is still an employee of Centuri, or an affiliated company of Centuri, the participant will remain 0% vested in his/her potential LTIP award. Notwithstanding the foregoing, accelerated pro-rata vesting of a participating executive’s LTIP award employment condition applies if, prior to the payment date for the LTIP award, the executive incurs a Separation from Service due to death, Disability, or Retirement. 

(3)    In the first six months following the end of the Performance Period for a Plan Year (once the Centuri books are closed, three-year compounded EV growth (%) can be determined, and the award can be calculated) an award that has been earned will be paid to the participating executive in a lump sum payment if, and only if, the executive remains employed by Centuri at the time of payment. The Centuri CEO shall have the discretion to pay an award to individuals who leave employment after the Performance Period but prior to the payment date, provided such payments shall remain subject to the performance conditions of the entire Performance Period.

If during the Performance Period a participating executive incurs a Separation from Service due to death, Disability, or Retirement, the participating executive will, on such date, have his/her vesting of the employment condition accelerated on a pro-rata basis (to the nearest month of completed service) based on the percentage of the vesting period the executive has actually completed, provided that any payment shall remain subject to the performance conditions of the entire Performance Period.

Payment:

Provided that an executive has complied with the non-solicitation, non-compete, and confidentiality requirements described in Section 3.12 and achievement of the performance condition, any full or prorated LTIP award payable with respect to the participating executive will (subject to the Specified Employee rule set forth below and any existing timely and properly made deferral election made pursuant to the rules in the Centuri Construction Group, Inc. Executive Deferred Compensation Plan (the “Centuri DC Plan”) and the election requirements of Treasury Regulation Section 1.409A-2(a)(8) and Section 409A (defined below)) be paid in one lump sum payment to the executive, or if the executive has died his/her beneficiary(ies), during the first six calendar months of the calendar year immediately following the end of the Performance Period, and in all events in the year following the end of the Performance Period.

Notwithstanding the foregoing paragraph (i), if a participating executive incurs a Separation from Service due to Disability or Retirement, no award shall be paid to such executive, and such award shall be forfeited, if the executive is under age 70 and the executive has failed, prior to the end of the above-stated six-month payment period, to execute an agreement with Centuri that contains non-solicitation, non-compete, and confidentiality provisions that are acceptable to the Committee and substantially similar to the terms that the executive should have already agreed to pursuant to Section 3.12, and (ii) in the case of the restricted stock units granted to the Centuri Participants, such units shall be payable as provided in the underlying stock awards and, if applicable, the Centuri Construction Group, Inc. Long-Term Capital Investment Plan.

Payout amounts will be based upon complete service years only. For example, if an executive’s Separation from Service due to death, Disability, or Retirement occurs on June 30th in year 2 of the Performance Period, the executive’s service will yield a 50% payout of any actual LTIP award and such 50% prorated award will be multiplied by the executive’s prorated 50% vesting resulting in an LTIP award equal to 50% x 50% = 25% of the actual LTIP award that the executive would have earned if the executive’s Separation from Service had not occurred until after the end of the three-year measurement period.

The time and form of LTIP payments, as set forth in this Payment section, may not be modified unless modification is:

(1)Allowed by Section 409A of the Internal Revenue Code of 1986 (the “Code”) and the rules, regulations, and published guidance of the Internal Revenue Service (the “IRS”) for Code Section 409A (hereinafter all collectively referred to as “Section 409A”), and

(2)Approved by the Committee or the Board.

Separation from Service for any reason other than death, Disability or Retirement will result in immediate and total forfeiture of any LTIP award payments that, at the time of Separation from Service, have not been paid.

Notwithstanding the foregoing rules, if a Change in Control (as defined below) occurs, the above described pro-rated vesting and payment methodology will apply to a participating executive if:

(1)The executive incurs an employer-initiated involuntary Separation from Service within 6 months following the Change in Control transaction, or

(2)    The acquiring surviving/acquiring entity fails to assume the LTIP in its current form.

Notwithstanding the foregoing payment provisions, and subject to any deferral election made by the executive under the Centuri DC Plan, if a participating executive is a Specified Employee as of the date of his or her Separation from Service, no distribution on account of the executive’s Separation From Service, due to Retirement, may be made with respect to such executive before the date that is six months after the executive’s Separation From Service (or, if earlier than the end of the six-month period, the date of the executive’s death). In such case, any payment that would be made within such six-month period will be accumulated and paid in a single lump sum on the earliest business day that complies with the requirements of Section 409A.

For purposes of this LTIP, a “Change in Control” shall be deemed to have occurred on the date that one of the following events has occurred: (a) any one person, or more than one person acting as a group, acquires (including through purchase or by merger or other business combination) ownership of stock of Centuri that, together with stock held by such person or group, constitutes more than fifty percent (50%) of the total voting power of the stock of Centuri; provided, that (i) if any one person or more than one person acting as a group, is considered to own more than fifty percent (50%) of the total voting power of the stock of Centuri, the acquisition of additional stock by the same person or persons is not considered to cause a Change in the Control, and (ii) no Change in Control shall be deemed to have occurred by virtue of the acquisition of additional stock by any person who is a Centuri stockholder on the LTIP’s effective date (or by any group including such person); or (b) any one person, or more than one person acting as a group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) assets from Centuri that have a total gross fair market value equal to all or substantially all of the total gross fair market value of all of the assets of Centuri immediately before such acquisition or acquisitions; provided, that (i) gross fair market value means the value of the assets of Centuri, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets, and (ii) there is no Change in Control when there is a transfer to an entity that is controlled by the stockholders of Centuri immediately after such transfer. For purposes of the Plan, determinations of whether a Change in Control has occurred, whether more than one person is acting as a group, or whether an entity is controlled by the stockholders of Centuri shall all be made in accordance with Section 409A.

For purposes of this LTIP, an executive participant shall be deemed to be “Disabled” or incurred a “Disability” only if the executive has been determined to be disabled in accordance with the disability insurance maintained by Centuri.

For purposes of this LTIP, an executive will have “Retired” or incurred a Separation from Service due to “Retirement” when:

(1)    With approval from the Centuri CEO, the executive elects to terminate his/her employment with Centuri, or one of its affiliated companies, after both attaining age 591⁄2, and completing 12 complete calendar months of employment; or

(2)    The executive has attained age 65 and elects to leave his/her employment with Centuri, or one of its affiliated companies.

The term “Separation From Service” means the termination of a participating executive’s employment by Centuri, or one of its affiliated companies, if the executive dies, retires, or otherwise has a termination of employment with Centuri, or one of its affiliated companies; provided, that an executive’s employment relationship is treated as continuing intact while on military leave, sick leave or other bona fide leave of absence if the period of such leave does not exceed six months or longer, if an executive’s right to reemployment is provided either by statute or by contract. A leave of absence constitutes a bona fide leave of absence only if there is a reasonable expectation that the executive will return to perform services for Centuri. If the period of leave exceeds six months and the executive does not retain a right to reemployment under an applicable statute or by contract, the employment relationship is deemed to terminate on the first date immediately following such six-month period. Notwithstanding the foregoing, where a leave of absence is due to any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than six months, where such impairment causes the employee to be unable to perform the duties of his or her position of employment, or any substantially similar position of employment, a 29-month period of absence may be substituted for such six-month period. For purposes of the definition of “Separation from Service,” the term “Centuri” includes all other organizations that together with Centuri are part of the Code Section 414(b-c) controlled group of organizations. Whether an executive has incurred a Separation from Service shall be determined based in accordance with Section 409A. Additionally, if an executive ceases to work as a Centuri employee, but is retained to provide services as an independent contractor of Centuri, the determination of whether the executive has incurred a Separation From Service shall be determined based in accordance with Section 409A.

The term “Specified Employee” means, for any year in which Centuri (or a Code Section 414(b-c) controlled group member of Centuri) is publicly traded, any executive who is determined to be a “key employee” (as defined under Code Section 416(i) without regard to paragraph (5) thereof) for the applicable period, as determined by the Committee in accordance with Section 409A and in particular, Treasury Regulations Section 1.409A-1(i) Specified Employees.

Deferral of an LTIP Award Payment and Payment of Deferred Amounts

Payment of a Participant’s LTIP award payment may be deferred if and only if the Participant makes a timely and proper deferral election pursuant to the rules in the Centuri DC Plan and such election is compliant with the election requirements of Treasury Regulation Section 1.409A-2 and Section 409A. If a deferral election is made, the amount deferred shall be paid out at the times and in the manner dictated by the terms of such election and the payment provisions of the Centuri DC Plan.

LTIP Calculation and Example 

The goal of this LTIP is to provide a long-term incentive for key executives; accordingly, the LTIP includes a mix of time based and performance-based award opportunities. This mix, the performance-based award opportunities, and the classification by executive in either Group 1 or Group 2 is shown in each participant’s award agreement.

The time-based award is not subject to a threshold to generate a payment to the executive. Time-based award amounts, however, are impacted by the change in EV at the end of the measurement period. If the EV increases by 5% or more over the measurement period, the time-based award is increased by the percent of increase, similarly, if EV decreases by 3% or more at the end of the measurement period, the time-based award amount is decreased by the percentage decrease.

Time-based awards are capped at 33.1% (10% compounded over 3 years) so as to provide the Company a quantifiable maximum payout of the time-based awards at the beginning of each plan year. Additionally, the maximum for performance-based awards is capped at the percentage indicated of target.

The amount attributable to performance-based awards is dependent on the growth of EV achieved over the three-year measurement period. If at the end of the measurement period EV grows by the target level, then the payout is at target. If EV growth does not achieve threshold, then no amount is paid.

Sample Group 1 Individual with Target Award =$100,000
30% Time-Based = $30,000
70% Performance-Based = $70,000
Assumes a target of 5% annual growth in Enterprise Value (“EV”), 
a 25% Threshold and 200% Maximum

	
					
	

Level of Performance
	Performance-Based Award
	Time-Based Award
	Total Award

	Below Threshold
(‐5% three‐year decline in EV)
	

0%
	$28,5001
	

$28,500

	Threshold
(6.1% three‐year growth in EV)
	$17,5002
(25% payout)
	

$31,8303
	

$49,330

	Target
(15.8% three‐year growth in EV)
	$70,0004
(100% payout)
	

$34,7405
	

$104,740

	Maximum
(33.1% three‐year growth in EV)
	$140,0006
(200% payout)
	

$39,9307,8
	

$179,930

F/N

1.    [($100,000 x 30%)] – [($100,000 x 30%) x -5%9] = $28,500
2.    [($100,000 x 70%) x 25%] =$17,500
3.    [($100,000 x 30%) x 6.1%9] =$31,830
4.    [$100,000 x 70%] = $70,000
5.    [($100,000 x 30%) x 15.8%9] = $34,740
6.    [($100,000 x 200%) x 70%] = $140,000
7.    Subject to 133.1% cap
8.    [($100,000 x 30%) x 133.1%] = $39,930
9.Percentage increase in EV

Terms and Conditions 

LTIP adoption, amendment or termination is at the sole discretion of the Board. Plan administration and interpretation is at the sole discretion of the Committee. Nothing herein should be interpreted to communicate any manner of a promise; no obligations are created beyond those expressly stated in this document, subject to the above-reserved discretion and all other reservations herein made. Neither this document (nor the LTIP it describes) amount to, or result in, any manner of an employment contract or rights to continued employment.

The LTIP and any participation thereto, are also subject to the additional terms and conditions contained in the following section, Governing Terms and Conditions.

Governing Terms and Conditions     

1.    LTIP Amendment and Termination.

The Board may, at any time, and in its discretion, alter, amend, modify, suspend or terminate the LTIP or any portion thereof; provided, however, that no such amendment, modification, suspension or termination shall, without the consent of an employee participating in the LTIP (a “Participant”), adversely affect such Participant's rights with respect to future payouts under a previously approved plan, and provided further, that, no payment of benefits shall occur upon termination of the LTIP unless the requirements of Section 409A have been met.

2.    Plan Administration.

2.1    Administration by Committee. The LTIP shall be administered by the Centuri Compensation Steering Committee or its express delegate, which shall have the authority to:

		
	(a)
	construe and interpret the LTIP and apply its provisions;

		
	(b)
	promulgate, amend and rescind rules and regulations relating to the administration of the LTIP;

		
	(c)
	authorize any person to execute, on behalf of the Centuri, any instrument required to carry out the purposes of the LTIP;

		
	(d)
	determine minimum or maximum Awards and payouts under the LTIP;

		
	(e)
	select, subject to the limitations set forth in the LTIP, those employees who shall be participants;

		
	(f)
	interpret, administer, reconcile any inconsistency in, correct any defect in and/or supply any omission in the LTIP and any instrument or agreement relating to the LTIP; and

		
	(g)
	exercise discretion to make any and all other determinations which it determines to be necessary or advisable for the administration of the LTIP.

2.2    Non-Uniform Treatment. Board/Committee determinations under the Plan need not be uniform and any such determinations may be made selectively among Participants.

2.3    Board Decisions Final. All decisions made by the Board pursuant to the provisions of the LTIP shall be final and binding on the executives participating in the LTIP.

		
	3.
	Miscellaneous.

3.1    No Employment or Other Service Rights. Nothing in the LTIP or any instrument executed pursuant thereto shall confer upon any Participant any right to continue to be employed by Centuri or interfere in any way with the right of the Centuri to terminate the Participant's employment or service at any time with or without notice and with or without cause.

3.2    Tax Withholding. Centuri shall have the right to deduct from any amounts otherwise payable under the LTIP any federal, state, local, or other applicable taxes required to be withheld.

3.3    Governing Law. The LTIP shall be administered, construed and governed in all respects under and by the laws of Arizona, without reference to the principles of conflicts of law (except and to the extent preempted by applicable Federal law).

3.4    Section 409A. The payments and benefits provided hereunder are intended to be structured in a manner to avoid the implication of any penalty taxes under Section 409A. In no event shall Centuri or any of its affiliates be liable for any additional tax, interest or penalties that may be imposed on a Participant as a result of Section 409A or any damages for failing to comply with Section 409A (other than for withholding obligations or other obligations applicable to employers, if any, under Section 409A). Notwithstanding any provision in the Agreement to the contrary:

(a)    If any LTIP payment is determined to be subject to Section 409A, the LTIP shall be interpreted and administered such that such payments comply to the fullest extent possible with Section 409A.

(b)    Each payment hereunder shall be deemed to be a separate and distinct payment for purposes of Section 409A.

3.5    General Assets/Trust. All amounts provided under the LTIP shall be paid from the general assets of Centuri and no separate fund shall be established to secure payment.

3.6    No Warranties. Neither Centuri nor the Board warrants or represents that the value of any Participant's potential payout.

3.7    Beneficiary Designation. Subject to the provisions of any Committee approved LTIP Beneficiary Designation Form, each executive participating in this LTIP (a “Participant”) may from time to time name any beneficiary or beneficiaries to receive the Participant's interest in the LTIP in the event of the Participant's death. Each designation will revoke all prior designations by the same Participant, shall be in a form reasonably prescribed by the Committee and shall be effective only when filed by the Participant in writing with Centuri during the Participant's lifetime. If a Participant fails to designate a beneficiary, then the Participant's designated beneficiary shall be deemed to be the Participant's lawful spouse and if the Participant has no lawful surviving spouse then the Participant’s estate.

3.8    No Assignment and Unsecured Creditor. Neither a Participant nor any other person shall have any right to sell, assign, transfer, pledge, anticipate or otherwise encumber, transfer, hypothecate or convey any amounts payable hereunder prior to the date that such amounts are paid, except for the designation of beneficiaries. A Participant’s rights to Plan benefits represent rights of only a Centuri general unsecured creditor. The Plan constitutes a mere promise by Centuri to make benefit payments in the future. It is the intention of Centuri that the Plan be unfunded for tax purposes and for purposes of Title I of ERISA.

3.9    Expenses. The costs of administering the LTIP shall be paid by Centuri.

3.10    Severability. If any provision of the LTIP is held to be invalid, illegal or unenforceable, whether in whole or in part, such provision shall be deemed modified to the extent of such invalidity, illegality or unenforceability and the remaining provisions shall not be affected.

3.11    Headings and Subheadings. Headings and subheadings in the LTIP are for convenience only and are not to be considered in the construction of the provisions hereof.

3.12    Obligations of Non-Solicitation/Non-Compete/Confidentiality

(a)    A precondition to eligibility under the LTIP and payment of LTIP award(s), shall be that of the Participant agreeing to the following obligations (which agreement shall be evidenced by Participant’s signature to the “congratulations” letter, issued by the Centuri CEO, with which the LTIP was submitted for Participant’s review):

1.    For purposes of the Section 3.12, the term “Centuri” shall include its subsidiaries. At no time during Participant’s employment at Centuri (or any affiliate) or within a period of one year immediately following termination of same (for any reason and no matter by whom) shall Participant in any way:

i.    solicit or persuade any officer, employee, consultant or agent of Centuri to leave the services thereof or, if Participant is no longer employed at Centuri, hire any such individual who was a Centuri employee at the time of such solicitation or hiring.

ii.    solicit or persuade any customer, prospective customer, licensee, vendor, consultant, referral source or other account of Centuri to not purchase, or reduce or discontinue purchasing any products or services from Centuri, or from providing any products or services to Centuri.

iii.    organize or operate in any way (or assist any person, organization or entity in organizing and operating) any business in the United States or Canada that in any way competes, directly or indirectly, with the products or services of Centuri.

2.    Participant also acknowledges that, irrespective of his or her eligibility under the LTIP, and at all times while employed at Centuri and for all times after termination (voluntarily or involuntarily, with or without cause) he or she has an ongoing obligation to neither disclose nor use any confidential, trade secret and/or proprietary information (as hereinafter defined, any and all of which is also referred to herein as “Protected Information”) belonging to Centuri or any Customer, except as done in the course of Participant’s employment with Centuri or as expressly authorized by Centuri, it being understood and agreed:

i.    Centuri’s Protected Information is one of its most important assets, the unauthorized disclosure or use of which would be highly detrimental to Centuri’s interests, and any and all such information is Centuri’s exclusive property having independent economic value.

ii.    As an employee of Centuri, Participant will be exposed to Protected Information in the course of day to day business activities, inasmuch as such exposure is essential to the performance of Participant’s job duties. The provisions of this Section 3.12 and each of its subparts are a condition of Participant’s continued employment with Centuri, and Participant’s employment and compensation by Centuri are induced by and in consideration of Participant’s acknowledgement and fulfillment of his or her obligations described within this Section 3.12 and each of its subparts (and, if in supplementation, as stated elsewhere by Centuri, such as but not limited to its policies and procedures and its Code of Business Conduct and Ethics).

iii.    The business of Centuri and the nature of Participant’s employment will also permit access to protected information belonging to Customers, which is the Customer’s property and the unauthorized disclosure or use of which would be highly detrimental to Centuri, as well as the Customer.

iv.    At no time shall Participant disclose or use, directly or indirectly, any Protected Information, except as approved by Participant’s supervisor and done in the course of Participant’s employment with Centuri, or as expressly authorized by Centuri.

v.    Should Participant’s employment at Centuri be terminated (for voluntarily or involuntarily, with or without cause), Participant shall immediately return to Centuri any and all documents and tangible items (and all copies, facsimiles and specimens thereof) embodying or containing any Protected Information belonging to Centuri or any Customer or both, along with all copies, facsimiles and specimens thereof, and at no time following Participant’s termination shall he or she disclose or use any Protected Information belonging to Centuri or the Customer, it being expressly understood that Participant has no right to use, practice or disclose the Protected Information for Participant’s own benefit or for the benefit of any third party.

3.    As used in this Section 3.12, “Customer” shall mean any person or entity for whom Centuri performs services or from whom Centuri, its employees, agents and consultants obtain protected information. “Confidential, Trade Secret and/or Proprietary Information” shall mean any information not generally known in the industries in which Centuri or any Customer is engaged in, and includes but is not limited to information relating to any existing or contemplated services, costing data of any sort, technology, concepts, processes, methods, techniques, know-how, business plans, sales or marketing methods of doing business, customer lists, customer usages or requirements, or supplier/subcontractor information, which is owned or licensed by Centuri or its Customer, or is held by Centuri or its Customer in confidence and, to the extent not covered by the foregoing, includes the following:

i.    technical information and know-how on all Centuri products, equipment, processes, services, and systems;

ii.    Centuri business planning information, such as new services, customer strategy, expansion plans, relocation, downsizing, acquisition and mergers;

iii.    financial information on costs, investments, profit, margins and forecasts;

iv.    problems in any area of Centuri’s business;

v.    Centuri production information, progress reports and other productivity information;

vi.    marketing strategies, pricing, supplier/subcontractor information, bid information and Centuri developed bid programs;

vii.    quality and improvement program results; and

viii.    Centuri employee information (such as, but not limited to changes in staffing, relocation, wages and salaries, and bonus program results).

4.    Nothing contained in this Section 3.12 shall be constructed as precluding the Participant from the use or practice of any skill or expertise generally associated with his or her employment but not special or unique to Centuri.

5    Any breach of Section 3.12 or any of its subparts shall constitute grounds for termination (if Participant is still employed at Centuri at time of breach), and shall provide Centuri the basis for obtaining injunctive relief by a court of law (whether permanent or preliminary or a temporary restraining order), and shall entitle Centuri to an action at law or in equity for any damages related to or arising out of any such breach, and shall automatically cause a forfeiture of any and all amounts paid, and a discontinuance of any and all amounts or otherwise due and owing to Participant under the LTIP, none of which shall require prior notice.

		
	3.13
	Claims Procedures

(A)    Claims for Benefits. For the purpose of this procedure, a claim for benefits under this Plan is defined as: (a) a request for withdrawal or distribution of funds; or (b) a request for correction of a perceived administrative error.

Any claim for benefits under the Plan must be submitted in writing to the Committee within the “applicable limitations period.” The “applicable limitations period” shall be one year, beginning on the earliest of (a) in the case of any lump-sum payment, the date on which the payment was made, or (b) for all other claims, the date on which the action complained or grieved occurred. If such claim for benefits is wholly or partially denied, the Committee shall, within a reasonable period of time not to exceed ninety (90) days after receipt of the claim, notify the Participant or Beneficiary or other party making the claim (the “Claimant”) of the denial of the claim. Such notice of denial (a) shall be in writing, (b) shall be written in a manner calculated to be understood by the Claimant, and (c) shall contain (1) the specific reason or reasons for denial of the claim, (2) a specific reference to the pertinent Plan provisions upon which the denial is based, (3) a description of any additional material or information necessary to perfect the claim, along with an explanation of why such material or information is necessary, and (4) an explanation of the claim review procedures and the time limits applicable to such procedures and a statement of the Claimant’s right to bring a civil action under ERISA Section 502(a) following an adverse benefit determination upon review. The ninety (90) day period may, under special circumstances, be extended up to an additional ninety (90) days upon written notice of such extension to the Claimant which notice shall specify the special circumstances that require an extension of time and the date by which the Committee expects to communicate to the Claimant a decision on the claim. If the claim is denied the Claimant may file a request for review as provided in Section 3.13(B).

(B)    Request for Review. Within sixty (60) days after the receipt of the decision denying a claim by the Claimant, the Claimant may file a written request with the Committee that it conduct a full and fair review of the denial of the claim for benefits. The Claimant or his/her duly authorized representative may review pertinent documents and submit issues and comments in writing to the Committee in connection with the review.

(C)    Decision on Review of Denial. The Committee shall deliver to the Claimant a written decision on the review of the denial within a reasonable period of time not to exceed sixty (60) days after the receipt of the aforesaid request for review, except that if there are special circumstances (such as the need to hold a hearing, if necessary) which require an extension of time for processing, the aforesaid sixty (60) day period shall, upon written notice to the Claimant be extended an additional sixty (60) days. Notice of an extension shall be given within the initial sixty (60) day review period. The extension notice shall indicate the special circumstances that require an extension of time and the date by which the Committee expects to render a decision upon review. Upon review the Claimant shall be given the opportunity to (1) submit written comments, documents, records, and other information relating to its claim, and (2) request and receive, free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the Claimant’s claim for benefits. Whether a document, record, or other information is relevant to a claim for benefits shall be determined by reference to applicable ERISA regulations. The review of a denied claim shall take into account all comments, documents, records, and other information submitted by the Claimant relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination. The decision on review shall be written in a manner calculated to be understood by the Claimant and, if adverse, shall (1) include the specific reason or reasons for the decision, (2) contain a specific reference to the pertinent Plan provisions upon which the decision is based, (3) contain a statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the Claimant’s claim for benefits (whether a document, record, or other information is relevant to a claim for benefits shall be determined by reference to applicable ERISA regulations), and (4) contain a statement describing the Claimant’s right to bring an action under ERISA Section 502(a).

(D)    Notice of Time Limits. When a Participant or a Beneficiary files a claim, the Committee, or its designee, shall notify him or her of the claim and review procedure including the time periods involved.

		
	3.14
	Limitation on Claims and Venue.

No action at law or in equity to recover under this Plan shall be commenced later than one year from the date of the Committee’s decision on review (or if no decision is furnished within 120 days of the Committee’s receipt of the request for review, one year after the 120th day after receipt of the request for review). Failure to file suit within this time period shall extinguish any and all rights to benefits under the Plan. Any lawsuit to recover benefits under this Plan shall be filed in Federal District Court in Maricopa County Arizona.

IN WITNESS WHEREOF, Centuri has caused this LTIP to be signed effective as of the Effective Date.

Centuri Construction Group, Inc.

By: _______________________
Paul M. Daily

Its:  Chief Executive Officer

Appendix A: Three-year Compounded EV Growth (%) and Award Percentages

	
				
	Performance
	Award

	 
	Annual
	3-Year
	 

	 
	>10.0%
	>33.1%
	200%

	Maximum
	10.0%
	33.1%
	200%

	 
	9.5%
	31.4%
	190%

	 
	9.0%
	29.7%
	180%

	 
	8.5%
	27.9%
	170%

	 
	8.0%
	26.2%
	160%

	 
	7.5%
	24.5%
	150%

	 
	7.0%
	22.8%
	140%

	 
	6.5%
	21.0%
	130%

	 
	6.0%
	19.3%
	120%

	 
	5.5%
	17.6%
	110%

	Target
	5.0%
	15.8%
	100%

	 
	4.5%
	14.1%
	87.5%

	 
	4.0%
	12.5%
	75%

	 
	3.5%
	10.9%
	62.5%

	 
	3.0%
	9.3%
	50%

	 
	2.5%
	7.7%
	37.5%

	Threshold
	2.0%
	6.1%
	25%

	<Threshold
	<2.0%
	<6.1%
	0%Exhibit

RESTATED CENTURI CONSTRUCTION GROUP, INC. LONG-TERM CAPITAL INVESTMENT PLAN
(F.K.A.  NPL CONSTRUCTION CO.  LONG TERM CAPITAL INVESTMENT PROGRAM)

THIS RESTATED CENTURI CONSTRUCTION GROUP, INC. LONG-TERM
CAPITAL INVESTMENT PLAN (the “Plan”) is effective January 1, 2019 for Centuri Construction Group, Inc. (hereinafter referred to as “Centuri”).  The purpose of this Plan is to cause key selected executives of Centuri and its related companies (collectively the “Employer”) to participate in this Plan (these executives are defined below as “Participant[s]”) and thereby have a personal financial interest in the Employer’s and its parent Company’s Southwest Gas Holdings, Inc. (hereinafter referred to as “Holdings”) financial success and performance.  This Plan works in combination with the Centuri Construction Group, Inc. Executive Deferred Compensation Plan (the “EDCP”), to provide for elective and non-elective deferrals under the EDCP that are in total or in part credited to an EDCP investment option (referred to herein as the “EDCP Performance Fund”) the performance of which for a calendar year is tied to the Employer’s financial performance for such year, and the Centuri Construction Group, Inc. Executive Long-Term Incentive Plan (the “LTIP”) to provide for deferred stock awards.

WITNESSETH:

WHEREAS, the Employer desires to adopt this Plan restatement.

NOW, THEREFORE, the Employer hereby adopts this restated Centuri Construction Group, Inc. Long Term Capital Investment Plan that reads as follows:

ARTICLE I
Definitions

1.1    Introduction.  The following terms, as heretofore and hereafter used in this Plan, shall have the meanings set forth unless the context clearly indicates a different meaning is required:

“Beneficiary” means a person who, pursuant to the EDCP, is designated to receive EDCP benefits in the event of the Participant’s death.

“Board” or “Board of Directors” means the Centuri Board of Directors.

“Centuri” means Centuri Construction Group, Inc.

“Code” means the Internal Revenue Code of 1986, as amended.

“EDCP” means the Centuri Construction Group, Inc. Executive Deferred Compensation Plan.

“EDCP Performance Fund” means an EDCP investment option the performance of which for a calendar year is tied to the Employer’s financial performance for such year.

“Effective Date” means the Plan’s original effective date of January 1, 2013; the “Restatement Effective Date” means January 1, 2019.

“Employee” means an employee of the Employer.

“Employer” or “Company” means Centuri and the Participating Employers.  

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended.  

“Holdings” means Southwest Gas Holdings, Inc.

“LTIP” means the Centuri Construction Group, Inc. Executive Long-Term Incentive Plan.  

“Maximum Amount” shall have the meaning specified in Section 3.2.

“Participant” means an Employee that has deferrals made to the EDCP pursuant to this Plan and the EDCP and deferred stock awards pursuant to the LTIP.

“Participating Employer” means an affiliate of Employer who has adopted this Plan pursuant to Article XIII.

“Plan” means this Centuri Construction Group, Inc. Long Term Capital Investment Plan.  Prior to this restatement the Plan was named the NPL Construction Long Term Capital Investment Program.

“Plan Administrator” or “Administrator” means the individual or individuals that comprise the committee that serves as the administrator of the EDCP or the LTIP, as applicable.

“Plan Year” means each twelve (12) month period beginning January 1st and ending the following December 31st.

“Section 409A” means Code Section 409A and the regulations and other guidance promulgated or issued thereunder.

“Separation From Service” a Participant incurs a Separation From Service with the Employer if the Participant’s employment with Employer is terminated; provided, that Participant's employment relationship shall be treated as continuing intact (a) while the Participant is on military leave, sick leave or other bona fide leave of absence if the period of such leave does not exceed six months or longer, (b) if the Participant’s right to reemployment is provided either by statute or by contract; or (c) if the Participant continues to provide services to the Employer in any capacity after termination or expiration of this Plan or termination of Participant’s employment relationship with the Employer.  The determination of whether a Participant has incurred a "Separation From Service" shall be made by the Plan Administrator in accordance with Section 409A and the regulations promulgated thereunder and the term “Employer” as used in this definition of “Separation From Service” shall include all other organizations that together with the Employer are part of a Code Section 414(b-c) controlled or common control group of organizations.

“Spouse” means the spouse, if any, to whom the Participant is legally married on the Participant’s date of death.

“STIP” means the Centuri Construction Group, Inc. Short Term Incentive Plan for Exempt Executive Employees for a particular calendar year.

“Stock Account” means the deferred stock awards granted through the LTIP and maintained by Holdings.

“Termination Date” means the date on which the Participant incurs a Separation From Service.

ARTICLE II
Participation in the Plan

An Employee shall become a Participant only if the Employee (1) holds a position listed in Section 3.1, and (2) is selected by Centuri to participate in the Plan.  An Employee who becomes a Participant shall remain a Participant until all amounts that are credited to the EDCP and the Stock Account pursuant to this Plan and are either paid to the Participant or forfeited.

ARTICLE III
Plan Deferrals

3.1    Mandatory Deferrals.

(a)    STIP Deferrals.  Twenty-five percent (25%) of the STIP award bonus otherwise payable to a Participant in a calendar year shall be automatically deferred under the EDCP and credited to the Participant’s EDCP account and invested in the EDCP Performance Fund investment option, provided that the Plan Administrator has determined, prior to the award date that (1) a deferral election may be made pursuant to the EDCP and Section 409A with respect to such award, and (2) all or part of such credit can be made to the participant’s EDCP account without causing all of the amount to be credited to the Participant’s EDCP Performance Fund investment option to exceed the applicable target amount (the “Participant’s Target Amount”) set forth below.

(b)    Stock Deferrals.  One hundred percent (100%) of any stock award granted to a Participant pursuant to the LTIP shall be automatically deferred as provided herein, provided that the Plan Administrator has determined, prior to the award date that (1) a deferral may be applied to such stock award and Section 409A, and (2) all or part of such deferred amount will not cause the amount to be credited to the Participant’s Stock Account to exceed the Participant’s Target Amount set forth below.  Participants receiving stock pursuant to the LTIP will be required to execute award agreements which will detail how the target amount below is divided between the EDCP and stock deferrals.  The award agreements will also dictate a retention percentage for stock awards that must be maintained until the target amount is achieved, as well as any other details regarding requirements for stock awards.

(c)    Target Amounts.

	
		
	Participant Title

Centuri Chief Executive Officer and President

Centuri Executive Vice President – CFO/Treasurer

Centuri Executive Vice President – CAO

Centuri Executive Vice President – Electric T&D

Centuri Executive Vice President – Chief Counsel

Centuri Executive Vice President – COO

Centuri Executive Vice President – CCO

Centuri Senior Vice President – General Counsel

NPL Business Unit Division President

Meritus Business Unit Division President

Centuri Senior Vice President - HR
	Target Amount

400% base salary

200% base salary

200% base salary

200% base salary

200% base salary

200% base salary

200% base salary

200% base salary

200% base salary

200% base salary

100% base salary

To the extent the STIP award bonus otherwise payable to a Participant in a calendar year is not, pursuant to subparagraph (a), automatically deferred under the EDCP and credited to the EDCP Performance Fund investment option, such portion shall be paid to the Participant as provided in the STIP unless the Participant has timely elected to defer the payment of such portion pursuant to the EDCP deferral rules and such election is compliant with the election requirements of Section 409A.  If a deferral election is made, the amount deferred shall be paid out at the times and in the manner dictated by the terms of such election and the payment provisions of the EDCP.

To the extent a stock award otherwise payable in a calendar year is not, pursuant to subparagraph (b), automatically deferred, such portion shall be paid to the Participant as provided in the stock award unless the Participant has timely elected to defer the payment of such portion pursuant to any applicable deferral rules and such election is compliant with the election requirements of Section 409A.  If a deferral election is made, the amount deferred shall be paid out at the times and in the manner dictated by the terms of such election and the payment provisions of the stock award.

A Participant’s ability to defer STIP bonus awards and/or stock awards not subject to automatic deferral, as discussed in the preceding paragraph, shall be determined based on the deferral timing and form rules set forth in the EDCP, the applicable stock award, and Section 409A.

3.2    EDCP Performance Fund Date and Limit on Amount Credited to EDCP Performance Fund.  The EDCP provides the rules for the administration of the EDCP Performance Fund and the investment return earned by such fund; provided, however, that such EDCP rules shall to the extent possible be written so as to be consistent with the rules set forth in this Section 3.2.

The EDCP Performance Fund rate of return for a calendar year before 2019 shall be the average of Centuri’s period-to-period Earnings Before Interest, Tax, Depreciation, and Amortization (“EBITDA”) for each of the three preceding twelve month periods ending September 30th with a minimum return floor of a negative five percent (-5%) and a maximum return ceiling of a positive fifteen percent (15%).

The EDCP Performance Fund rate of return for a calendar year after 2018 shall be determined using a formula for Centuri’s enterprise value which shall be:

(EBITDA x multiplier) – Net Debt = Rate of Return (subject to a floor minimum return of a negative five percent (-5%) and a maximum return ceiling of a positive fifteen percent (15%)).

The Board shall in its discretion determine the EBITDA, multiplier, and Net Debt numbers to be utilized in determining the EDCP Performance Fund rate of return for a calendar year.

There shall be a limit on the amount a Participant can have credited to the EDCP Performance Fund.  To the extent that at the beginning of a Plan Year the portion of the Participant’s EDCP account that is credited to the EDCP Performance Fund investment option exceeds the Maximum Amount, the excess shall be debited from such option and credited to a default EDCP investment option selected by the EDCP Plan Administrator; the amount credited to the default fund shall remain credited to such fund until the Participant, in accordance with the EDCP investment rules, makes a new investment election with respect to such excess.  In Plan Years beginning before January 1, 2019, the term “Maximum Amount” shall mean an amount equal to the Participant’s Target Amount.  In any Plan Year beginning on or after January 1, 2019, the term “Maximum Amount” shall mean one hundred fifty percent (150%) of the Participant’s Target Amount.

In the calendar year in which a Participant incurs a Separation From Service (the “Termination Year”), the portion of the Participant’s EDCP account that is credited to the EDCP Performance Fund investment option shall, within 30 days of the Termination Date, be debited from such option and credited to another EDCP investment option selected by the EDCP Plan Administrator and shall remain credited to such option until the Participant, in accordance with the EDCP, makes an election to have such amount credited to another EDCP investment option.  For the segment of the Termination Year that all or part of the terminating Participant’s EDCP account is credited to the EDCP Performance Fund investment option, the amount so credited will be deemed to have solely earned a rate of return equal to the average Moody’s Corporate Bond Index rate of return as of the immediately preceding December.

3.3    Payment of Plan Benefits.  Deferrals under this Plan are made pursuant to the terms of the EDCP or applicable stock awards comprising the Stock Account; accordingly, all Plan benefits are payable at such times and in such manner as provided for in the EDCP or applicable stock awards comprising the Stock Account subject to the Participant’s EDCP or applicable stock awards distribution and payment elections made in the manner and form required by the EDCP or applicable stock awards.

ARTICLE IV
Plan Administrator

		
	4.1
	Plan Administrator Powers.

(a)    The general administration of the Plan shall be by the Plan Administrator.

(b)    The Plan Administrator shall have full discretionary power and authority to (1) operate and administer the Plan, (2) interpret and construe the Plan so as to determine all factual and non-factual questions arising under or in connection with all Plan matters including, but not limited to, an individual’s Plan benefits and/or eligibility; and (3) from time to time, prescribe and amend rules and regulations for such administration.  Whenever directions, designations, applications, requests or other notices are to be given by a Participant under the Plan, they shall be on forms prescribed by the Plan Administrator and shall be filed in the manner specified by the Plan Administrator.  

(c)    The Plan Administrator may act to correct any defect, supply any omission, or reconcile any inconsistency in the terms of the Plan.  The Plan Administrator’s decisions, interpretations, constructions, determinations, and all other actions shall be final and binding on all parties.

(d)    In addition to the powers described elsewhere in this Article IV and other Articles of the Plan, the Plan Administrator shall have the power to (1) change or waive any requirements of the Plan to conform with the law, provided such change does not materially increase or is not reasonably expected to materially increase the cost to the Employer of maintaining the Plan; (2) employ such agents, assistants, counsel (who may be counsel to the Employer) and such clerical and other service providers as the Plan Administrator may require in carrying out the provisions of the Plan; and (3) authorize one or more agents to execute or
deliver any instrument on behalf of the Plan Administrator.

(e)    Ministerial duties in connection with the administration of the Plan may be delegated by the Plan Administrator to any agent or agents as it may select.

(f)    The Plan Administrator and the Employer and its officers and directors shall be entitled to rely upon all valuations, certificates and reports made by an accountant or actuary and upon all opinions given by any legal counsel selected or approved by Centuri.  The Plan Administrator, the Employer, and the Employer’s officers and directors shall be fully protected in respect of any action taken or suffered by them in good faith in reliance upon such valuations, certificates, reports, opinions, or other advice of any such accountant, actuary or counsel, and all action so taken or suffered is to be conclusive upon each of them and upon all Participants, Beneficiaries, and other persons.

ARTICLE V
Actions by the Plan Administrator or Employer, Claims Procedures and Arbitration

5.1    Statement of Participant’s Account.  The Plan Administrator may create a procedure whereby from time to time he/she/it shall notify each Participant of his/her EDCP benefits and any Stock Account.  Such statement shall be deemed to have been accepted as correct unless written notice to the contrary is received by the Plan Administrator within thirty
(30) days after the mailing of such statement to the Participant.

5.2    Delivery of Notices, Reports, and Statements to Participants.  All notices, reports, and statements given, made, delivered, or transmitted to a Participant or Beneficiary shall be deemed duly given, made, delivered, or transmitted when actually delivered to the Participant or Beneficiary or when mailed, by such class as the sender may deem appropriate, with postage prepaid and addressed to the Participant at the address last appearing on the records of the Employer with respect to this Plan.

5.3    Delivery of Notices, Directions, and Communications to the Plan Administrator.  All notices, directions, or other communications given, made, delivered, or transmitted by a Participant to the Plan Administrator or Employer, as the case may be, shall not be deemed to have been duly given, made, delivered, transmitted, or received unless and until actually received by the Plan Administrator or by the Employer, as the case may be.

5.4    Plan Administrator and Employer Records Conclusive.  Subject to the provisions of this Article V, the records of the Plan Administrator and the Employer shall be conclusive in respect to all matters involved in the administration of this Plan.

5.5    Payment of Expenses.  All costs and expenses incurred in administering this Plan, including the fees and expenses of the Plan Administrator, shall be paid by the Employer, unless specified herein to the contrary.

5.6    Limitation of Liability.  No director, member of the Board, officer, or Employee of the Employer shall be personally liable for any act or omission to act in connection with the operation or administration of the Plan, except for his/her own willful misconduct or gross negligence.

5.7    Recognition of Participant’s Agent.  The Plan Administrator shall not be bound to recognize the authority or agency of any party for a Participant unless and until it shall receive documentary evidence thereof in form and substance satisfactory to it and thereafter from time to time, as the Plan Administrator may require, further documentary evidence disclosing the status of any agency.

5.8    Legal Actions.  In any action or application to the courts, only the Employer shall be a necessary party and no other person, firm, or corporation shall be entitled to any notice or process.  Any final judgment entered on such action or proceeding shall be conclusive upon all persons claiming under the Plan.  Every right of action by any Participant or former Participant with respect to the Plan shall, irrespective of the place where such action may be brought, cease and be barred three years after the end of the period for appealing a denied claim as described in the review of denied claim provisions of Section 5.11(b).

5.9    Construction of Plan.  To the extent not preempted by ERISA, this Plan shall be governed and construed in accordance with the laws of the State of Arizona.

5.10    No Effect on Employment.  Nothing in this Plan shall be deemed or construed to impair or affect in any manner whatsoever the right of Employer, in its discretion, to for any reason discharge or terminate the employment of an Employee/Participant.

5.11    Benefit Claims Procedure.

(a)    Initial claim review.  Any claim for benefits under the Plan shall be made in writing to the Plan Administrator.  If such claim for benefits is wholly or partially denied, the Plan Administrator shall, within a reasonable period of time not to exceed ninety (90) days after receipt of the claim, notify the Participant or Beneficiary or other party making the claim (the “Claimant”) of the denial of the claim.  Such notice of denial (a) shall be in writing, (b) shall be written in a manner calculated to be understood by the Claimant, and (c) shall contain (1) the specific reason or reasons for denial of the claim, (2) a specific reference to the pertinent Plan provisions upon which the denial is based, (3) a description of any additional material or information necessary to perfect the claim, along with an explanation of why such material or information is necessary, and (4) an explanation of the claim review procedures and the time limits applicable to such procedures and a statement of the Claimant’s right to arbitration following an adverse benefit determination upon review.  The ninety (90) day period may, under special circumstances, be extended up to an additional ninety (90) days upon written notice of such extension to the Claimant which notice shall specify the extraordinary circumstances and the extended date of the decision.  Notice of extension must be given prior to expiration of the initial ninety (90) day period.  The extension notice shall indicate the special circumstances that require an extension of time and the date by which the Plan Administrator expects to render a decision on the claim.  If the claim is denied the Claimant may file a request for review as provided in the next paragraph.

(b)    Review of denied claim.  Within sixty (60) days after the receipt of the decision denying a claim by the Claimant, the Claimant may file a written request with the Plan Administrator that it conduct a full and fair review of the denial of the claim for benefits.  The Claimant or his/her duly authorized representative may review pertinent documents and submit issues and comments in writing to the Plan Administrator in connection with the review.

The Plan Administrator shall deliver to the Claimant a written decision on the review of the denial within a reasonable period of time not to exceed sixty (60) days after the receipt of the aforesaid request for review, except that if there are special circumstances (such as the need to hold a hearing, if necessary) which require an extension of time for processing, the aforesaid sixty (60) day period shall, upon written notice to the Claimant, be extended an additional sixty (60) days.  Notice of an extension shall be given within the initial sixty (60) day review period.  The extension notice shall indicate the special circumstances that require an extension of time and the date by which the Plan Administrator expects to render a decision upon review.

Upon review the Claimant shall be given the opportunity to (a) submit written comments, documents, records, and other information relating to its claim, and (b) request and receive, free of charge, reasonable access to, and copies of, all Plan documents, records, and other information relevant to the Claimant’s claim for benefits.  Whether a document, record, or other information is relevant to a claim for benefits shall be determined by reference to applicable ERISA regulations.  The review of a denied claim shall take into account all comments, documents, records, and other information submitted by the Claimant relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination.

The decision on review shall be written in a manner calculated to be understood by the Claimant and, if adverse, shall (a) include the specific reason or reasons for the decision, (b) contain a specific reference to the pertinent Plan provisions upon which the decision is based, (c) contain a statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the Claimant’s claim for benefits (whether a Plan document, record, or other information is relevant to a claim for benefits shall be determined by reference to applicable ERISA Regulations), and (d) contain a statement describing the Claimant’s right to arbitration.

5.12    Arbitration.  In the event that any dispute or controversy (between the Participant, a Beneficiary, the Employer and/or the Plan Administrator (collectively the “Parties”)) that arises out of this Plan cannot be settled by the Parties through the claims procedure set forth in this Article V, the Parties hereby agree to resolve the controversy or
dispute by submission to binding arbitration with the American Arbitration Association (“AAA”) in Phoenix, Arizona.

In the event the Parties have not agreed upon an arbitrator within thirty (30) business days after either party files a demand for arbitration with the AAA’s Phoenix regional office, an arbitrator shall be appointed in accordance with the then existing Commercial Arbitration Rules of the AAA.

Discovery may be conducted either upon mutual consent of the Parties, or by order of the arbitrator upon good cause being shown.  In ruling on motions pertaining to discovery, the arbitrator shall consider that the purpose of arbitration is to provide for the efficient and inexpensive resolution of disputes, and the arbitrator shall limit discovery whenever appropriate to ensure that this purpose is preserved.  The arbitrator may grant summary judgment if he or she determines no issue of fact exists as to a claim.

The dispute or controversy shall be submitted for determination within sixty (60) days after the arbitrator has been selected.  The arbitrator shall render his or her decision within thirty
(30) days after the conclusion of the arbitration hearing.  Upon stipulation of the Parties, or upon a showing of good cause by either party, the arbitrator may lengthen or shorten the time periods set forth herein for conducting the hearing or for rendering a decision.

The decision of the arbitrator shall be final and binding upon the Parties.  Judgment to enforce the arbitrator’s decision, whether for legal or equitable relief, may be entered in the Superior Court of Maricopa County, Arizona, and the Parties hereto expressly and irrevocably consent to the jurisdiction of such Court for such purpose.

The arbitrator shall conduct all proceedings pursuant to the Uniform Arbitration Act (the “Act”) as adopted in the State of Arizona and the then existing Commercial Arbitration Rules of the AAA, to the extent such rules are not inconsistent with the Act or the provisions of this Article V.  The Uniform Rules of Procedure for Arbitration shall not apply to any arbitration proceeding relating to the subject matter or terms of this Plan.

ARTICLE VI
Modification and Termination

Notwithstanding that an Employee has become a Participant and thereafter performed services for Employer, the Board shall, without giving prior notice to any Participant, have the right to at any time, and in any manner, amend the terms of the Plan by adopting a written amendment thereto.  The Board shall, without giving prior notice to any Participant, have the right to at any time amend the Plan or terminate this Plan by adopting a Board resolution to terminate the Plan.  A Plan amendment or the termination of the Plan shall not cause a decrease to the then balance credited to the Participant’s EDCP account(s) or Stock Account without the Participant’s written consent.  Any such termination or amendment shall be effective at such date as is set forth in the applicable resolution or amendment.  Notwithstanding any other provision of the Plan to the contrary, if the Plan is terminated, no additional deferrals shall be permitted thereunder and notwithstanding any other provision of the Plan to the contrary, Plan benefits of all Participants shall be paid out according to the terms of the Plan.

ARTICLE VII
Non-Assignability

The right or interest of a Participant, Beneficiary, or any other person, to the payment of deferred compensation or other benefits under this Plan, as well as such Participant, Beneficiary, or person’s interest in a Participant’s EDCP benefit or Stock Account shall not be subject to anticipation, assignment, pledge, or charge in whole or in part (except as specifically allowed in the Plan), either directly or by operation of law or otherwise, including but without limitation, execution, levy, garnishment, attachment, pledge, bankruptcy, or in any other manner, but excluding devolution by death or mental incompetency, and any attempt to anticipate, assign, pledge, or charge (except as specifically allowed in the Plan) any such right or interest shall be void and no right or interest of any Participant, Beneficiary, or other person under this Plan or in a Participant’s EDCP benefit shall be liable for or subject to any obligation or liability or tort of such Participant, Beneficiary, or other person.

ARTICLE VIII
No Plan Administrator Responsibility for Employer or Participant Action or Inaction

The Plan Administrator shall not have any obligation or responsibility with respect to any action required by this Plan to be taken by the Employer or any Participant, or for the failure of any of the above to act or make any deferral, if applicable, or to otherwise provide any benefit herein contemplated, nor shall the Plan Administrator be required to collect any deferral required herein, if applicable, or determine the correctness or the amount of any deferral delivered by the Employer.

ARTICLE IX
Indemnity of Plan Administrator

To the extent allowed by ERISA, the Plan Administrator shall not incur any personal liability of any nature in connection with any act that is not a criminal act, or the result of willful misconduct and that is done or omitted to be done in good faith in the administration of this Plan, and to the extent allowed by ERISA, the Plan Administrator shall be indemnified and saved harmless by the Employer for, from, and against any and all liability to which the Plan Administrator may be subjected by reason of any such act (provided such act is not a criminal act and does not constitute willful misconduct, or conduct in their official capacity) including all expenses reasonably incurred in its/his/her defense, in case the Employer fails to provide such defense.

ARTICLE X
Contract

This Plan shall constitute a binding and effective agreement between the Employer and the Participant and any Beneficiary.
ARTICLE XI
Successors

This Plan shall be binding upon all persons entitled to benefits hereunder, their respective heirs and legal representatives, and upon the Employer, and its successors and assigns.

ARTICLE XII
Unsecured Benefits

12.1    Unsecured Creditor.  Participation in this Plan shall not create, in favor of any Participant or other individual entitled to benefits hereunder, any right or lien in or against any of the assets of the Employer.  All benefits payable hereunder shall be paid in cash from the general assets of the Employer, and no special or separate fund shall be established, and no other segregation of assets shall be made to assure the payment of benefits hereunder.  Nothing contained in this Plan, and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind or a fiduciary relationship between the Employer and any Participant or any other person.  A Participant’s or other person’s rights to Plan benefits represent the rights of only a general unsecured creditor of the Employer.  The Plan constitutes a mere promise by the Employer to make benefit payments in the future.  It is the intention of the Employer that the Plan be unfunded for tax purposes and for purposes of Title I of ERISA.

ARTICLE XIII
Participating Employers

13.1    Participating Employers.  Any other corporation, association, joint venture, proprietorship, partnership or limited liability company, whether or not an affiliated company or subsidiary, may adopt the Plan by action on its part by its highest ranking officer provided that the Chief Executive Officer of Centuri approves the participation.  An entity adopting the Plan in the manner provided by this Article XIII shall be known as a “Participating Employer.” Participating Employers as of the Restatement Effective Date are listed in Exhibit A hereto.

13.2    Amendment When Participating Employer.  Amendment of this Plan at any time when there is a Participating Employer hereunder shall be made according to Article VI.

13.3    Requirements Applicable to Participating Employers.  Each Participating Employer shall be subject to the following requirements:

(a)    All expenses of the Plan shall be paid by Centuri and any Participating Employers.  The Plan Administrator shall allocate the cost of the benefits provided under the Plan and the cost of administration of the Plan among Centuri and any Participating Employers.

(b)    It is anticipated that Employee/Participants may be transferred between a Participating Employer and Centuri or between Participating Employers.  No such transfers shall affect a termination of employment hereunder.

(c)    Any Participating Employer may terminate its participation in the Plan without the consent of any other Participating Employer.  A Participating Employer terminating its participation in the Plan shall provide satisfactory evidence thereof to the Plan Administrator.

(d)    The Plan Administrator shall have the power and authority to create any additional rules and regulations it deems necessary to:

		
	(1)
	Specify the Plan rights and obligations of a Participating Employer; and

		
	(2)
	Allow for the orderly operation of the Plan when there is one or more Participating Employers.

ARTICLE XIV
General

14.1    Headings as a Guide.  The headings of this Plan are inserted for convenience of reference only and are not to be considered in construction of the provisions hereof.

14.2    Pronouns.  When necessary to the meaning hereof, either the masculine or the neuter pronoun shall be deemed to include the masculine, the feminine, and the neuter, and the singular shall be deemed to include the plural.

14.3    Settlor Functions.  To the extent that (a) any person is designated as a Participant eligible to receive a benefit hereunder, or (b) the Plan is amended or terminated, such actions shall be deemed to be the exercise of a settlor function on behalf of the Employer and shall not
be deemed to be actions taken in a fiduciary capacity.

IN WITNESS WHEREOF, Centuri has caused this Plan to be signed effective as of the Restatement Effective Date.

CENTURI CONSTRUCTION GROUP, INC.

By ____________________________________

Its ____________________________________

EXHIBIT A

PARTICIPATING EMPLOYERS

Participating Employer: NPL Construction Co. 

By ____________________________________

Its ____________________________________

Participation as of the Effective Date.

Participating Employer: Meritus Group, Inc.

By ____________________________________

Its ____________________________________

Participation effective date: _____ day of ________________, ______.

Participating Employer: ____________________________________

By ____________________________________

Its ____________________________________

Participation effective date: _____ day of ________________, ______.

Participating Employer: ____________________________________

By ____________________________________

Its ____________________________________

Participation effective date: _____ day of ________________, ______.

1

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