Document:

exhibit10-25_030410.htm

    Exhibit
10.25

    

    

    

    

    

    

    

    WENDY'S
INTERNATIONAL, INC.

    AMENDED
AND RESTATED SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN NO. 3

    

    (EFFECTIVE
JANUARY 1, 2010)

    

    

    

    

    

    

    

    

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    WENDY'S
INTERNATIONAL, INC.

    SUPPLEMENTAL
EXECUTIVE RETIREMENT PLAN NO. 3

    

     

    
      
        	
                Preamble

              	
                1

              
	
                 

                Article
      I - Definitions

                 

              	
                 

                1

              
	
                    1.1  Account

              	
                1

              
	
                    1.2  Active
      Participant

              	
                1

              
	
                    1.3  Beneficiary

              	
                1

              
	
                    1.4  Board

              	
                1

              
	
                    1.5  Cause

              	
                1

              
	
                    1.6  Change
      in Control

              	
                2

              
	
                    1.7  Code

              	
                4

              
	
                    1.8  Committee

              	
                4

              
	
                    1.9  Company

              	
                4

              
	
                    1.10  Compensation

              	
                4

              
	
                    1.11  Contributions

              	
                4

              
	
                    1.12  Covered
      Employee

              	
                4

              
	
                    1.13  Effective
      Date

              	
                4

              
	
                    1.14  Employee

              	
                5

              
	
                    1.15  Good
      Reason

              	
                5

              
	
                    1.16  Inactive
      Participant

              	
                5

              
	
                    1.17  Normal
      Retirement Date / Age

              	
                5

              
	
                    1.18  Participant

              	
                5

              
	
                    1.19  Participating
      Employer

              	
                5

              
	
                    1.20  Plan
      Year

              	
                5

              
	
                    1.21  SERP

              	
                5

              
	
                    1.22  Total
      and Permanent Disability

              	
                5

              
	
                    1.23  WAG
      401(k) Plan

              	
                5

              
	
                    1.24  Year
      of Service

              	
                5

              
	
                 

                Article
      II - Eligibility and Participation

                 

              	
                 

                6

              
	
                    2.1  Eligibility

              	
                6

              
	
                    2.2  Reemployment
      Following Qualified Military Service

              	
                6

              
	
                 

                Article
      III - Amount of Benefit

                 

              	
                 

                6

              
	
                    3.1  Credits
      to Supplemental Account

              	
                6

              
	
                    3.2  Termination
      Benefit

              	
                7

              
	
                 

                Article
      IV - Forms of Payment

                 

              	
                 

                7

              
	
                    4.1  Distribution
      of Benefits

              	
                7

              
	
                    4.2  Distributions
      on Total and Permanent Disability or Death

              	
                8

              
	
                    4.3  Distributions
      on Change in Control

              	
                8

              
	
                    4.4  Designation
      of Beneficiary

              	
                9

              

         

        
          
             

          

          
             

            
              

            

          

        

        
          	
                  Article
      V - Plan Administration

                   

                	9
	
                      5.1  Plan
      Administration

                	
                  9

                
	
                      5.2  Powers
      of the Plan Administrator

                	
                  9

                
	
                      5.3  Committee

                	
                  10

                
	
                      5.4  Indemnification

                	
                  10

                
	
                   

                  Article
      VI - Claims Procedure

                   

                	
                   

                  10

                
	
                      6.1  Claims
      Review

                	
                  10

                
	
                      6.2  Appeals
      Procedure

                	
                  11

                
	
                      6.3  Discretion
      Regarding Claims and Appeals

                	
                  11

                
	
                   

                  Article
      VII - Miscellaneous

                   

                	
                   

                  12

                
	
                      7.1  Amendment
      and Termination

                	
                  12

                
	
                      7.2  No
      Contract Of Employment

                	
                  12

                
	
                      7.3  Unfunded
      Plan

                	
                  12

                
	
                      7.4  Restrictions
      Upon Assignments and Creditors’ Claims

                	
                  12

                
	
                      7.5  Payment
      Constitutes Release

                	
                  13

                
	
                      7.6  Applicable
      Law

                	
                  13

                

        

      

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

    

     

    WENDY'S
INTERNATIONAL, INC.

    SUPPLEMENTAL
EXECUTIVE RETIREMENT PLAN NO. 3

    

    Prior to
January 1, 2010, Wendy's International, Inc. maintained the Wendy's
International, Inc. Profit Sharing and Savings Plan for the benefit of its
non-crew employees.  Effective December 31, 2009, the Profit Sharing
and Savings Plan merged with and into the Wendy’s/Arby’s Group, Inc. 401(k)
Retirement Plan (the “WAG 401(k) Plan”).  The Company has adopted this
Supplemental Executive Retirement Plan No. 3 (the “SERP”) to provide benefits in
excess of those permitted in the WAG 401(k) Plan under the Internal Revenue Code
and in compliance with the provisions of Code section 409A.  This SERP
shall be interpreted in conformity with the requirements of Code section
409A.

    

    

    ARTICLE I - DEFINITIONS

    

    Whenever
used herein with the initial letter capitalized and unless a different meaning
is plainly required by the context, words and phrases shall have (a) the
meanings stated below, or (b) if not stated below, the meanings given to them in
the WAG 401(k) Plan Plan, if defined under that plan.  All masculine
terms shall include the feminine and all singular terms shall include the
plural, unless the context clearly indicates the gender or the
number.

    

    
      	
               
      

            	
              1.1

            	
              ACCOUNT means a notional
      account established for each Participant equal to all supplemental
      contributions and interest credited under Section
  3.1.

            

    

     

    
      	
               
      

            	
              1.2

            	
              ACTIVE PARTICIPANT means a
      Covered Employee who becomes a Participant and continues to participate in
      the SERP pursuant to Article II.

            

    

     

    
      	
               
      

            	
              1.3

            	
              BENEFICIARY means any
      person or persons designated by a Participant to receive any death
      benefits that may become payable under Article IV after the death of such
      Participant.

            

    

     

    
      	
               
      

            	
              1.4

            	
              BOARD means the Board of
      Directors of the Company.

            

    

     

    
      	
               
      

            	
              1.5

            	
              CAUSE means the
      termination of a Participant’s employment by reason of the Board’s good
      faith determination that the Participant (a) willfully and continually
      failed to substantially perform his or her duties with the Company or
      Participating Employer (other than a failure resulting from the
      Participant’s incapacity due to physical or mental illness) after a
      written demand for substantial performance is delivered to the Participant
      by the Board which specifically identifies the manner in which the Board
      believes that the Participant has not substantially performed his or her
      duties and such failure substantially to perform continues for at least
      fourteen (14) days, or (b) has willfully engaged in conduct which is
      demonstrably and materially injurious to the Company or Participating
      Employer, monetarily or otherwise, or (c) has otherwise materially
      breached the terms of his or her employment agreement with the Company or
      Participating Employer, if

            

    

     

    
      
         

      

      
        
          

        

      

      
         

      

    

    
      	
               
      

            	
              applicable
      (each, an “Employment Agreement”) (including, without limitation,
      a voluntary termination of the Participant’s employment by the
      Participant during the term of such Employment Agreement).  No
      act, nor failure to act, on the Participant’s part, shall be considered
      “willful” unless he or she has acted, or failed to act, with an absence of
      good faith and without a reasonable belief that his or her action or
      failure to act was in the best interest of the
      Company.  Notwithstanding the foregoing, the Participant’s
      employment shall not be deemed to have been terminated for Cause
      unless and until (1) there shall have been delivered to the Participant a
      copy of a written notice setting forth that the Participant was guilty of
      conduct set forth above in clause (a), (b) or (c) of the first sentence of
      this definition and specifying the particulars thereof in detail, and (2)
      the Participant shall have been provided an opportunity to be heard by the
      Board (with the assistance of Participant’s
  counsel).

            

    

     

    
      	
               
      

            	
              1.6

            	
              CHANGE IN CONTROL means
      the occurrence during the Plan Year
of:

            

    

     

    
      	
               
      

            	
              a)

            	
              An
      acquisition (other than directly from the Company) of any common stock or
      other voting securities of the Company entitled to vote generally for the
      election of directors (the "Voting Securities") by any "Person" (as
      the term person is used for purposes of Section 13(d) or 14(d) of the
      Securities Exchange Act of 1934, as amended (the "Exchange Act")),
      immediately after which such Person has "Beneficial Ownership" (within the
      meaning of Rule 13d-3 promulgated under the Exchange Act) of thirty
      percent (30%) or more of the then outstanding shares of the Company's
      common stock or the combined voting power of the Company's then
      outstanding Voting Securities; provided, however, in
      determining whether a Change in Control has occurred, Voting Securities
      which are acquired in a "Non-Control Acquisition" (as hereinafter defined)
      shall not constitute an acquisition which would cause a Change in
      Control.  A "Non-Control Acquisition" shall mean an acquisition
      by (1) an employee benefit plan (or a trust forming a part thereof)
      maintained by (A) the Company or (B) any corporation or other Person
      of which a majority of its voting power or its voting equity securities or
      equity interest is owned, directly or indirectly, by the Company (for
      purposes of this definition, a "Subsidiary") (2) the Company or its
      Subsidiaries, or (3) any Person in connection with a "Non-Control
      Transaction" (as hereinafter
defined);

            

    

     

    
      	
               
      

            	
              b)

            	
              The
      individuals who, as of January 1, 2003, are members of the Board (the
      "Incumbent Board"), cease for any reason to constitute at least seventy
      percent (70%) of the members of the Board; provided, however, that
      if the election, or nomination for election by the Company's common
      stockholders, of any new director was approved by a vote of at least
      two-thirds of the Incumbent Board, such new director shall, for purposes
      of this SERP, be considered as a member of the Incumbent Board; provided further, however, that
      no individual shall be considered a member of the Incumbent Board if such
      individual initially assumed office as a result
  of

            

    

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              an
      actual or threatened solicitation of proxies or consents by or on behalf
      of a Person other than the Board (a "Proxy Contest") including by reason
      of any agreement intended to avoid or settle any Proxy Contest;
      or

            

    

     

    
      	
               
      

            	
              c)

            	
              The
      consummation of:

            

    

     

    
      	
               
      

            	
              1)

            	
              A
      merger, consolidation or reorganization with or into the Company, or in
      which securities of the Company are issued (a "Merger"), unless such
      Merger is a "Non-Control Transaction."  A "Non-Control
      Transaction" shall mean a Merger
if:

            

    

     

    
      	
               
      

            	
              A)

            	
              the
      stockholders of the Company, immediately before such Merger own directly
      or indirectly immediately following such Merger at least seventy percent
      (70%) of the combined voting power of the outstanding voting securities of
      the corporation resulting from such Merger (the "Surviving Company") in
      substantially the same proportion as their ownership of the Voting
      Securities immediately before such
Merger,

            

    

     

    
      	
               
      

            	
              B)

            	
              the
      individuals who were members of the Incumbent Board immediately prior to
      the execution of the agreement providing for such Merger constitute at
      least two-thirds of the members of the board of directors of the Surviving
      Company, or a corporation beneficially directly or indirectly owning a
      majority of the Voting Securities of the Surviving Company,
      and

            

    

     

    
      	
               
      

            	
              C)

            	
              no
      Person other than (i) the Company, (ii) any Subsidiary, (iii) any employee
      benefit plan (or any trust forming a part thereof) that, immediately prior
      to such Merger was maintained by the Company or any Subsidiary, or (iv)
      any Person who, immediately prior to such Merger had Beneficial Ownership
      of thirty percent (30%) or more of the then outstanding Voting Securities
      or common stock of the Company, has Beneficial Ownership of thirty percent
      (30%) or more of the combined voting power of the Surviving Company then
      outstanding voting securities or its common
  stock;

            

    

     

    
      	
               
      

            	
              2)

            	
              A
      complete liquidation or dissolution of the Company;
  or

            

    

     

    
      	
               
      

            	
              3)

            	
              The
      sale or other disposition of all or substantially all of the assets of the
      Company to any Person (other than a transfer to a
    Subsidiary).

            

    

     

    Notwithstanding
the foregoing, a Change in Control shall not be deemed to occur solely because
any Person (the "Subject Person") acquired Beneficial Ownership

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    of more
than the permitted amount of the then outstanding common stock or Voting
Securities as a result of the acquisition of common stock or Voting Securities
by the Company which, by reducing the number of shares of common stock or Voting
Securities then outstanding, increases the proportional number of shares
Beneficially Owned by the Subject Persons, provided that if a Change in Control
would occur (but for the operation of this sentence) as a result of the
acquisition of common stock or Voting Securities by the Company, and after such
share acquisition by the Company, the Subject Person becomes the Beneficial
Owner of any additional common stock or Voting Securities which increase the
percentage of the then outstanding Voting Securities Beneficially Owned by the
Subject Person, then a Change in Control shall occur.

     

    
      	
               
      

            	
              1.7

            	
              CODE means the Internal
      Revenue Code of 1986, as amended from time to
  time.

            

    

     

    
      	
               
      

            	
              1.8

            	
              COMMITTEE means the
      Administrative Committee established in
  Article V.

            

    

     

    
      	
               
      

            	
              1.9

            	
              COMPANY means, prior to
      January 1, 2010, Wendy's International, Inc.  Effective January
      1, 2010, Company means Wendy’s/Arby’s Group,
  Inc.

            

    

     

    
      	
               
      

            	
              1.10

            	
              COMPENSATION means a
      Participant's annual Compensation, as that term is defined in the WAG
      401(k) Plan, except that there shall be no maximum amount of Compensation
      considered.  Compensation paid by the Company or any of its
      Subsidiaries after January 1, 2010 for services performed by a legacy
      Wendy’s brand employee, shall be treated as Compensation even though it is
      not paid by a Participating
Employer.

            

    

     

    
      	
               
      

            	
              1.11

            	
              CONTRIBUTIONS means the
      amounts credited to a Participant's Account during a Plan Year, other than
      interest, pursuant to Article III.

            

    

     

    
      	
               
      

            	
              1.12

            	
              COVERED EMPLOYEE means
      an Employee who, after October 26, 2006, was first appointed to serve as
      an officer:

            

    

     

    
      	
               
      

            	
              a)

            	
              For
      Wendy’s International, Inc., with the title of "Vice President" or above;
      or

            

    

     

    
      	
               
      

            	
              b)

            	
              For
      any Participating Employer, with such titles as may be designated for that
      Participating Employer by the Board or a committee
  thereof.

            

    

     

    Notwithstanding
the foregoing, an Employee shall not be a Covered Employee under this SERP for
any Plan Year in which such Employee actively participates in the Wendy’s
International, Inc. Supplemental Executive Retirement Plan No. 2.

    

    
      	
               
      

            	
              1.13

            	
              EFFECTIVE DATE means
      January 1, 2010, the effective date of this
  SERP.

            

    

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              1.14

            	
              EMPLOYEE means a person
      employed by the Company or a Participating Employer who is a United States
      citizen or resident alien.

            

    

     

    
      	
               
      

            	
              1.15

            	
              GOOD REASON shall
      mean:

            

    

     

    
      	
               
      

            	
              a)

            	
              in
      the case of an employee whose employment with the Company or one of its
      subsidiaries is subject to the terms of an employment agreement between
      such individual and the Company or such subsidiary, which employment
      agreement includes a definition of “Good Reason,” shall have the meaning
      set forth in such employment agreement during the period that such
      employment agreement remains in effect following a Change in Control,
      and

            

    

     

    
      	
               
      

            	
              b)

            	
              in
      all other cases, means (1) a material diminution in position or
      responsibilities, (2) a material reduction of salary or aggregate
      incentive compensation opportunities or (3) a required relocation beyond
      fifty miles from the present work
location.

            

    

     

    
      	
               
      

            	
              1.16

            	
              INACTIVE PARTICIPANT
      means a former Active Participant who is no longer a Covered Employee but
      who has an Account remaining in the
SERP.

            

    

     

    
      	
               
      

            	
              1.17

            	
              NORMAL RETIREMENT DATE
      and NORMAL RETIREMENT AGE
      both mean the first of the month coincident with or next following
      a Participant's sixty-fifth
birthday.

            

    

     

    
      	
               
      

            	
              1.18

            	
              PARTICIPANT means an
      Active Participant or an Inactive
Participant.

            

    

     

    
      	
               
      

            	
              1.19

            	
              PARTICIPATING EMPLOYER
      means an Affiliate, as defined in the WAG 401(k) Plan, that has been
      authorized to participate in the SERP by the Board or a committee
      thereof.

            

    

     

    
      	
               
      

            	
              1.20

            	
              PLAN YEAR means the
      calendar year.

            

    

     

    
      	
               
      

            	
              1.21

            	
              SERP means the Wendy's
      International, Inc. Supplemental Executive Retirement Plan No.
      3.

            

    

     

    
      	
               
      

            	
              1.22

            	
              TOTAL AND PERMANENT
      DISABILITY means a physical or mental condition which qualifies a
      Participant for Social Security disability benefits or which qualifies
      such Participant to continue to receive benefits under the Company's
      disability plan, after having received such benefits for twelve (12)
      months.

            

    

     

    
      	
               
      

            	
              1.23

            	
              WAG 401(k) PLAN means
      the Wendy's/Arby’s Group, Inc. 401(k) Retirement
  Plan.

            

    

     

    
      	
               
      

            	
              1.24

            	
              YEAR OF SERVICE means
      any Plan Year during which an Employee is credited with a Year of Service
      under the WAG 401(k) Plan.

            

    

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    ARTICLE
II - ELIGIBILITY AND PARTICIPATION

     

    
      	
               
      

            	
              2.1

            	
              ELIGIBILITY

            

    

     

    A Covered
Employee shall become a Participant in the SERP on the latest of the Effective
Date, the first day of the Plan Year following the date the Employee became a
Covered Employee (the Covered Employee's date of hire or promotion into eligible
employment), or the Entry Date upon which the Covered Employee becomes a Match
Eligible Participant in the WAG 401(k) Plan.

     

    
      	
               
      

            	
              2.2

            	
              REEMPLOYMENT FOLLOWING
      QUALIFIED MILITARY SERVICE

            

    

     

    Notwithstanding
any provision of this SERP to the contrary, a Covered Employee who returns to
employment following qualified military service shall be credited with such
Contributions and Years of Service as required under Chapter 43 of Title 38 of
the United States Code.

    

    ARTICLE
III – AMOUNT OF BENEFIT

     

    
      	
               
      

            	
              3.1

            	
              CREDITS TO SUPPLEMENTAL
      ACCOUNT

            

    

     

    
      	
               
      

            	
              a)

            	
              For
      each Plan Year commencing after December 31, 2006, for each Active
      Participant who remains employed as a Covered Employee by the Company or a
      Participating Employer on the last day of the Plan Year, or who dies,
      becomes disabled or attains Normal Retirement Age during the Plan Year
      while actively employed, the Company shall credit to the Supplemental
      Account of such Active Participant an amount equal to the sum
      of:

            

    

     

    
      	
               
      

            	
              1)

            	
              Deemed Match
      Credit.  As of the last day of each Plan Year commencing
      after December 31, 2006, an amount equal to a percentage of the
      Participant’s Compensation for the Plan Year in excess of the dollar
      limitation under Code section 401(a)(17), where the percentage is the
      maximum annual rate of match available under the WAG 401(k)
      Plan.

            

    

     

    
      	
               
      

            	
              2)

            	
              Profit Sharing
      Contribution Credit.  As soon as practicable after the
      Company approves a profit sharing contribution to the WAG 401(k) Plan, an
      amount equal to a percentage of the Participant’s Compensation for the
      Plan Year in excess of the dollar limitation under Code section
      401(a)(17), where the percentage is the annual rate of the profit-sharing
      contribution made to the WAG 401(k) Plan on the Participant’s behalf for
      such Plan Year (expressed as a percentage of his or her “compensation,” as
      defined pursuant to the WAG 401(k) Plan and with the percentage rounded to
      the nearest one hundredth of a
percent).

            

    

     

    
      	
               
      

            	
              b)

            	
              Interest.  On
      the last day of each Plan Year, interest shall be credited to the
      Supplemental Account as of that date but before crediting the
      allocation

            

    

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              for
      that Plan Year (if any) under this Section, for each Participant at a rate
      equal to the 30 year Constant Maturity Treasury Rate (or the next longest
      US government bond rate then available) as of November 30th.

            

    

     

    
      	
               
      

            	
              3.2

            	
              TERMINATION
      BENEFIT

            

    

     

    If a
Participant's employment terminates for any reason on or after his Normal
Retirement Age, after incurring a Total and Permanent Disability, as a result of
death or after completing five (5) Years of Service, such Participant (or his
Beneficiary in the event of the Participant's death) shall be entitled to
receive a benefit, payable in accordance with Article IV, equal to the balance
of the Participant's Account.  If a Participant's employment is
terminated for any reason prior to the earliest of attaining his Normal
Retirement Age, incurring a Total and Permanent Disability, the date of his
death or completing five (5) Years of Service, then notwithstanding any contrary
provision in this SERP, neither the Participant nor his Beneficiary shall be
entitled to any benefits under this SERP.

     

    Notwithstanding
the foregoing, the Participant shall be entitled to receive a benefit payable in
accordance with Article IV, equal to the balance of the Participant's Account,
if the Participant’s employment is terminated by the Company without Cause (a)
within two years following a Change in Control or (b) prior to the date of a
Change in Control if the Participant reasonably demonstrates that the
termination (1) was at the request of a third party who has indicated an
intention or taken steps reasonably calculated to effect a Change in Control or
(2) otherwise arose in connection with, or in anticipation of, a Change in
Control which has been threatened or proposed, such termination shall be deemed
to have occurred after a Change in Control for purposes of this Agreement
provided a Change in Control shall actually have occurred.

     

     

    ARTICLE
IV - FORMS OF PAYMENT

     

    
      	
               
      

            	
              4.1

            	
              DISTRIBUTION OF
      BENEFITS

            

    

     

    
      	
               
      

            	
              a)

            	
              Normal
      Form.  Unless a Participant elects one of the
      distribution alternatives described in Section 4.1(b) in the manner set
      forth in Section 4.1(c), upon the Participant’s Termination (other than
      for death, Total and Permanent Disability or a Termination described in
      Section 4.3), the Participant will receive the distribution of his or her
      Accounts in a single lump sum payable within 60 days after the first day
      of the calendar quarter following the six month anniversary of the date of
      such Termination.

            

    

     

    
      	
               
      

            	
              b)

            	
              Alternative
      Form.  In the alternative, a Participant may elect to
      receive his or her Accounts in quarterly installments payable over no less
      than two years and no more than fifteen (15) years commencing within 60
      days after the first day of the calendar quarter following the six-month
      anniversary of the date of such Termination, with the amount of each
      installment equal to the amount of the Account on the Valuation
      Date

            

    

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              immediately
      prior to the payment of such installment divided by the number of
      installments remaining to be paid.

            

    

     

    
      	
               
      

            	
              c)

            	
              Timing
      and Manner of Distribution Elections.  Distribution
      elections shall be made in such manner as may be designated by the Plan
      Administrator and communicated to Participants.  Any election
      made within twelve months of the date payment would otherwise commence
      (unless made no later than 30 days after becoming a Participant) shall be
      disregarded and benefits shall be paid in accordance with the preceding
      distribution election, if any, selected by such Participant or, if no such
      distribution election has been made, in accordance with Section
      4.1(a).  Any distribution election made more than 30 days after
      the Participant became a Covered Employee shall delay the commencement of
      distributions to such Participant by five years from the date payments
      would have commenced in accordance with the preceding distribution
      election, if any, selected by such Participant or, if no such distribution
      election has been made, in accordance with Section
      4.1(a).

            

    

     

    
      	
               
      

            	
              4.2

            	
              DISTRIBUTIONS ON TOTAL AND
      PERMANENT DISABILITY OR
DEATH

            

    

     

    Notwithstanding
the foregoing, in the event: (a) a Participant incurs a Total and Permanent
Disability or (b) a Participant dies, whether before or after the payment of
benefits has commenced hereunder, the Participant’s total Account Balance shall
be paid in a single lump sum as soon as practicable after such occurrence (but
not later than the later of (1) the last day of the calendar year in which the
event occurs, or (2) 60 days after the date the event occurs).

     

    
      	
               
      

            	
              4.3

            	
              DISTRIBUTIONS ON CHANGE IN
      CONTROL

            

    

     

    Notwithstanding
the foregoing, if a Participant’s employment with the Company and its Affiliates
is involuntarily terminated without Cause or is terminated by the Participant
for Good Reason:

     

    
      	
               
      

            	
              (a)

            	
              If
      the termination of employment occurs within two years following a Change
      in Control and the Change in Control constitutes “a change in ownership or
      effective control of the Company” or a “change in the ownership of a
      substantial portion of the Company’s assets,” in each case within the
      meaning of Code section 409A, the Participant’s Total Account Balance
      shall be paid in a single lump sum within 60 days after the first day of
      the calendar quarter following the six month anniversary of the date of
      such termination.

            

    

     

    
      	
               
      

            	
              (b)

            	
              If
      the termination of employment occurs within two years following a Change
      in Control but the Change in Control does not constitute either “a change
      in ownership or effective control of the Company” or a “change in the
      ownership of a substantial portion of the Company’s assets,” in each case
      within the meaning of Code section 409A, the Participant’s
      total

            

    

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              Account
      Balance shall be paid at the time and in the manner elected by the
      Participant pursuant to Section
4.1.

            

    

     

    
      	
               
      

            	
              (c)

            	
              If
      the Plan Administrator determines that a Participant has demonstrated that
      a termination prior to a Change in Control met the requirements for
      accelerated vesting under Section 3.2(b), the Participant’s total Account
      Balance shall be paid at the time and in the manner elected by the
      Participant pursuant to Section 4.1, with the date of the Change in
      Control treated as the date of Termination when determining the timing of
      the distribution.

            

    

     

    
      	
               
      

            	
              4.4

            	
              DESIGNATION OF
      BENEFICIARY

            

    

     

    Each
Participant shall designate, by giving a designation in approved form to the
Plan Administrator, a Beneficiary to receive any benefits which may become or
continue to be payable upon or after his death under this
Plan.  Successive designations may be made and the last designation
received by the Plan Administrator prior to the death of the Participant shall
be effective and shall revoke all prior designations.

    

    If a
Participant shall fail to designate a Beneficiary, if such designation shall for
any reason be illegal or ineffective or if no Beneficiary so designated survives
the Participant, then his benefits shall be paid to:

    

    
      	
               
      

            	
              a)

            	
              His
      surviving spouse; or

            

    

     

    
      	
               
      

            	
              b)

            	
              If
      there is no surviving spouse, to the executor or other personal
      representative of the Participant to be distributed in accordance with the
      Participant’s will, or if he has no valid will, in accordance with
      applicable state law.

            

    

     

     

    ARTICLE
V - PLAN ADMINISTRATION

     

    
      	
               
      

            	
              5.1

            	
              PLAN
      ADMINISTRATOR

            

    

     

    
      	
               
      

            	
              a)

            	
              The
      Company shall be the Plan Administrator.  The Company shall
      appoint a Committee to act as its agent or delegate in carrying out its
      administrative duties.

            

    

     

    
      	
               
      

            	
              b)

            	
              The
      Committee shall consist of not fewer than three (3) members who shall be
      appointed by the Company and may include individuals who are not
      Participants in the Plan.  The Company may remove or replace any
      member at any time in its sole discretion, and any member may resign by
      delivering a written resignation to the Company, which resignation shall
      become effective at its delivery or at any later date specified
      therein.

            

    

     

    
      	
               
      

            	
              5.2

            	
              POWERS OF THE PLAN
      ADMINISTRATOR

            

    

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    The Plan
Administrator shall be charged with the operation and administration of the
SERP in accordance with the terms hereof and shall have all the powers necessary
to carry out the provisions of the SERP.  Any and all determinations,
actions or decisions of the Plan Administrator and Committee with respect to the
administration of the SERP, including without limitation the determination of
benefit eligibility and interpretation of SERP provisions, shall be final and
conclusive and binding upon all parties having an interest in the
SERP.

    

    
      	
               
      

            	
              5.3

            	
              COMMITTEE

            

    

     

    
      	
               
      

            	
              a)

            	
              The
      Committee shall hold meetings upon such notice and at such times and
      places as its members may from time to time deem appropriate, and may
      adopt from time to time such bylaws and regulations for the conduct and
      transaction of its business and affairs consistent with the terms of the
      Plan and the delegation of duties and powers by the Company.  A
      majority of its members at the relevant time shall constitute a quorum for
      the transaction of business.  All action taken by the Committee
      shall be by vote of the majority of its members present at such meeting,
      except that the Committee also may act without a meeting by a written
      consent signed by a majority of its members.  A member shall not
      be disqualified from acting because of any personal interest, benefit or
      advantage, inasmuch as a member may be a director of the Company, an
      Employee or a Participant, but no member shall vote or act in connection
      with an action of the Committee relating exclusively to
      himself.

            

    

     

    
      	
               
      

            	
              b)

            	
              The
      Committee may allocate among its members such specific responsibilities,
      obligations, powers or duties as shall be deemed
    appropriate.

            

    

     

    
      	
               
      

            	
              5.4

            	
              INDEMNIFICATION

            

    

     

    The
Company shall indemnify and defend each member of the Committee and all officers
or representatives of the Company and Employees assigned fiduciary
responsibility under Federal law to the greatest extent permitted by applicable
law against any and all claims, losses, damages, expenses (including reasonable
attorneys' fees) and liability arising from any action or failure to act in
connection with the SERP.

    

    ARTICLE
VI - CLAIMS PROCEDURES

     

    
      	
               
      

            	
              6.1

            	
              CLAIMS
      REVIEW

            

    

     

    Any
Participant, former Participant or Beneficiary who wishes to request a review of
a claim for benefits or who wishes an explanation of a benefit or its denial may
direct to the Plan Administrator a written request for such review within one
hundred twenty (120) days of the denial.  The Plan Administrator shall
respond to the request by issuing a notice to the claimant as soon as possible,
but in no event later than ninety (90) days (one hundred eighty (180) days in
special cases) from the date of receipt of the request.  This notice
furnished by the Plan Administrator 

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    shall be
written in a manner calculated to be understood by the claimant and shall
include the following:

    

    
      	
               
      

            	
              a)

            	
              The
      specific reason or reasons for any denial of
  benefits;

            

    

     

    
      	
               
      

            	
              b)

            	
              The
      specific SERP provisions on which any denial is
  based;

            

    

     

    
      	
               
      

            	
              c)

            	
              A
      description of any further material or information which is necessary for
      the claimant to perfect his claim and an explanation of why the material
      or information is needed; and

            

    

     

    
      	
               
      

            	
              d)

            	
              An
      explanation of the SERP's claim appeals
  procedure.

            

    

     

    If the
Plan Administrator denies the claim or fails to respond to the claimant's
written request for a review within one hundred eighty (180) days of its
receipt, the claimant shall be entitled to proceed to the claim appeals
procedure described in Section 6.2.  If the claimant does not respond
to the notice, posted by first-class mail to the address of record of the
claimant, within sixty (60) days from receipt of the notice, the claimant shall
be considered satisfied in all respects.

    

    
      	
               
      

            	
              6.2

            	
              APPEALS
      PROCEDURE

            

    

     

    In the
event that the claimant wishes to appeal the claim review denial, the claimant
or his duly authorized representative may submit to the Plan Administrator,
within sixty (60) days of his receipt of the notice, a written notification of
appeal of the claim denial.  The notification of appeal of the claim
denial shall permit the claimant or his duly authorized representative to
utilize the following claim appeals procedures:

    

    
      	
               
      

            	
              a)

            	
              To
      review pertinent documents; and

            

    

     

    
      	
               
      

            	
              b)

            	
              To
      submit issues and comments in writing to which the Plan Administrator
      shall respond.

            

    

     

    The Plan
Administrator shall furnish a final written decision on formal review not later
than sixty (60) days after receipt of the notification of appeal, unless special
circumstances require an extension of the time for processing the
appeal.  In no event, however, shall the Plan Administrator respond
later than one hundred twenty (120) days after a request for an
appeal.  The decision on the appeal shall be written in a manner
calculated to be understood by the claimant, shall include specific reasons for
the decision, and shall contain specific references to the pertinent SERP
provisions on which the decision is based.

    

    
      	
               
      

            	
              6.3

            	
              DISCRETION REGARDING CLAIMS AND
      APPEALS

            

    

     

    The Plan
Administrator, or any individual or committee to whom responsibility for claims
and appeals has been delegated, shall have complete discretion in

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    deciding
such claims and appeals and any such decision shall be final, conclusive and
binding upon the claimant.

     

    

    ARTICLE
VII - MISCELLANEOUS

     

    
      	
               
      

            	
              7.1

            	
              AMENDMENT AND
      TERMINATION

            

    

     

    The SERP
may be amended by the Company, by action of its Board or a committee thereof, at
any time in its discretion and without the consent of any
Participant.  However, in the event of the amendment or termination of
the SERP, any benefit accrued to such date shall not be reduced or forfeited
without the consent of each affected Participant.  Further, the SERP
may not be amended or terminated for two years following the end of the Plan
Year in which a Change in Control occurs or, prior to the date of a Change in
Control, if an affected Participant reasonably demonstrates that the amendment
or termination had been adopted (a) at the request of a third party who has
indicated an intention or taken steps reasonably calculated to effect a Change
in Control or (b) otherwise in connection with, or in anticipation of, a
Change in Control which has been threatened or proposed, in either case provided
a Change in Control shall actually have occurred.

     

    
      	
               
      

            	
              7.2

            	
              NO CONTRACT OF
      EMPLOYMENT

            

    

     

    Nothing
herein contained shall be construed to constitute a contract of employment
between the Company and any Participant.

    

    
      	
               
      

            	
              7.3

            	
              UNFUNDED
      PLAN

            

    

     

    The SERP
at all times shall be considered entirely unfunded both for tax purposes and for
purposes of the Employee Retirement Income Security Act of 1974
(ERISA).  Notwithstanding the foregoing, the Company may establish a
benefits protection trust for the benefit of Participants with an independent
bank as trustee.  Prior to a Change in Control, the Company shall
transfer to such trust assets equal to the Accounts of all
Participants.  Any benefits protection trust established to provide
benefits under this SERP shall at all times remain subject to the claims of the
Company's general creditors in the event of insolvency.

    

    
      	
               
      

            	
              7.4

            	
              RESTRICTIONS UPON ASSIGNMENTS
      AND CREDITORS' CLAIMS

            

    

     

    No
benefit payable under this SERP shall be subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance or charge prior to
actual receipt thereof by the Participant or Beneficiary and any attempt to
anticipate, alienate, sell, transfer, assign, pledge, encumber or charge prior
to such receipt shall be void.  No benefit payable under this SERP
shall be subject to attachment, garnishment, execution, levy or other legal or
equitable proceeding or process, and any attempt to do so shall be
void.  The Company shall not be in any manner liable for or subject to
the debts, contracts, liabilities, engagements or 

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    torts of
any Participant or Beneficiary except as may be required by the tax withholding
provisions of the Code or any state's income tax laws.

     

    
      	
               
      

            	
              7.5

            	
              PAYMENT CONSTITUTES
      RELEASE

            

    

     

    Payment
to the Participant or Beneficiary as set forth in Article IV shall completely
discharge the Company's obligations under this SERP, whether paid by a benefits
protection trust established under Section 7.3 or directly by the
Company.

    

    
      	
               
      

            	
              7.6

            	
              APPLICABLE
      LAW

            

    

     

    To the
extent not preempted by Federal law, the SERP shall be construed and
administered in accordance with the laws of the State of Ohio.

    

    

    IN
WITNESS WHEREOF, the Company has caused this instrument to be executed by its
duly authorized officer this 30th day
of December, 2009.

    

    WENDY'S INTERNATIONAL,
INC.

    

    By: 
/s/ Wendy
Henderson      

    Its: 
SVP              

    
      
         

      

      
        13exhibit41.htm

Exhibit 4.1

DELTA NATURAL GAS COMPANY, INC.

INCENTIVE COMPENSATION PLAN

Effective January 1, 2010

TABLE OF CONTENTS

	
ARTICLE I
	
PURPOSE
	  	  
	  	  	  	  
	
1.1
	
Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
1

	  	  	  	  
	
ARTICLE II
	
DEFINITIONS
	  	  
	  	  	  	  
	
2.1
	
“Agreement” or “Award Agreement”.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
1

	
2.2
	
“Award". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
1

	
2.3
	
“Award Date” or “Grant Date” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
1

	
2.4
	
“Board” or “Board of Directors”  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
1

	
2.5
	
“Change in Control” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
1

	
2.6
	
“Code”. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
1

	
2.7
	
“Committee” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
1

	
2.8
	
“Common Stock” or “Stock” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
1

	
2.9
	
“Company” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
1

	
2.10
	
“Covered Participant”. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
1

	
2.11
	
“Designated Beneficiary” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
2

	
2.12
	
“Disability” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
2

	
2.13
	
“Effective Date” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
2

	
2.14
	
“Eligible Employee” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
2

	
2.15
	
“Employee”. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
2

	
2.16
	
“Exchange Act”. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
2

	
2.17
	
“Fair Market Value” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
2

	
2.18
	
“Outside Director”  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
2

	
2.19
	
“Participant” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
2

	
2.20
	
“Participating Company” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
2

	
2.21
	
“Performance Award”. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
2

	
2.22
	
“Performance Criteria” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
2

	
2.23
	
“Performance Period” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
3

	
2.24
	
“Performance Share”. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
3

	
2.25
	
“Person”. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
3

	
2.26
	
“Plan”  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
3

	
2.27
	
“Restricted Stock” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
3

	
2.28
	
“Restricted Period” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
3

	
2.29
	
“Retirement” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
3

	
2.30
	
“Rule 16b-3”   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
3

	
2.31
	
“Section 162(m)”. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
3

 

 

 

 

	
2.32
	
“Securities Act” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
3

	
2.33
	
“Shares” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
3

	
2.34
	
“Stock Bonus Award” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
3

	
2.35
	
“Subsidiary”  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
3

	  	  	  	  
	
ARTICLE III
	
ELIGIBILITY
	  	  
	  	  	  	  
	
3.1
	
Eligibility. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
3

	  	  	  	  
	
ARTICLE IV
	
SHARES SUBJECT TO THE PLAN
	  	  
	  	  	  	  
	
4.1
	
Number of Shares  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
4

	
4.2
	
Forfeited Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
4

	
4.3
	
Capital Adjustments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
4

	  	  	  	  
	
ARTICLE V
	
RESTRICTED STOCK
	  	  
	  	  	  	  
	
5.1
	
Grant of Restricted Stock. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
4

	
5.2
	
Restricted Stock Award Agreement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
4

	
5.3
	
Restriction Period. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
4

	
5.4
	
Removal of Restrictions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
5

	
5.5
	
Voting Rights. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
5

	
5.6
	
Dividends and Other Distributions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
5

	
5.7
	
Death, Disability or Retirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
5

	  	  	  	  
	
ARTICLE VI
	
PERFORMANCE SHARES
	  	  
	  	  	  	  
	
6.1
	
Grant of Performance Shares. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
5

	
6.2
	
Performance Awards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
5

	  	  	  	  
	
ARTICLE VII
	
STOCK BONUS AWARDS
	  	  
	  	  	  	  
	
7.1
	
Awards of Stock Bonus Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
7

	
7.2
	
Form and Time of Payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
7

	  	  	  	  
	
ARTICLE VIII
	
SPECIAL PROVISIONS APPLICABLE TO COVERED PARTICIPANTS
	  	  
	  	  	  	  
	
8.1
	
Special Provisions Applicable to Covered Participants. . . . . . . . . . . . . . . . .
	  	
8

	  	  	  	  
	
ARTICLE IX
	
CHANGE IN CONTROL
	  	  
	  	  	  	  
	
9.1
	
Change in Control Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
8

	
9.2
	
Change in Control Defined . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
9

	  	  	  	  
	  	  	  	  

 

 

 

 

	
ARTICLE X
	
ADMINISTRATION
	  	  
	  	  	  	  
	
10.1
	
The Committee  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
11

	
10.2
	
Committee Decisions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
11

	
10.3
	
Rule 16b-3, Section 162(m) and Section 409A Requirements . . . . . . . . . . .
	  	
11

	  	  	  	  
	
ARTICLE XI
	
GENERAL PROVISIONS
	  	  
	  	  	  	  
	
11.1
	
Withholding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
11

	
11.2
	
Terms of Awards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
11

	
11.3
	
Guidelines Applicable to All Awards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
12

	
11.4
	
Non-transferability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
12

	
11.5
	
No Right to Employment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
12

	
11.6
	
Rights as Shareholder  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
12

	
11.7
	
Construction of the Plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
12

	
11.8
	
Amendment of Plan or Awards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
12

	
11.9
	
Exemption from Computation of Compensation for Other Purposes . . . . . .
	  	
12

	
 11.10
	
Legend . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
13

	
 11.11
	
Special Provisions for Certain participants . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
13

	
 11.12
	
Unfunded Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
13

	
 11.13
	
Conflict with Employment Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
13

	
 11.14
	
Gender and Number  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
13

	
 11.15
	
Severability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
13

	
 11.16
	
Effect of Headings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
13

	
 11.17
	
No Liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	  	
13

 

  

  
  

DELTA NATURAL GAS COMPANY, INC.

 INCENTIVE COMPENSATION PLAN

Effective January 1, 2010

As Approved by the Shareholders on November 19, 2009

ARTICLE I

 PURPOSE

1.1 Purpose. Delta Natural Gas Company, Inc. (“Company”), a Kentucky corporation, hereby establishes the Delta Natural Gas Company, Inc. Incentive Compensation Plan (“Delta Incentive Compensation Plan”) to promote the interests of the Company and its shareholders through
(a) the attraction and retention of Participants essential to the success of the Company; (b) the motivation of Participants using performance-related incentives linked to performance goals and the interests of Company shareholders; and (c) enabling such individuals to share in the growth and success of the Company and its Subsidiaries. The Plan permits the grant of  Performance Shares, Restricted Stock, and Stock Bonus Awards as the Committee, in its sole and complete discretion, may
determine to be appropriate in carrying out the intent and purposes of this Plan.

ARTICLE II

 DEFINITIONS

2.1 “Agreement” or “Award Agreement” shall mean a written agreement between the Company and a Participant implementing an Award, and setting forth the particular terms, conditions and restrictions of the Award.

2.2 “Award” shall mean an award or grant made to a Participant under Article V, VI or VII.

2.3 “Award Date” or “Grant Date” shall mean the date on which an Award is made by the Committee under the Plan.

2.4 “Board” or “Board of Directors” shall mean the Board of Directors of the Company.

2.5 “Change in Control” shall be defined in Section 9.2.

2.6 “Code” shall mean the Internal Revenue Code of 1986 and the rules and regulations promulgated thereunder or any successor law, as amended from time to time.

2.7 “Committee” shall mean the Corporate Governance and Compensation Committee of the Board or such other committee appointed by the Board to administer the Plan in accordance with Article X.

2.8 “Common Stock” or “Stock” shall mean the Common Stock of the Company without par value, or such other security or right or instrument into which such Common Stock may be changed or converted in the future.

2.9 “Company” shall mean Delta Natural Gas Company, Inc., a Kentucky corporation, or any successor thereto.

2.10 “Covered Participant” shall mean a Participant who is a “covered employee” as defined in Code Section 162(m) (3).

 

1

 

2.11 “Designated Beneficiary” shall mean the beneficiary designated by the Participant, pursuant to procedures established by the Committee, to receive amounts due to the Participant in the event of the Participant’s death. If the Participant does not make an effective designation,
then the Designated Beneficiary will be deemed to be the Participant’s estate.

2.12 “Disability” shall mean (a) the mental or physical disability of the Participant defined as “Disability” under the terms of the long-term disability plan sponsored by the Company and in which the Participant is covered, as amended from time to time in accordance
with the provisions of such plan; or (b) a determination by the Committee, in its sole discretion, of total disability (based on medical evidence) that precludes the Participant from engaging in their full-time position at the Company for wage or profit for at least twelve months and appears to be permanent. All decisions by the Committee relating to a Participant’s Disability (including a decision that a Participant is not disabled), shall be final and binding on all parties.

2.13 “Effective Date” shall mean January 1, 2010.

2.14 “Eligible Employee” shall mean an Employee who is an officer or other management or highly compensated employee of a Participating Company as designated by the Committee to be eligible to participate in the Plan.

2.15 “Employee” shall mean an individual who is employed by a Participating Company in a customary employer-employee relationship and designated as such in accordance with the Company’s standard employment practices.

2.16 “Exchange Act” shall mean the Securities Exchange Act of 1934 and the rules and regulations promulgated thereunder or any successor law, as amended from time to time.

2.17 “Fair Market Value” shall mean, on any given date, the closing price of Common Stock as reported on the composite tape of the primary stock exchange in which the Common Stock is listed on such day or, if no Shares were traded on such stock exchange on such day, then on the
next preceding day that Stock was traded on such exchange, all as reported by The Wall Street Journal or such other source as the Committee may select.

2.18 “Outside Director” shall mean a member of the Board who is not an Employee.

2.19 “Participant” shall mean an Eligible Employee or Outside Director who has been selected from time to time under Article III to receive an Award under the Plan.

2.20 “Participating Company” shall mean the Company and such other Subsidiaries as the Board authorizes to participate herein.

2.21 “Performance Award” shall mean a performance-based Award made under Section 6.2, which may be in the form of Performance Shares.

2.22 “Performance Criteria” shall mean objectives established by the Committee for a Performance Period for the purpose of determining when an Award subject to such objectives has been earned, and may include alternative and multiple Performance Criteria, including operating and
maintenance expense targets, customer satisfaction, safety, and financial goals including absolute or relative (i.e., in relation to a peer group of companies) total shareholder return, revenues, sales, net income, EBITDA, return on assets, earnings per share and/or growth thereof, or net worth of the Company, any of its Subsidiaries, divisions, business units or other areas of the Company.

 

2

 

2.23 “Performance Period” shall mean the time period designated by the Committee during which Performance Criteria must be met in order for a Participant to obtain a performance-based award.

2.24 “Performance Share” shall mean an Award, designated as a Performance Share, granted to a Participant pursuant to Section 6.2, the value of which is equal to a share of Company Stock and which is determined, in whole or in part, by the attainment of pre-established Performance
Criteria as deemed appropriate by the Committee and described in the Agreement.

2.25 “Person” shall have the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) thereof, including a “group” as defined in Section 13(d) thereof.

2.26 “Plan” shall mean the Delta Incentive Compensation Plan, as herein established and as hereafter amended from time to time.

2.27 “Restricted Stock” shall mean an Award of Stock to a Participant pursuant to Article V herein.

2.28 “Restriction Period” shall mean the period during which the transfer of Shares of Restricted Stock is restricted and is subject to a risk of forfeiture, pursuant to Article V.

2.29 “Retirement” shall mean the termination of employment for a Participant consistent with the provisions for early or normal retirement under the defined benefit pension plan sponsored by the Company.  Notwithstanding the foregoing, “Retirement” before
the Participant is eligible for normal retirement under such plan shall require prior approval by the Committee. With respect to a Participant who is an Outside Director, “Retirement” shall mean the end of the director’s term of office upon attaining the mandatory retirement age for directors.

2.30 “Rule 16b-3” shall mean Rule 16b-3 under Section 16(b) of the Exchange Act as adopted in Exchange Act Release No. 34-37260 (May 30, 1996), or any successor rule as amended from time to time.

2.31 “Section 162(m)” shall mean Section 162(m) of the Code, or any successor section under the Code, as amended from time to time.

2.32 “Securities Act” shall mean the Securities Act of 1933 and the rules and regulations promulgated thereunder or any successor law, as amended from time to time.

2.33 “Shares” shall mean shares of Common Stock of the Company.

2.34 “Stock Bonus Award” shall mean a bonus, in the form of Stock, under Article VII.

2.35 “Subsidiary” shall mean any entity with respect to which Delta owns, either directly or indirectly, at least 50% of the total combined voting power of all classes of stock or other ownership interest.

  

3

  

 

ARTICLE III

ELIGIBILITY

3.1 Eligibility. The Committee shall have sole and complete discretion in determining the Eligible Employees and Outside Directors who shall be eligible to participate in the Plan.  An Eligible Employee or Outside Director of the Company designated by the Committee as eligible hereunder
shall be considered a Participant upon receiving an Award under the Plan.

ARTICLE IV

SHARES SUBJECT TO THE PLAN

4.1 Number of Shares. Subject to adjustment as provided for in Section 4.3 below, the maximum aggregate number of Shares that may be issued pursuant to Awards made under the Plan shall not exceed 500,000 Shares, which shall be in a combination of Restricted Stock, Performance Shares and Stock
Bonus Awards as described in Articles V, VI and  VII. Shares of Common Stock issued pursuant to Awards under the Plan may be authorized but unissued Shares, Shares issued and reacquired by the Company or Shares purchased in the open market for purposes of the Plan. Except as provided in Sections 4.2 herein, the issuance of Shares in connection with the exercise of, or as other payment for, Awards under the Plan shall reduce the number of Shares available for future Awards under the Plan.

4.2 Forfeited Shares. In the event that shares issued pursuant to the Awards are cancelled or forfeited for any reason, the Shares subject to such Award shall thereafter be again available for grant of an Award under the Plan.

4.3 Capital Adjustments. In the event of a reorganization, recapitalization, stock split, stock dividend, combination of shares, merger, consolidation, rights offering, or any other change in the corporate structure, capitalization or Shares of the Company, the Committee shall make such adjustments
as are appropriate in the maximum number and kind of Shares that may be issued under the Plan and to any Participant, and in the number and kind of Shares covered by any Awards granted before such change.  Such adjustments shall be intended to put the Participant in the same position as he or she was in immediately before such event. Any adjustments will comply with Code Section 409A to the extent required to avoid penalties.

ARTICLE V

 RESTRICTED STOCK

5.1 Grant of Restricted Stock. Subject to the limitations set forth in Section 4.1 and the other terms and provisions of the Plan and applicable law, the Committee, at any time, and, from time to time, may grant shares of Restricted Stock under the Plan to such Participants, and in such
amounts and for such duration and/or consideration as it shall determine.

5.2 Restricted Stock Award Agreement. Each share of Restricted Stock granted hereunder shall be evidenced by an Award Agreement that shall specify the Restriction Period, the conditions which must be satisfied prior to removal of the restriction, the forfeiture of such Shares in the event
such conditions are not satisfied, the number of Shares of Restricted Stock granted, and such other provisions as the Committee shall determine. The Committee may specify, but is not limited to, the following types of conditions in the Award Agreement: (a) conditions for acceleration or achievement of the end of the Restriction Period based on any Performance Criteria and (b) any other conditions or restrictions which the Committee may deem advisable, including requirements established pursuant to the
Securities Act, the Exchange Act, the Code and any securities trading system or stock exchange upon which such Shares under the Plan are listed.

 

4

 

5.3 Restriction Period. Except as otherwise provided in this Article, the Shares of Restricted Stock  granted under the Plan may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated until the termination of the applicable Restriction Period or upon
earlier satisfaction of other conditions as specified by the Committee in its sole discretion and set forth in the applicable Award Agreement. Subject to Section 5.7 and Article IX, if a Participant resigns, is otherwise terminated from the Company or, in the case of an Outside Director is not re-elected to the Board or otherwise resigns as a member of the Board, prior to the end of the Restriction Period, he or she will forfeit all interests in the Award. All rights with respect to the Restricted Stock
granted to a Participant under the Plan shall be exercisable during his or her lifetime only by such Participant or his or her guardian or legal representative.

5.4 Removal of Restrictions.  Except as otherwise provided in this Article V, Restricted Stock  covered by each Award made under the Plan shall become freely transferable by the Participant after the last day of the Restriction Period and/or upon the satisfaction of other
conditions as determined by the Committee and set forth in the applicable Award Agreement.

5.5 Voting Rights. During the Restriction Period, Participants in whose name Restricted Stock is granted under the Plan may exercise full voting rights with respect to those Shares.

5.6 Dividends and Other Distributions. During the Restriction Period, Participants in whose name Restricted Stock is granted under the Plan shall be entitled to receive all dividends and other distributions paid with respect to those Shares. If any such dividends or distributions are paid
in Shares, the Shares shall be subject to the same restrictions on transferability and forfeitability as the Restricted Stock with respect to which they were distributed.

5.7 Death, Disability or Retirement. Except as otherwise provided in a Participant’s Award Agreement, in the event of the Participant’s death, Disability, or Retirement while an Employee or an Outside Director, the following shall apply:

(a) In the event of the Participant’s Disability or Retirement before the Restriction Period has ended, the restrictions on the Shares awarded to the Participant shall be removed upon expiration of the Restriction Period, and the number of Shares the Participant shall be entitled to, if any, shall equal (i) the number of
Shares, if any, the Participant would otherwise be entitled to had the individual been an active Participant at the end of the Restriction Period (i.e., as adjusted or forfeited based on the Performance Criteria) multiplied by (ii) the portion of the Restriction Period the Participant was an active Participant hereunder; or

(b) In the event of the Participant’s death before the Restriction Period has ended, the restrictions on the Shares awarded to the Participant shall be removed upon the Participant’s date of death, and the number of Shares the Participant shall be entitled to, if any, shall equal the number of Shares contingently granted
to the Participant, without any further adjustment.

  

5

  

 

ARTICLE VI

 PERFORMANCE SHARES

6.1 Grant of Performance Shares. Subject to the limitations set forth in Section 4.1 and the other terms and provisions of the Plan and applicable law,  the Committee may, at any time and from time to time, issue to Participants, either alone or in addition to other Awards
made under the Plan, Performance Awards as described in Section 6.2. Any such Awards shall be governed by the terms of an Agreement, and the Committee may impose such terms and conditions, similar to those described in Section 5.2  and not inconsistent with the terms of this Plan, as it deems appropriate on such Award.

6.2 Performance Awards.

(a) Grant of Performance Awards. Performance Awards granted hereunder may be issued in the form of Performance Shares to Participants subject to the Performance Criteria, Performance Period and other considerations or restrictions as the Committee shall determine. The Committee shall have complete discretion in determining the number
and value of Performance Shares granted to each Participant.

(b) Value of Performance Awards. The Committee shall determine the number and value of Performance Shares granted to each Participant as a Performance Award. The Committee shall set Performance Criteria in its discretion for each Participant who is granted a Performance Award. The extent to which such Performance Criteria are met
will determine the value of the Performance Share to the Participant.

(c) Settlement of Performance Awards. After a Performance Period has ended, the holder of a Performance Share shall be entitled to receive the value thereof based on the degree to which the Performance Criteria established by the Committee and set forth in the Award Agreement have been satisfied.

(d) Form and Time of Payment. Payment of the amount to which a Participant shall be entitled upon the settlement of the Performance Award shall be made in Shares. However, if any payment in the form of Shares results in a fractional share, such payment for the fractional share shall be made in cash. Payment of the Stock as well as
any cash for a fractional share shall be made at such times as may be determined by the Committee following the end of the Performance Period to which it relates, but not later than the last day of the seventy five (75) day period following the end of the Performance Period.

(e) Death, Disability or Retirement. Unless otherwise provided in a Participant’s Award Agreement:

(1) In the event of a Participant’s Disability or Retirement before the Performance Period has ended, the number of Shares the Participant shall be entitled to, if any, shall equal (i) the number of Shares, if any, the Participant would otherwise be entitled to had the individual been an active Participant at the end of the
Performance Period (i.e., as adjusted or forfeited based on the actual Performance Criteria) multiplied by (ii) the portion of the Performance Period during which the Participant was an active Participant, and such Shares shall be distributed following the end of the Performance Period as set forth in Subsection 6.2(d) above; or

(2) In the event of a Participant’s death while an Employee or Outside Director before the Performance Period has ended, the Company will be assumed to have achieved a target performance level for the Performance Period in which death occurs, and the number of Shares the Participant’s beneficiary shall be entitled to, if any,
shall equal the number of Shares the Participant would otherwise be entitled to had the Participant been an active Participant at the end of the Performance Period, and such Shares shall be distributed within a reasonable period following death; or

 

6

 

(3) In the event of a Participant’s Disability, Retirement or death after the end of the Performance Period, but before the date the Shares are distributed, the number of Shares the Participant shall be entitled to, if any, shall be based on the actual Performance Criteria for the entire Performance Period.

(f) Other Termination. No Participant shall have a right to receive payment in respect of an Award for a Performance Period if the Participant resigns or is otherwise terminated from the Company or, in the case of an Outside Director, is not re-elected (i) before the end of the Performance Period, or (ii) after the end of the Performance
period but before the Performance Award is paid, for reasons other than the Participant’s death, Disability, or Retirement or following a Change in Control.

(g) Short-Term Disability; Other Authorized Leaves of Absence. Absence of a Participant from employment during a Performance Period and entitling the Participant to (i) reemployment rights following military service under the Uniformed Services Employment and Reemployment Rights Act (USERRA) (or any other similar applicable federal
or state law) or (ii) sickness allowance and/or short-term disability benefits under the Company’s employee benefit plans, shall not affect any Award. In the event a Participant is absent from employment during a Performance Period due to an authorized leave of absence not described in the immediately preceding sentence, the amount or number of Shares the Participant shall be entitled to, if any, under any Award shall equal (i) the amount or number of Shares, if any, to which the Participant would
otherwise be entitled had the individual been an active Participant during the entire Performance Period ( i.e. , as adjusted or forfeited based on the Performance Criteria) multiplied by (ii) the portion of the Performance Period during which the Participant was an active Participant (i.e., excluding the period of the authorized leave of absence) and such Shares shall be distributed following the end of the Performance Period as set forth in Subsection 6.2(d) above.

(h) Adjustment of Award Due to Demotion or Promotion. The Committee, in its discretion, may reduce an Award in the event of a Participant’s demotion during a Performance Period, or grant an additional Award in the event of a Participant’s promotion during a Performance Period.

(i) Restriction on Payment of Awards. No distributions in respect of Performance Shares shall be made, and such distribution shall be forfeited, if at the time a distribution would otherwise have been made:

(1)           The regular quarterly dividend on any outstanding common or preferred shares of the Company has been omitted and not subsequently paid; or

(2) The estimated consolidated net income of the Company for the immediately preceding twelve-month period is less than the sum of (i) the aggregate amount to be distributed plus (ii) dividends on all outstanding preferred and common shares of the Company applicable to such twelve-month period (either paid, declared or accrued
at the most recently paid rate).

ARTICLE VII

STOCK BONUS AWARDS

7.1 Awards of Stock Bonus Shares.  A “Stock Bonus” for purposes of this Article VII is an award of Shares of the Company’s Stock for services rendered to the Company or any Participating Company. Subject to the limitations set forth in Section 4.1 and the other
terms and conditions of the Plan and applicable law, the Committee may award to any Employee and/or Outside Director Shares as a Stock Bonus for past service rendered to the Company or any Participating Company as the Committee, in its sole discretion, may from time to time determine. The Committee will determine the number of Shares to be awarded to Employees and Outside Directors. Stock Bonuses may vary among Employees and/or Outside Directors and between groups of Employees and/or Outside Directors, and may
be based upon the achievement of the Company or any Participating Company and/or individual performance or such other criteria as the Committee may determine.

 

7

 

7.2 Form and Time of Payment.  Any Stock Bonus awarded by the Committee will be paid as soon as administratively feasible after the close of the fiscal year for which the Stock Bonus is awarded, but no later than the last day of the seventy five (75) day period following the end
of the fiscal year. Payment will be made in the form of whole Shares in a lump sum payment. If an Employee’s employment or an Outside Director’s term is terminated due to Disability, Retirement or death after the award of a Stock Bonus but before the payment of the Shares, the Employee and/or Outside Director or their respective  beneficiaries, as applicable, shall receive payment of the Shares within the time period referenced herein. If an Employee’s employment or an Outside Director’s
term is terminated for any other reason after the award of a Stock Bonus but before the payment of the Shares, the payment shall be forfeited.

ARTICLE VIII

SPECIAL PROVISIONS APPLICABLE TO COVERED PARTICIPANTS

8.1 Special Provisions Applicable to Covered Participants. Awards to Covered Participants shall be governed by the conditions of this Article in addition to the requirements of Articles V, VI and VII above. Should conditions set forth under this Article conflict with the requirements of Articles
V, VI and VII above, the conditions of this Article shall prevail:

(a) All Performance Criteria relating to Covered Participants for a relevant Performance Period shall be established by the Committee in writing prior to the beginning of the Performance Period, or by such other later date for the Performance Period as may be permitted under Section 162(m) of the Code.

(b) The Performance Criteria must be objective and must satisfy third party “objectivity” standards under Code Section 162(m).

(c) The Performance Criteria shall not allow for any discretion by the Committee as to an increase in any Award, but discretion to lower an Award is permissible.

(d) The Award and payment of any Award under this Plan to a Covered Participant with respect to a relevant Performance Period shall be contingent upon the attainment of the Performance Criteria that are applicable to such Award. The Committee shall certify in writing prior to payment of any such Award that such applicable Performance
Criteria have been satisfied. Resolutions adopted by the Committee may be used for this purpose.

(e) The aggregate maximum number of Shares subject to Awards that may be granted to any Covered Participant under Articles V, VI and VII  during any fiscal year of the Company shall be 50,000 Shares.

(f) All Awards under this Plan to Covered Participants or to other Participants who may become Covered Participants at a relevant future date shall be further subject to such other conditions, restrictions, and requirements as the Committee may determine to be necessary to carry out the purposes of this Article, which is to avoid
the loss of deductions by the Company under Code section 162(m).

 

 

8

 

 

ARTICLE IX

CHANGE IN CONTROL

9.1 Change in Control Agreements. The provision of this Section regarding the terms and conditions of an Award Agreement upon a Change in Control shall apply notwithstanding any Plan provision to the contrary, and notwithstanding any agreement between the Participating Company and such Participant
which relate to the terms of the Awards hereunder, upon a Change in Control. Upon a Change in Control, the following shall apply:

(a) The Awards previously granted shall be immediately vested and not subject to forfeiture due to any subsequent termination from employment or removal or resignation from the Board, subject to Subsection (d) hereunder.

(b) Restrictions on any Restricted Stock shall be eliminated as of such event.

(c) If the Change in Control occurs before the end of the Performance Period, no further adjustment shall be made to the number of Shares of Restricted Stock contingently granted based on the Performance Criteria.

(d) Performance Shares shall be considered earned and shall not be subject to forfeiture due to any subsequent termination from employment. If the Change in Control occurs before the end of the Performance Period, the amount of the Performance Shares shall be determined assuming the Company has achieved a target performance level
and, the amount shall then be multiplied by the portion of the Performance Period the individual was an active Participant hereunder. If the Change in Control occurs after the end of the Performance Period but before the Performance Shares are paid, the amount payable shall be determined based on the actual performance level. In either case payment of the Performance Shares shall be made as soon as practicable following the Change in Control but no later than the close of the seventy five (75) day period following
the earlier of the end of the Performance Period or the Change in Control.

9.2 Change in Control Defined. For purposes of this Article, “Change in Control” shall have the same meaning as such term or similar term is defined in a Participant’s individual agreement with the Company which relates to such Participant’s compensation and benefits
upon the occurrence of a change in ownership of the Participating Company or similar event.

(a) In the event there is no such agreement, “Change in Control” shall mean:

(i) The acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of twenty percent (20%) or more of either (A) the then outstanding shares
of Common Stock of the Company (the “Outstanding Company Common Stock”) or (B) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that the following acquisitions shall not constitute an acquisition of control: any acquisition directly from the Company (excluding an acquisition by virtue of the exercise of a conversion privilege),
any acquisition by the Company, any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company or any acquisition by any corporation pursuant to a reorganization, merger, share exchange or consolidation, if, following such reorganization, merger or consolidation, the conditions described in clauses (A), (B) and (C) of subsection (iii) of this section are satisfied; or

 

9

 

(ii) Individuals who, as of the Effective Date, constitute the Board of Directors (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board of Directors; provided, however, that any individual becoming a director subsequent to the date hereof
whose election, or nomination for election by the Company’s shareholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of either an actual or threatened election contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange
Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board; or

(iii) Consummation of a reorganization, merger, share exchange or consolidation, in each case, unless, following such reorganization, merger, share exchange or consolidation, (A) more than fifty percent (50%) of, respectively, the then outstanding shares of common stock of the corporation
resulting from such reorganization, merger, share exchange or consolidation and the combined voting power of the then outstanding voting securities of such corporation entitled to vote generally in the election of directors is then beneficially owned, directly or indirectly, by all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such reorganization, merger,
share exchange or consolidation in substantially the same proportions as their ownership, immediately prior to such reorganization, merger, share exchange or consolidation, of the Outstanding Company Stock and Outstanding Company Voting Securities, as the case may be, (B) no Person (excluding the Company, any employee benefit plan or related trust of the Company, or such corporation resulting from such reorganization, merger, share exchange or consolidation and any Person beneficially owning, immediately
prior to such reorganization, merger, share exchange or consolidation, directly or indirectly, twenty percent (20%) or more of the Outstanding Company Common Stock or Outstanding Voting Securities, as the case may be) beneficially owns, directly or indirectly, twenty percent (20%) or more of, respectively, the then outstanding  shares of common stock of the corporation resulting from such reorganization, merger, share exchange or consolidation or the combined voting power of the then outstanding voting securities
of such corporation entitled to vote generally in the election of directors and (C) at least a majority of the members of the board of directors of the corporation resulting from such reorganization, merger, share exchange or consolidation were members of the Incumbent Board at the time of the execution of the initial agreement providing for such reorganization, merger, share exchange or consolidation; or

(iv) Approval by the shareholders of the Company and consummation of (A) a complete liquidation or dissolution of the Company or (B) the sale or other disposition of all or substantially all of the assets of the Company, other than to a corporation, with respect to which following
such sale or other disposition (1) more than fifty percent (50%) of, respectively, the then outstanding shares of common stock of such corporation and the combined voting power of the then outstanding voting securities of such corporation entitled to vote generally in the election of directors is then beneficially owned, directly or indirectly, by all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding
Company Voting Securities immediately prior to such sale or other disposition in substantially the same proportion as their ownership, immediately prior to such sale or other disposition, of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case may be, (2) no Person (excluding the Company and any employee benefit plan or related trust of the Company, or such corporation and any Person beneficially owning, immediately prior to such sale or other disposition, directly
or indirectly, twenty percent (20%) or more of the Outstanding Company Common Stock or Outstanding Company Voting Securities, as the case may be) beneficially owns, directly or indirectly, twenty percent (20%) or more of, respectively, the then outstanding shares of common stock of such corporation and the combined voting power of the then outstanding voting securities of such corporation entitled to vote generally in the election of directors and (3) at least a majority of the members of the board of directors
of such corporation were members of the Incumbent Board at the time of the execution of the initial agreement or action of the Board providing for such sale or other disposition of assets of the Company; or

 

10

 

(v) The closing, as defined in the documents relating to, or as evidenced by a certificate of any state or federal governmental authority in connection with, a transaction approval of which by the shareholders of the Company would constitute a “Change in Control” under subsection
(iii) or (iv) of this Section.

(b) Notwithstanding (a) above, if the Participant’s employment is terminated before a Change in Control as defined in this Section and the Participant reasonably demonstrates that such termination (i) was at the request of a third party who has indicated an intention or taken steps reasonably calculated to effect a
“Change in Control” and who effectuates a “Change in Control” or (ii) otherwise occurred in connection with, or in anticipation of, a “Change in Control” which actually occurs, then for all purposes of this Agreement, the date of a “Change in Control” with respect to the Participant shall mean the date immediately prior to the date of such termination of the Participant’s employment.

ARTICLE X

ADMINISTRATION

10.1 The Committee. The Plan shall be administered and interpreted by the Committee which shall have full authority, discretion and power necessary or desirable for such administration and interpretation. The express grant in this Plan of any specific power to the Committee shall not be construed
as limiting any power or authority of the Committee. In its sole and complete discretion the Committee may adopt, alter, suspend and repeal any such administrative rules, regulations, guidelines, and practices governing the operation of the Plan as it shall from time to time deem advisable. In addition to any other powers and, subject to the provisions of the Plan, the Committee shall have the following specific powers: (a) to determine the terms and conditions upon which Awards may be made; (b) to
determine the Participants to whom Awards shall be made; (c) to determine all terms and provisions of each Agreement, which need not be identical for types of Awards nor for the same type of Award to different Participants; (d) to construe and interpret all terms, conditions and provisions of the Plan and all Agreements; (e) to establish, amend, or waive rules or regulations for the Plan’s administration; (f) to accelerate the length of a Performance Period or the termination of any
Period of Restriction; and (g) to make all other determinations and take all other actions necessary or advisable for the administration or interpretation of the Plan. The Committee may seek the assistance or advice of any persons it deems necessary to the proper administration of the Plan.

10.2 Committee Decisions. Unless strictly and expressly prohibited by law, all determinations and decisions made by the Committee pursuant to the provisions of this Plan shall be final, conclusive, and binding upon all persons, including Participants, Designated Beneficiaries, the Company,
its shareholders and employees.

10.3 Rule 16b-3, Section 162(m) and Section 409A Requirements. Notwithstanding any other provision of the Plan, the Committee may impose such conditions on any Award as it may deem to be advisable or required to satisfy the requirements of Rule 16b-3, Section 162(m) or Section
409A, if applicable.

  

11

  

 

ARTICLE XI

 GENERAL PROVISIONS

11.1 Withholding. The Company shall have the right to deduct or withhold, or require a Participant to remit to the Company, any taxes, subject to the statutory minimum, required by law to be withheld from Awards made under this Plan. In the event an Award is paid in the form of Common Stock,
the Participant may remit to the Company the amount of any taxes required to be withheld from such payment in cash, or, in lieu thereof, the Company may withhold (or the Participant may be provided the opportunity to elect to tender) the number of shares of Common Stock equal in Fair Market Value to the amount required to be withheld.

11.2 Terms of Awards. Each Award granted under the Plan shall be evidenced in a corresponding Award Agreement provided in writing to the Participant, which shall specify the terms, conditions and any rules applicable to the Award, including but not limited to the effect of death, Disability,
or other termination of employment of the Participant on the Award.

11.3 Guidelines Applicable to all Awards. All Awards awarded to a Participant under the Plan and not previously paid shall be immediately forfeited and canceled in their entirety if the Participant, without the prior written consent of the Company, and while employed by the Company, becomes
associated with, employed by, renders services to, consults with, acquires ownership of more than five percent of any class of stock of, or acquires beneficial ownership of more than five percent of the earnings or profits of any corporation, partnership, proprietorship, trust, or other entity which, in the  Committee’s judgment, competes directly or indirectly with the Company or any subsidiary in any of their lines of business.

11.4 Non-transferability. No Award granted under the Plan may be sold, transferred, pledged, assigned or otherwise alienated or hypothecated, except by will or the laws of descent and distribution. Further, no lien, obligation, or liability of the Participant may be assigned to any right
or interest of the Participant in an Award under this Plan.

11.5 No Right to Employment. Neither the Plan, nor any Award made, or any other action taken, hereunder shall be construed as giving any Participant or other person any right of employment or continued employment with the Participating Company.

11.6 Rights as Shareholder. Subject to the terms and conditions of each particular Award, no Participant or Designated Beneficiary shall be deemed a shareholder of the Company nor have any rights as such with respect to any shares of Common Stock to be provided under the Plan until he or
she has become the holder of such shares.

11.7 Construction of the Plan. Except to the extent superseded by the laws of the United States, the Plan and all Agreements shall be governed, construed, interpreted and administered in accordance with the laws of the Commonwealth of Kentucky. In the event any provision of the Plan or any
Agreement shall be held invalid, illegal or unenforceable, in whole or in part, for any reason, such determination shall not affect the validity, legality or enforceability of any remaining provision, portion of provision or the Plan overall, which shall remain in full force and effect as if the Plan had been absent the invalid, illegal or unenforceable provision or portion thereof.

11.8 Amendment of Plan or Awards. The Committee or the Board of Directors may amend, suspend, or terminate the Plan or any portion thereof at any time, provided such amendment is made with shareholder approval if and to the extent such approval is necessary to comply with any legal requirement,
including for these purposes any approval requirement which is a requirement for the performance-based compensation exception under Code Section 162(m). In no event shall the Committee increase the amount payable pursuant to an Award after it has been granted. In addition, no amendment shall be made to an outstanding Award without written consent of the affected Participant. Notwithstanding the preceding, the Committee may amend or modify the Plan or any outstanding Award to the extent necessary to cause
the Plan or such Award to comply with the requirements of Section 409A of the Code, the Listed Company Manual of the New York Stock Exchange or Listing Standard 4350 (C) (i) (A) of NASDAQ.

 

12

 

11.9 Exemption from Computation of Compensation for Other Purposes. By acceptance of an applicable Award under this Plan, subject to the conditions of such Award, each Participant shall be considered in agreement that all shares of Stock awarded under this Plan shall be considered extraordinary,
special incentive compensation and will not be included as “earnings,” “wages,” “salary” or “compensation” in any pension, welfare, life insurance, or other employee benefit arrangement of the Company except as otherwise specifically provided in such arrangement.

11.10 Legend. In its sole and complete discretion, the Committee may elect to legend certificates representing Shares sold or awarded under the Plan and to make appropriate references to the restrictions imposed on such Shares.

11.11 Special Provisions for Certain Participants. All Award Agreements for Participants subject to Section 16(b) of the Exchange Act shall be deemed to include any such additional terms, conditions, limitations and provisions as Rule 16b-3 requires, unless the Committee in its discretion
determines that any such Award should not be governed by Rule 16b-3. All performance-based Awards to Covered Participants shall be deemed to include any such additional terms, conditions, limitations and provisions as are necessary to comply with the performance-based compensation exemption of Code Section 162(m), unless the Committee, in its discretion, determines that any such Award is not intended to qualify for the exemption for performance-based compensation under Code Section 162(m).

11.12 Unfunded Plan. The Plan shall be unfunded and the Company shall not be required to segregate any assets in connection with any Awards under the Plan. Any liability of the Company to any person with respect to any Award under the Plan or any Award Agreement shall be based solely upon
the contractual obligations that may be created as a result of the Plan or any such award or agreement. No such obligation of the Company shall be deemed to be secured by any pledge of, encumbrance on, or other interest in, any property or asset of the Company or any Subsidiary. Nothing contained in the Plan or any Award Agreement shall be construed as creating in respect of any Participant (or beneficiary thereof or any other person) any equity or other interest of any kind in any assets of the Company or any
Subsidiary or creating a trust of any kind or a fiduciary relationship of any kind between the Company, any Subsidiary and/or any such Participant, any beneficiary thereof or any other person.

11.13 Conflict with Employment Agreement. Except as specified in Article IX or otherwise restricted under Section 11.10, to the extent any provision of this Plan conflicts with any provision of a written employment agreement between an Employee and the Company, the material terms of
which have been approved by the Board, the provisions of the employment agreement shall control.

11.14 Gender and Number. Where the context admits, words in the masculine gender shall include the feminine gender, the plural shall include the singular and the singular shall include the plural.

11.15 Severability. In the event any provision of this Plan shall be held to be illegal or invalid for any reason, such illegality or invalidity shall not affect the remaining parts of this Plan, and this Plan shall be construed and endorsed as if such illegal or invalid provision had never
been contained in this Plan.

 

13

 

11.16 Effect of Headings. The descriptive headings of the Articles and Sections of this Plan are inserted for convenience of reference and identification only and do not constitute a part of this Plan for purposes of interpretation.

11.17 No Liability. No member of the Board or the Committee or any officer or Employee shall be personally liable for any action, omission or determination made in good faith in connection with this Plan. To the full extent permitted by law, the Company shall indemnify and hold harmless the
members of the Committee, the Board and the officers and Employees, and each of them, from and against any and all loss which results from liability to which any of them may be subjected by reason of any act or conduct in their official capacities in connection with the administration of this Plan, including all expenses reasonably incurred in their defense, in case the Company fails to provide such defense. By participating in this Plan, each Employee agrees to release and hold harmless the Company and its Subsidiaries
(and their respective directors, officers and employees), the Board and the Committee, from and against any tax or other liability, including without limitation, interest and penalties, incurred by the Employee in connection with his participation in this Plan.

 

IN WITNESS WHEREOF, the Company has caused this instrument to be executed by the authorized officers as of this _____ day of January, 2010.

DELTA NATURAL GAS COMPANY, INC

BY: _________________________________

NAME: ______________________________

TITLE: ______________________________

ATTEST:

BY: _____________________________________

NAME: __________________________________

TITLE: __________________________________

  

14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00169-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00169-of-00352.parquet"}]]