Document:

kr_Ex10_16

		

			Exhibit 10.16

		

		

			 

		

		
			HARRIS TEETER SUPERMARKETS, INC.
		

		
			SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
		

		
			 
		

		
			 
		

		

		
			 
		

		
			Text of Plan
		

		
			 
		

		
			 
		

		
			Amendment and Restatement Effective January 1, 2016
		

		
			 
		

		
			 
		

		

		
			 
		

		
			 
		

		
			HARRIS TEETER SUPERMARKETS, INC.
		

		
			701 Crestdale Road
		

		
			Matthews, North Carolina 28105
		

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

 

		

			 

		

		

		
			HARRIS TEETER SUPERMARKETS, INC.
		

		
			SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
		

		
			(Text of Plan)
		

			
					
						 

					
					
						Page

				
	
					
						 

					
					
						 

				
	
					
						Article I. REFERENCES, CONSTRUCTION AND DEFINITIONS

					
1 
				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						1.1

					
					
						Accrual Fraction

					
2 
				
	
					
						 

					
					
						1.2

					
					
						Accrued SERP Benefit

					
2 
				
	
					
						 

					
					
						1.3

					
					
						Affiliate

					
3 
				
	
					
						 

					
					
						1.4

					
					
						Assumed Automatic Retirement Contribution Retirement Benefit

					
3 
				
	
					
						 

					
					
						1.5

					
					
						Assumed Pension Plan Retirement Benefit

					
3 
				
	
					
						 

					
					
						1.6

					
					
						Assumed Profit Sharing Retirement Benefit

					
4 
				
	
					
						 

					
					
						1.7

					
					
						Assumed Social Security Benefit

					
4 
				
	
					
						 

					
					
						1.8

					
					
						Beneficiary

					
5 
				
	
					
						 

					
					
						1.9

					
					
						Board

					
5 
				
	
					
						 

					
					
						1.10

					
					
						Change in Control

					
5 
				
	
					
						 

					
					
						1.11

					
					
						Code

					
6 
				
	
					
						 

					
					
						1.12

					
					
						Committee

					
6 
				
	
					
						 

					
					
						1.13

					
					
						Company

					
6 
				
	
					
						 

					
					
						1.14

					
					
						Credited Service

					
6 
				
	
					
						 

					
					
						1.15

					
					
						Deferred Retirement

					
7 
				
	
					
						 

					
					
						1.16

					
					
						Deferred Retirement Benefit

					
7 
				
	
					
						 

					
					
						1.17

					
					
						Disability Retirement

					
7 
				
	
					
						 

					
					
						1.18

					
					
						Disability Retirement Benefit

					
7 
				
	
					
						 

					
					
						1.19

					
					
						Early Retirement

					
7 
				
	
					
						 

					
					
						1.20

					
					
						Early Retirement Benefit

					
7 
				
	
					
						 

					
					
						1.21

					
					
						Earnings

					
7 
				
	
					
						 

					
					
						1.22

					
					
						Effective Date

					
8 
				
	
					
						 

					
					
						1.23

					
					
						Employee

					
8 
				
	
					
						 

					
					
						1.24

					
					
						Eligible Spouse

					
8 
				
	
					
						 

					
					
						1.25

					
					
						ERISA

					
8 
				
	
					
						 

					
					
						1.26

					
					
						Final Average Earnings

					
8 
				
	
					
						 

					
					
						1.27

					
					
						Long-Term Disability Benefit

					
8 
				
	
					
						 

					
					
						1.28

					
					
						Normal Retirement

					
8 
				
	
					
						 

					
					
						1.29

					
					
						Normal Retirement Age

					
8 
				
	
					
						 

					
					
						1.30

					
					
						Normal Retirement Benefit

					
8 
				
	
					
						 

					
					
						1.31

					
					
						Participant

					
9 
				
	
					
						 

					
					
						1.32

					
					
						Participating Company

					
9 
				
	
					
						 

					
					
						1.33

					
					
						Pension Plan

					
9 
				
	
					
						 

					
					
						1.34

					
					
						Plan

					
9 
				
	
					
						 

					
					
						1.35

					
					
						Plan Administrator or Administrator

					
9 
				
	
					
						 

					
					
						1.36

					
					
						Plan Year

					
9 
				
	
					
						 

					
					
						1.37

					
					
						Prior A&E Plan Provisions

					
9 
				
	
					
						 

					
					
						1.38

					
					
						Prior Ruddick Plan Provisions

					
9 
				

		 

		

			i

		

 

	
					
						

					
					
						 

					
					
						1.39

					
					
						Retirement

					
9 
				
	
					
						 

					
					
						 

					
					
						1.40

					
					
						Service

					
9 
				
	
					
						 

					
					
						 

					
					
						1.41

					
					
						Severance

					
10 
				
	
					
						 

					
					
						 

					
					
						1.42

					
					
						Standard Form of Benefit

					
10 
				
	
					
						 

					
					
						 

					
					
						1.43

					
					
						Termination of Employment

					
10 
				
	
					
						 

					
					
						 

					
					
						1.44

					
					
						Total Disability

					
11 
				
	
					
						 

					
					
						 

				
	
					
						Article II. ELIGIBILITY AND PARTICIPATION

					
11 
				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						2.1

					
					
						Eligibility

					
11 
				
	
					
						 

					
					
						 

					
					
						2.2

					
					
						Participation

					
11 
				
	
					
						 

					
					
						 

					
					
						2.3

					
					
						Duration of Participation

					
11 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Article III. RETIREMENT BENEFITS

					
12 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						3.1

					
					
						Normal or Deferred Retirement Benefit

					
12 
				
	
					
						 

					
					
						 

					
					
						3.2

					
					
						Early Retirement Benefit

					
12 
				
	
					
						 

					
					
						 

					
					
						3.3

					
					
						Disability Retirement Benefit

					
13 
				
	
					
						 

					
					
						 

					
					
						3.4

					
					
						Death Prior to Benefit Commencement

					
13 
				
	
					
						 

					
					
						 

					
					
						3.5

					
					
						Reemployment

					
13 
				
	
					
						 

					
					
						 

					
					
						3.6

					
					
						Change in Control

					
13 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Article IV. PRE-RETIREMENT DEATH BENEFIT

					
14 
				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						4.1

					
					
						Eligibility

					
14 
				
	
					
						 

					
					
						 

					
					
						4.2

					
					
						Commencement and Method

					
14 
				
	
					
						 

					
					
						 

					
					
						4.3

					
					
						Amount

					
14 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Article V. SEVERANCE BENEFIT

					
14 
				
	
					
						 

					
					
						 

				
	
					
						Article VI. CONDITION

					
14 
				
	
					
						 

					
					
						 

				
	
					
						Article VII. ADMINISTRATION OF THE PLAN

					
15 
				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						7.1

					
					
						Powers and Duties of the Committee

					
15 
				
	
					
						 

					
					
						 

					
					
						7.2

					
					
						Agents

					
15 
				
	
					
						 

					
					
						 

					
					
						7.3

					
					
						Reports to Board

					
15 
				
	
					
						 

					
					
						 

					
					
						7.4

					
					
						Structure of Committee

					
15 
				
	
					
						 

					
					
						 

					
					
						7.5

					
					
						Adoption of Procedures of Committee

					
15 
				
	
					
						 

					
					
						 

					
					
						7.6

					
					
						Instructions for Payments

					
15 
				
	
					
						 

					
					
						 

					
					
						7.7

					
					
						Claims for Benefits

					
16 
				
	
					
						 

					
					
						 

					
					
						7.8

					
					
						Hold Harmless

					
17 
				
	
					
						 

					
					
						 

					
					
						7.9

					
					
						Service of Process

					
18 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Article VIII. DESIGNATION OF BENEFICIARIES

					
18 
				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						8.1

					
					
						Beneficiary Designation

					
18 
				
	
					
						 

					
					
						 

					
					
						8.2

					
					
						Failure to Designate Beneficiary

					
18 
				
	
					
						 

					
					
						 

				
	
					
						Article IX. WITHDRAWAL OF PARTICIPATING COMPANY

					
18 
				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						9.1

					
					
						Withdrawal of Participating Company

					
18 
				
	
					
						 

					
					
						 

					
					
						9.2

					
					
						Effect of Withdrawal

					
18 
				
	
					
						 

					
					
						 

				

		 

		

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						Article X. AMENDMENT OR TERMINATION OF THE PLAN

					
19 
				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						10.1

					
					
						Right to Amend or Terminate Plan

					
19 
				
	
					
						 

					
					
						10.2

					
					
						Notice

					
20 
				
	
					
						 

					
					
						 

				
	
					
						Article XI. GENERAL PROVISIONS AND LIMITATIONS

					
20 
				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						11.1

					
					
						No Right to Continued Employment

					
20 
				
	
					
						 

					
					
						11.2

					
					
						Payment on Behalf of Payee

					
20 
				
	
					
						 

					
					
						11.3

					
					
						Nonalienation

					
20 
				
	
					
						 

					
					
						11.4

					
					
						Missing Payee

					
21 
				
	
					
						 

					
					
						11.5

					
					
						Required Information

					
21 
				
	
					
						 

					
					
						11.6

					
					
						No Trust or Funding Created

					
21 
				
	
					
						 

					
					
						11.7

					
					
						Binding Effect

					
21 
				
	
					
						 

					
					
						11.8

					
					
						Merger or Consolidation

					
21 
				
	
					
						 

					
					
						11.9

					
					
						Mandatory Cash-Out

					
22 
				
	
					
						 

					
					
						11.10

					
					
						Acceleration of Payment

					
22 
				
	
					
						 

					
					
						11.11

					
					
						Delay of Payment

					
22 
				
	
					
						 

					
					
						11.12

					
					
						Participant’s Right to Change Payment Elections by December 31, 2007

					
22 
				
	
					
						 

					
					
						11.13

					
					
						Entire Plan

					
22 
				

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			iii

		

 

		

			 

		

		

		
			HARRIS TEETER SUPERMARKETS, INC.
		

		
			SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
		

		
			Amendment and Restatement
		

		
			Effective January 1, 2016
		

		
			Preamble
		

		
			This Plan is designed to enhance the earnings and growth of the Company and the Participating Companies. The Plan rewards selected key Employees with retirement and survivor benefits.  Such benefits are intended to supplement retirement and survivor benefits from other sources. By providing such supplemental benefits, the Plan enables the Company and the Participating Companies to attract superior key Employees, to encourage them to make careers with the Company or the Participating Companies, and to give them additional incentive to make the Company and the Participating Companies more profitable.
		

		
			The Plan was amended and restated effective as of January 1, 2005 to comply with the requirements of Section 409A of the Internal Revenue Code (“Code”) and the regulations and other guidance issued thereunder, as in effect from time to time.  To the extent a provision of the Plan is contrary to or fails to address the requirements of Code Section 409A and related treasury regulations, the Plan shall be construed and administered as necessary to comply with such requirements to the extent allowed under applicable treasury regulations until the Plan is appropriately amended to comply with such requirements.  The benefits provided under the Plan that are subject to Code Section 409A include benefits earned and vested prior to January 1, 2005.
		

		
			The January 1, 2005 restatement also contained certain amendments, effective October 1, 2005, that were intended to coordinate the benefit formulas under this Plan with certain amendments made to the Company’s qualified retirement plans effective October 1, 2005.  The January 1, 2005 restatement also retained all provisions contained in the previous October 1, 1989 restatement of the Plan, which merged into one plan all the supplemental executive retirement plans maintained by the Company and its Affiliates (the “Prior Plans”). The Plan continues to provide the same level of supplemental benefits as was provided each Employee participating in one of the Prior Plans.
		

		
			This restatement effective as of January 1, 2016 amends the Plan to incorporate amendments to the prior restatement and to permit continued benefits for Participants who become employees of an Affiliate. 
		

		
			ARTICLE I.
		

		
			REFERENCES, CONSTRUCTION AND DEFINITIONS
		

		
			Unless otherwise indicated, all references to articles, sections and subsections shall be to the Plan as set forth in this document. The Plan and all rights thereunder shall be construed and enforced in accordance with ERISA and, to the extent that state law is applicable, the laws of the State of North Carolina. The article titles and the captions preceding sections and subsections have been inserted solely as a matter of convenience and in no way define or limit the scope or intent of any provision. When the context so requires, the singular includes the plural. Whenever used herein 
		

		
			
		

		
			

		 

		

			 

		

 

		

		
			and capitalized, the following terms shall have the respective meanings indicated unless the context plainly requires otherwise.
		

		
			1.1       Accrual Fraction:  A fraction, the numerator of which is the number of years of Credited Service the Participant completed as of the applicable date (but not beyond the Participant’s 65th birthday) and the denominator of which is 20; provided, however, in no event shall the Accrual Fraction exceed “1. 0.”
		

		
			1.2       Accrued SERP Benefit:   An amount determined by multiplying the Participant’s “Benefit Percentage” times the Participant’s Final Average Earnings times the Participant’s Accrual Fraction and reduced by the following:  (1) the Participant’s Assumed Pension Plan Retirement Benefit, (2) the Participant’s Assumed Social Security Benefit, (3) the Participant’s Assumed Profit Sharing Retirement Benefit, and (4) the Participant’s Assumed Automatic Retirement Contribution Retirement Benefit. The Participant’s “Benefit Percentage” shall be fifty-five percent (55%).  Such Benefit percentage shall be increased for a named executive officer of the Company (as determined for federal securities law reporting purposes), but not to more than 60% in the aggregate, as follows:
		

		
			(a)     One percent (1%) per complete fiscal year (October 1 – September 30) for years of Service beginning after September 30, 2007 in excess of twenty (20) years of Service but only for Service while serving as a named executive officer; and
		

		
			(b)     If the Participant is party to a Change in Control and Severance Agreement between the Company, or an Affiliate, and the Participant, and the Participant’s employment is terminated within twenty-four (24) months following a Change in Control other than for cause, death or disability or if a good reason termination occurs (as provided and defined in such agreement), by additional percentage points equal to the Change in Control multiple (e.g., 2.5 or 2.99) used to determine Participant’s Change in Control benefit under a Change in Control agreement between the Participant and the Company or an Affiliate.
		

		
			Effective December 31, 2002, in the event a Participant is removed from active participation in the Plan pursuant to Section 2.3 prior to the date the Participant is eligible to Retire, the Participant’s Accrued SERP Benefit shall be calculated by using:
		

		
			(x)     the Participant’s Credited Service as of the date of the Participant’s removal from active participation;
		

		
			(y)     the lesser of (i) the Participant’s Final Average Earnings as of the date of the Participant’s removal from active participation or (ii) the Participant’s Final Average Earnings as of the Participant’s Termination of Employment; and
		

		
			(z)     the reductions described in (1), (2), (3) and (4) above as of the Participant’s Termination of Employment; and
		

		
			for purposes of determining such Participant’s eligibility to Retire, such Participant shall continue to earn Credited Service and be credited with future increases in age as if the Participant had not been removed from active participation in the Plan.
		

		
			
		

		
			

		 

		

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			In the event a Participant is removed from active participation in the Plan pursuant to Section 2.3 after the date the Participant is eligible to Retire, the Participant’s Accrued SERP Benefit shall be calculated by using:
		

		
			(a)     the Participant’s Credited Service and Final Average Earnings as of the date of the Participant’s removal from active participation; and
		

		
			(b)     the reductions described in (1), (2), (3) and (4) above as of the Participant’s Termination of Employment;
		

		
			provided, however, if such Participant was eligible to Retire as of November 21, 2002, in no event shall such Participant’s Accrued SERP Benefit be less than the benefit such Participant would have received if the Participant’s Termination of Employment had occurred on November 21, 2002.
		

		
			Notwithstanding any other provision of the Plan, for Participants who were employed by American & Efird LLC immediately prior to the Closing Date, the amount of any such Participant’s Accrued SERP Benefit under the Plan shall be frozen as of the Closing Date.
		

		
			1.3       Affiliate:  The Company, and any corporation or other entity with which the Company would be considered a single employer under Code Sections 414(b) or (c), provided that the language “at least 50 percent” is used instead of “at least 80 percent” each place it appears in applying Code Sections 1563(a)(1), (2) and (3) for purposes of determining a controlled group of corporations under Code Section 414(b) and in applying Treasury Regulation Section 1.414(c)-2 for purposes of determining trades or businesses under common control under Code Section 414(c).
		

		
			1.4       Assumed Automatic Retirement Contribution Retirement Benefit:  For a Participant who is not eligible to participate in the Pension Plan on or after October 1, 2005, the annual retirement benefit a Participant would receive under the Automatic Retirement Contribution Subaccount of the Harris Teeter Supermarkets, Inc. Retirement and Savings Plan (f/k/a Ruddick Retirement and Savings Plan) or, effective as of January 1, 2016, the company automatic contributions account under The Kroger Co. 401(k) Retirement Savings Plan and the Make-Up ARC Contribution under the Harris Teeter Supermarkets, Inc. Flexible Deferral Plan (f/k/a Ruddick Corporation Flexible Deferral Plan) beginning effective October 1, 2005, computed by converting such combined amounts to the appropriate annuity form pursuant to the actuarial equivalence assumptions provided under Section 1.3 of the Pension Plan.  For purposes of computing the Assumed Automatic Retirement Contribution Retirement Benefit, if the Participant is younger than age 60 on such date, the value of such Subaccount is first projected to age 60, using PBGC interest rates for deferred annuities in effect on the Participant’s Retirement date.
		

		
			1.5       Assumed Pension Plan Retirement Benefit:  The actual annual retirement benefit a Participant would receive at the later of age 60 or actual date of Retirement (but not later than age 65), pursuant to the Pension Plan calculated with the following assumptions:
		

		
			(a)     A married Participant elects to receive the retirement benefit as a joint and 75% annuity pursuant to Section 4.1(a)(1) of the Pension Plan.
		

		
			(b)     A single Participant elects to receive the retirement benefit as a life and 10 year certain annuity as provided in Section 4.1(a)(2) of the Pension Plan.
		

		
			
		

		
			

		 

		

			3

		

 

		

		
			(c)     The service requirement for early retirement under the Pension Plan is 10 years.
		

		
			(d)     The Offset Amount (e.g. the automatic retirement contribution amount under the Harris Teeter Supermarkets, Inc. Retirement and Savings Plan and, on and after January 1, 2016 the company automatic contribution amounts under The Kroger Co. 401(k) Retirement Savings Account Plan) under the Pension Plan does not apply.
		

		
			(e)     For a Participant whose actual annual retirement benefit is calculated by reference to the Prior Ruddick Plan Provisions because of the minimum benefits provided under Section 3.2(b) or Section 3.3(b) of the Pension Plan, the Prior Plan Minimum Benefit (under Section 4.05 of the Prior Ruddick Plan Provisions), if any, is computed by converting the Prior Plan Account Balance (as defined in the Prior Ruddick Plan Provisions) and Credited Interest (as defined in the Prior Ruddick Plan Provisions) to the appropriate annuity form using Pension Benefit Guaranty Corporation (“PBGC”) annuity rates in effect on the Participant’s Retirement date. For purposes of computing the Prior Plan Minimum Benefit, if the Participant is younger than age 60 on such date, the amount of the Prior Plan Account Balance and Credited Interest is first projected to age 60, using PBGC interest rates for deferred annuities in effect on the Participant’s Retirement date.
		

		
			(f)     For a Participant whose actual annual retirement benefit is calculated by reference to the Prior A&E Plan provisions because of the minimum benefits provided under Section 3.2(b) or Section 3.3(b) of the Pension Plan, the Supplemental Retirement Benefit (under Article 11 of the Prior A&E Plan Provisions), if any, due to Accumulated Contributions or a Profit Sharing Account (each as described in Article 11 of the Prior A&E Plan Provisions) is computed by converting the Accumulated Contributions or Profit Sharing Account to the appropriate annuity form using PBGC immediate annuity rates in effect on the Participant’s Retirement date. For purposes of computing the Supplemental Retirement Benefit, if the Participant is younger than age 60 on such date, the amount of the Accumulated Contributions or Profit Sharing Account is first projected to age 60, using PBGC interest rates for deferred annuities in effect on the Participant’s Retirement date.
		

		
			1.6       Assumed Profit Sharing Retirement Benefit:  The annual retirement benefit a Participant would receive under a profit sharing plan sponsored by the Company or a Participating Company, including the A&E Profit Sharing Subaccount of the Harris Teeter Supermarkets, Inc. Retirement and Savings Plan (but excluding any other accounts or benefits under the Harris Teeter Supermarkets, Inc. Retirement and Savings Plan), computed by converting such Subaccount to the appropriate annuity form using PBGC immediate annuity rates in effect on the Participant’s Retirement date.  For purposes of computing the Assumed Profit Sharing Retirement Benefit, if the Participant is younger than age 60 on such date, the value of the Account is first projected to age 60, using PBGC interest rates for deferred annuities in effect on the Participant’s Retirement date.
		

		
			1.7       Assumed Social Security Benefit:  The annual primary insurance amount available to the Participant at age 65 under the Social Security Act as in effect at the time of his Termination of Employment without regard to whether such amount actually commences to be paid and without regard to any increase in the Social Security base or benefit levels that may take effect after such date. If a Participant incurs a Termination of Service before attaining age 65, the Assumed Social 
		

		
			
		

		
			

		 

		

			4

		

 

		

		
			Security Benefit will be determined as though the Participant had continued to receive Earnings until age 65 at the same rate as in effect during the last calendar year of employment. This Assumed Social Security Benefit will be estimated using available Earnings up to 5 years with prior earnings estimated based on a wage index derived from the Bureau of Labor Statistics compilation of the average weekly earnings of manufacturing workers.
		

		
			1.8       Beneficiary:  The beneficiary or beneficiaries designated by a Participant pursuant to Article VIII to receive the benefits, if any, payable on behalf of the Participant under the Plan after the death of such Participant who is not survived by an Eligible Spouse and following the commencement of payment of any of the retirement benefits under Article III, or, when there has been no such designation or an invalid designation, the individual or entity, or the individual or entities, who will receive such amount.
		

		
			1.9       Board:  The Board of Directors of the Company.
		

		
			1.10     Change in Control:  With respect to a Participant, a “change in ownership,” a “change in effective control,” or a “change in the ownership of substantial assets” of a corporation as described in Treasury Regulations Section 1.409A-3(i)(5) (which events are collectively referred to herein as “Change in Control events”).  Notwithstanding any provision herein to the contrary, to qualify as a Change in Control, the occurrence of the Change in Control event must be objectively determinable and any requirement that any person, such as the Committee, certify the occurrence of a Change in Control event must be strictly ministerial and not involve any discretionary authority.  To constitute a Change in Control with respect to a Participant, the Change in Control event must relate to (i) the corporation for which the Participant is performing services at the time of the Change in Control; (ii) the corporation that is liable for the payment of the deferred compensation; or (iii) a corporation that is a majority shareholder of a corporation identified in subparagraph (i) or (ii) above, or any corporation in a chain of corporations in which each corporation is a majority shareholder of another corporation in the chain, ending in a corporation identified in subparagraph (i) or (ii) above.
		

		
			(a)     A “change in ownership” of a corporation occurs on the date that any one person, or more than one person acting as a group, acquires ownership of stock of the corporation that, together with stock held by such person or group, constitutes more than 50 percent of the total fair market value or total voting power of the stock of such corporation.  However, if any one person, or more than one person acting as a group, is considered to own more than 50 percent of the total fair market value or total voting power of the stock of a corporation, the acquisition of additional stock by the same person or persons is not considered to cause a change in ownership of the corporation (or to cause a change in the effective control of the corporation (within the meaning of paragraph (b) below)).
		

		
			(b)     Notwithstanding that a corporation has not undergone a change in ownership under paragraph (a) above, a “change in effective control” of a corporation occurs on the date that either:
		

		
			(i)     Any one person, or more than one person acting as a group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) ownership of stock of the corporation 
		

		
			

		 

		

			5

		

 

		

		
			
		

		
			

		 

		

			6

		

 

		

		
			possessing 30 percent or more of the total voting power of the stock of such corporation; or
		

		
			(ii)     A majority of members of the corporation’s board of directors is replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority of the members of the corporation’s board of directors prior to the date of the appointment or election.
		

		
			For purposes of this paragraph (b), the term corporation refers solely to the relevant corporation identified in the opening paragraph of this Section 1.10, for which no other corporation is a majority shareholder.
		

		
			(c)     A “change in the ownership of substantial assets” of a corporation occurs on the date that any one person, or more than one person acting as a group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) assets from the corporation that have a total gross fair market value equal to or more than 40 percent of the total gross fair market value of all of the assets of the corporation immediately prior to such acquisition or acquisitions.  For this purpose, gross fair market value means the value of the assets of the corporation, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets.
		

		
			1.11     Code:  The Internal Revenue Code of 1986, as now in effect or as hereafter amended; and, where the context requires, a reference to the Code shall include a reference to any proposed or final treasury regulations or similar guidance issued thereunder. All citations to sections of the Code or regulations are to such sections as they may from time to time be amended or renumbered.
		

		
			1.12     Committee:  The “SERP Administrative Committee” appointed by the Board of Directors of Harris Teeter Supermarkets, Inc. and responsible for administering the Plan as provided for in Article VII.
		

		
			1.13     Company:  Harris Teeter Supermarkets, Inc. (f/k/a Ruddick Corporation), a North Carolina corporation, or any entity which succeeds to its rights and obligations with respect to the Plan.
		

		
			1.14     Credited Service:  With respect to a Participant, each Plan Year during which the Participant completes at least 1,000 Hours of Service (as defined in the Pension Plan).  In addition, periods of Total Disability commencing while such Participant is employed by the Participating Company or an Affiliate also shall be counted under the Plan in determining Credited Service.  If a Participant is a party to a Change in Control and Severance Agreement between the Company, or Affiliate, and the Participant, and the Participant’s employment is terminated within twenty-four (24) months of a Change in Control other than for cause, death, or disability or if a good reason termination occurs (as provided and defined in such agreement), the Participant shall be credited with additional years of Credited Service equal to the Change in Control multiple (e.g. 2.0, 2.5, or 2.99) used to determine Participant’s Change in Control benefit under such agreement.
		

		
			
		

		
			

		 

		

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			1.15     Deferred Retirement:  Termination of Employment, other than on account of death, after the date the Participant attains Normal Retirement Age.
		

		
			1.16     Deferred Retirement Benefit:  The retirement benefit calculated pursuant to Section 3.1.
		

		
			1.17     Disability Retirement:  With respect to a Participant who incurs a Termination of Employment on account of Total Disability, the Participant shall be deemed to have taken Disability Retirement on the date the Long-Term Disability Benefit ceases to be available to the Participant, provided the Participant’s Total Disability continues until Normal Retirement Age.
		

		
			1.18     Disability Retirement Benefit:  The retirement benefit calculated pursuant to Section 3.3.
		

		
			1.19     Early Retirement:  Termination of Employment, other than on account of death, after attaining age 55 (but prior to attaining Normal Retirement Age) and completing 10 years of Credited Service.
		

		
			1.20     Early Retirement Benefit:  The retirement benefit calculated pursuant to Section 3.2.
		

		
			1.21     Earnings:  With respect to a Participant, annual cash compensation actually paid by the Participating Company or an Affiliate to the Participant for Service as reported or reportable on IRS Form W-2 for Federal income tax purposes (or similar form required for such purpose) on a calendar year basis, plus the amount, if any, of compensation which, but for the Participant’s election to defer the receipt thereof pursuant to Section 125, 132(f)(4) or 401(k) of the Code or any other plan of deferred compensation (including, without, limitation, the Harris Teeter Supermarkets, Inc. Flexible Deferral Plan (f/k/a the Ruddick Corporation Flexible Deferral Plan (the “FDP”)), would have been reflected on Form W-2; however, such earnings shall exclude all distributions made by the FDP.  The foregoing notwithstanding, Earnings shall not include: (i) any sums paid by a Participating Company or Affiliate as payment for or reimbursement of any expenses including relocation, foreign housing and travel expenses, regardless of whether such sums are taxable income to the Participant, (ii) payment for premiums or similar fees or expenses related to any life insurance plan or program, (iii) tax gross up payments and payment of foreign taxes, (iv) amounts of a Profit Sharing Award under the American & Efird, Inc. Employees' Profit Sharing Plan actually paid to or deferred by an Employee, (v) amounts realized from the exercise of  a non-qualified stock option, from the sale, exchange or other disposition of stock acquired under a qualified stock option, when restricted stock (or property) held by the Participant becomes freely transferable or is no longer subject to a substantial risk of forfeiture, or from dividends paid on restricted stock prior to vesting that are otherwise reportable as wages, and (vi) any severance paid after the Participant’s employment with the Participating Employers or Affiliates ends or separation pay pursuant to a separation agreement.  Notwithstanding the above, if the bonus payable to the Company’s Chief Executive Officer and Chief Financial Officer under the Executive Officer Incentive Bonus Plan is paid during the calendar year ending on December 31, 2014, such amounts shall be added to and deemed to be Earnings for the calendar year ending on December 31, 2013.
		

		
			
		

		
			

		 

		

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			1.22     Effective Date:  The original effective date of the Plan is October 1, 1983. The Effective Date of the Plan, as amended and restated herein, is January 1, 2016.
		

		
			1.23     Employee:  A person who is a common-law employee of the Participating Company or an Affiliate.
		

		
			1.24     Eligible Spouse:  The spouse of a Participant who is legally married (as determined by the Committee) on the date which payments from this Plan to the Participant begin or immediately before the Participant’s death.
		

		
			1.25     ERISA:  The Employee Retirement Income Security Act of 1974, as now in effect or as hereafter amended. All citations to sections of ERISA are to such sections as they may from time to time be amended or renumbered.
		

		
			1.26     Final Average Earnings:  As of the Participant’s Termination of Employment, the Participant’s average annual Earnings during the highest 3 calendar years out of the last ten calendar years preceding such Termination of Employment; provided, however, if a Participant is at least age sixty (60) and employed by American & Efird, Inc. at the time of the Participant’s Termination of Employment, Final Average Earnings shall mean the Participant’s average annual earnings during the Participant’s highest 3 calendar years during which the Participant was employed by American & Efird, Inc. or an Affiliate.  If the Participant does not have 3 calendar years of Earnings, then Final Average Earnings shall mean the Participant’s average annual Earnings. Provided, however, the Participant’s Earnings shall be considered to have continued during a period of Total Disability commencing while such participant is an Employee at the rate of such Participant’s Earnings in effect during the calendar year next preceding commencement of such Total Disability.
		

		
			Notwithstanding the above, for Participants who were employed by American & Efird LLC immediately prior to the Closing Date, the determination of Final Average Earnings shall consider annualized Earnings amounts paid to such Participants for the 2011 calendar year.  Such annualized Earnings amount shall be determined by adding the actual Earnings paid to a Participant during the portion of the 2011 calendar year ending on the Closing Date plus a deemed amount of continued base salary (assuming no salary reduction or salary deferral contributions) for the period from the Closing Date through December 31, 2011, and subtracting the amount of the Participant’s 2012 incentive bonus paid prior to the Closing Date.
		

		
			1.27     Long-Term Disability Benefit:  Any disability benefits available to a Participant pursuant to the long-term disability plan of the Participating Company or an Affiliate.
		

		
			1.28     Normal Retirement:  Termination of Employment, other than on account of death, on the date the Participant attains Normal Retirement Age.
		

		
			1.29     Normal Retirement Age:   Age 60.
		

		
			1.30     Normal Retirement Benefit:  The retirement benefit calculated pursuant to Section 3.1.
		

		
			
		

		
			

		 

		

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			1.31     Participant:  As of any date, any individual who commenced participation in the Plan as provided in Article II and who is either (i) an Employee, (ii) a former Employee who is eligible for a benefit under the Plan, or (iii) a former Employee whose employment terminated on account of Total Disability and who may later become eligible for a benefit under the Plan.
		

		
			1.32     Participating Company:  The Company, or an Affiliate which, by action of its board of directors or equivalent governing body and with the written consent of the Board, has adopted the Plan; provided that the Board may, subject to the foregoing proviso, waive the requirement that such board of directors or equivalent governing body effect such adoption. By its adoption of or participation in the Plan, a Participating Company shall be deemed to appoint the Company its exclusive agent to exercise on its behalf all of the power and authority conferred by the Plan upon the Company and accept the delegation to the Committee of all the power and authority conferred upon it by the Plan. The authority of the Company to act as such agent shall continue until the Plan is terminated as to the Participating Company. The term “Participating Company” shall be construed as if the Plan were solely the Plan of such Participating Company, unless the context plainly requires otherwise.
		

		
			1.33     Pension Plan:  The “Harris Teeter Supermarkets, Inc. Employees’ Pension Plan” (f/k/a the “Ruddick Corporation Employees’ Pension Plan,” as amended and restated effective October 1, 2005, and as it may be amended from time to time hereafter.
		

		
			1.34     Plan: The Harris Teeter Supermarkets, Inc. Supplemental Executive Retirement Plan (f/k/a the Ruddick Supplemental Executive Retirement Plan) as contained herein and as it may be amended from time to time hereafter.
		

		
			1.35     Plan Administrator or Administrator:  The Committee.
		

		
			1.36     Plan Year:  The 12 consecutive month period commencing October 1 and ending on the next September 30.
		

		
			1.37     Prior A&E Plan Provisions: The provisions set forth in the document entitled “American & Efird Mills, Inc. Employees’ Pension Plan,” effective September 30, 1986, and the amendment adopted August 14, 1987, which provisions were in effect immediately prior to the effective date of the merger of such plan into the Pension Plan.
		

		
			1.38     Prior Ruddick Plan Provisions:  The provisions set forth in the document entitled “Retirement Plan for Employees of Ruddick Corporation,” effective September 30, 1986, and the amendment adopted February 19, 1988, which provisions were in effect immediately prior to the effective date of the merger of such plan into the Pension Plan.
		

		
			1.39     Retirement: A Participant’s Normal Retirement, Early Retirement, Deferred Retirement or Disability Retirement. The term “Retire” means the act of taking Retirement.
		

		
			1.40     Service: Employment with the Company or any Affiliate; provided, however, that Service does not include periods of employment with an Affiliate rendered prior to the date the Affiliate became an Affiliate. Service includes periods of employment with a predecessor employer. Service may also include any period of a Participant’s prior employment by any  
		

		
			
		

		
			

		 

		

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			organization upon such terms and conditions as the Board may approve. Notwithstanding any provision in the Plan to the contrary, periods of Total Disability constitute Service.
		

		
			1.41     Severance: Termination of Employment other than on account of Retirement, death or Total Disability. With respect to a Participant whose employment with the Participating Company or an Affiliate terminates on account of Total Disability, Severance shall occur if and when the Total Disability ceases prior to Disability Retirement and the Participant does not return to the employment of the Participating Company or an Affiliate.
		

		
			1.42     Standard Form of Benefit: The method for payment of benefits commencing pursuant to Article III (Retirement Benefits) shall be as follows:
		

		
			(a)     For a Participant who has an Eligible Spouse on the date on which the payments from the Plan are to begin, payable monthly during the Participant’s lifetime, with an automatic 75% survivor benefit payable monthly to the Participant’s surviving Eligible Spouse for his or her lifetime. However, if the Participant’s Eligible Spouse is more than 10 years younger than the Participant, the monthly income payable to the Participant (and, consequently, the monthly income payable to the surviving Eligible Spouse) will be reduced actuarially using the actuarial assumptions under the Pension Plan and assuming that the Eligible Spouse is 10 years older than such Eligible Spouse’s actual age, so that the retirement benefit and the survivor benefit for the Eligible Spouse, when considered together, is the actuarial equivalent of the retirement benefit and the survivor benefit for the Eligible Spouse which would have been payable had the Eligible Spouse been the same age as the Participant. Benefits payable to an Eligible Spouse shall commence within 60 days of the Participant’s death.
		

		
			(b)     For a Participant who does not have an Eligible Spouse on the date on which the payments from the Plan are to begin, payable monthly during the Participant’s lifetime or for a 10-year certain period, if longer. Benefits payable following the death of such a Participant shall commence to such Participant’s Beneficiary within 60 days of the Participant’s death.
		

		
			1.43     Termination of Employment:  The termination of employment of the Participant with the Participating Company and all of its Affiliates that are considered a single employer within the meaning of Code Sections 414(b) and 414(c), provided that the language “at least 50 percent” is used instead of “at least 80 percent” each place it appears in applying Code Sections 1563(a)(1), (2) and (3) for purposes of determining a controlled group of corporations under Code Section 414(b), and in applying Treasury Regulation Section 1.414(c)-2 for purposes of determining trades or businesses (whether or not incorporated) that are under common control for purposes of Code Section 414(c).  Whether a Termination of Employment has occurred is determined based on whether the facts and circumstances indicate that the employer and the Participant reasonably anticipated that no further services would be performed after a certain date or that the level of bona fide services the Participant would perform after such date (whether as an employee or as an independent contractor) would permanently decrease to no more than 20 percent of the average level of bona fide services performed (whether as an employee or an independent contractor) over the 

		 

		

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immediately preceding 36-month period (or the full period of services to the employer if the Participant has been providing services to the employer less than 36 months).
		

		
			
		

		
			

		 

		

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			Temporary absences from employment while the Participant is on military leave, sick leave, or other bona fide leave of absence will not be considered a Termination of Employment if the period of such leave does not exceed six months, or if longer, so long as the Participant’s right to reemployment with the Participating Company is provided either by statute or by contract.  However, if the period of leave exceeds six months and the Participant’s right to reemployment is not provided either by statute or by contract, a Termination of Employment is deemed to occur on the first day immediately following such six-month period.  Notwithstanding the foregoing, where a leave of absence is due to any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than six months, and where such impairment causes the Participant to be unable to perform the duties of his or her position of employment or any substantially similar position of employment, a 29-month period of absence may be substituted for such six-month period.
		

		
			1.44     Total Disability:   Any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months which results in (i) the Participant being unable to engage in any substantial gainful activity or (ii) the Participant receiving income replacement benefits for a period of not less than 3 months under an accident and health plan covering employees of the Participating Company or an Affiliate.  In addition, the Participant will be deemed Totally Disabled if determined to be totally disabled by the Social Security Administration.  In the event that a Participant is not determined to be Totally Disabled by the Social Security Administration as provided in the preceding sentence, the Committee, in its sole discretion, shall determine whether such Participant has suffered a Total Disability or is Totally Disabled.  In making such determination, the Committee shall apply the definitions and criteria set forth in the first sentence of this Section and, if consistent with such criteria, may require such medical proof as it deems necessary, including the certificate of one or more licensed physicians selected by the Committee; the decision of the Committee as to Total Disability shall be final and binding.  “Totally Disabled” means being under a Total Disability.
		

		
			ARTICLE II.
		

		
			ELIGIBILITY AND PARTICIPATION
		

		
			2.1       Eligibility.  An Employee (a) who is a member of the Participating Company’s or an Affiliate’s “select group of management or highly compensated employees”, as defined in Sections 201(2), 301(a)(3) and 401(a) of ERISA, as amended, and (b) whom the Committee designates, shall become a Participant in the Plan.
		

		
			2.2       Participation.  An Employee who is eligible to become a Participant shall become a Participant on a date determined by the Committee in its discretion. The Committee shall notify in writing an eligible Employee of such Employee’s commencement of participation in the Plan and the resulting benefits. Each Employee participating in the Plan prior to the Effective Date of this amendment and restatement shall continue participation in the plan as of such date.
		

		
			2.3       Duration of Participation.  A Participant shall continue to be a Participant until the later of the Participant’s Termination of Employment, the Participant’s Severance, or the date the Participant is no longer entitled to a benefit under this Plan; provided, however, the Committee shall have the discretionary power and authority to remove a Participant from active participation in the Plan at any time.
		

		
			
		

		
			

		 

		

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			ARTICLE III.
		

		
			RETIREMENT BENEFITS
		

		
			3.1       Normal or Deferred Retirement Benefit.
		

		
			(a)     Eligibility.  Upon a Participant’s Normal or Deferred Retirement the Company shall pay the Participant the “Normal or Deferred Retirement Benefit” described in this Section 3.1.
		

		
			(b)     Commencement and Method.  Payment of the Normal or Deferred Retirement Benefit shall be made in the Standard Form of Benefit and shall begin on the first day of the month that is six months following the Participant’s Normal or Deferred Retirement.  The initial payment shall include a balloon payment equal to six monthly payments plus interest at the rate of seven percent (7%) per annum on each monthly payment.
		

		
			(c)     Amount.  The amount of each monthly payment of the Normal or Deferred Retirement Benefit shall equal one-twelfth of the Participant’s Accrued SERP Benefit. No additional benefits shall accrue under this Plan after a Participant attains age 65.
		

		
			Notwithstanding the above, for Participants who were employed by American & Efird LLC immediately prior to the Closing Date, the amount of any such Participant’s Normal or Deferred Retirement Benefit shall be based upon the Accrued SERP Benefit as of the Closing Date.
		

		
			3.2       Early Retirement Benefit.
		

		
			(a)     Eligibility.  Upon a Participant’s Early Retirement the Company shall pay the Participant the “Early Retirement Benefit” described in this Section 3.2.
		

		
			(b)     Commencement and Method.  Payment of the Early Retirement Benefit shall be made in the Standard Form of Benefit and shall begin on the first day of the month that is six months following the Participant’s Early Retirement.  The initial payment shall include a balloon payment equal to six monthly payments plus interest at the rate of seven percent (7%) per annum on each monthly payment.  Notwithstanding the preceding, a Participant may elect to delay payment of his Early Retirement Benefit by submitting an election to the Committee, provided that (i) any such election must be made at least 12 months before the Participant’s Early Retirement and (ii) the payment of such Early Retirement Benefit will be further delayed to a date that is 5 years from the date the first payment of the Early Retirement Benefit would otherwise have commenced.
		

		
			(c)     Amount. The amount of each monthly payment of the Early Retirement Benefit shall equal one-twelfth of the Participant’s Accrued SERP Benefit. If payment of the Early Retirement Benefit commences prior to the Participant’s attainment of Normal Retirement Age, the Early Retirement Benefit shall equal one-twelfth of the Participant’s Accrued SERP Benefit reduced by .4167 percent for each month (5 percent annually) by which payment begins before the first month following the month in which the Participant will attain Normal Retirement Age.
		

		
			
		

		
			

		 

		

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			Notwithstanding the above, for Participants who were employed by American & Efird LLC immediately prior to the Closing Date, the amount of any such Participant’s Early Retirement Benefit shall be based upon the Accrued SERP Benefit as of the Closing Date.
		

		
			3.3       Disability Retirement Benefit.
		

		
			(a)       Eligibility.  Upon a Participant’s Disability Retirement the Company shall pay the Participant the “Disability Retirement Benefit” described in this Section 3.3.
		

		
			(b)       Commencement and Method. Payment of the Disability Retirement Benefit shall be made in the Standard Form of Benefit and shall begin in the first month following the participant’s Disability Retirement.
		

		
			(c)       Amount.  The amount of each monthly payment of the Disability Retirement Benefit shall equal one-twelfth of the Participant’s Accrued SERP Benefit.
		

		
			Notwithstanding the above, for Participants who were employed by American & Efird LLC immediately prior to the Closing Date, the amount of any such Participant’s Disability Retirement Benefit shall be based upon the Accrued SERP Benefit as of the Closing Date.
		

		
			3.4       Death Prior to Benefit Commencement.  If a married Participant dies following eligibility to Retire, whether or not the Participant had actually Retired, and prior to commencement of payment of the retirement benefit under this Article III, the Eligible Spouse’s benefit is a monthly amount equal to 75 percent of the deceased Participant’s Early, Normal, Deferred or Disability Retirement Benefit if the Participant had retired or, if the Participant had not yet retired, 75 percent of such Early, Normal, Deferred or Disability Retirement Benefit calculated as if such Participant had retired at the Participant’s date of death, payable monthly to the Eligible Spouse during his or her lifetime. Benefits payable to an Eligible Spouse shall commence within 60 days of the participant’s death. If a Participant is not survived by an Eligible Spouse upon death following eligibility to Retire, whether or not the Participant had actually Retired, and prior to commencement of payment of the retirement benefit under this Article III, then no benefit shall be payable on behalf of such Participant.
		

		
			Notwithstanding the above, for Participants who were employed by American & Efird LLC immediately prior to the Closing Date, the amount of benefit under this Section 3.4 shall be frozen as of the Closing Date and shall be based upon the Accrued SERP Benefit of the deceased Participant as of the Closing Date.
		

		
			3.5       Reemployment.  If a Retired Participant again becomes an Employee, the Participant’s Retirement benefit payments payable after the date of reemployment shall continue unaffected by such reemployment and the Retired Participant shall not be eligible to accrue any additional benefit under this Plan.
		

		
			3.6       Change in Control.  Notwithstanding any provision in the Plan to the contrary and subject to Article X below, with regard to each Participant who is an Employee at the time of a Change in Control, if the Plan is not terminated pursuant to Section 10.1, the Participant’s Accrued 
		

		
			

		 

		

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			SERP Benefit shall become nonforfeitable and shall be paid in accordance with this Article III or Article IV, if applicable, and shall not be subject to the early payment reduction of the monthly amount of such Accrued SERP Benefit when payment commences prior to such Participant’s Normal Retirement Age.
		

		
			ARTICLE IV.
		

		
			PRE-RETIREMENT DEATH BENEFIT
		

		
			4.1       Eligibility.  Subject to Section 3.4, if a Participant’s death occurs (a) (i) while the Participant is an Employee of the Participating Company or an Affiliate, and (ii) after such Participant has been a Participant for at least 5 years, or (b) while Totally Disabled but prior to Disability Retirement, and the Participant is survived by an Eligible Spouse, the Company shall pay the Participant’s Eligible Spouse for his or her lifetime the “Pre-Retirement Death Benefit” described in this Article IV.
		

		
			4.2       Commencement and Method.  Payment of the Pre-Retirement Death Benefit shall be made in monthly payments and shall begin in the first month following the month of the Participant’s death and in any event within 60 days of the Participant’s death.
		

		
			4.3       Amount.  Each monthly payment of the Pre-Retirement Death Benefit shall equal the product of (a) 75 percent of the deceased Participant’s Early Retirement Benefit (described in Section 3.2(c)), calculated assuming the Participant remained employed by the Participating Company or Affiliate at the same level of Earnings in effect at the time of death until age 55 and had then died and (b) a fraction the numerator of which is the Participant’s Credited Service at the date of death and the denominator of which is the Credited Service the Participant would have had if he or she had remained employed by the Participating Company or Affiliate until attaining age 55.
		

		
			Notwithstanding the above, for Participants who were employed by American & Efird LLC immediately prior to the Closing Date, the amount of the benefit, if any, under this Section 4.3 shall be frozen as of the Closing Date and shall be based upon the Accrued SERP Benefit of the deceased Participant as of the Closing Date.
		

		
			ARTICLE V.
		

		
			SEVERANCE BENEFIT
		

		
			No benefits are payable under this Plan upon a Participant’s Severance. If a Participant who has a Severance again becomes an Employee, such former Participant shall not again become a Participant unless the Committee, in the exercise of its discretion, notifies the former Participant in writing that the former Participant is again eligible to participate in the Plan pursuant to Article II.
		

		
			ARTICLE VI.
		

		
			CONDITION
		

		
			Notwithstanding any provision in this Plan to the contrary, if a Participant dies as a result of suicide within 24 months after such Participant’s commencement of participation in the Plan, the participant’s benefits shall be forfeited and no benefit shall be paid to the Participant’s Eligible Spouse.
		

		
			

		 

		

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			ARTICLE VII.
		

		
			ADMINISTRATION OF THE PLAN
		

		
			7.1       Powers and Duties of the Committee.  The Committee shall have general responsibility for the administration of the Plan (including but not limited to complying with reporting and disclosure requirements, and establishing and maintaining Plan records). In the exercise of its sole and absolute discretion, the Committee shall interpret the Plan’s provisions and determine the eligibility of individuals for benefits.
		

		
			7.2       Agents.  The Committee may engage such legal counsel, certified public accountants and other advisers and service providers, who may be advisers or service providers for the participating Company or an Affiliate, and make use of such agents and clerical or other personnel, as it shall require or may deem advisable for purposes of the Plan. The Committee may rely upon the written opinion of any legal counsel or accountants engaged by the Committee, and may delegate to any such agent, or to any subcommittee or member of the Committee its authority to perform any act hereunder, including, without limitation, those matters involving the exercise of discretion, provided that such delegation shall be subject to revocation at any time at the discretion of the Committee.
		

		
			7.3       Reports to Board.  The Committee shall report to the Board, or to a committee of the Board designated for that purpose, as frequently as the Board or such committee shall specify, with regard to the matters for which the Committee is responsible under the Plan.
		

		
			7.4       Structure of Committee.  The Committee shall consist of two or more members, each of whom shall be appointed by, shall remain in office at the will of, and may be removed, with or without cause, by the Board. Any member of the Committee may resign at any time. The Committee shall select one of its members as a Chairman. The Committee shall appoint a Secretary to keep minutes of its meetings and the Secretary may or may not be a member of the Committee. No member of the Committee shall be entitled to act on or decide any matter relating solely to such member or any of such member’s rights or benefits under the Plan. In the event the Committee is unable to act in any matter by reason of the foregoing restriction, the Board shall act on such matter. The members of the Committee shall not receive any special compensation for serving in the capacities as members of the Committee but shall be reimbursed for any reasonable expenses incurred in connection therewith. Except as otherwise required by ERISA, no bond or other security shall be required of the Committee or any member thereof in any jurisdiction. Any member of the Committee, any subcommittee or agent to whom the Committee delegates any authority, and any other person or group of persons, may serve in more than one fiduciary capacity with respect to the Plan.
		

		
			7.5       Adoption of Procedures of Committee.  The Committee shall establish its own procedures and the time and place for its meetings, and provide for the keeping of minutes of all meetings. Any action of the Committee may be taken upon a unanimous vote of the members of the Committee at a meeting. The Committee may also act without meeting by unanimous written consent.
		

		
			7.6       Instructions for Payments.  All requests of or directions to the Company for payment or disbursement shall be signed by a member of the Committee or such other person or 
		

		
			

		 

		

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			persons as the Committee may from time to time designate in writing. This person shall cause to be kept full and accurate accounts of payments and disbursements under the Plan.
		

		
			7.7       Claims for Benefits.
		

		
			(a)     Any Participant or beneficiary of a deceased Participant (such Participant or beneficiary being referred to below as a “Claimant”) may deliver to the Committee a written claim for a determination with respect to the amounts distributable to such Claimant from the Plan.  The claim must state with particularity the determination desired by the Claimant.
		

		
			(b)     The Committee shall notify any person or entity that makes a claim against the Plan in writing, within 90 days of Claimant’s written application for benefits, of his or her eligibility or noneligibility for benefits under the Plan.  If the Committee determines that the Claimant is not eligible for benefits or full benefits, the notice shall set forth (1) the specific reasons for such denial, (2) a specific reference to the provisions of the Plan on which the denial is based, (3) a description of any additional information or material necessary for the Claimant to perfect his or her claim, and a description of why it is needed, and (4) an explanation of the Plan’s claims review procedure and other appropriate information as to the steps to be taken if the Claimant wishes to have the claim reviewed.  If the Committee determines that there are special circumstances requiring additional time to make a decision, the Committee shall notify the Claimant of the special circumstances and the date by which a decision is expected to be made, and may extend the time for up to an additional 90 days.
		

		
			(c)     If the Claimant is determined by the Committee not to be eligible for benefits, or if the Claimant believes that he or she is entitled to greater or different benefits, the Claimant shall have the opportunity to have such claim reviewed by the Committee by filing a petition for review with the Committee within 60 days after receipt of the notice issued by the Committee.  Said petition shall state the specific reasons which the Claimant believes entitle him or her to benefits or to greater or different benefits.  Within 60 days after receipt by the Committee of the petition, the Committee shall afford the Claimant (and counsel, if any) an opportunity to present his or her position to the Committee verbally or in writing.  Claimant (or counsel) shall have the opportunity to submit written comments, documents, records, and other information relating to the claim for benefits, and shall be provided, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the Claimant’s claim.  The review shall take into account all comments, documents, records, and other information submitted by the Claimant relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination.  The Committee shall notify the Claimant of its decision in writing within the 60-day period, stating specifically the basis of its decision, written in a manner calculated to be understood by the Claimant and the specific provisions of the Plan on which the decision is based.  If, because of the need for a hearing, the 60-day period is not sufficient, the decision may be deferred for up to another 60 days at the election of the Committee, but notice of this deferral shall be given to the Claimant.
		

		
			
		

		
			

		 

		

			21

		

 

		

		
			(d)     If a claim for benefits under the Plan is contingent on a determination by the Committee (or its designee) that the Participant suffers from a Total Disability, the Claimant shall receive a written response to the initial claim from the Committee within 45 days, rather than 90 days.  If special circumstances require an extension, the Committee shall notify the Claimant within the 45-day processing period that additional time is needed.  If the Committee requests additional information so it can process the claim, the Claimant will have at least 45 days in which to provide the information.  Otherwise, the initial extension cannot exceed 30 days.  If circumstances require further extension, the Committee will again notify the Claimant, this time before the end of the initial 30-day extension.  The notice will state the date a decision can be expected.  In no event will a decision be postponed beyond an additional 30 days after the end of the first 30-day extension.  The Claimant may request a review of the Committee’s decision regarding the Disability claim within 180 days, rather than 60 days.  The review must be conducted by a fiduciary different from the fiduciary who originally denied the claim, and the fiduciary also cannot be subordinate to the fiduciary who originally denied the claim.  If the original denial of the claim was based on a medical judgment, the reviewing fiduciary must consult with an appropriate health care professional who was not consulted on the original claim and who is not subordinate to someone who was  The review must identify the medical or vocational experts consulted on the original claim.  The Claimant may request, in writing, a list of those medical or vocational experts.  The Claimant will receive notice of the reviewing fiduciary’s final decision regarding the Total Disability claim within 45 days, rather than 60 days, of the request for review.
		

		
			(e)     For all purposes under the Plan, such decisions on claims (where no review is requested) and decisions on review (where review is requested) shall be final, binding and conclusive on all interested parties as to participation and benefit eligibility, the Employee’s or former Employee’s Final Average Earnings, Credited Service and as to any other matter of fact or interpretation relating to the Plan.
		

		
			(f)     A Claimant’s compliance with the foregoing provisions of this Section 7.7 is a mandatory prerequisite to a Claimant’s right to commence any legal action with respect to any claim for benefits under this Plan.
		

		
			7.8       Hold Harmless.  To the maximum extent permitted by law, no member of the Committee shall be personally liable by reason of any contract or other instrument executed by such member or on such member’s behalf in such member’s capacity as a member of the Committee nor for any mistake of judgment made in good faith, and the Company and the Participating Company shall indemnify and hold harmless, directly from its own assets (including the proceeds of any insurance policy the premiums of which are paid from the Company’s or a Participating Company’s own assets), each member of the Committee and each other officer, employee, or director of the Company, a Participating Company or an Affiliate to whom any duty or power relating to the administration or interpretation of the Plan against any cost or expense (including counsel fees) or liability (including any sum paid in settlement of a claim with the approval of the Company and the Participating Company) arising out of any act or omission to act in connection with the Plan unless arising out of such person’s own fraud or bad faith.
		

		
			
		

		
			

		 

		

			22

		

 

		

		
			7.9       Service of Process.  The Secretary of the Company or such other person designated by the Board shall be the agent for service of process under the Plan.
		

		
			ARTICLE VIII.
		

		
			DESIGNATION OF BENEFICIARIES
		

		
			8.1       Beneficiary Designation.  Every Participant shall file with the Administrator a written designation of one or more persons as the Beneficiary who shall be entitled to receive the amount, if any, payable under the Plan upon such Participant’s death without being survived by an Eligible Spouse and following the commencement of payment of any of the retirement benefits under Article III. A Participant may from time to time revoke or change such Participant’s Beneficiary designation without the consent of any prior Beneficiary by filing a new designation with the Administrator. The last such designation received by the Administrator shall be controlling; provided, however, that no designation, or change or revocation thereof, shall be effective unless received by the Administrator prior to the Participant’s death, and in no event shall it be effective as of a date prior to such receipt. All decisions of the Administrator concerning the effectiveness of any Beneficiary designation, and the identity of any Beneficiary, shall be final. If a Beneficiary shall die after the death of the Participant and prior to receiving the distribution that would have been made to such Beneficiary had such Beneficiary’s death not occurred, and no alternate Beneficiary has been designated, then for the purposes of the Plan the distribution that would have been received by such Beneficiary shall be made to the Beneficiary’s estate.
		

		
			8.2       Failure to Designate Beneficiary.  If no Beneficiary designation is in effect at the time of a Participant’s death without being survived by an Eligible Spouse and following the commencement of payment of any of the retirement benefits under Article III, the payment of the amount, if any, payable under the Plan upon such Participant’s death shall be made to the Participant’s estate. If the Administrator is in doubt as to the right of any person to receive such amount, the Committee may direct the Company to withhold payment, without liability for any interest thereon, until the rights thereto are determined, or the Committee may direct the Company to pay such amount into any court of appropriate jurisdiction, and such payment shall be a complete discharge of the liability of the Company therefor.
		

		
			ARTICLE IX.
		

		
			WITHDRAWAL OF PARTICIPATING COMPANY
		

		
			9.1       Withdrawal of Participating Company.  The Participating Company (other than the Company) may withdraw from participation in the Plan by giving the Board prior written notice approved by resolution by its board of directors or similar governing body specifying a withdrawal date, which shall be the last day of a month at least 30 days subsequent to the date on which notice is received by the Board.  The Participating Company shall withdraw from participation in the Plan if and when it ceases to be either a division of the Company or an Affiliate. The Board may require the Participating Company to withdraw from the Plan as of any withdrawal date the Board specifies.
		

		
			9.2       Effect of Withdrawal.  The Participating Company’s withdrawal from the Plan shall not in any way reduce or otherwise affect benefits accrued and vested as of the date of withdrawal. With respect to former Employees, “accrued and vested benefits” are benefits to which 
		

		
			
		

		
			

		 

		

			23

		

 

		

		
			the former Employees are entitled as of the date of withdrawal. With respect to Employees, “accrued and vested benefits” are the benefits to which the Employees would be entitled if their employment terminated (other than on account of death or Total Disability) as of the date of withdrawal.
		

		
			Withdrawal from the Plan by any Participating Company shall not in any way affect any other Participating Company’s participation in the Plan.
		

		
			ARTICLE X.
		

		
			AMENDMENT OR TERMINATION OF THE PLAN
		

		
			10.1     Right to Amend or Terminate Plan.
		

		
			(a)     The Board reserves the right at any time to amend or terminate the Plan, in whole or in part, and for any reason and without the consent of any Participating Company, Participant or Eligible Spouse. Each Participating Company by its participation in the Plan shall be deemed to have delegated this authority to the Board.
		

		
			(b)     The Committee may adopt any ministerial and nonsubstantive amendment which may be necessary or appropriate to facilitate the administration, management and interpretation of the Plan, provided the amendment does not materially affect the currently estimated cost to the Participating Companies of maintaining the Plan. Each Participating Company by its participation in the Plan shall be deemed to have delegated this authority to the Committee.
		

		
			(c)     If the Plan is terminated, each Participant will become entitled to payment of his accrued and vested benefits if and to the extent permitted under Code Section 409A and the regulations thereunder.  Accordingly, payment of a Participant’s accrued and vested benefits may be made in a lump sum in accordance with one of the following:
		

		
			(i)     the termination of the Plan within twelve (12) months of a corporate dissolution taxed under Code Section 331 or with the approval of a bankruptcy court pursuant to 11 U.S.C. §503(b)(1)(A), as provided in Treasury Regulation Section 1.409A-3(j)(4)(ix)(A); or
		

		
			(ii)    within the thirty (30) days preceding or the twelve (12) months following a Change in Control, provided that all substantially similar arrangements are also terminated, as provided in Treasury Regulations Section 1.409A-3(j)(4)(ix)(B); or
		

		
			(iii)   the termination of the Plan, provided that the termination does not occur proximate to a downturn in the financial health of the Participating Company, if all arrangements that would be aggregated with the Plan under Treasury Regulation Section 1.409A-1(c) are terminated, no payments other than payments that would be payable under the terms of the Plan if the termination had not occurred are made within twelve (12) months of the Plan termination, all payments are made within twenty-four (24) months of the Plan termination, and no new arrangement that would be aggregated with the Plan under Treasury Regulation 
		

		
			
		

		
			

		 

		

			24

		

 

		

		
			Section 1.409A-1(c) is adopted within three (3) years following the Plan termination, as provided in Treasury Regulation Section 1.409A-3(j)(4)(ix)(C); or
		

		
			(iv)   such other events and conditions as the IRS may prescribe in generally applicable published guidance under Code Section 409A.
		

		
			(d)     In no event shall an amendment or termination reduce or otherwise affect benefits accrued and vested as of the date of an amendment or termination. With respect to former Employees, “accrued and vested benefits” are benefits to which the former Employees are entitled as of the date of an amendment or termination. With respect to Employees, “accrued and vested benefits” are the benefits to which the Employees would be entitled if their employment terminated (other than on account of death or Total Disability) as of the date of an amendment or termination.
		

		
			10.2     Notice.  Notice of any amendment or termination of the Plan shall be given by the Board or the Committee, whichever adopts the amendment, to the other and all Participating Companies.
		

		
			ARTICLE XI.
		

		
			GENERAL PROVISIONS AND LIMITATIONS
		

		
			11.1     No Right to Continued Employment.  Nothing contained in the Plan shall give any Employee the right to be retained in the employment of the Participating Company or Affiliate or affect the right of any such employer to dismiss any Employee.  The adoption and maintenance of the Plan shall not constitute a contract between the Company or any Participating Company and Employee or consideration for, or an inducement to or condition of, the employment of any Employee.
		

		
			11.2     Payment on Behalf of Payee.  If the Committee shall find that any person to whom any amount is payable under the Plan is unable to care for such person’s affairs because of illness or accident, or is a minor, or has died, then any payment due such person or such person’s estate (unless a prior claim therefor has been made by a duly appointed legal representative) may, if the Committee so elects, be paid to such person’s spouse, a child, a relative, an institution maintaining or having custody of such person, or any other person deemed by the Committee to be a proper recipient on behalf of such person otherwise entitled to payment. Any such payment shall be a complete discharge of the liability of the Plan and the Company therefor.
		

		
			11.3     Nonalienation.  No interest, expectancy, benefit, payment, claim or right of any Participant or Eligible Spouse under the Plan shall be (i) subject in any manner to any claims of any creditor of the Participant or Eligible Spouse, (ii) subject to the debts, contracts, liabilities or torts of the Participant or Eligible Spouse or (iii) subject to alienation by anticipation, sale, transfer, assignment, bankruptcy, pledge, attachment, charge or encumbrance of any kind. If any person shall attempt to take any action contrary to this Section, such action shall be null and void and of no effect, and the Committee and the Company shall disregard such action and shall not in any manner be bound thereby and shall suffer no liability on account of its disregard thereof. If the Participant, Eligible Spouse or any other beneficiary hereunder shall become bankrupt, or attempt to anticipate, alienate, sell, assign, pledge, encumber, or charge any right hereunder, then such right or benefit 
		

		
			

		 

		

			25

		

 

		

		
			
		

		
			

		 

		

			26

		

 

		

		
			shall, in the discretion of the Committee, cease and terminate, and in such event, the Committee may hold or apply the same or any part thereof for the benefit of the Participant, Eligible Spouse or the children, or other dependents of the Participant or Eligible Spouse, or any of them, in such manner and in such amounts and proportions as the Committee may deem proper.
		

		
			11.4     Missing Payee.  If the Committee cannot ascertain the whereabouts of any person to whom a payment is due under the Plan, and if, after five years from the date such payment is due, a notice of such payment due is mailed to the last known address of such person, as shown on the records of the Committee or the Company, and within three months after such mailing such person has not made written claim therefor, the Committee, if it so elects, after receiving advice from counsel to the Plan, may direct that such payment and all remaining payments otherwise due to such person be cancelled on the records of the Plan and the amount thereof forfeited, and upon such cancellation, the Company shall have no further liability therefor, except that, in the event such person later notifies the Committee of such person’s whereabouts and requests the payment or payments due to such person under the Plan, the amounts otherwise due but unpaid shall be paid to such person without interest for late payment.
		

		
			11.5     Required Information.  Each Participant shall file with the Committee such pertinent information concerning himself or herself, such Participant’s Eligible Spouse, or such other person as the Committee may specify, and no Participant, Eligible Spouse, or other person shall have any rights or be entitled to any benefits under the Plan unless such information is filed by or with respect to the Participant.
		

		
			11.6     No Trust or Funding Created.  The obligations of the Company to make payments hereunder shall constitute a liability of the Company to a Participant or Eligible Spouse, as the case may be. Such payments shall be made from the general funds of the Company, and the Company shall not be required to establish or maintain any special or separate fund, or purchase or acquire life insurance on a Participant’s life, or otherwise to segregate assets to assure that such payment shall be made, and neither a Participant nor an Eligible Spouse shall have any interest in any particular asset of the Company by reason of obligations hereunder. Nothing contained in the Plan shall create or be construed as creating a trust of any kind or any other fiduciary relationship between the Company and a Participant or any other person. The rights and claims of a Participant or an Eligible Spouse to a benefit provided hereunder shall have no greater or higher status than the rights and claims of any other general, unsecured creditor of the Company.
		

		
			11.7     Binding Effect.  Obligations incurred by the Company pursuant to this Plan shall be binding upon and inure to the benefit of the Company, its successors and assigns, and the Participant and the Participant’s Eligible Spouse.
		

		
			11.8     Merger or Consolidation.  In the event of a merger or a consolidation by the Company with another corporation, or the acquisition of substantially all of the assets or outstanding stock of the Company by another corporation, then and in such event the obligations and responsibilities of the Company under this Plan shall be assumed by any such successor or acquiring corporation, and all of the rights, privileges and benefits of the Participants and Eligible Spouses hereunder shall continue.
		

		
			
		

		
			

		 

		

			27

		

 

		

		
			11.9     Mandatory Cash-Out.  Notwithstanding any provision herein to the contrary, a Participant’s benefit under the Plan shall be paid in a mandatory lump sum payment if, at the time the Participant’s benefit is scheduled to be paid or commences to be paid, the payment is not greater than the applicable dollar amount under Code Section 402(g)(1)(B) (for 2007 - $15,500) and the payment results in the termination and liquidation of the Participant’s interest under the Plan, including all agreements, programs or other arrangements with respect to which deferrals of compensation are treated as having been deferred under a single nonqualified deferred compensation plan under Treasury Regulation Section 1.409A-1(c)(2).
		

		
			11.10   Acceleration of Payment.  The time or schedule of payment of a benefit under the Plan may be accelerated upon such events and conditions as the IRS may permit in generally applicable published regulatory or other guidance under Code Section 409A, including, without limitation, payment to a person other than the Participant to the extent necessary to fulfill the terms of a domestic relations order (as defined in Code Section 414(p)(1)(B)), payment of FICA tax and income tax on wages imposed on any amounts under this Plan, or payment of the amount required to be included in income for the Participant as a result of failure of the Plan to meet the requirements of Code Section 409A with respect to the Participant.
		

		
			11.11   Delay of Payment.  The Committee may delay payment of a benefit under the Plan upon such events and conditions as the IRS may permit in generally applicable published regulatory or other guidance under Code Section 409A, including, without limitation, payments that the Committee reasonably anticipates will be subject to the application of Code Section 162(m), or will violate Federal securities laws or other applicable law.
		

		
			11.12   Participant’s Right to Change Payment Elections by December 31, 2007.  At any time on or before December 31, 2007, a Participant has the right to make new payment elections with respect to the timing of benefits payable under the Plan, and any such election will not be treated as a change in the timing of a payment under Code Section 409A(a)(4) or an acceleration of a payment under Code Section 409A(a)(3), provided that this Section and any related election applies only to amounts that would not otherwise be payable during the year in which such election is made and does not cause an amount to be paid in the year of election that would not otherwise be payable in such year.
		

		
			11.13   Entire Plan.  This document and any written amendments hereto contain all the terms and provisions of the Plan and shall constitute the entire Plan, any other alleged terms or provisions being of no effect.
		

		
			IN WITNESS WHEREOF, the Company has caused this Plan to be executed this 19th day of December, 2016, effective as of January 1, 2016.
		

			
					
						 

					
					
						HARRIS TEETER SUPERMARKETS, INC.

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Christine S. Wheatley

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Its:

					
					
						Vice President and Secretary

				

		
			 
		

		 

		

			28kr_Ex10_17

		
			Exhibit 10.17
		

		
			 
		

		
			HARRIS TEETER SUPERMARKETS, INC. FLEXIBLE DEFERRAL PLAN
		

		
			______________________________
		

		
			Text of Plan
		

		
			Amendment and Restatement Effective January 1, 2016
		

		
			______________________________
		

		
			HARRIS TEETER SUPERMARKETS, INC.
		

		
			701 Crestdale Road
		

		
			Matthews, North Carolina 28105
		

		
			 
		

		
			 
		

		
			

		 

 

		

		
			HARRIS TEETER SUPERMARKETS, INC. FLEXIBLE DEFERRAL PLAN
		

		
			Effective as of the 1st day of January, 2005, Ruddick Corporation (now known as Harris Teeter Supermarkets, Inc.), a corporation duly organized and existing under the laws of the State of North Carolina (the “Controlling Company”), adopted the amended and restated Ruddick Corporation Flexible Deferral Plan (now known as the Harris Teeter Supermarkets, Inc. Flexible Deferral Plan) (“Plan”).  The restated Plan was intended to comply with the requirements of Section 409A of the Internal Revenue Code (“Code”) and the regulations and other guidance issued thereunder, as in effect from time to time.  The restated Plan also included certain Code Section 409A transitional amendments that were previously approved consistent with the requirements of IRS Notice 2005-1, Q&A-19(c) and Q&A-20 and subsequent guidance.  To the extent a provision of the Plan is contrary to or fails to address the requirements of Code Section 409A or related treasury regulations, the Plan shall be construed and administered as necessary to comply with such requirements to the extent allowed under applicable treasury regulations until the Plan is appropriately amended to comply with such requirements.  The benefits provided under the Plan that are subject to Code Section 409A include benefits earned and vested prior to January 1, 2005.
		

		
			The Plan also reflects amendments effective October 1, 2005, that provide for the restoration to Participants of the automatic retirement contributions such Participants would have received under the Harris Teeter Supermarkets, Inc. Retirement and Savings Plan (f/k/a the Ruddick Savings Plan) if not for certain exclusions from and limitations on compensation applicable under the terms of the Harris Teeter Supermarkets, Inc. Retirement and Savings Plan, and that make changes to the Make-Up ESOP and Make-Up Pension Contribution formulas under the Plan to coordinate such contributions with amendments made to the underlying qualified plans effective October 1, 2005.
		

		
			The Plan was amended and restated effective July 1, 2009 to provide nonemployee members of the Board of Directors of the Controlling Company that participate in the Plan (“Nonemployee Directors”) with the opportunity to defer payment of any portion of each of (i) the annual retainer fee and such annual retainer fee as may be payable to a committee chairperson and/or (ii) the regularly-scheduled or duly-called Board of Directors meetings fees and any regularly-scheduled or duly-called committee meeting fees (“Director Fees”) payable during each Plan Year with respect to fees earned during Plan Years beginning on or after January 1, 2010.  Participants may not elect to defer Director Fees under the Plan for Plan Years beginning on and after January 1, 2011.  
		

		
			This restatement effective as of January 1, 2016 amends the Plan to incorporate amendments to the prior restatement, to permit certain employees of The Kroger Company to receive Make-Up Pension Contributions under the Plan and reflect other desired revisions.
		

		
			BACKGROUND AND PURPOSE
		

		
			A.        Goal.  The Controlling Company desires to provide its designated key management employees (and those of its affiliated and related companies that participate in the Plan) with an opportunity (i) to defer the receipt and income taxation of a portion of such employees’ annual base salary and incentive compensation; (ii) to provide such employees with 
		

		
			

		 

 

matching contributions with respect to a portion of such deferrals; (iii) to restore the employer contributions that such employees would have been credited with under the Ruddick Employee Stock Ownership Plan if not for certain exclusions from compensation applicable under the terms of such plan; (iv) to restore the retirement income that such employees would have accrued under the Harris Teeter Supermarkets, Inc. Employees’ Pension Plan if not for certain exclusions from compensation applicable under the terms of such plan; and (v) to restore the automatic retirement contributions that certain employees would have been credited with under the Harris Teeter Supermarkets, Inc. Retirement and Savings Plan if not for certain exclusions from, and limitations on, compensation applicable under the terms of such plan.
		

		
			B.        Purpose.  The purpose of the Plan document is to set forth the terms and conditions pursuant to which these deferrals and contributions may be made and to describe the nature and extent of the employees’ and Nonemployee Directors’ rights to such amounts.
		

		
			C.        Type of Plan.  The Plan constitutes an unfunded, nonqualified deferred compensation plan that benefits certain designated employees and Nonemployee Directors who are within a select group of key management or highly compensated employees.
		

		
			STATEMENT OF AGREEMENT
		

		
			To adopt the Plan described above with the purposes and goals as hereinabove described, the Controlling Company hereby sets forth the terms and provisions of the Plan as follows:
		

		
			 
		

		
			

		 

		

			 

		

 

		

		
			HARRIS TEETER SUPERMARKETS, INC. FLEXIBLE DEFERRAL PLAN
		

		
			TABLE OF CONTENTS
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Page

				
	
					
						 

					
					
						 

				
	
					
						ARTICLE I DEFINITIONS

					
1 
				
	
					
						1.1

					
					
						Account

					
1 
				
	
					
						1.2

					
					
						Active Participant

					
1 
				
	
					
						1.3

					
					
						Adjusted ARC Compensation

					
1 
				
	
					
						1.4

					
					
						Adjusted ESOP Compensation

					
1 
				
	
					
						1.5

					
					
						Adjusted Pension Compensation

					
1 
				
	
					
						1.6

					
					
						Administrative Committee

					
1 
				
	
					
						1.7

					
					
						Affiliate

					
2 
				
	
					
						1.8

					
					
						Base Salary

					
2 
				
	
					
						1.9

					
					
						Base Salary Deferral Contributions

					
2 
				
	
					
						1.10

					
					
						Base Salary Election

					
2 
				
	
					
						1.11

					
					
						Beneficiary

					
2 
				
	
					
						1.12

					
					
						Board

					
3 
				
	
					
						1.13

					
					
						Change in Control

					
3 
				
	
					
						1.14

					
					
						Code

					
4 
				
	
					
						1.15

					
					
						Compensation

					
4 
				
	
					
						1.16

					
					
						Controlling Company

					
4 
				
	
					
						1.17

					
					
						Deferral Contributions

					
4 
				
	
					
						1.18

					
					
						Director Fees

					
4 
				
	
					
						1.19

					
					
						Director Fees Election

					
4 
				
	
					
						1.20

					
					
						Disability or Disabled

					
5 
				
	
					
						1.21

					
					
						Early Retirement

					
5 
				
	
					
						1.22

					
					
						Effective Date

					
5 
				
	
					
						1.23

					
					
						Eligible Employee

					
5 
				
	
					
						1.24

					
					
						ERISA

					
6 
				
	
					
						1.25

					
					
						Fiscal Year

					
6 
				
	
					
						1.26

					
					
						Harris Teeter Supermarkets, Inc. Employees’ Pension Plan

					
6 
				
	
					
						1.27

					
					
						Harris Teeter Supermarkets, Inc. Retirement and Savings Plan

					
6 
				
	
					
						1.28

					
					
						In-Service Subaccount

					
6 
				
	
					
						1.29

					
					
						In-Service Distribution Date

					
6 
				
	
					
						1.30

					
					
						Incentive Compensation Payment

					
6 
				
	
					
						1.31

					
					
						Incentive Compensation Payment Election

					
6 
				
	
					
						1.32

					
					
						Investment Election

					
6 
				
	
					
						1.33

					
					
						Investment Funds

					
6 
				
	
					
						1.34

					
					
						Make-Up ARC Contribution

					
7 
				
	
					
						1.35

					
					
						Make-Up ESOP Contribution

					
7 
				
	
					
						1.36

					
					
						Make-Up Pension Contribution

					
7 
				
	
					
						1.37

					
					
						Matching Contributions

					
7 
				
	
					
						1.38

					
					
						Nonemployee Director

					
7 
				
	
					
						1.39

					
					
						Nonemployee Director Separation From Service Subaccount

					
7 
				

		
			 
		

		
			
		

		
			

		 

		

			i

		

 

		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						1.40

					
					
						Normal Retirement

					
7 
				
	
					
						1.41

					
					
						Normal Retirement Age

					
7 
				
	
					
						1.42

					
					
						Participant

					
7 
				
	
					
						1.43

					
					
						Participating Company

					
7 
				
	
					
						1.44

					
					
						Plan

					
7 
				
	
					
						1.45

					
					
						Plan Year

					
7 
				
	
					
						1.46

					
					
						Retirement Age

					
8 
				
	
					
						1.47

					
					
						Retirement Subaccount

					
8 
				
	
					
						1.48

					
					
						Ruddick ESOP

					
8 
				
	
					
						1.49

					
					
						Separation From Service

					
8 
				
	
					
						1.50

					
					
						Surviving Spouse

					
9 
				
	
					
						1.51

					
					
						Trust or Trust Agreement

					
9 
				
	
					
						1.52

					
					
						Trust Fund

					
9 
				
	
					
						1.53

					
					
						Trustee

					
9 
				
	
					
						1.54

					
					
						Unforeseeable Emergency

					
9 
				
	
					
						1.55

					
					
						Valuation Date

					
9 
				
	
					
						1.56

					
					
						Years of Employment

					
9 
				
	
					
						ARTICLE II ELIGIBILITY AND PARTICIPATION

					
10 
				
	
					
						2.1

					
					
						Initial Eligibility Requirements

					
10 
				
	
					
						2.2

					
					
						Procedure for Admission

					
10 
				
	
					
						2.3

					
					
						Cessation of Eligibility

					
11 
				
	
					
						ARTICLE III PARTICIPANTS’ ACCOUNTS; DEFERRALS AND CREDITING

					
11 
				
	
					
						3.1

					
					
						Participants’ Accounts

					
11 
				
	
					
						3.2

					
					
						Deferral Contributions

					
12 
				
	
					
						3.3

					
					
						Procedure for Elections

					
13 
				
	
					
						3.4

					
					
						Crediting of Deferral Contributions

					
15 
				
	
					
						3.5

					
					
						Matching Contributions

					
16 
				
	
					
						3.6

					
					
						Make-Up ESOP Contributions

					
17 
				
	
					
						3.7

					
					
						Make-Up ARC Contributions

					
18 
				
	
					
						3.8

					
					
						Make-Up Pension Contributions

					
18 
				
	
					
						3.9

					
					
						Debiting of Distributions

					
20 
				
	
					
						3.10

					
					
						Crediting of Earnings

					
20 
				
	
					
						3.11

					
					
						Value of Account

					
21 
				
	
					
						3.12

					
					
						Vesting

					
21 
				
	
					
						3.13

					
					
						Notice to Participants of Account Balances

					
22 
				
	
					
						3.14

					
					
						Good Faith Valuation Binding

					
22 
				
	
					
						3.15

					
					
						Errors and Omissions in Accounts

					
22 
				
	
					
						ARTICLE IV INVESTMENT FUNDS

					
22 
				
	
					
						4.1

					
					
						Selection by Administrative Committee

					
22 
				
	
					
						4.2

					
					
						Participant Direction of Deemed Investments

					
23 
				

		
			 
		

		
			
		

		
			

		 

		

			ii

		

 

		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE V PAYMENT OF ACCOUNT BALANCES

					
24 
				
	
					
						5.1

					
					
						Distributions Subaccounts

					
24 
				
	
					
						5.2

					
					
						Retirement Subaccount or Nonemployee Director Separation From Service Subaccount

					
24 
				
	
					
						5.3

					
					
						In-Service Subaccounts

					
27 
				
	
					
						5.4

					
					
						Disability Benefits

					
29 
				
	
					
						5.5

					
					
						Death Benefits

					
30 
				
	
					
						5.6

					
					
						Change in Control

					
30 
				
	
					
						5.7

					
					
						Mandatory Cash-Out

					
31 
				
	
					
						5.8

					
					
						Form of Assets

					
31 
				
	
					
						5.9

					
					
						Withdrawals for Unforeseeable Emergency

					
31 
				
	
					
						5.10

					
					
						Beneficiary Designation

					
31 
				
	
					
						5.11

					
					
						Offset for Obligations to the Company

					
32 
				
	
					
						5.12

					
					
						Taxes

					
32 
				
	
					
						5.13

					
					
						Acceleration of Payment

					
33 
				
	
					
						5.14

					
					
						Delay of Payment

					
33 
				
	
					
						5.15

					
					
						Participant’s Right to Cancel Deferrals or Terminate Participation in Plan by December 31, 2005

					
33 
				
	
					
						5.16

					
					
						Participant’s Right to Change Payment Elections by November 30, 2008

					
33 
				
	
					
						ARTICLE VI CLAIMS

					
33 
				
	
					
						6.1

					
					
						Presentation of Claims

					
33 
				
	
					
						6.2

					
					
						Claims Procedure

					
34 
				
	
					
						6.3

					
					
						Review Procedure

					
34 
				
	
					
						6.4

					
					
						Special Procedures Applicable to Disability Benefits

					
34 
				
	
					
						6.5

					
					
						Legal Action

					
35 
				
	
					
						6.6

					
					
						Satisfaction of Claims

					
35 
				
	
					
						ARTICLE VII SOURCE OF FUNDS; TRUST

					
35 
				
	
					
						7.1

					
					
						Source of Funds

					
35 
				
	
					
						7.2

					
					
						Trust

					
36 
				
	
					
						ARTICLE VIII ADMINISTRATIVE COMMITTEE

					
37 
				
	
					
						8.1

					
					
						Appointment of Administrative Committee

					
37 
				
	
					
						8.2

					
					
						Administration Generally

					
37 
				
	
					
						8.3

					
					
						Organization of Administrative Committee

					
37 
				
	
					
						8.4

					
					
						Powers and Responsibility of Administrative Committee

					
37 
				
	
					
						8.5

					
					
						Records of Committee

					
38 
				
	
					
						8.6

					
					
						Construction of the Plan

					
39 
				
	
					
						8.7

					
					
						Direction of Trustee

					
39 
				
	
					
						8.8

					
					
						Indemnification

					
39 
				
	
					
						ARTICLE IX AMENDMENT AND TERMINATION

					
39 
				
	
					
						9.1

					
					
						Amendments

					
39 
				
	
					
						9.2

					
					
						Termination of Plan

					
40 
				
	
					
						9.3

					
					
						Authorization and Delegation to the Administrative Committee and Controlling Company

					
41 
				

		
			 
		

		
			
		

		
			

		 

		

			iii

		

 

		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE X MISCELLANEOUS

					
41 
				
	
					
						10.1

					
					
						Taxation

					
41 
				
	
					
						10.2

					
					
						No Employment Contract

					
41 
				
	
					
						10.3

					
					
						Headings

					
41 
				
	
					
						10.4

					
					
						Gender and Number

					
42 
				
	
					
						10.5

					
					
						Assignment of Benefits

					
42 
				
	
					
						10.6

					
					
						Legally Incompetent

					
42 
				
	
					
						10.7

					
					
						Governing Law

					
42 
				
	
					
						10.8

					
					
						Exclusive Benefit

					
42 
				

		
			 
		

		
			 
		

		
			

		 

		

			iv

		

 

		

		
			ARTICLE I
		

		
			DEFINITIONS
		

		
			For purposes of the Plan, the following terms, when used with an initial capital letter, will have the meaning set forth below unless a different meaning plainly is required by the context.
		

		
			1.1       Account: means, with respect to a Participant or Beneficiary, the total dollar amount or value evidenced by the last balance posted and actually credited in accordance with the terms of the Plan to the account record established for such Participant or Beneficiary.  The Administrative Committee, as required by the terms of the Plan and otherwise as it deems necessary or desirable in its sole discretion, may establish and maintain separate subaccounts for each Participant and Beneficiary.  “Account” shall refer to the aggregate of all separate subaccounts or to individual, separate subaccounts, as may be appropriate in context.
		

		
			1.2       Active Participant: means any Eligible Employee or Nonemployee Director who has become a Participant and who has not been removed from active participation as described in Section 2.3.
		

		
			1.3       Adjusted ARC Compensation: means a Participant’s compensation as defined under the Harris Teeter Supermarkets, Inc. Retirement and Savings Plan for purposes of automatic retirement contributions, but determined without excluding (i) any Deferral Contributions that the Participant elects to make under the Plan (the “FDP Deferral Component”) or (ii) any amounts disregarded by the Harris Teeter Supermarkets, Inc. Retirement and Savings Plan due to the limitations under Code Section 401(a)(17), such Section 401(a)(17) amount to be limited to $52,500 for the period from October 1, 2005 to December 31, 2005 (the “Excess Considered Pay Component”).  Notwithstanding the foregoing, Adjusted ARC Compensation shall not include any bonus paid under a bonus plan that by its terms excludes such bonus from consideration as compensation under the Plan or that the Administrative Committee designates as excluded for such purpose, such as a bonus paid under the 2013 Harris Teeter Merger Cash Bonus Plan and certain long-term cash bonus plans sponsored by The Kroger Co.
		

		
			1.4       Adjusted ESOP Compensation: means a Participant’s compensation as defined under the Ruddick ESOP for employer contribution purposes, but determined without excluding (i) any Deferral Contributions that the Participant elects to make under the Plan or (ii) any amounts disregarded by the Ruddick ESOP due to the limitations under Code Section 401(a)(17).
		

		
			1.5       Adjusted Pension Compensation: means a Participant’s compensation as defined under the Harris Teeter Supermarkets, Inc. Employees’ Pension Plan for benefit accrual purposes, but determined without excluding (i) any Deferral Contributions that the Participant elects to make under the Plan or (ii) for an Eligible Employee who is an employee of The Kroger Co., any deferrals of compensation to any nonqualified plan of deferred compensation sponsored by The Kroger Co.  
		

		
			1.6       Administrative Committee: means the committee appointed by the Board to act on behalf of the Controlling Company in administering the Plan, as provided in Article VIII.
		

		
			 
		

		
			

		 

		

			 

		

 

		

		
			1.7       Affiliate: means any corporation or other entity that is required to be aggregated with the Controlling Company under Code Sections 414(b) or (c), provided that the language “at least 50 percent” is used instead of “at least 80 percent” each place it appears in applying Code Sections 1563(a)(1), (2) and (3) for purposes of determining a controlled group of corporations under Code Section 414(b) and in applying Treasury Regulation Section 1.414(c)-2 for purposes of determining trades or businesses under common control under Code Section 414(c).
		

		
			1.8       Base Salary: means, with respect to a Participant for a calendar year, the total of the amounts described in subsections (1), (2) and (3), minus the amounts described in subsections (4), (5), (6) and (7) as follows:
		

		
			(1)        all cash remuneration actually paid by a Participating Company to the Participant as reported or reportable on IRS Form W-2 for federal income tax purposes (or similar form required for such purpose); plus
		

		
			(2)        to the extent not included in subsection (1) hereof, any elective deferral (as defined in Code Section 402(g)(3)) made to any Code Section 401(k) plan of a Participating Company, and any amount which is contributed or deferred by a Participating Company at the election of the Participant and which is not included in the gross income of the Participant by reason of Code Section 125, 132(f)(4) or 457; plus
		

		
			(3)        to the extent not included in subsection (1) hereof, all Base Salary Deferral Contributions made under the Plan; minus
		

		
			(4)        all amounts in subsection (1) that consist of Incentive Compensation Payments; minus
		

		
			(5)        all amounts in subsection (1) that consist of payments made from the Plan; minus
		

		
			(6)        all amounts in subsection (1) that consist of expense reimbursements or bonuses paid in connection with relocation or amounts paid pursuant to a stock option or other equity based incentive award or dividends paid on restricted stock prior to vesting that are otherwise reportable as wages; minus
		

		
			(7)        unless otherwise specified by the Controlling Company, all amounts included in subsections (1), (2), or (3), that consist of any amounts paid or made available to a Participant during the Plan Year while he is not an Active Participant.
		

		
			1.9       Base Salary Deferral Contributions: means, for each Plan Year, the portion of a Participant’s Deferral Contributions attributable to his Base Salary Election for such Plan Year.
		

		
			1.10     Base Salary Election: means a written, electronic or other form of election pursuant to which a Participant may elect to defer under the Plan a portion of his Base Salary.
		

		
			1.11     Beneficiary: means, with respect to a Participant, the person(s) designated or identified in accordance with Section 5.10 to receive any death benefits that may be payable under the Plan upon the death of the Participant.
		

		
			

		 

		

			2

		

 

1.12     Board: means the Board of Directors of the Controlling Company or any committee or committees of the Board of Directors of the Controlling Company to which, and to the extent, the Controlling Company’s Board of Directors has delegated some or all of its power, authority or duties or responsibilities with respect to the Plan.  A reference to the board of directors of any other Participating Company will specify it as such.
		

		
			1.13     Change in Control: means, with respect to a Participant, a “change in ownership,” a “change in effective control,” or a “change in the ownership of substantial assets” of a corporation as described in Treasury Regulations Section 1.409A-3(i)(5) (which events are collectively referred to herein as “Change in Control events”).  Notwithstanding any provision herein to the contrary, to qualify as a Change in Control, the occurrence of the Change in Control event must be objectively determinable and any requirement that any person, such as the Administrative Committee, certify the occurrence of a Change in Control event must be strictly ministerial and not involve any discretionary authority.  To constitute a Change in Control with respect to a Participant, the Change in Control event must relate to (i) the corporation for which the Participant is performing services at the time of the Change in Control; (ii) the corporation that is liable for the payment of the deferred compensation; or (iii) a corporation that is a majority shareholder of a corporation identified in subparagraph (i) or (ii) above, or any corporation in a chain of corporations in which each corporation is a majority shareholder of another corporation in the chain, ending in a corporation identified in subparagraph (i) or (ii) above.
		

		
			(a)       A “change in ownership” of a corporation occurs on the date that any one person, or more than one person acting as a group, acquires ownership of stock of the corporation that, together with stock held by such person or group, constitutes more than 50 percent of the total fair market value or total voting power of the stock of such corporation.  However, if any one person, or more than one person acting as a group, is considered to own more than 50 percent of the total fair market value or total voting power of the stock of a corporation, the acquisition of additional stock by the same person or persons is not considered to cause a change in ownership of the corporation (or to cause a change in the effective control of the corporation (within the meaning of paragraph (b) below)).
		

		
			(b)       Notwithstanding that a corporation has not undergone a change in ownership under paragraph (a) above, a “change in effective control” of a corporation occurs on the date that either:
		

		
			(i)        Any one person, or more than one person acting as a group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) ownership of stock of the corporation possessing 30 percent or more of the total voting power of the stock of such corporation; or
		

		
			(ii)       A majority of members of the corporation’s board of directors is replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority of the members of the corporation’s board of directors prior to the date of the appointment or election.
		

		
			

		 

		

			3

		

 

For purposes of this paragraph (b), the term corporation refers solely to the relevant corporation identified in the opening paragraph of this Section 1.13 for which no other corporation is a majority shareholder.
		

		
			(c)        A “change in the ownership of substantial assets” of a corporation occurs on the date that any one person, or more than one person acting as a group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) assets from the corporation that have a total gross fair market value equal to or more than 40 percent of the total gross fair market value of all of the assets of the corporation immediately prior to such acquisition or acquisitions.  For this purpose, gross fair market value means the value of the assets of the corporation, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets.
		

		
			1.14     Code: means the Internal Revenue Code of 1986, as amended, and, where the context requires, includes a reference to any proposed or final treasury regulations or similar guidance issued thereunder, as amended from time to time.
		

		
			1.15     Compensation: means the sum of a Participant’s Base Salary and Incentive Compensation Payments.  Compensation includes amounts paid by a Participating Company in cash under the 2013 Harris Teeter Merger Cash Bonus Plan and certain long-term cash bonus plans sponsored by The Kroger Co. to the extent determined by the Administrative Committee, but only for purposes of Deferral Contributions under Section 3.2 and not for purposes of Matching Contributions under Section 3.5 or any make-up contributions under Section 3.7 or Section 3.8.  
		

		
			1.16     Controlling Company: means Harris Teeter Supermarkets, Inc. (f/k/a Ruddick Corporation), a North Carolina corporation with its principal place of business in Charlotte, North Carolina.
		

		
			1.17     Deferral Contributions: means, for each Plan Year, that portion of a Participant’s Compensation or Director Fees deferred under the Plan pursuant to Section 3.2; provided that Participants may not elect to defer Director Fees under the Plan for Plan Years beginning on and after January 1, 2011.
		

		
			1.18     Director Fees: means, with respect to fees earned during Plan Years beginning on or after January 1, 2010 payable to a Nonemployee Director under the Controlling Company’s compensation policies for directors in effect from time to time: (i) the annual retainer fee and such additional annual retainer fee as may be payable to a committee chairperson, and (ii) any regularly-scheduled or duly-called Board of Directors meeting fees and any regularly-scheduled or duly-called committee meeting fees.  Notwithstanding any other provisions of the Plan to the contrary, Participants may not elect to defer Director Fees under the Plan for Plan Years beginning on and after January 1, 2011.
		

		
			1.19     Director Fees Election: means a written, electronic or other form of election pursuant to which a Participant may elect to defer under the Plan his Director Fees.
		

		
			

		 

		

			4

		

 

Notwithstanding any other provisions of the Plan to the contrary, Participants may not elect to defer Director Fees under the Plan for Plan Years beginning on and after January 1, 2011.
		

		
			1.20     Disability or Disabled: means any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months which results in (i) the Participant being unable to engage in any substantial gainful activity or (ii) the Participant receiving income replacement benefits for a period of not less than 3 months under an accident and health plan covering employees of the Participating Company or an Affiliate which employs the Participant.  In addition, the Participant will be deemed Disabled if determined to be totally disabled by the Social Security Administration.  In the event that a Participant is not determined to be Disabled by the Social Security Administration as provided in the preceding sentence, the Administrative Committee, in its sole discretion, shall determine whether such Participant has suffered a Disability or is Disabled.  In making such determination, the Administrative Committee shall apply the definitions and criteria set forth in the first sentence of this Section and, if consistent with such criteria, may require such medical proof as it deems necessary, including the certificate of one or more licensed physicians selected by the Administrative Committee; the decision of the Administrative Committee as to Disability shall be final and binding.
		

		
			1.21     Early Retirement: means Separation From Service, other than an account of death, after attaining age 55 (but prior to obtaining Normal Retirement Age) and completing ten (10) Years of Employment.
		

		
			1.22     Effective Date: means January 1, 2016, the date as of which this amended and restated Plan is effective.
		

		
			1.23     Eligible Employee: means, for Plan Years beginning on or after January 1, 2007, an employee of a Participating Company (i) who is eligible to receive Incentive Compensation Payments and (ii) (A) who is included in a select group of management employees as provided in ERISA Sections 201(2), 301(a)(3), and 401(a)(1); or (B) who has an annualized Base Salary excluding commission compensation that equals or exceeds the amount described in Code Section 414(q)(1)(B)(i) in effect for the Plan Year preceding the Plan Year of eligibility (i.e., $120,000 for the 2016 Calendar Year).  The Administrative Committee may establish procedures for determining an employee’s annualized Base Salary for a Plan Year, which procedures may include projecting Base Salary as of a date prior to the beginning of the enrollment period for a Plan Year to the end of such Plan Year.
		

		
			Effective as of January 1, 2016, solely for purposes of Make-Up Pension Contributions (and not for purposes of eligibility to make Deferral Contributions or to receive Make-Up ARC Contributions or Matching Contributions) “Eligible Employee” includes an employee of The Kroger Co. who (i) continues to earn benefit accruals under the Harris Teeter Supermarkets, Inc. Employees’ Pension Plan for compensation and years of service with The Kroger Co. and (ii) (A) who is included in a select group of management employees as provided in ERISA Sections 201(2), 301(a)(3), and 401(a)(1); or (B) who has an annualized Base Salary (including amounts paid by The Kroger Co.) excluding commission compensation that equals or exceeds the amount described in Code Section 414(q)(1)(B)(i) in effect for the Plan Year preceding the Plan Year of eligibility (i.e., $120,000 for the 2016 Calendar Year).  Nothing in this paragraph shall limit an 
		

		
			

		 

		

			5

		

 

Eligible Employee who becomes an employee of The Kroger Co. from receiving any Make-Up ARC Contribution or Matching Contribution due to the employee under the terms of the Plan in the year of transition to The Kroger Co.
		

		
			1.24     ERISA: means the Employee Retirement Income Security Act of 1974, as amended.
		

		
			1.25     Fiscal Year: means effective as of January 28, 2014, the consecutive 52 or 53 week period ending on the Tuesday following the Saturday closest to January 31 each year.  The Controlling Company experienced a short fiscal year for the period October 1, 2013 through February 4, 2014. 
		

		
			1.26     Harris Teeter Supermarkets, Inc. Employees’ Pension Plan: means the Harris Teeter Supermarkets, Inc. Employees’ Pension Plan (f/k/a the Ruddick Corporation Employees’ Pension Plan).
		

		
			1.27     Harris Teeter Supermarkets, Inc. Retirement and Savings Plan: means the Harris Teeter Supermarkets, Inc. Retirement and Savings Plan (f/k/a the Ruddick Retirement and Savings Plan).
		

		
			1.28     In-Service Subaccount: means, for purposes of distribution, the portion of a Participant’s Account which is distributable in accordance with the terms of Section 5.3.
		

		
			1.29     In-Service Distribution Date: means that date elected by a Participant in accordance with Section 5.3.
		

		
			1.30     Incentive Compensation Payment: means the amount payable to a Participant under an incentive compensation plan sponsored by a Participating Company or an Affiliate and designated as eligible for deferral under the Plan.  Incentive Compensation Payments will be considered “performance based compensation” for purposes of Code Section 409A and related regulations or similar guidance.  Incentive Compensation Payments include amounts paid by a Participating Company in cash under the 2013 Harris Teeter Merger Cash Bonus Plan and certain long-term cash bonus plans sponsored by The Kroger Co. as determined by the Administrative Committee, but only for purposes of Deferral Contributions under Section 3.2 and not for purposes of Matching Contributions under Section 3.5 or any make-up contributions under Section 3.7 or Section 3.8.  
		

		
			1.31     Incentive Compensation Payment Election: means a written, electronic or other form of election pursuant to which a Participant may elect to defer under the Plan all or a portion of his Incentive Compensation Payments.
		

		
			1.32     Investment Election: means an election, made in such form as the Administrative Committee may direct, pursuant to which a Participant may elect the Investment Funds in which the amounts credited to his Account will be deemed to be invested.
		

		
			1.33     Investment Funds: means the investment funds selected from time to time by the Administrative Committee for purposes of determining the rate of return on amounts deemed invested pursuant to the terms of the Plan.
		

		
			
		

		
			

		 

		

			6

		

 

		

		
			1.34     Make-Up ARC Contribution: means the amount credited to a Participant’s Account pursuant to Section 3.7 on and after October 1, 2005.
		

		
			1.35     Make-Up ESOP Contribution: means the amount credited to a Participant’s Account pursuant to Section 3.6.
		

		
			1.36     Make-Up Pension Contribution: means the amount credited to a Participant’s Account pursuant to Section 3.8.
		

		
			1.37     Matching Contributions: mean the amount credited to a Participant’s Account pursuant to Section 3.5.
		

		
			1.38     Nonemployee Director: means an individual who is a member of the Board of Directors of the Controlling Company that participates in the Plan but who is not an employee of the Corporation or any of its Affiliates or subsidiaries (as that term is defined in Code section 424(f)).  For Plan Years beginning on and after January 1, 2011, no Nonemployee Director shall be added as a Participant in the Plan.
		

		
			1.39     Nonemployee Director Separation From Service Subaccount: means, for purposes of distribution, the portion of a Nonemployee Director’s Account which is distributable in accordance with the terms of Section 5.2.
		

		
			1.40     Normal Retirement: means Separation From Service, other than on account of death, on or after the date the Participant attains Normal Retirement Age.
		

		
			1.41     Normal Retirement Age: means age 60.
		

		
			1.42     Participant: means an Eligible Employee or Nonemployee Director who has been admitted to, and has not been removed from, participation in the Plan pursuant to the provisions of Article II.
		

		
			1.43     Participating Company: means, the Controlling Company and its Affiliates that are designated by the Controlling Company on Exhibit A hereto, as participating companies herein.  In addition, any other Affiliate in the future may adopt (or be deemed to have adopted pursuant to this Section) the Plan with the consent of the Controlling Company or its delegate, and such Affiliate’s name will be added to Exhibit A.  Unless the Controlling Company specifies otherwise, any company that adopts the Plan by written resolution of its board of directors or other managing body will be deemed accepted as a Participating Company as of the date specified in such resolution.  The Kroger Co. is not a Participating Company under the Plan. 
		

		
			1.44     Plan: means the Harris Teeter Supermarkets, Inc. Flexible Deferral Plan (f/k/a the Ruddick Corporation Flexible Deferral Plan), as contained herein and all amendments hereto.  For tax purposes and purposes of Title I of ERISA, the Plan is intended to be an unfunded, nonqualified deferred compensation plan covering certain designated employees who are within a select group of key management or highly compensated employees.
		

		
			1.45     Plan Year: means the 12-consecutive-month period ending on December 31 of each year.
		

		
			
		

		
			

		 

		

			7

		

 

		

		
			1.46     Retirement Age: means the earlier of the date on which (i) a Participant has attained age 55 and completed 10 Years of Employment or (ii) a Participant has attained age 60.
		

		
			1.47     Retirement Subaccount: means, for purposes of distribution, the portion of an Eligible Employee’s Account which is distributable in accordance with the terms of Section 5.2.
		

		
			1.48     Ruddick ESOP: means the Ruddick Employee Stock Ownership Plan which was merged into the Ruddick Savings Plan effective January 1, 2008.
		

		
			1.49     Separation From Service: means the cessation of a Nonemployee Director’s membership on the board of directors of the Controlling Company that participate in the Plan or the termination of employment of the Participant with the Participating Company and all of its Affiliates that are considered a single employer within the meaning of Code Sections 414(b) and 414(c), provided that the language “at least 50 percent” is used instead of “at least 80 percent” each place it appears in applying Code Sections 1563(a)(1), (2) and (3) for purposes of determining a controlled group of corporations under Code Section 414(b), and in applying Treasury Regulation Section 1.414(c)-2 for purposes of determining trades or businesses (whether or not incorporated) that are under common control for purposes of Code Section 414(c).  Whether a Separation From Service has occurred is determined based on whether the facts and circumstances indicate that the employer and the Participant reasonably anticipated that no further services would be performed after a certain date or that the level of bona fide services the Participant would perform after such date (whether as an employee or as an independent contractor) would permanently decrease to no more than 20 percent of the average level of bona fide services performed (whether as an employee or an independent contractor) over the immediately preceding 36-month period (or the full period of services to the employer if the Participant has been providing services to the employer less than 36 months).
		

		
			Temporary absences from employment while the Participant is on military leave, sick leave, or other bona fide leave of absence will not be considered a Separation From Service if the period of such leave does not exceed six months, or if longer, so long as the Participant’s right to reemployment with the Participating Company is provided either by statute or by contract.  However, if the period of leave exceeds six months and the Participant’s right to reemployment is not provided either by statute or by contract, a Separation From Service is deemed to occur on the first day immediately following such six-month period.  Notwithstanding the foregoing, where a leave of absence is due to any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than six months, and where such impairment causes the Participant to be unable to perform the duties of his or her position of employment or any substantially similar position of employment, a 29-month period of absence may be substituted for such six-month period.
		

		
			Notwithstanding the foregoing, a Participant who terminates employment with a Participating Company in connection with a store closing in a market containing both Participating Company stores and The Kroger Co. stores shall not have a Separation from Service until the individual remains unemployed by both the Participating Company and Kroger Co., and any Affiliate of either, for at least thirty days.  
		

		
			 
		

		
			
		

		
			

		 

		

			8

		

 

		

		
			1.50     Surviving Spouse: means, with respect to a Participant, the person who is treated as married to such Participant under the laws of the state in which the Participant resides.  The determination of a Participant’s Surviving Spouse will be made as of the date of such Participant’s death.
		

		
			1.51     Trust or Trust Agreement: means the separate agreement or agreements between the Controlling Company and the Trustee governing the Trust Fund, and all amendments thereto.
		

		
			1.52     Trust Fund: means the total amount of cash and other property held by the Trustee (or any nominee thereof) at any time under the Trust Agreement.
		

		
			1.53     Trustee: means the party or parties so designated from time to time pursuant to the terms of the Trust Agreement.
		

		
			1.54     Unforeseeable Emergency: means an unforeseeable emergency, consistent with Code Section 409A and the regulations thereunder, that would result in severe financial hardship to the Participant resulting from (i) an illness or accident of the Participant, or the Participant’s spouse, Beneficiary or dependent (as defined in Code Section 152(a)) of the Participant, (ii) a loss of the Participant’s property due to casualty, or (iii) other such similar, extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant.  The existence of an Unforeseeable Emergency will be determined by the Administrative Committee on the basis of the relevant facts and circumstances of each case, including information supplied by the Participant in accordance with uniform guidelines prescribed from time to time by the Administrative Committee; provided, the Participant will be deemed not to have an Unforeseeable Emergency to the extent that such hardship is or may be relieved:
		

		
			(i)        Through reimbursement or compensation by insurance or otherwise;
		

		
			(ii)       By liquidation of the Participant’s assets, to the extent the liquidation of such assets would not itself cause severe financial hardship; or
		

		
			(iii)      By cessation of Deferral Contributions under the Plan.
		

		
			Examples of what are not considered to be Unforeseeable Emergencies include the need to send a Participant’s child to college or the desire to purchase a home.
		

		
			1.55     Valuation Date: means the first business day of January or July that immediately precedes the date of distribution.
		

		
			1.56     Years of Employment: means, with respect to a Participant, his total number of “Years of Service” as defined and determined under the terms of the Harris Teeter Supermarkets, Inc. Employees’ Pension Plan.  Provided, that, if not taken into account as “Years of Service” under the Harris Teeter Supermarkets, Inc. Employees’ Pension Plan, periods of Disability commencing while such Participant is employed by a Participating Company or an Affiliate also shall be counted under the Plan in determining Years of Employment.
		

		
			
		

		
			

		 

		

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			ARTICLE II
		

		
			ELIGIBILITY AND PARTICIPATION
		

		
			2.1       Initial Eligibility Requirements.
		

		
			(a)       Deferral Contributions.  Each individual who becomes an Eligible Employee or Nonemployee Director will first be eligible to participate in the Plan with respect to Deferral Contributions effective as of the date communicated to the Eligible Employee in writing by the Administrative Committee or its delegate and shall become a Participant upon satisfying the procedures for admission described in Section 2.2 below.  Notwithstanding any other provisions of the Plan to the contrary, Participants may not elect to defer Director Fees under the Plan for Plan Years beginning on and after January 1, 2011.  Employees of The Kroger Co. are not eligible to make Deferral Contributions under the Plan and no Compensation paid by The Kroger Co. shall be considered Base Salary or an Incentive Compensation Payment under this Plan. 
		

		
			(b)       Matching Contributions.  Each Eligible Employee who is eligible to make Deferral Contributions under subsection (a) hereof will be eligible to have Matching Contributions credited to his Account from and after the date that such individual becomes eligible to make Deferral Contributions under subsection (a) hereof.
		

		
			(c)       Make-Up ESOP Contributions.  Each Eligible Employee who is eligible to share in the allocation of employer  contributions under the Ruddick ESOP will be eligible to have  Make-Up ESOP Contributions credited to his Account from and after the date that such individual becomes eligible to share in the allocation of employer contributions under the Ruddick ESOP.
		

		
			(d)       Make-Up ARC Contributions.  Each Eligible Employee (i) who is not a participant in the Harris Teeter Supermarkets, Inc. Supplemental Executive Retirement Plan (f/k/a Ruddick Supplemental Executive Retirement Plan), and (ii) who is eligible to share in the allocation of automatic retirement contributions under the Harris Teeter Supermarkets, Inc. Retirement and  Savings Plan will be eligible to have Make-Up ARC Contributions credited to his Account from and after the date that such individual becomes eligible to share in the allocation of automatic retirement contributions under the Harris Teeter Supermarkets, Inc. Retirement and  Savings Plan.
		

		
			(e)       Make-Up Pension Contributions.  Each Eligible Employee (i) who is not a participant in the Harris Teeter Supermarkets, Inc. Supplemental Executive Retirement Plan and (ii) who incurs a Separation From Service with all Participating Companies and all Affiliates with a vested accrued benefit under the Harris Teeter Supermarkets, Inc. Employees’ Pension Plan will be eligible to have a Make-Up Pension Contribution credited to the Participant’s Account as of the date the Participant incurs a Separation From Service.
		

		
			2.2       Procedure for Admission.
		

		
			Each Eligible Employee and Nonemployee Director will become a Participant by completing such forms and providing such data in a timely manner, as are required by the 
		

		
			
		

		
			

		 

		

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			Administrative Committee as a precondition of participation in the Plan.  Such forms and data may include, without limitation, (i) an election to make Deferral Contributions; (ii) an election as to whether Deferral Contributions will be credited  to the Participant’s Retirement Subaccount, Nonemployee Director Separation From Service Subaccount or an In-Service Subaccount; (iii) an election as to the year In-Service Subaccount payments will begin and as to the number of installment payments (if any) that will be made from the Retirement Subaccount, Nonemployee Director Separation From Service Subaccount and/or In-Service Subaccount; (iv) the Eligible Employee’s or Nonemployee Director’s acceptance of the terms and conditions of the Plan; (v) the Eligible Employee’s or Nonemployee Director’s Investment Election; and (vi) the Eligible Employee’s or Nonemployee Director’s Beneficiary designation.
		

		
			2.3       Cessation of Eligibility.
		

		
			(a)        Separation From Service.   Unless otherwise specified by the Administrative Committee, in its sole discretion, each Participant who incurs a Separation From Service with a Participating Company will cease to have any contributions credited to the Participant’s Account under the Plan for or with respect to any period or Compensation payable from and after the date of the Participant’s Separation From Service.  Notwithstanding the foregoing, effective on and after January 1, 2016, a Participant who incurs a Separation From Service with a Participating Company and becomes an employee of The Kroger Co. or an Affiliate of The Kroger Co. may continue to receive a Make-Up Pension Contribution to this Plan to the extent provided in Section 3.8.  
		

		
			(b)        Removal from Select Group.  If the Administrative Committee determines that the Participant is no longer a member of a select group of key management or highly compensated employees because of reduced duties, responsibilities, incentive compensation ineligibility, compensation level, or for any other reason, the Participant will cease to be eligible to actively participate in the Plan from and after the first day of the following Plan Year.
		

		
			(c)        Inactive Participation.  If a Participant’s active participation in the Plan ends, the Participant will remain an inactive Participant in the Plan until the earlier of (i) the date the full amount of his vested Account (if any) is distributed from the Plan, or (ii) the date he again becomes an Eligible Employee or Nonemployee Director and recommences active participation in the Plan.  An inactive Participant’s Account will continue to be credited with earnings as provided for in Section 3.10 and the  inactive Participant will be eligible for a Matching Contribution or Make-Up ESOP Contribution if he was an active Participant at any time during the applicable Plan Year.
		

		
			ARTICLE III
		

		
			PARTICIPANTS’ ACCOUNTS; DEFERRALS AND CREDITING
		

		
			3.1       Participants’ Accounts.
		

		
			(a)        Establishment of Accounts.  The Administrative Committee will establish and maintain an Account on behalf of each Participant.  To the extent provided 
		

		
			
		

		
			

		 

		

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			herein, each Account will be credited with (i) Deferral Contributions, (ii) Matching Contributions, (iii) Make-Up ESOP Contributions, (iv) Make-Up ARC Contributions, (v) Make-Up Pension Contributions, and (vi) earnings attributable to such Account, and will be debited by the amount of all distributions.  Each Account of a Participant will be maintained until the value thereof has been distributed to or on behalf of such Participant or his Beneficiary.
		

		
			(b)        Nature of Contributions and Accounts.  The amounts credited to a Participant’s Account will be represented solely by bookkeeping entries.  Except as provided in Article VII, no monies or other assets will actually be set aside for such Participant, and all payments to a Participant under the Plan will be made from the general assets of the Participating Companies.
		

		
			(c)        Several Liabilities.  Each Participating Company will be severally (and not jointly) liable for the payment of benefits under the Plan in an amount equal to the total of (i) all undistributed Deferral Contributions withheld from Participant’s Compensation paid or payable by each such Participating Company, (ii) all undistributed Matching Contributions attributable to such Deferral Contributions, (iii) all undistributed Make-Up ESOP Contributions credited for the period such Participant was employed by such Participating Company, (iv) all undistributed Make-Up ARC Contributions credited for the period such Participant was employed by such Participating Company; (v) all undistributed Make-Up Pension Contributions credited for the period such Participant was employed by such Participating Company and (vi) all investment earnings attributable to the amounts described in clauses (i)-(v) hereof.  The Administrative Committee will allocate the total liability to pay benefits under the Plan among the Participating Companies pursuant to this formula, and the Administrative Committee’s determination will be final and binding.
		

		
			(d)        General Creditors.  Any assets which may be acquired by a Participating Company in anticipation of its obligations under the Plan will be part of the general assets of such Participating Company.  A Participating Company’s obligation to pay benefits under the Plan constitutes a mere promise of such Participating Company to pay such benefits, and a Participant or Beneficiary will be and remain no more than an unsecured, general creditor of such Participating Company.
		

		
			3.2       Deferral Contributions.
		

		
			(a)        Eligible Employee Deferral Contributions.  Except as provided in subsection (c) hereof, each Eligible Employee who is or becomes eligible to participate in the Plan for all or any portion of a Plan Year may elect to have Deferral Contributions made on his behalf for such Plan Year by completing and delivering to the Administrative Committee (or its designee) a Base Salary Election and/or Incentive Compensation Payment Election setting forth the terms of his election; provided, the Administrative Committee may allow or require separate or combined deferral elections for any or all of the elections set forth in subsections (i) or (ii) hereof.
		

		
			
		

		
			

		 

		

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			(i)        Base Salary Election.  A Base Salary Election will provide for the reduction of an Eligible Employee’s Base Salary in accordance with the terms and conditions set forth in Section 3.3 (a) – (c) below.
		

		
			(ii)       Incentive Compensation Payment Election. An Incentive Compensation Payment Election will provide for the reduction of an Eligible Employee’s Incentive Compensation Payment in accordance with the terms and conditions set forth in Section 3.3(d) below.
		

		
			(b)        Nonemployee Director Deferral Contributions.  Except as provided in subsection (c) hereof, each Nonemployee Director who is or becomes eligible to participate in the Plan for all or any portion of a Plan Year beginning on or after January 1, 2010 may elect to have Deferral Contributions of all or any portion of his Director Fees for a Plan Year made on his behalf for such Plan Year by completing and delivering to the Administrative Committee (or its designee) a Director Fees Election setting forth the terms of his election.  Notwithstanding any other provisions of the Plan to the contrary, Participants may not elect to defer Director Fees under the Plan for Plan Years beginning on and after January 1, 2011.
		

		
			(c)        Minimum Deferrals.  The Administrative Committee may, in its sole discretion, establish a minimum dollar amount and/or percentage of Compensation that Participants will be permitted to defer under the Plan.
		

		
			3.3       Procedure for Elections.  Subject to any modifications, additions or exceptions that the Administrative Committee, in its sole discretion, deems necessary, appropriate or helpful, the following terms will apply to Base Salary, Incentive Compensation Payment and Director Fees Elections:
		

		
			(a)        Effective Date.
		

		
			(i)       Base Salary Election in First Year of Eligibility.  A Participant’s Base Salary Election in the Participant’s first year of eligibility will be effective for the first regular paycheck paid after the date the Base Salary Election is submitted and becomes effective.  To be effective, a Participant’s initial Base Salary Election must be made within 30 days after the date the employee receives written notice of his eligibility to participate in the Plan pursuant to Section 2.1 and will apply to Compensation paid for services to be performed subsequent to the election.  If an Eligible Employee fails to submit an initial Base Salary Election in a timely manner, he will be deemed to have elected not to participate in the Plan for that Plan Year with respect to his Base Salary.
		

		
			(ii)      Subsequent Base Salary Election.  A Participant’s Base Salary Election for any Plan Year after the first year of eligibility must be made annually on or before the last day of the Plan Year (or an earlier date determined by the Administrative Committee) immediately preceding the Plan Year for which he desires to participate and in which such Base Salary to be deferred is paid.
		

		
			
		

		
			

		 

		

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			(b)       Termination.  Each Participant’s Base Salary Election will remain in effect for all Base Salary paid during the current Plan Year until the earliest of (i) the date the Participant becomes Disabled, or (ii) the date the Participant receives a withdrawal for an Unforeseeable Emergency under Section 5.9  If a Participant is transferred from the employment of one Participating Company to the employment of another Participating Company, his Base Salary Election with the first Participating Company will remain in effect and will apply to his Base Salary from the second Participating Company until the earliest of those events set forth in the preceding sentence.
		

		
			(c)       Amount.  A Participant may elect to defer his Base Salary in 1% increments, up to a maximum of 50% (or such other maximum percentage and/or amount, if any, established by the Administrative Committee from time-to-time).
		

		
			(d)       Incentive Compensation Payment Election.  An Eligible Employee may annually complete and deliver to the Administrative Committee an Incentive Compensation Payment Election with respect to Incentive Compensation Payments to be earned during a Fiscal Year in accordance with this Section.  The following terms will apply to Incentive Compensation Payment Elections applicable to Incentive Compensation Payments earned in Fiscal Years beginning after January 1, 2016:
		

		
			(i)        No Incentive Compensation Payment Election in First Year of Eligibility.  An Eligible Employee may not make an Incentive Compensation Payment election to defer Incentive Compensation earned in the Fiscal Year in which the individual first becomes an Eligible Employee.  A Participant’s initial Incentive Compensation Payment Election will be effective for the Incentive Compensation Payments earned during the Fiscal Year that begins after the Eligible Employee becomes a Participant in accordance with Section 2.1.  
		

		
			(ii)       Effective Date for Incentive Compensation Payment Elections.  A Participant’s Incentive Compensation Payment Election with respect to Incentive Compensation Payments earned during any Fiscal Year must be made annually at least six months prior to the end of the Fiscal Year in which the Incentive Compensation Payment to be deferred is earned (or an earlier date determined by the Administrative Committee).  If an Eligible Employee fails to submit an annual Incentive Compensation Payment Election for a Fiscal Year in a timely manner, he will be deemed to have elected not to participate in the Plan with respect to Incentive Compensation Payments earned during such Fiscal Year.
		

		
			(iii)      Amount.  An Eligible Employee may elect to defer his Incentive Compensation Payments in 1% increments, up to a maximum of 90% (or such other maximum percentage and/or amount, if any, established by the Administrative Committee from time to time).
		

		
			(iv)      Termination.        A Participant’s annual Incentive Compensation Payment Election will terminate on (i) the date the Participant becomes Disabled, or (ii) the date the Participant receives a withdrawal for an Unforeseeable Emergency under Section 5.9.  If a Participant is transferred from the employment 
		

		
			
		

		
			

		 

		

			14

		

 

		

		
			of one Participating Company to the employment of another Participating Company, his Incentive Compensation Payment Election with the first Participating Company will remain in effect and will apply to his Incentive Compensation Payment from the second Participating Company until the earliest of those events set forth in the preceding sentence.
		

		
			(e)       Director Fees Election.  Notwithstanding any other provisions of the Plan to the contrary, Participants may not elect to defer Director Fees under the Plan for Plan Years beginning on and after January 1, 2011.  The provisions of this Section are retained for historical purposes.
		

		
			(i)        Initial Director Fees Election.  A Participant’s initial Director Fees Election will be effective for the first Director Fee that becomes payable after the date the Director Fees Election is submitted and becomes effective.  To be effective, a Participant’s initial Director Fees Election must be made before the first day of the Plan Year for which Director Fees Deferral Contributions will be made; or, if later, within 30 days after the date on which his participation becomes effective pursuant to Section 2.1 and with respect to Director Fees paid for services to be performed subsequent to the election.  If a Nonemployee Director fails to submit an initial Director Fees Election in a timely manner, he will be deemed to have elected not to participate in the Plan for that Plan Year with respect to his Director Fees.
		

		
			(ii)       Subsequent Director Fees Election.  A Participant’s Director Fees Election for any subsequent Plan Year must be made annually on or before the last day of the Plan Year (or an earlier date determined by the Administrative Committee) immediately preceding the Plan Year for which he desires to participate and in which such Director Fees to be deferred is paid.
		

		
			(iii)       Amount.  A Nonemployee Director may elect to defer all or any portion of the annual retainer fee, such additional annual retainer fee as may be payable to a committee chairperson, and meeting fees (board and committee meetings).
		

		
			(iv)       Termination.        A Participant’s annual Director Fees Election will terminate on (i) the date the Participant becomes Disabled, or (ii) the date the Participant receives a withdrawal for an Unforeseeable Emergency under Section 5.9.
		

		
			3.4       Crediting of Deferral Contributions.
		

		
			For each Plan Year that a Participant has a Base Salary Election and/or Incentive Compensation Payment Election or a Director Fees Election in effect, the Administrative Committee will credit the amount of such Participant’s Deferral Contributions to his Account on, or as soon as practicable after, the Valuation Date used to determine the amount that would have been paid to him but for his election hereunder.
		

		
			
		

		
			

		 

		

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			3.5       Matching Contributions.
		

		
			For each Plan Year, as soon as administratively feasible following the earlier of (i) the last day of the Harris Teeter Supermarkets, Inc. Retirement and Savings Plan plan year that occurs during the Plan Year (or such other date as determined by the Administrative Committee) or (ii) a Change in Control, the Retirement Subaccount of each Participant will be credited with a Matching Contribution, provided it is greater than zero, in an amount equal to the product of (i) and (ii) below where,
		

		
			(i)        Equals the lesser of (A) or (B) where,
		

		
			(A)      Equals the difference between (1) and (2) where,
		

		
			(1)       Equals the product of
		

		
			(a)        The Participant’s Compensation for the Plan Year, times
		

		
			(b)        The maximum percentage of compensation on which matching contributions are based under the Harris Teeter Supermarkets, Inc. Retirement and Savings Plan as of the last day of the applicable Plan Year; and
		

		
			(2)       Equals the greater of (x) and (y) where (x) equals the lesser of (I) the maximum amount of compensation deferrals that could have been made to the Participant’s account and matched under the Harris Teeter Supermarkets, Inc. Retirement and Savings Plan for such Plan Year taking into account the Code Section 401(a)(17) compensation limit applicable to compensation under the Harris Teeter Supermarkets, Inc. Retirement and Savings Plan and (II) the maximum amount of compensation deferrals that could have been made to the Participant’s account under the Harris Teeter Supermarkets, Inc. Retirement and Savings Plan for such Plan Year as set by the Retirement Plan Committee  (whether or not eligible for a matching contribution) determined as of the beginning of the Plan Year (i.e., $6,000 for the 2003 Plan Year, $8,000 for the 2004 Plan Year, $9,000 for the 2005 and 2006 Plan Years, $12,000 for the 2007 Plan Year, $13,000 for the 2008 and 2009 Plan Years, $14,000 for the 2010 and 2011 Plan Years, $14,500 for the 2012, 2013 and 2014 Plan Years and $12,250 for the 2015 Plan Year) and (y) equals the actual amount of compensation deferrals that were made to the Participant’s account under the Harris Teeter Supermarkets, Inc. Retirement and Savings Plan for which the Participant received a matching contribution under the Harris Teeter Supermarkets, Inc. Retirement and Savings Plan for the Plan Year; and
		

		
			(B)       Equals the Participant’s Deferral Contributions for the Plan Year; and
		

		
			
		

		
			

		 

		

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			(ii)       Equals the matching contribution percentage applicable to elective deferrals under the Harris Teeter Supermarkets, Inc. Retirement and Savings Plan as of the last day of the Plan Year (i.e., 50% for the 2016 Plan Year); provided that, any compensation deferrals made by the Participant to the Harris Teeter Supermarkets, Inc. Retirement and Savings Plan that are not eligible for a matching contribution under the Harris Teeter Supermarkets, Inc. Retirement and Savings Plan solely due to the Participant’s compensation under the Harris Teeter Supermarkets, Inc. Retirement and Savings Plan exceeding the compensation limit of Code Section 401(a)(17), shall  be eligible for a matching contribution under this Plan based on the matching contribution percentage  in Section 3.5(ii) above; provided further that, in no event will the Matching Contribution made to a Participant’s Account under this Plan, when added to the matching contribution made to such Participant’s account in the Harris Teeter Supermarkets, Inc. Retirement and Savings Plan, exceed the product of the Participant’s Compensation for the Plan Year, times the maximum percentage of compensation on which matching contributions are based under the Harris Teeter Supermarkets, Inc. Retirement and Savings Plan as of the last day of the applicable Plan Year.
		

		
			Notwithstanding the above, each Participant who was eligible for a matching contribution under the Harris Teeter Supermarkets, Inc. Retirement and Savings Plan and was also an employee of American & Efird, Inc. for the period of January 1, 2009 through March 31, 2009, shall receive a Matching Contribution under this Plan during 2010 equal to 25% of the amount determined under the formula in paragraph one of this Section 3.5 as if the matching contribution under the Harris Teeter Supermarkets, Inc. Retirement and Savings Plan was applicable for the entire Plan Year.  For each Plan Year beginning on or after January 1, 2010, if a Participant is entitled to a matching contribution under the Retirement Savings Plan for less than the entire Plan Year due to the employer’s suspension of the matching contribution, the Participant shall receive a Matching Contribution under this Plan for such Plan Year determined by multiplying (1) the amount determined under the formula in paragraph one of this Section 3.5 as if the matching contribution under the Harris Teeter Supermarkets, Inc. Retirement and Savings Plan were applicable for the entire Plan Year, times (2) a fraction equal to the number of full calendar months for which the matching contribution applied during such Plan Year under the Harris Teeter Supermarkets, Inc. Retirement and Savings Plan divided by 12.
		

		
			3.6       Make-Up ESOP Contributions.
		

		
			For each Plan Year, as soon as administratively feasible following the earlier of (i) the date the annual employer contribution is credited to a Participant’s account under the Ruddick ESOP during the Plan Year (or such other date as determined by the Administrative Committee) or (ii) the date of a Change in Control, the Retirement Subaccount of each Participant will be credited with a Make-Up ESOP Contribution in an amount equal to the difference between the amount determined pursuant to subsection (i) hereof and the amount determined pursuant to the terms of subsection (ii) hereof, as follows:
		

		
			(i)        The total amount of employer contributions that would have been credited to the Participant’s account under the Ruddick ESOP for such Plan Year if the employer contributions credited to his account were determined based on his Adjusted ESOP 
		

		
			
		

		
			

		 

		

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			Compensation rather than the applicable definition of compensation under the Ruddick ESOP; minus
		

		
			(ii)       The total amount of employer contributions that were actually made to the Participant’s account under the Ruddick ESOP for such Plan Year.
		

		
			Notwithstanding anything to the contrary herein, as a result of the freezing of the Ruddick ESOP that became effective October 1, 2005, no Make-Up ESOP Contributions will be credited to a Participant’s Account for the period from October 1, 2005 through December 31, 2005, or for Plan Years thereafter.
		

		
			3.7       Make-Up ARC Contributions.
		

		
			Effective beginning October 1, 2005, and for each Plan Year thereafter, as soon as administratively feasible following the earlier of (i) the date the automatic retirement contributions are credited to a Participant’s account under the Harris Teeter Supermarkets, Inc. Retirement and Savings Plan during the Plan Year (or such other date as determined in the sole discretion of the Administrative Committee) or (ii) the date of a Change in Control, the Retirement Subaccount of each Participant will be credited with a Make-Up ARC Contribution in an amount equal to the difference between the amount determined pursuant to subsection (i) hereof and the amount determined pursuant to the terms of subsection (ii) hereof, as follows:
		

		
			(i)        The total amount of automatic retirement contributions that would have been credited to the Participant’s account under the Harris Teeter Supermarkets, Inc. Retirement and Savings Plan for such Plan Year if the automatic retirement contributions credited to his account were determined based on his Adjusted ARC Compensation rather than the applicable definition of compensation under the Harris Teeter Supermarkets, Inc. Retirement and Savings Plan; minus
		

		
			(ii)       The total amount of automatic retirement contributions that were actually made to the Participant’s account under the Harris Teeter Supermarkets, Inc. Retirement and Savings Plan for such Plan Year.
		

		
			Notwithstanding the above, a Participant shall not be eligible to receive a Make-Up ARC Contribution for a Plan Year if the Participant is also a participant in the Harris Teeter Supermarkets, Inc. Supplemental Executive Retirement Plan for all or a portion of that Plan Year.
		

		
			3.8       Make-Up Pension Contributions.
		

		
			As soon as administratively feasible following the earlier of (i) the Participant’s Separation From Service for any reason with a vested accrued benefit under the Harris Teeter Supermarkets, Inc. Employees’ Pension Plan (or such other date as determined by the Administrative Committee) or (ii) a Change in Control, the Retirement Subaccount of the Participant will be credited with a Make-Up Pension Contribution in an amount equal to the difference between the amount determined pursuant to subsection (i) hereof and the total amounts determined pursuant to the terms of subsections (ii), (iii) and (iv) hereof, as follows:
		

		
			
		

		
			

		 

		

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			(i)        The actuarial lump sum value, as defined in subsection (v), of the benefit that would be payable to the Participant or Beneficiary under the Harris Teeter Supermarkets, Inc. Employees’ Pension Plan as of his earliest benefit commencement date under such plan if his benefits were to be determined based on his Adjusted Pension Compensation rather than the applicable definition of compensation under the Harris Teeter Supermarkets, Inc. Employees’ Pension Plan; minus
		

		
			(ii)       The actuarial lump sum value, as defined in subsection (v), of the benefit that will actually be payable to the Participant or Beneficiary under the Harris Teeter Supermarkets, Inc. Employees’ Pension Plan as of his earliest benefit commencement date under such plan; minus
		

		
			(iii)      The actuarial lump sum value, as defined in subsection (v), of the automatic retirement contributions that were paid to the Participant under the Harris Teeter Supermarkets, Inc. Retirement and Savings Plan plus any company automatic contributions that were paid to the Participant under The Kroger Co. 401(k) Retirement Savings Account Plan, to the extent such automatic contributions are included in the Offset Amount (as defined in the Harris Teeter Supermarkets, Inc. Employees’ Pension Plan) in determining the Participant’s benefit under the Harris Teeter Supermarkets, Inc. Employees’ Pension Plan; minus
		

		
			(iv)      The actuarial lump sum value, as defined in subsection (v), of an amount equal to the difference between the amount determined pursuant to subsection A hereof and the amount determined pursuant to the terms of subsection B hereof, as follows:
		

		
			(A)        The total amount of automatic retirement contributions that would have been credited to the Participant’s account under the Harris Teeter Supermarkets, Inc. Retirement and Savings Plan for such Plan Year if the automatic contributions credited to his account(s) were determined based upon compensation as defined under the Harris Teeter Supermarkets, Inc. Retirement and Savings Plan for purposes of automatic retirement contributions without excluding any Deferral Contribution that the Participant elects to make under the Plan; minus
		

		
			(B)        The total amount of automatic retirement contributions that were actually made to the Participant’s account under the Harris Teeter Supermarkets, Inc. Retirement and Savings Plan.
		

		
			The reduction under this subsection (iv), however, shall apply only to the extent that Make-Up ARC Contributions are relevant to automatic retirement contributions that are included in the Offset Amount (as defined in the Harris Teeter Supermarkets, Inc. Employees’ Pension Plan) in determining the Participant’s benefit under the Harris Teeter Supermarkets, Inc. Employees’ Pension Plan.
		

		
			(v)        For the purposes of subsections (i) and (ii) of this Section 3.8, actuarial lump sum value shall be defined as the present value of the retirement benefit payable as a single life annuity at the assumed commencement date (determined using the Harris 
		

		
			
		

		
			

		 

		

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			Teeter Supermarkets, Inc. Employees’ Pension Plan’s early retirement reduction factors, if applicable) calculated using the interest rate and mortality table that would be used to determine the amount of an involuntary lump sum payment under the Harris Teeter Supermarkets, Inc. Employees’ Pension Plan based on that plan’s definition of Actuarial Equivalent for such purpose.  For purposes of subsections (iii) and (iv) of this Section 3.8, actuarial lump sum value shall be defined as the present value of the retirement benefit payable as a single life annuity at the assumed commencement date (determined using the Harris Teeter Supermarkets, Inc. Employees’ Pension Plan’s early retirement reduction factors, if applicable) and calculated using the applicable mortality table described in the Harris Teeter Supermarkets, Inc. Employees’ Pension Plan definition of Actuarial Equivalent, but the applicable interest rate shall be the Moody’s Baa long term corporate bond rate (not to exceed 8.5%) adjusted each October 1 based on the average daily rates for the immediately preceding month of August.
		

		
			The foregoing notwithstanding, with respect to the Change in Control that took place due to the merger involving The Kroger Co. and Harris Teeter Supermarkets, Inc. on January 28, 2014 (“Kroger Merger”), a Participant who had a vested accrued benefit under the Harris Teeter Supermarkets, Inc. Employees’ Pension Plan (“Pension Plan”) on the date of the Kroger Merger and who has a vested accrued benefit under the Pension Plan on the date of the Participant’s Separation From Service will be credited with a Make-Up Pension Contribution as soon as administratively feasible following the Participant’s Separation From Service, and such Make-Up Pension Contribution shall be computed as the greater of (1) the amount that would have been credited as of the date of Separation From Service or (2) the amount that would have been credited as of the date of the Kroger Merger plus earnings thereon credited based upon the applicable interest rate described in subsection (v) of this Section 3.8
		

		
			Notwithstanding the above, a Participant shall not be eligible to receive a Make-Up Pension Contribution for a Plan Year if the Participant is also a participant in the Harris Teeter Supermarkets, Inc. Supplemental Executive Retirement Plan for all or a portion of the Plan Year.
		

		
			3.9       Debiting of Distributions.
		

		
			As of each Valuation Date, the Administrative Committee will debit each Participant’s Account for any amount distributed from such Account since the immediately preceding Valuation Date.
		

		
			3.10      Crediting of Earnings.
		

		
			As of each Valuation Date, the Administrative Committee will credit to each Participant’s Account the amount of earnings and/or losses applicable thereto for the period since the immediately preceding Valuation Date.  Such crediting of earnings and/or losses will be effected as of each Valuation Date, as follows:
		

		
			
		

		
			

		 

		

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			(a)        Rate of Return. The Administrative Committee will first determine a rate of return for the period since the immediately preceding Valuation Date for each of the Investment Funds;
		

		
			(b)        Amount Invested. The Administrative Committee next will determine the amount of (i) each Participant’s Account that was deemed invested in each Investment Fund as of the immediately preceding Valuation Date; minus (ii) the amount of any distributions debited from the amount determined in clause (i) since the immediately preceding Valuation Date; and
		

		
			(c)        Determination of Amount. The Administrative Committee will then apply the rate of return for each Investment Fund for such Valuation Date (as determined in subsection (a) hereof) to the amount of the Participant’s Account deemed invested in such Investment Fund for such Valuation Date (as determined in subsection (b) hereof), and the total amount of earnings and/or losses resulting therefrom will be credited to such Participant’s Account as of the applicable Valuation Date.
		

		
			3.11     Value of Account.
		

		
			The value of a Participant’s Account as of any date will be equal to the aggregate value of all contributions and all investment earnings deemed credited to his Account as of such date, determined in accordance with this Article III.
		

		
			3.12     Vesting.
		

		
			(a)        Deferral Contributions.  A Participant will at all times be fully vested in his Deferral Contributions and the earnings credited to his Account with respect to such Deferral Contributions.
		

		
			(b)        Matching Contributions.  Except as provided in subsection (f) hereto, any Matching Contributions credited to a Participant’s Account and the earnings credited with respect thereto will be vested to the same extent that any matching contributions credited to a Participant’s account in the Harris Teeter Supermarkets, Inc. Retirement and Savings Plan are (or would be) vested.
		

		
			(c)        Make-Up ESOP Contributions. Except as provided in subsection (f) hereto, any Make-Up ESOP Contributions credited to a Participant’s Account and the earnings credited with respect thereto will be vested to the same extent that any employer contributions credited to a Participant’s account in the Ruddick ESOP are vested.
		

		
			(d)        Make-Up ARC Contributions.  Except as provided in subsection (f) hereto, (i) the amount of any Make-Up ARC Contributions computed with respect to the “FDP Deferral Component” (as defined in Section 1.3(i) hereof) credited to a Participant’s Account and the earnings credited with respect thereto will be vested to the same extent that any automatic retirement contributions credited to a Participant’s account in the Harris Teeter Supermarkets, Inc. Retirement and Savings Plan are vested, and (ii) the amount of any Make-Up ARC Contributions computed with respect to the “Excess Considered Pay Component” (as defined in Section 1.3(ii) hereof) credited to a 
		

		
			
		

		
			

		 

		

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			Participant’s Account and the earnings credited with respect thereto will become vested upon a Participant’s attainment of Retirement Age, or upon the death or Disability of the Participant while employed by a Participating Company or an Affiliate and will be subject to reduction for commencement of benefit payments prior to the Participant attaining age 60 as described in Section 5.2(b) hereof.
		

		
			(e)        Make-Up Pension Contributions.  Except as provided in subsection (f) hereto, any Make-Up Pension Contributions credited to a Participant’s Account and the investment earnings (if any) attributable thereto will be vested to the same extent that a Participant’s retirement benefit under the Harris Teeter Supermarkets, Inc. Employees’ Pension Plan is vested.
		

		
			(f)        Change in Control.  If a Change in Control occurs, all Participants involved in such Change in Control (as described in the applicable “Change in Control” definition) will be immediately 100% vested in the Matching, Make-Up ESOP, Make-Up ARC and Make-Up Pension Contributions credited to their Accounts and the investment earnings (if any) attributable thereto as of the date of such Change in Control.
		

		
			3.13     Notice to Participants of Account Balances.
		

		
			At least once for each Plan Year, the Administrative Committee will cause a written statement of a Participant’s Account balance to be distributed to the Participant.
		

		
			3.14     Good Faith Valuation Binding.
		

		
			In determining the value of the Accounts, the Administrative Committee will exercise its best judgment, and all such determinations of value (in the absence of bad faith) will be binding upon all Participants and their Beneficiaries.
		

		
			3.15     Errors and Omissions in Accounts.
		

		
			If an error or omission is discovered in the Account of a Participant or in the amount of a Participant’s deferrals, the Administrative Committee, in its sole discretion, will cause appropriate, equitable adjustments to be made as soon as administratively practicable following the discovery of such error or omission.
		

		
			ARTICLE IV
		

		
			INVESTMENT FUNDS
		

		
			4.1      Selection by Administrative Committee.
		

		
			From time to time, the Administrative Committee will select two or more Investment Funds for purposes of determining the rate of return on amounts deemed invested in such Investment Funds in accordance with the terms of the Plan.  The Administrative Committee may change, add or remove Investment Funds on a prospective basis at any time(s) and in any manner it deems appropriate.
		

		
			
		

		
			

		 

		

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			4.2       Participant Direction of Deemed Investments.
		

		
			Each Participant generally may direct the manner in which his Account will be deemed invested in and among the Investment Funds by making an Investment Election in accordance with the following terms:
		

		
			(a)        Nature of Participant Direction.  The selection of Investment Funds by a Participant will be for the sole purpose of determining the rate of return to be credited to his Account, and will not be treated or interpreted in any manner whatsoever as a requirement or direction to actually invest assets in any Investment Fund or any other investment media.  The Plan, as an unfunded, nonqualified deferred compensation plan, at no time will have any actual investment of assets relative to the benefits or Accounts hereunder.
		

		
			(b)        Investment of Contributions.  Each Participant may make an Investment Election prescribing the percentage of the future contributions that will be deemed invested in each Investment Fund.  An initial Investment Election of a Participant will be made as of the date the Participant commences participation in the Plan and will apply to all contributions credited to such Participant’s Account after such date.  Such Participant may make subsequent Investment Elections as of any Valuation Date, and each such election will apply to all such specified contributions credited to such Participant’s Account after the Administrative Committee (or its designee) has a reasonable opportunity to process such election pursuant to such procedures as the Administrative Committee may determine from time-to-time.  Any Investment Election made pursuant to this subsection with respect to future contributions will remain effective until changed by the Participant.  In the event a Participant never makes an Investment Election or makes an incomplete or insufficient Investment Election in some manner, the Administrative Committee shall direct the investment of the Participant’s Account.
		

		
			(c)        Investment of Existing Account Balances.  Each Participant may make an Investment Election prescribing the percentage of his existing Account balance that will be deemed invested in each Investment Fund.  Such Participant may make such Investment Elections as of any Valuation Date, and each such election will be effective after the Administrative Committee (or its designee) has a reasonable opportunity to process such election.  Each such election will remain in effect until changed by such Participant.
		

		
			(d)        Administrative Committee Discretion.  The Administrative Committee will have complete discretion to adopt and revise procedures to be followed in making Investment Elections.  Such procedures may include, but are not limited to, the process of making elections, the permitted frequency of making elections, the incremental size of elections, the deadline for making elections and the effective date of such elections.  Any procedures adopted by the Administrative Committee that are inconsistent with the deadlines or procedures specified in this Section will supersede such provisions of this Section without the necessity of a Plan amendment.
		

		
			
		

		
			

		 

		

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			ARTICLE V
		

		
			PAYMENT OF ACCOUNT BALANCES
		

		
			5.1       Distributions Subaccounts.
		

		
			(a)        Generally.  For purposes of determining the timing and form of distribution, a Participant’s Account shall be allocated among Retirement, In-Service and Nonemployee Director Separation From Service Subaccounts.  A Participant may have only one Retirement Subaccount or Nonemployee Director Separation From Service Subaccount and up to ten (10) In-Service Subaccounts.
		

		
			(b)        Matching, Make-Up ESOP, Make-Up ARC and Make-Up Pension Contributions.  All Matching, Make-Up ESOP, Make-Up ARC and Make-Up Pension Contributions shall be allocated to the Retirement Subaccount. The Retirement Subaccount may include a Matching Contribution subaccount, Make-Up ESOP Contribution subaccount, Make-Up ARC Contribution subaccount, Make-Up Pension Contribution subaccount, Deferral Contribution subaccount, and any other subaccount established from time to time under such Retirement Subaccount, all of which may have different attributes, including vesting schedule and distribution options.
		

		
			(c)        Deferral Contributions.  Each Participant may direct the manner in which his Deferral Contributions will be allocated among his Retirement Subaccount or Nonemployee Director Separation From Service Subaccount and any In-Service Subaccount.  In the event a Participant fails to make an election regarding such allocation or makes an incomplete or insufficient election in some manner, his Deferral Contributions shall be allocated to his Retirement Subaccount or Nonemployee Director Separation From Service Subaccount.
		

		
			5.2       Retirement Subaccount or Nonemployee Director Separation From Service Subaccount.
		

		
			(a)        General Rule Concerning Payments.
		

		
			(i)        Retirement Subaccount.  Upon Separation From Service, after attaining Retirement Age, a Participant will be entitled to begin receiving a distribution of the total of (i) the vested amount credited to his Retirement Subaccount, except for Make-Up ARC Contributions, determined as of the Valuation Date on which such distribution is based; plus (ii) the vested amount of Deferral, Matching, Make-Up ESOP and Make-Up Pension Contributions to be credited to his Retirement Subaccount since such Valuation Date; plus (iii) any accrued but uncredited earnings.  Upon Separation From Service for any reason other than death or Disability and before his Retirement Age, a Participant will receive a single lump sum distribution of the total of (i) the vested amount credited to his Retirement Account, except for Make-Up ARC Contributions, determined as of the Valuation Date on which such distribution is based; plus (ii) the vested amount of Deferral, Matching, Make-Up ESOP and Make-Up Pension Contributions made since such Valuation Date; plus (iii) any accrued but  
		

		
			
		

		
			

		 

		

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			uncredited earnings.  For purposes of this subsection, the “Valuation Date on which such distribution is based” refers to the Valuation Date established for such purpose by administrative practice, even if actual payment is made or commenced at a later date due to delays in valuation, administration or any other procedure.
		

		
			(ii)       Nonemployee Director Separation From Service Subaccount.  Upon Separation From Service at any age, unless he otherwise elects to receive his distribution in installments under Section 5.2(d), a Participant will receive a single lump sum distribution of the total of (i) his Nonemployee Director Separation From Service Subaccount; plus (ii) any accrued but uncredited earnings.
		

		
			(b)        Special Rule Concerning Payments of Make-Up ARC Contributions.  Upon Separation From Service, after attaining Retirement Age, a Participant will be entitled to begin receiving a distribution of (i) his vested Make-Up ARC Contributions credited to his Retirement Subaccount, determined as of the Valuation Date on which such distribution is based; plus (ii) the vested Make-Up ARC Contributions to be credited to his Retirement Subaccount since such Valuation Date; plus (iii) any accrued but uncredited earnings.  Upon Separation From Service for any reason other than death or Disability and before his Retirement Age, the Participant is not entitled to receive a distribution of his Make-Up ARC Contributions (which are not vested) and such unvested Make-Up ARC Contributions will be forfeited.  For purposes of this subsection, the “Valuation Date on which such distribution is based” refers to the Valuation Date established for such purpose by administrative practice, even if actual payment is made or commenced at a later date due to delays in valuation, administration or any other procedure.
		

		
			For purposes of this subsection (b), if a Participant begins receiving a distribution of his Excess Considered Pay component of his Make-Up ARC Contributions after Early Retirement but before Normal Retirement, the amount of his Excess Considered Pay component of his Early Retirement benefit will be reduced by 0.4167% per month (5% per year) for each month by which the Participant’s commencement of distribution precedes the month in which the Participant will attain Normal Retirement Age.  However, if a Participant begins receiving a distribution of his Make-Up ARC Contributions after attaining Normal Retirement Age, the amount of his Normal Retirement benefit will be unreduced.
		

		
			(c)        Timing of Distribution.  The vested amount payable to a Participant under this Section 5.2 will begin to be distributed as follows:
		

		
			(i)        If the Separation From Service occurs on or after January 1 and on or before June 30 of a Plan Year, the lump sum or initial installment payment will be distributed on January 1 of the next Plan Year or as soon as administratively practicable thereafter.
		

		
			(ii)       If the Separation From Service occurs on or after July 1 and on or before December 31 of a Plan Year, the lump sum or initial installment payment 
		

		
			
		

		
			

		 

		

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			will be distributed on July 1 of the next Plan Year or as soon as administratively practicable thereafter.
		

		
			Subsequent annual installment payments, if any, will be made on each succeeding January 1, or as soon as administratively practicable thereafter.  Notwithstanding the preceding, a Participant may elect to delay the payment of benefits hereunder in accordance with the subsequent election requirements of Code Section 409A(a)(4)(C) (as described in subsection (d)(ii) hereof).
		

		
			(d)        Form of Distribution.  The benefit payable to a Participant under this Section will be paid in the form of a single lump sum payment, unless the Participant elects, in accordance with the initial election requirements of Code Section 409A(a)(4)(B) or the subsequent election requirements of Code Section 409A(a)(4)(C) (as described in subsection (d)(ii) hereof), to receive annual installment payments (which will be considered a “single payment” for purposes of the Code Section 409A requirements regarding subsequent elections) of his Retirement Subaccount (or any subaccount(s) created thereunder) or Nonemployee Director Separation From Service Subaccount.  The Retirement Subaccount, any subaccount(s) created thereunder, and a Nonemployee Director Separation From Service Subaccount may be treated as separate subaccounts and may have different distribution elections and attributes.  Any change to the distribution election for any such subaccount may only be made in accordance with Section 409A, subject to the following terms and conditions:
		

		
			(i)        Length of Installment Payments.  The installment payments of all or a portion of the Participant's benefit will be made in substantially equal annual installments (adjusted for investment income between payments in the manner described in Section 3.10) over a period of not less than 2 years and not more than 15 years.  The initial value of the obligation for the installment payments will be equal to the amount of the Participant’s Retirement Subaccount (or any subaccount created thereunder) or Nonemployee Director Separation From Service Subaccount  balance calculated in accordance with the terms of subsection (a) or (b) hereof.
		

		
			(ii)       Participant Election.  A Participant may designate and from time to time may redesignate for each and every Retirement Subaccount (or any subaccount created thereunder) or Nonemployee Director Separation From Service Subaccount the number of years over which such installment payments would be made upon his Separation From Service after attaining Retirement Age or, for a Nonemployee Director, upon his Separation From Service; provided however, that if the Participant makes an election less than 12 months prior to Separation From Service, such election will not be effective and the previous election (if any) will apply; provided further, the Participant cannot redesignate the number of years after payments have begun.  Moreover, the first payment with respect to any such election to change the form of payment or to delay payment will be delayed to a date that is at least 5 years from the date the first payment would otherwise have commenced.  In the event a Participant fails to make an election regarding the number of annual installment payments he is to receive in 
		

		
			
		

		
			

		 

		

			26

		

 

		

		
			the event of his Retirement or, for a Nonemployee Director, his Separation From Service, or makes an incomplete or insufficient election in some manner, his benefit will be payable in the form of a single lump sum payment.  Installment payments will be made on January 31 of each applicable Plan Year.
		

		
			(iii)       Payments Following Death.  If a Participant dies after payment of his benefit from the Plan has begun, but before his entire benefit has been distributed, the remaining amount of his Retirement or Nonemployee Director Separation From Service Subaccount balance will be distributed to the Participant’s designated Beneficiary in the form of a single lump sum payment.
		

		
			5.3       In-Service Subaccounts.
		

		
			(a)        General Rule.  A Participant may elect to allocate his Deferral Contributions to one or more, but no more than ten (10), In-Service Subaccounts.  In accordance with the terms of subsections (b), (c) and (d) hereof, a Participant will be entitled to receive or begin receiving a distribution of an In-Service Subaccount equal to (i) the entire amount credited to such In-Service Subaccount, determined as of the Valuation Date on which such distribution is based; plus (ii) the amount of Deferral Contributions made since such Valuation Date; plus (iii) any accrued but uncredited earnings.  For purposes of this subsection, the “Valuation Date on which such distribution is based” refers to the Valuation Date established for such purpose by administrative practice, even if actual payment is made or commenced at a later date due to delays in valuation, administration or any other procedure.
		

		
			(b)        Timing of Distribution
		

		
			(i)        General Rule.  The Participant’s In-Service Subaccount will be or will commence to be distributed to him on the applicable In-Service Distribution Date.
		

		
			(ii)       Election by Participant.  A Participant may elect to have his In-Service Subaccount paid or commenced on January 1, or as soon as administratively practicable thereafter, of any year specified in such election; provided, however, the commencement date shall be no earlier than January 1 of the first calendar year following the Plan Year of deferral.  Such date will be known as the In-Service Distribution Date for the applicable In-Service Subaccount.  Such election must be made at the time the Participant elects to make his Deferral Contributions which are to be allocated to the In-Service Subaccount.  Effective beginning January 1, 2008, if a Participant does not make an election hereunder for the first Plan Year in which his In-Service Subaccount is credited with Deferral Contributions, he will be deemed to have elected as the commencement date the January 1, or as soon as administratively practicable thereafter, of the first calendar year following the Plan Year of deferral.  Distributions otherwise scheduled to be made on January 1 under this Section 5.3(b)(ii) shall be made on January 1 or as soon as administratively practicable thereafter.
		

		
			
		

		
			

		 

		

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			(iii)       Modifications of In-Service Distribution Date.  At least one year prior to any In-Service Distribution Date (as determined in accordance with subsection (b)(i) or (b)(ii) hereof), a Participant may make an election (subject to Section 5.3(a)) to delay the payment (or commencement) of his In-Service Subaccount payable on such date to a later date; provided, however, that the first payment with respect to any such election to delay payment will be delayed to a date that is at least 5 years from the date the first payment would otherwise have commenced.  A Participant may make an election pursuant to this subsection more than once.
		

		
			(c)        Form of Distribution. A Participant’s In-Service Account will be paid in the form of a single lump sum distribution; provided, however, a Participant may elect at the time he makes an election under Section 5.3(b)(ii) with respect to the In-Service Distribution Date, to have such In-Service Subaccount balance paid in the form of annual installment payments.  The following terms and conditions will apply to installment payments made under the Plan (which will be considered a “single payment” for purposes of the Code Section 409A requirements regarding subsequent elections):
		

		
			(i)        Length of Installment Payments.  The installment payments of all or a portion of the Participant’s benefit will be made in substantially equal annual installments (adjusted for investment income between payments in the manner described in Section 3.10) over any period of not less than 2 years and not more than 15 years.  The initial value of the obligation for the installment payments will be equal to the amount of the Participant’s In-Service Subaccount balance calculated in accordance with the terms of Section 5.3(a).
		

		
			(ii)       Participant Election.  A Participant will designate and from time to time may redesignate the number of years over which such installment payments will be made; provided however, that if the Participant makes an election less than 12 months prior to the In-Service Distribution Date, such election will not be effective and the previous election (if any) will apply; provided further, the Participant cannot redesignate the number of years after payments have begun.  Moreover, a Participant may change the form of payment of his In-Service Subaccount before payments have begun; provided, however, that the first payment with respect to any such election to change the form of payment will be delayed to a date that is at least 5 years from the date the first payment would otherwise have commenced.  Installment payments will be made on January 1 of each applicable Plan Year or as soon as administratively practicable thereafter.  In the event a Participant fails to make an election regarding the number of annual installment payments he is to receive or makes an incomplete or insufficient election in some manner, his benefit will be payable in the form of a single lump sum payment.
		

		
			(iii)       Payments Following Death.  If a Participant dies after payment of his benefit from the In-Service Subaccount has begun, but before his entire In-Service Subaccount has been distributed, the remaining amount of his In-Service 
		

		
			
		

		
			

		 

		

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			Subaccount balance will be distributed to the Participant’s designated Beneficiary in the form of a single lump sum payment.
		

		
			(d)        Separation From Service.  Notwithstanding anything herein to the contrary, upon an Eligible Employee’s Separation From Service prior to his Retirement Age, any In-Service Subaccount will be payable in the form of a single lump sum payment as follows:
		

		
			(i)        If the Separation From Service occurs on or after January 1 and on or before June 30 of a Plan Year, the lump sum payment will be distributed on January 1 of the next Plan Year or as soon as administratively practicable thereafter.
		

		
			(ii)       If the Separation From Service occurs on or after July 1 and on or before December 31 of a Plan Year, the lump sum payment will be distributed on July 1 of the next Plan Year or as soon as administratively practicable thereafter.
		

		
			Upon an Eligible Employee’s Separation From Service on or after his Retirement Age or upon a Nonemployee Director’s Separation From Service at any age, (A) any In-Service Subaccount from which payments commenced prior to the Participant’s Separation From Service shall continue to be paid in accordance with the elections applicable to such subaccount, and (B) an In-Service Subaccount from which payments have not yet begun shall be transferred to the Participant’s Retirement or Nonemployee Director Separation From Service Subaccount and paid in accordance with the terms thereof.
		

		
			5.4       Disability Benefits.
		

		
			(a)        General Rule Concerning Payments.  If a Participant becomes Disabled, he will be entitled to begin receiving a distribution of the total of (i) the entire vested amount credited to his Account, determined as of the Valuation Date on which such distribution is based; plus (ii) the vested amount of Deferral, Matching, Make-Up ESOP, Make-Up ARC and Make-Up Pension Contributions made since such Valuation Date; plus (iii) any accrued but uncredited earnings.  For purposes of this subsection, the “Valuation Date on which such distribution is based” refers to the Valuation Date established for such purpose by administrative practice, even if actual payment is made or commenced at a later date due to delays in valuation, administration or any other procedure.
		

		
			(b)        Timing of Distribution.  The vested benefit payable to a Participant under this Section will commence to be distributed 60 days after the date the Participant becomes Disabled.
		

		
			(c)        Form of Distribution.  The benefit payable to a Participant under this Section will be paid in the form of a single lump sum payment, unless the Participant elects to receive annual installment payments (which will be considered a “single payment” for purposes of the Code Section 409A requirements regarding subsequent elections), subject to the following terms and conditions:
		

		
			
		

		
			

		 

		

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			(i)        Length of Installment Payments.  The installment payments will be made in substantially equal annual installments (adjusted for investment income between payments in the manner described in Section 3.10) over a period of not less than 2 years and not more than 15 years.  The initial value of the obligation for the installment payments will be equal to the amount of the Participant’s Account balance calculated in accordance with the terms of Section 5.4(a).
		

		
			(ii)       Participant Election.  A Participant will designate and from time to time may redesignate the number of years over which such installment payments would be made if he were to become Disabled; provided, however, that if the Participant makes an election less than 12 months prior to becoming Disabled, such election will not be effective and the previous election (if any) will apply; provided further, the Participant cannot redesignate the number of years after payments have begun.  Installment payments will be made on January 1 of each applicable year or as soon as administratively practicable thereafter.  Effective beginning January 1, 2008, in the event a Participant fails to make an election regarding the number of annual installment payments he is to receive in the event of his Disability or makes an incomplete or insufficient election in some manner, his benefit will be payable in the form of a single lump sum payment.
		

		
			(iii)      Payments Following Death.  If a Participant dies after payment of his benefit from the Plan has begun, but before his entire benefit has been distributed, the remaining amount of his Account balance will be distributed to the Participant’s designated Beneficiary in the form of a single lump sum payment.
		

		
			5.5       Death Benefits.
		

		
			If a Participant dies before payment of his benefit from the Plan is made or commenced, the Beneficiary or Beneficiaries designated by such Participant in his latest beneficiary designation form filed with the Administrative Committee will be entitled to receive a distribution of the total of (i) the entire vested amount credited to such Participant’s Account, determined as of the Valuation Date on which such distribution is based; plus (ii) the vested amount of Deferral, Matching, Make-Up ESOP, Make-Up ARC and Make-Up Pension Contributions made since such Valuation Date; plus (iii) any accrued but uncredited earnings.  For purposes of this Section, the “Valuation Date on which such distribution is based” refers to the Valuation Date established for such purpose by administrative practice, even if actual payment is made or commenced at a later date due to delays in valuation, administration or any other procedure.  The benefit will be distributed to such Beneficiary or Beneficiaries within 60 days following the date of the Participant’s death, in the form of a single lump sum payment in cash as prescribed in Section 5.8.
		

		
			5.6       Change in Control.
		

		
			Subject to Section 9.2, any Participant who is involved with a Change in Control (as described in Section 1.13) will receive or continue to receive a distribution of his then fully 
		

		
			
		

		
			

		 

		

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			vested Account (or the remainder thereof) payable under the applicable provisions of Sections 5.2, 5.3, 5.4 or 5.5.
		

		
			5.7       Mandatory Cash-Out.
		

		
			Notwithstanding anything in Sections 5.2, 5.4, 5.5, or 5.6 to the contrary, any Participant whose Account as of the date his benefit is scheduled to be paid or commence to be paid is less than $25,000, such benefit will be paid in a single lump sum payment.
		

		
			5.8       Form of Assets.
		

		
			All distributions will be made in the form of cash in U.S. dollars.
		

		
			5.9       Withdrawals for Unforeseeable Emergency.
		

		
			Upon receipt of (i) an application for an emergency withdrawal from a Participant who has not yet received distribution of his entire Account and (ii) the Administrative Committee’s decision, made in its sole discretion, that a Participant has suffered an Unforeseeable Emergency, the Administrative Committee will cause the Controlling Company to pay a distribution to such Participant.  Such distribution will be paid in a single-sum payment, in cash as prescribed in Section 5.8, as soon as administratively feasible after the Administrative Committee determines that the Participant has incurred an Unforeseeable Emergency.  The amount of such single-sum payment will be limited to the vested amount of the Participant’s Account that is reasonably necessary to meet the Participant’s requirements resulting from the Unforeseeable Emergency.  The amount of such distribution will reduce the Participant’s Account balance as provided in Section 3.9.  In addition, the Participant receiving such distribution will immediately cease to make Deferral Contributions and will not be eligible to resume Deferral Contributions until the first day of the Plan Year beginning after the date of the distribution.
		

		
			5.10     Beneficiary Designation.
		

		
			(a)        General.  Participants will designate and from time to time may redesignate their Beneficiaries in such form and manner as the Administrative Committee may determine.
		

		
			(b)        No Designation or Designee Dead or Missing.  In the event that:
		

		
			(1)        a Participant dies without designating a primary or contingent Beneficiary;
		

		
			(2)        none of the primary or contingent Beneficiaries designated by a Participant survive the Participant by 60 days; or
		

		
			(3)        the Beneficiary designated by a Participant cannot be located by the Administrative Committee within 1 year from the date benefits are to be paid to such person;
		

		
			
		

		
			

		 

		

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			then, in any of such events, the Beneficiary of such Participant with respect to any benefits that remain payable under the Plan will be the Participant’s Surviving Spouse, if any, and if not, the estate of the Participant.
		

		
			(c)        Multiple Primary Beneficiaries.  If a Participant names more than one primary Beneficiary and a primary Beneficiary does not survive the Participant by 60 days, the portion of the Participant’s Account that would have been distributed to such primary Beneficiary will be distributed as elected by the Participant; provided, if the Participant fails to make such an election, the portion of his Account that would have been distributed to such primary Beneficiary will be distributed to the Participant’s Surviving Spouse, if any, and if not, the estate of the Participant.
		

		
			(d)        Forfeiture of Benefits In the Case of Murder or Manslaughter.  Notwithstanding anything to the contrary in the Plan, no distribution of benefits will be made under any provision of the Plan to any individual who is convicted of, or pleads guilty to, murder, felony murder or voluntary manslaughter of a Participant with respect to whom such distribution would otherwise be payable.  For purposes of the Plan, any such individual will be deemed to have predeceased the Participant (and thus will not be considered a Beneficiary).  The Administrative Committee may withhold distribution of benefits otherwise payable under the Plan for such period of time as is necessary or appropriate under the circumstances to make a determination with regard to the application of this subsection (d).
		

		
			5.11     Offset for Obligations to the Company.
		

		
			Notwithstanding anything herein to the contrary, if a Participant or Beneficiary has any outstanding obligation to any Affiliate (whether or not such obligation is related to the Plan), the Administrative Committee may cause the Account balance of such Participant or Beneficiary to be reduced and offset by, and to be applied to satisfy, the amount of such obligation, provided the obligation was incurred in the ordinary course of the service relationship between the Participant and the Affiliate, the entire amount of reduction in any of the Participant’s taxable years does not exceed $5,000, and the reduction is made at the same time and in the same amount as the obligation would otherwise have been due and collected from the Participant.
		

		
			5.12     Taxes.
		

		
			If the whole or any part of any Participant’s or Beneficiary’s benefit hereunder will become subject to any income, employment or other state, local or foreign tax which the Participating Company will be required to pay or withhold, the Participating Company will have the full power and authority, to the extent provided under Code Section 409A and applicable regulations, to withhold and pay such tax out of any monies or other property in its hand for the account of the Participant or Beneficiary whose interests hereunder are so affected (including, without limitation, by reducing and offsetting the Participant’s or Beneficiary’s Account balance).  Prior to making any payment, the Participating Company may require such releases or other documents from any lawful taxing authority as it deems necessary.
		

		
			
		

		
			

		 

		

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			5.13     Acceleration of Payment.
		

		
			The time or schedule of payment of a benefit under the Plan may be accelerated upon such events and conditions as the IRS may permit in generally applicable published regulatory or other guidance under Code Section 409A, including, without limitation, payment to a person other than the Participant to the extent necessary to fulfill the terms of a domestic relations order (as defined in Code Section 414(p)(1)(B)), payment of FICA tax and income tax on wages imposed on any amounts under this Plan, or payment of the amount required to be included in income for the Participant as a result of failure of the Plan to meet the requirements of Code Section 409A with respect to the Participant.
		

		
			5.14     Delay of Payment.
		

		
			The Administrative Committee may delay payment of a benefit hereunder upon such events and conditions as the IRS may permit in generally applicable published regulatory or other guidance under Code Section 409A, including, without limitation, payments that the Administrative Committee reasonably anticipates will be subject to the application of Code Section 162(m), or will violate Federal securities laws or other applicable law.
		

		
			5.15     Participant’s Right to Cancel Deferrals or Terminate Participation in Plan by December 31, 2005.
		

		
			At any time on or before December 31, 2005, a Participant has the right to cancel participation in the Plan, or to cancel an outstanding deferral election with regard to amounts subject to Code Section 409A, provided that the amounts subject to the termination or cancellation are includible in the income of the Participant in the calendar year 2005 or, if later, in the taxable year in which the amounts are earned and vested.
		

		
			5.16     Participant’s Right to Change Payment Elections by November 30, 2008.
		

		
			Subject to any administrative limitation determined in the sole and absolute discretion of the Administrative Committee that establishes an earlier deadline, at any time on or before November 30, 2008, a Participant has the right to make new payment elections with respect to both the timing and form of benefits payable under the Plan, and any such election will not be treated as a change in the form and timing of a payment under Code Section 409A(a)(4) or an acceleration of a payment under Code Section 409A(a)(3), provided that this Section and any related election applies only to amounts that would not otherwise be payable during the year in which such election is made and does not cause an amount to be paid in the year of election that would not otherwise be payable in such year.
		

		
			ARTICLE VI
		

		
			CLAIMS
		

		
			6.1      Presentation of Claims.  
		

		
			Any Participant or Beneficiary of a deceased Participant (such Participant or Beneficiary being referred to below as a “Claimant”) may deliver to the Administrative Committee a written 
		

		
			
		

		
			

		 

		

			33

		

 

		

		
			claim for a determination with respect to the amounts distributable to such Claimant from the Plan.  The claim must state with particularity the determination desired by the Claimant.
		

		
			6.2      Claims Procedure.  
		

		
			The Administrative Committee shall notify any person or entity that makes a claim against the Plan in writing, within 90 days of Claimant’s written application for benefits, of his or her eligibility or noneligibility for benefits under the Plan.  If the Administrative Committee determines that the Claimant is not eligible for benefits or full benefits, the notice shall set forth (1) the specific reasons for such denial, (2) a specific reference to the provisions of the Plan on which the denial is based, (3) a description of any additional information or material necessary for the Claimant to perfect his or her claim, and a description of why it is needed, and (4) an explanation of the Plan’s claims review procedure and other appropriate information as to the steps to be taken if the Claimant wishes to have the claim reviewed.  If the Administrative Committee determines that there are special circumstances requiring additional time to make a decision, the Administrative Committee shall notify the Claimant of the special circumstances and the date by which a decision is expected to be made, and may extend the time for up to an additional 90 days.
		

		
			6.3      Review Procedure.
		

		
			If the Claimant is determined by the Administrative Committee not to be eligible for benefits, or if the Claimant believes that he or she is entitled to greater or different benefits, the Claimant shall have the opportunity to have such claim reviewed by the Administrative Committee by filing a petition for review with the Administrative Committee within 60 days after receipt of the notice issued by the Administrative Committee.  Said petition shall state the specific reasons which the Claimant believes entitle him or her to benefits or to greater or different benefits.  Within 60 days after receipt by the Administrative Committee of the petition, the Administrative Committee shall afford the Claimant (and counsel, if any) an opportunity to present his or her position to the Administrative Committee verbally or in writing.  Claimant (or counsel) shall have the opportunity to submit written comments, documents, records, and other information relating to the claim for benefits, and shall be provided, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the Claimant’s claim.  The review shall take into account all comments, documents, records, and other information submitted by the Claimant relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination.  The Administrative Committee shall notify the Claimant of its decision in writing within the 60-day period, stating specifically the basis of its decision, written in a manner calculated to be understood by the Claimant and the specific provisions of the Plan on which the decision is based.  If, because of the need for a hearing, the 60-day period is not sufficient, the decision may be deferred for up to another 60 days at the election of the Administrative Committee, but notice of this deferral shall be given to the Claimant.
		

		
			6.4      Special Procedures Applicable to Disability Benefits.
		

		
			If a claim for benefits under the Plan is contingent on a determination by the Administrative Committee (or its designee) that the Participant suffers from a Disability, the 
		

		
			
		

		
			

		 

		

			34

		

 

		

		
			Claimant shall receive a written response to the initial claim from the Administrative Committee within 45 days, rather than 90 days.  If special circumstances require an extension, the Administrative Committee shall notify the Claimant within the 45-day processing period that additional time is needed.  If the Administrative Committee requests additional information so it can process the claim, the Claimant will have at least 45 days in which to provide the information.  Otherwise, the initial extension cannot exceed 30 days.  If circumstances require further extension, the Administrative Committee will again notify the Claimant, this time before the end of the initial 30-day extension.  The notice will state the date a decision can be expected.  In no event will a decision be postponed beyond an additional 30 days after the end of the first 30-day extension.  The Claimant may request a review of the Administrative Committee’s decision regarding the Disability claim within 180 days, rather than 60 days.  The review must be conducted by a fiduciary different from the fiduciary who originally denied the claim, and the fiduciary also cannot be subordinate to the fiduciary who originally denied the claim.  If the original denial of the claim was based on a medical judgment, the reviewing fiduciary must consult with an appropriate health care professional who was not consulted on the original claim and who is not subordinate to someone who was  The review must identify the medical or vocational experts consulted on the original claim.  The Claimant may request, in writing, a list of those medical or vocational experts.  The Claimant will receive notice of the reviewing fiduciary’s final decision regarding the Disability claim within 45 days, rather than 60 days, of the request for review.
		

		
			6.5      Legal Action.
		

		
			A Claimant’s compliance with the foregoing provisions of this Article VI is a mandatory prerequisite to a Claimant’s right to commence any legal action with respect to any claim for benefits under this Plan.
		

		
			6.6      Satisfaction of Claims.
		

		
			Any payment to a Participant or Beneficiary will to the extent thereof be in full satisfaction of all claims hereunder against the Administrative Committee and the Participating Companies, any of whom may require such Participant or Beneficiary, as a condition to such payment, to execute a receipt and release therefore in such form as will be determined by the Administrative Committee or the Participating Companies.  If receipt and release is required but the Participant or Beneficiary (as applicable) does not provide such receipt and release in a timely enough manner to permit a timely distribution in accordance with the general timing of distribution provisions in the Plan, the payment of any affected distribution may be delayed until the Administrative Committee or the Participating Companies receive a proper receipt and release.
		

		
			ARTICLE VII
		

		
			SOURCE OF FUNDS; TRUST
		

		
			7.1      Source of Funds.
		

		
			Except as provided in this Section 7.1 and Section 7.2 (relating to the Trust), each Participating Company will provide the benefits described in the Plan from its general assets.  
		

		
			
		

		
			

		 

		

			35

		

 

		

		
			However, to the extent that funds in such Trust allocable to the benefits payable under the Plan are sufficient, the Trust assets may be used to pay benefits under the Plan.  If such Trust assets are not sufficient to pay all benefits due under the Plan, then the appropriate Participating Company will have the obligation, and the Participant or Beneficiary, who is due such benefits, will look to such Participating Company to provide such benefits.  The Controlling Company intends to enter into a guaranty agreement to guarantee Plan Obligations owed by the respective Participating Companies to Plan Participants incurred during such time that the Controlling Company owned, directly or indirectly, in the aggregate a majority or the ownership interest in such Participating Company.
		

		
			7.2      Trust.
		

		
			(a)        Establishment.  To the extent determined by the Controlling Company, the Participating Companies will transfer the funds necessary to fund benefits accrued hereunder to the Trustee to be held and administered by the Trustee pursuant to the terms of the Trust Agreement.  Except as otherwise provided in the Trust Agreement, each transfer into the Trust Fund will be irrevocable as long as a Participating Company has any liability or obligations under the Plan to pay benefits, such that the Trust property is in no way subject to use by the Participating Company; provided, it is the intent of the Controlling Company that the assets held by the Trust are and will remain at all times subject to the claims of the general creditors of the Participating Companies.
		

		
			(b)        Distributions.  Pursuant to the Trust Agreement, the Trustee will make payments to Plan Participants and Beneficiaries in accordance with a payment schedule provided by the Participating Company.  The Participating Company will make provisions for the reporting and withholding of any federal, state or local taxes that may be required to be withheld with respect to the payment of benefits pursuant to the terms of the Plan and will pay amounts withheld to the appropriate taxing authorities or determine that such amounts have been reported, withheld and paid by the Participating Company.
		

		
			(c)        Status of the Trust.  No Participant or Beneficiary will have any interest in the assets held by the Trust or in the general assets of the Participating Companies other than as a general, unsecured creditor.  Accordingly, a Participating Company will not grant a security interest in the assets held by the Trust in favor of the Participants, Beneficiaries or any creditor.
		

		
			(d)        Change in Control.  Notwithstanding anything in this Article VII to the contrary, in the event of a Change in Control, each of the Participating Companies with obligations to Participants (or their Beneficiaries) who are deemed involved with such Change in Control will immediately transfer to the Trustee an amount equal to the aggregate of all benefit amounts (determined as of the latest Valuation Date coinciding with or preceding the date the Change in Control occurs) of all such Participants and Beneficiaries for which such Participating Company is liable for payment in accordance with the terms of Section 3.1(c).  The funds so transferred will be held and administered by the Trustee pursuant to the terms of the Trust Agreement and the foregoing provisions of this Section 7.2.
		

		
			
		

		
			

		 

		

			36

		

 

		

		
			ARTICLE VIII
		

		
			ADMINISTRATIVE COMMITTEE
		

		
			8.1       Appointment of Administrative Committee.
		

		
			(a)        Administrative Committee. The Board appoints individuals to serve as members of the Administrative Committee.  The Controlling Company has the right to remove any member of such committee at any time.  A member may resign at any time by written resignation delivered to the remaining members of the Administrative Committee (if any), and if none, to the Board.  If a vacancy in the Administrative Committee should occur, a successor may be appointed by the Controlling Company, and the Controlling Company may appoint additional members.  (See subsection (b) hereof regarding the specified persons who may act for the Controlling Company in naming committee members hereunder).
		

		
			(b)        Appointments by Controlling Company.  The appointment and removal authority and responsibilities assigned to the Controlling Company in this Section 8.1 and Section 8.4(a) may be exercised at any time by either the Board or the individual(s) who are serving as member(s) of the Administrative Committee at such time; provided, if there is any dispute over any appointment or removal of a committee member, the Board will act to resolve such dispute.  In making such appointments and removals, the Administrative Committee members will be acting on behalf of the Controlling Company and not in their capacity as plan fiduciaries.
		

		
			8.2       Administration Generally.
		

		
			The Plan will be administered by the Administrative Committee.  The Administrative Committee may establish such policies and procedures as it deems helpful with respect to the operation and administration of the Plan.  All administrative and investment decisions ultimately will be made by and will require the approval of the Administrative Committee, except as delegated by the Administrative Committee or the Plan pursuant to this Article VIII.
		

		
			8.3       Organization of Administrative Committee.
		

		
			The Administrative Committee may elect a Chairman and a Secretary from among its members.  In addition to those powers set forth elsewhere in the Plan, the Administrative Committee, by formal action or through its practices, may appoint such agents, who need not be members of such Administrative Committee, as it may deem necessary for the effective performance of its duties and may delegate to such agents such powers and duties, whether ministerial or discretionary, as the Administrative Committee may deem expedient or appropriate.  The Administrative Committee will act by majority vote.
		

		
			8.4        Powers and Responsibility of Administrative Committee.
		

		
			The Administrative Committee will have complete control of the administration of the Plan hereunder, with all powers necessary to accomplish that purpose, including (but not limited to) the following:
		

		
			
		

		
			

		 

		

			37

		

 

		

		
			(a)       to appoint and remove members of the Administrative Committee;
		

		
			(b)       to appoint a Trustee hereunder;
		

		
			(c)       to construe the Plan and to determine all questions that will arise thereunder;
		

		
			(d)       to have all powers elsewhere herein conferred upon it;
		

		
			(e)       to decide all questions relating to the eligibility of employees or Nonemployee Directors to participate in the Plan;
		

		
			(f)        to determine the benefits of the Plan to which any Participant or Beneficiary may be entitled;
		

		
			(g)       to maintain and retain records relating to Participants and Beneficiaries;
		

		
			(h)       to prepare and furnish to Participants all information required under federal law or provisions of the Plan to be furnished to them;
		

		
			(i)        to provide directions to the Trustee with respect to methods of benefit payment, and all other matters where called for in the Plan or requested by the Trustee;
		

		
			(j)        to engage assistants and professional advisors;
		

		
			(k)       to provide procedures for determination of claims for benefits;
		

		
			(l)        to amend the Plan at any time and from time to time as provided for in Section 9.1; and
		

		
			(m)      to delegate any recordkeeping or other administerial duties hereunder to any other person or third party.
		

		
			8.5       Records of Committee.
		

		
			(a)        Notices and Directions.  Any notice, direction, order, request, certification or instruction of the Administrative Committee to the Trustee will be in writing signed by a member of the Administrative Committee (or such other media or format to which the Administrative Committee and Trustee may agree).  The Trustee and every other person will be entitled to rely conclusively upon any and all such proper notices, directions, orders, requests, certifications and instructions received from the Administrative Committee and reasonably believed to be properly executed, and will act and be fully protected in acting in accordance with any such directions that are proper.
		

		
			(b)        Records of Administrative Committee.  All acts and determinations of the Administrative Committee will be duly recorded by its Secretary or under his supervision, and all such records, together with such other documents as may be 
		

		
			
		

		
			

		 

		

			38

		

 

		

		
			necessary for the administration of the Plan, will be preserved in the custody of such Secretary.
		

		
			8.6       Construction of the Plan.
		

		
			The Administrative Committee will take such steps as are considered necessary and appropriate to remedy any inequity that results from incorrect information received or communicated in good faith or as the consequence of an administrative error.  The Administrative Committee, in its sole and full discretion, will interpret the Plan and will determine the questions arising in the administration, interpretation and application of the Plan.  The Administrative Committee will endeavor to act, whether by general rules or by particular decisions, to treat all similarly-situated Participants uniformly, unless it otherwise deems necessary.  The Administrative Committee will correct any defect, reconcile any inconsistency or supply any omission with respect to the Plan.
		

		
			8.7       Direction of Trustee.
		

		
			The Administrative Committee will have the power to provide the Trustee with general investment policy guidelines and directions to assist the Trustee respecting investments made in compliance with, and pursuant to, the terms of the Plan.
		

		
			8.8       Indemnification.
		

		
			The Administrative Committee and each member of the Administrative Committee will be indemnified by the Participating Companies against judgment amounts, settlement amounts (other than amounts paid in settlement to which the Participating Companies do not consent) and expenses, reasonably incurred by the Administrative Committee or him in connection with any action to which the committee or he may be a party (by reason of his service as a member of the Administrative Committee) except in relation to matters as to which the committee or he will be adjudged in such action to be personally guilty of gross negligence or willful misconduct in the performance of its or his duties.  The foregoing right to indemnification will be in addition to such other rights as the Administrative Committee or each Administrative Committee member may enjoy as a matter of law or by reason of insurance coverage of any kind.  Rights granted hereunder will be in addition to and not in lieu of any rights to indemnification to which the Administrative Committee or each Administrative Committee member may be entitled pursuant to the by-laws or other organizational rules of the Controlling Company.  Service on the Administrative Committee will be deemed in partial fulfillment of an Administrative Committee member’s function as an employee or officer of the Controlling Company or any Participating Company, if he serves in such other capacity as well.
		

		
			ARTICLE IX
		

		
			AMENDMENT AND TERMINATION
		

		
			9.1       Amendments.
		

		
			The Administrative Committee will have the right, in its sole discretion, to amend the Plan in whole or in part at any time and from time to time; provided, any amendment that may 
		

		
			
		

		
			

		 

		

			39

		

 

		

		
			result in significantly increased expenses under the Plan must be approved by the Board.  Any amendment will be in writing and executed by a duly authorized member of the Administrative Committee.  An amendment to the Plan may modify its terms in any respect whatsoever, and may include, without limitation, a permanent or temporary freezing of the Plan such that the Plan will remain in effect with respect to existing Account balances without permitting any new contributions; provided, no such action may reduce the amount already credited to a Participant’s Account without the affected Participant’s written consent.  All Participants and Beneficiaries will be bound by such amendment.
		

		
			9.2       Termination of Plan.  
		

		
			The Controlling Company expects to continue the Plan but reserves the right to discontinue and terminate the Plan at any time, for any reason.  Any action to terminate the Plan will be taken by the Board in the form of a written Plan amendment executed by a duly authorized officer of the Controlling Company.  Such termination will be binding on all Participants and Beneficiaries.
		

		
			If the Plan is terminated, each Participant will become 100% vested in his Account, which will be distributed in a single lump sum after the date the Plan is terminated if and to the extent such distribution is permitted under Code Section 409A and the regulations thereunder.  Accordingly, payment of a Participant’s benefits may be made hereunder in accordance with one of the following:
		

		
			(a)        termination of the Plan within twelve (12) months of a corporate dissolution taxed under Code Section 331 or with the approval of a bankruptcy court pursuant to 11 U.S.C. §503(b)(1)(A), as provided in Treasury Regulation Section 1.409A-3(j)(4)(ix)(A); or
		

		
			(b)        within the thirty (30) days preceding or the twelve (12) months following a Change in Control, provided that all substantially similar arrangements are also terminated, as provided in Treasury Regulations Section 1.409A-3(j)(4)(ix)(B); or
		

		
			(c)        the termination of the Plan, provided the termination does not occur proximate to a downturn in the financial health of the Participating Company, if all arrangements that would be aggregated with the Plan under Treasury Regulation Section 1.409A-1(c) are terminated, no payments other than payments that would be payable under the terms of the Plan if the termination had not occurred are made within twelve (12) months of the Plan termination, all payments are made within twenty-four (24) months of the Plan termination, and no new arrangement that would be aggregated with the Plan under Treasury Regulation Section 1.409A-1(c) is adopted within three (3) years following the Plan termination, as provided in Treasury Regulation Section 1.409A-3(j)(4)(ix)(C).
		

		
			(d)        such other events and conditions as the IRS may prescribe in generally applicable published guidance under Code Section 409A.
		

		
			
		

		
			

		 

		

			40

		

 

		

		
			The termination of the Plan shall not adversely affect any Participant or Beneficiary who has become entitled to the payment of any benefits under the Plan as of the date of termination.  The amount of any such distribution will be determined as of the date of Plan termination.
		

		
			9.3       Authorization and Delegation to the Administrative Committee and Controlling Company.
		

		
			Each Affiliate which is or hereafter becomes a Participating Company irrevocably authorizes and empowers the Administrative Committee and the Board to:
		

		
			(a)        amend or terminate the Plan without further action by the Participating Company as provided in Sections 9.1 and 9.2; and
		

		
			(b)        perform such other acts and do such other things as the Administrative Committee and the Board are expressly directly authorized or permitted to perform or do in the Plan.
		

		
			ARTICLE X
		

		
			MISCELLANEOUS
		

		
			10.1     Taxation.
		

		
			It is the intention of the Controlling Company that the benefits payable hereunder will not be deductible by the Participating Companies nor taxable for federal income tax purposes to Participants or Beneficiaries until such benefits are paid by the Participating Company, or the Trust, as the case may be, to such Participants or Beneficiaries.  Each Participant will be taxed for purposes of the Federal Insurance Contributions Act (“FICA”) as of the later of (i) the date that contributions are credited to the Participant’s Accounts; and (ii) the date that such amounts become vested.  When benefits are paid hereunder, it is the intention of the Controlling Company that they will be deductible by the Participating Companies under Code Section 162.
		

		
			10.2     No Employment Contract.
		

		
			Nothing herein contained is intended to be nor will be construed as constituting a contract or other arrangement between a Participating Company or any Affiliate and any Participant to the effect that the Participant will be employed by the Participating Company or Affiliate for any specific period of time.
		

		
			10.3     Headings.
		

		
			The headings of the various articles and sections in the Plan are solely for convenience and will not be relied upon in construing any provisions hereof.  Any reference to a section will refer to a section of the Plan unless specified otherwise.
		

		
			
		

		
			

		 

		

			41

		

 

		

		
			10.4      Gender and Number.
		

		
			Use of any gender in the Plan will be deemed to include all genders when appropriate, and use of the singular number will be deemed to include the plural when appropriate, and vice versa in each instance.
		

		
			10.5      Assignment of Benefits.
		

		
			The right of a Participant or his Beneficiary to receive payments under the Plan may not be anticipated, alienated, sold, assigned, transferred, pledged, encumbered, attached or garnished by creditors of such Participant or Beneficiary, except by will or by the laws of descent and distribution and then only to the extent permitted under the terms of the Plan.
		

		
			10.6      Legally Incompetent.
		

		
			The Administrative Committee, in its sole discretion, may direct that payment to be made to an incompetent or disabled person, whether because of minority or mental or physical disability, be made instead to the guardian of such person or to the person having custody of such person, without further liability on the part of the Participating Company for the amount of such payment to the person on whose account such payment is made.
		

		
			10.7      Governing Law.
		

		
			The Plan will be construed, administered and governed in all respects in accordance with applicable federal law (including ERISA) and, to the extent not preempted by federal law, in accordance with the laws of the State of North Carolina.  If any provisions of this instrument will be held by a court of competent jurisdiction to be invalid or unenforceable, the remaining provisions hereof will continue to be fully effective.
		

		
			10.8      Exclusive Benefit.  
		

		
			The benefits payable hereunder will be the exclusive benefit payable to any Participant under the Plan.
		

		
			IN WITNESS WHEREOF, the Controlling Company has caused the Plan to be executed by its duly authorized officer this 10th day of October, 2016 effective as of January 1, 2016.
		

			
					
						 

					
					
						HARRIS TEETER SUPERMARKETS, INC.

				

		
			 
		

			
					
						 

					
					
						By:

					
					
						/s/ Christine S. Wheatley

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Its:

					
					
						Vice President and Secretary

				

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			42

		

 

		

		
			EXHIBIT A
		

		
			PARTICIPATING COMPANIES
		

		
			(See Section 1.43)
		

		
			 
		

			
					
						Company Names

					
					
						    

					
					
						Effective Date

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						American & Efird, Inc.

					
					
						 

					
					
						August 16, 2002 (sold in 2011)

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Harris Teeter, LLC (f/k/a Harris Teeter, Inc.)

					
					
						 

					
					
						August 16, 2002

				

		
			 
		

		
			 
		

		 

		

			A-1

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