Document:

exv10w31

Exhibit 10.31

BOB EVANS FARMS, INC.

1998 SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

 

 

BOB EVANS FARMS, INC.

1998 SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

INTRODUCTION The purpose of this Supplemental Executive Retirement Plan (the “Plan”) is to provide
a further means whereby Bob Evans Farms, Inc., a Delaware Corporation (the “Company”) may afford
financial security to a select group of Participants of the Company, who render valuable services
to the Company, constituting an important contribution toward its continued growth and success, by
providing for additional future compensation so that such Participants may be retained and their
productive efforts encouraged, all as provided herein.
The Plan is intended to be an unfunded plan for purposes of providing supplemental retirement
benefits to a select group of management or highly compensated employees as such group is described
under Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA. The Plan is not intended to be a plan
described in Section 401(a) of the Code.

The Plan is intended to supersede the Bob Evans Farms, Inc. Supplemental Executive Retirement Plan
previously adopted by the Company on April 17, 1992.

ARTICLE I DEFINITIONS

1.3 DEFINITIONS. Wherever used in the Plan, the following words and phrases shall have the meaning
set forth below unless the context plainly requires a different meaning.

(a) “ADMINISTRATOR” means the Committee or the persons appointed by the Committee to administer the
Plan.

(b) “ACCOUNT” means an account established under the Plan for each Participant for purposes of
tracking the accumulated value of Company Contributions.

(c) “AFFILIATE” means a member of a controlled group of corporations, within the meaning of section
414(b) of the Code, which includes the Company; a trade or business (whether or not incorporated)
which is in common control with the Company as determined in accordance with section 414(c) of the
Code; or any organization which is a member of an affiliated service group, within the meaning of
section 414(m) of the Code, which includes the Company, and any other organization required to be
aggregated with the Company pursuant to section 414(o) of the Code and which adopts this Plan with
the consent of the Company.

(d) “BOARD” means the Board of Directors of the Company.

(e) “CODE” means the Internal Revenue Code of 1986, as amended.
Any reference to a particular Code section shall include any provision which modifies, replaces or
supersedes it.

(f) “COMMITTEE” means the Compensation Committee of the Board or any other such Committee that may
be appointed by the Board from time to time.

 

 

(g) “COMMON SHARES” means the shares of common stock of the Company, par value $0.01 per share, or
any security of the Company issued in substitution, exchange or in lieu thereof.

(h) “COMPENSATION” means the amount of a Participant’s compensation as defined in Section 415(c)(3)
of the Code, including any salary reduction contributions which are excluded from gross income
under Sections 125 and 402(a)(8) of the Code, but excluding any long-term incentive awards (e.g.,
performance share awards, restricted stock, or stock appreciation rights), grants of any
nonqualified stock options or the exercise of a Code Section 83(b) election by a Participant.

(i) “COMPANY” means Bob Evans Farms, Inc., a corporation organized under the laws of the state of
Delaware, and any successor thereto.

(j) “COMPANY CONTRIBUTION” means an amount credited to a
Participant’s Account under the terms of the Plan.

(k) “EARLY RETIREMENT DATE” means retirement from employment with the Company and all Affiliates
after attaining age 55 and completion of ten (10) Years of Service.

(l) “EFFECTIVE DATE” means May 1, 1998.

(m) “ERISA” means the Employee Retirement Income Security Act of
1974, as amended. Any reference to a particular section of ERISA shall include any provision which
modifies, replaces or supersedes it.

(n) “NORMAL RETIREMENT DATE” means the date a Participant attains age 62.

(o) “PARTICIPANT” means an employee who satisfies the requirements of Article II.

(p) “PLAN” means the plan to provide Company Contributions as set forth herein and as amended from
time to time, which shall be known as Bob Evans Farms, Inc. 1998 Supplemental Executive Retirement
Plan.

(q) “PLAN YEAR” means the 52/53 week year ending on the last
Friday in April of each year.

(r) “TERMINATION FOR CAUSE” means the termination of a Participant’s employment according to the
Company’s customary procedures, due to any act of fraud or intentional misrepresentation or
embezzlement, misappropriation or conversion of assets or opportunities of the Company or any
Affiliate, the conviction of a felony or intentional and repeated violations of the written
policies or procedures of the Company or any Affiliate.

(s) “TOTAL AND PERMANENT DISABILITY” means a mental or physical condition which, according to the
Company’s customary procedures, renders a Participant unable or incompetent to carry out the job
responsibilities which such Participant held or the tasks to which

 

 

such Participant was assigned at the time the disability was incurred, and which is expected to be
permanent or for an indefinite duration exceeding one year.

(t) “VALUATION DATE” means the date as of which the Participant’s Company Contribution shall be
determined and shall mean the last day of the Plan Year or any other date established by the
Committee.

(u) “YEARS OF SERVICE” means the full and partial years (in increments of one-twelfth (1/12th)
years) of active employment with the Company during which substantial services were rendered as an
employee, commencing on the date the Participant was first employed by the Company and ending on
the earlier of the Participant’s termination of employment, Normal Retirement Date or the Plan Year
ending in 2002; however, in no event beyond the 65th anniversary of the Participant’s date of
birth. At the discretion of the Board, Participants may be granted additional Years of Service for
purposes of determining benefits under the Plan.

1.4 USAGE. Except as otherwise indicated by the context, any masculine terminology used herein
shall also include the feminine and vice versa and the definition of any term herein in the
singular shall also include the plural and vice versa.

ARTICLE II ELIGIBILITY AND PARTICIPATION

2.01 ELIGIBILITY. The Committee shall, from time to time, in its discretion, designate certain key
employees as Participants for the purpose of eligibility to participate in the Plan. Such
Participants shall be designated in Appendix A, as the same may be amended from time to time.
Notwithstanding the foregoing, a Participant shall be eligible to participate in the Plan only to
the extent, and for the period that, he is a member of a select group of management or highly
compensated employees as defined under Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA.

2.02 PARTICIPATION. An individual who is eligible to participate in the Plan pursuant to Section
2.01 shall become a Participant at such time and for such period as determined by the Committee.

ARTICLE III PLAN CONTRIBUTIONS

3.01 COMPANY CONTRIBUTION. The Company shall make a Company Contribution to a Participant’s
Account, as determined in Appendix B, for each Participant who was employed by the Company on the
last day of the Plan Year. The Company may also make a “final” Company Contribution reflecting the
portion of the year worked in the year the Participant retires if he is then vested in his Account
pursuant to Section 3.04.

3.02 STOCK OPTIONS. The Committee, in its discretion, may authorize a
Participant to elect to receive his Company Contribution in the form of non-qualified stock options
(“stock options”) granted pursuant to the Bob Evans Farms, Inc. 1998 Stock Option and Incentive
Plan or any other plan designated by the Committee. A Participant shall make his

 

 

election, if any, under this Section 3.02, according to practices and procedures established by the
Committee, but in no event later than 60 days prior to the allocation of the Company Contribution.
To the extent a Participant makes an election to receive stock options under this Section 3.02,
such award shall bein lieu of the Company Contribution otherwise due for the Plan Year.

3.03 ACCOUNTS. The Administrator shall establish and maintain, pursuant to the terms of the Plan,
an Account for each Participant consisting of amounts credited to such Account pursuant Sections
3.01 and 3.06. All amounts which are credited to the Account shall be credited solely for the
purposes of accounting and computation, and shall remain assets of the Company subject to the
claims of the Company’s general creditors. The balance of a Participant’s Account represents his
entire benefit under this Plan.

3.04 VESTING. (a) Except as provided below, a Participant who is in the active employ of the
Company or an Affiliate shall have a vested right to his Account upon the occurrence of any of the
following: (i) the attainment of his Early Retirement Date; (ii) the attainment of his Normal
Retirement Date; (i) the occurrence of a Change in Control as defined in Section 5.01;(ii) his
death prior to actual retirement; or (iii) his Total and Permanent Disability prior to actual
retirement.

(a) Notwithstanding the preceding paragraph, a Participant’s Account shall be forfeited, and no
benefits shall be payable hereunder with respect to him or his beneficiaries, in the event of: (i)
his Termination for Cause; or (ii) his termination of employment with the Company prior to
satisfying the requirements for vesting as set forth in paragraph (a) above.

3.05 TIME AND FORM OF PAYMENT. A Participant who retires under this Plan on or after his Early
Retirement Date or Normal Retirement Date shall then be entitled to, and shall receive, an
installment distribution of his Account. The first payment shall be made within 60 days of the
Participant’s termination of employment in an amount equal to 1/10th of the balance of his Account.
Within 60 days of the Plan Year end following the date of the first payment, the second payment
shall be due. The amount of the second payment shall be equal to 1/9th of the balance of the
Account on that Plan Year end. Successive distributions shall be due within 60 days of each
following Plan Year end such that the total Account shall be distributed in ten substantially equal
payments. This installment distribution shall be the manner in which an Account shall be
distributed (the default distribution), unless elected otherwise by the Participant as described
below.

A Participant may elect either of the following alternative distributions in lieu of the default
distribution:

(i) A lump sum distribution, to be made within 60 days of his termination of employment, in an
amount equal to the balance of his Account.

(ii) A ten year installment distribution, calculated in the same manner as the default
distribution, commencing on the Plan Year end following the Participant’s 65th birthday.

 

 

A Participant may make such election according to procedures established by the Committee.
Nevertheless, the default distribution shall apply unless a valid alternative election is in
effect, and an alternative election must be requested more than one year prior to the Participant’s
termination of employment in order to be considered valid.

3.06 INTEREST. At the end of each Plan Year, a Participant’s Account shall be credited with
interest in the amount specified pursuant to procedures established by the Committee. In
determining the amount of interest to credit, the Committee shall refer to the investment yield on
funds held in a grantor trust, and shall credit (or debit as appropriate) each Participant’s
Account with interest solely according to the investment performance of such trust. The Committee
may change the grantor trust from which the investment yield is tracked from time to time, though
any such change will only apply to interest credits for Plan Years which commence after the
Committee’s authorization of the change. A Participant’s Account will continue to be credited with
interest until the Account is fully distributed to the Participant.

ARTICLE IV DEATH AND DISABILITY PROVISIONS

4.01 DISTRIBUTION OF ACCOUNT ON A PARTICIPANT’S DEATH PRIOR TO RETIREMENT. If a Participant dies
while employed by the Company or an Affiliate prior to termination of employment, or following his
termination of employment and prior to the distribution of his Account, his designated Beneficiary
at the date of death shall be entitled to receive the balance of his Account. If the Participant
were vested at the time of death, such distribution(s) shall be made to the Beneficiary as if the
Participant had retired instead of having died. If the Participant were not vested at the time of
death, a lump sum distribution shall be made within 60 days of the Participant’s death, in an
amount equal to the balance of the Participant’s Account. If a Participant dies after termination
of employment, the form of distribution in effect under Section 3.05 shall be retained.

4.02 DISTRIBUTION OF ACCOUNT ON A PARTICIPANT’S TOTAL AND PERMANENT DISABILITY. If a Participant
incurs a Total and Permanent Disability prior to his termination of employment with the Company or
an Affiliate, he shall be entitled to receive the balance of his Account. If the Participant were
vested at the time of a Total and Permanent Disability, such distribution(s) shall be made as if
the Participant had retired instead of having incurred a Total and Permanent Disability. If the
Participant were not vested at the time of a Total and Permanent Disability, a lump sum
distribution shall be made within 60 days of the Committee’s determination of Participant’s Total
and Permanent Disability, in an amount equal to the balance of the Participant’s Account. If a
Participant incurs a Total and Permanent Disability after termination of employment, the form of
distribution in effect under Section 3.05 shall be retained.

4.03 DESIGNATION OF BENEFICIARY. A Participant may, by written instruction delivered to the
Administrator during the Participant’s lifetime, designate one or more primary and contingent
beneficiaries to receive the balance of the Participant’s Account that may be payable hereunder
following the Participant’s death, and may designate the proportions in which such beneficiaries
are to receive such payments. A Participant may change such designations from time to time, and the
last written designation filed with the Administrator prior to the

 

 

Participant’s death shall control. If a Participant fails to specifically designate a beneficiary,
or if no designated beneficiary survives the Participant, payment shall be made by the
Administrator in the following order of priority: (a) to the Participant’s surviving spouse; or if
none, (b) to the Participant’s children, per stirpes; or if none; (c) to the Participant’s estate.

ARTICLE V CHANGE IN CONTROL

5.01 CHANGE IN CONTROL. A “Change in Control” shall be deemed to occur on the earliest of the
following dates:

(a) the date any entity or person (including a “group” as defined in Section 13(d)(3) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”)) shall have become the beneficial
owner of, or shall have obtained voting control over, twenty percent (20%) or more of the
outstanding Common Shares;

(b) the date the stockholders of the Company approve a definitive agreement (i) to merge or
consolidate the Company with or into another corporation, in which the Company is not the
continuing or surviving corporation or pursuant to which any Common Shares would be converted into
cash, securities or other property of another corporation, other than a merger of the Company in
which holders of Common Shares immediately prior to the merger have the same proportionate
ownership of shares of the surviving corporation immediately after the merger as immediately
before, or (ii) to sell or otherwise dispose of substantially all the assets of the Company; or

(c) the date there shall have been a change in a majority of the Board within a twelve (12) month
period; provided, however, that any new director whose nomination for election by the Company’s
stockholders was approved, or who was appointed or elected to the Board by, the vote of two-thirds
of the directors then still in office who were in office at the beginning of the twelve (12) month
period shall not be counted in determining whether there has been such a change in a majority of
the Board.

5.02 VESTING UPON CHANGE IN CONTROL. Each Participant shall become fully vested in his Account upon
the occurrence of a Change in Control as defined in Section 5.01.

5.03 FUTURE SERVICE CONTRIBUTION UPON CHANGE IN CONTROL. Upon the occurrence of a Change in
Control, a Participant shall have a special Company Contribution made to his Account as of the date
of the Change in Control. The amount of his special Company Contribution shall be determined based
upon the procedures established in Appendix B.

ARTICLE VI ADMINISTRATION

6.01 ADMINISTRATION. The Administrator shall be responsible for the general administration of the
Plan and shall perform all administrative functions and shall interpret, construe and apply the
Plan provisions in accordance with its terms. The Administrator may

 

 

establish, adopt or revise rules and regulations as it deems necessary or advisable for the
administration of the Plan. The Administrator may consult with and rely upon the advice of such
counsel, actuaries and advisors as it shall see fit.

6.02 DUTIES. The Administrator shall have the following rights, powers, and duties:

(a) The decision of the Administrator in matters within its jurisdiction shall be final, binding
and conclusive upon the Company and upon any other person affected by such decision subject to the
claims procedure hereinafter set forth.

(b) The Administrator shall have the duty and authority to interpret and construe the Plan
provisions, to determine eligibility for benefits and the appropriate amount of any benefits, to
decide any question which may arise regarding the rights of employees, Participants, and
beneficiaries, and the amounts of their respective interests, to adopt such rules and to exercise
such powers as the Administrator may deem necessary for the administration of the Plan, and to
exercise any other rights, powers or privileges granted to the Administrator by the terms of the
Plan.

(c) The Administrator shall maintain reasonable records of its decisions. Its records shall contain
all relevant data pertaining to the Participant and his rights and duties under the Plan. The
Administrator shall have the duty to maintain Account records of all Participants.

(d) The Administrator shall cause the principal provisions of the Plan to be communicated to the
Participants, and a copy of the Plan and other documents shall be available at the principal office
of the Company for inspection by the Participants at reasonable times determined by the
Administrator.

(e) The Administrator shall periodically report to the Board with respect to the status of the
Plan.

6.03 FEES. No fee or compensation shall be paid to any person for services as the Administrator.

ARTICLE VII CLAIMS REVIEW PROCEDURE

7.01 GENERAL. Any claim for Plan benefits shall be filed by the Participant or beneficiary on the
form prescribed for such purpose with the Administrator.

7.02 DENIALS. If a Company Contribution or any other claim under the Plan is wholly or partially
denied, notice of the decision shall be furnished to the Participant or beneficiary (claimant) as
the case may be by the Administrator within a reasonable period of time after such decision is
reached.

 

 

7.03 NOTICE. Any claimant who is denied a claim for benefits shall be furnished written notice
setting forth:

(a) the specific reason or reasons for the denial;

(b) specific reference to the pertinent provision of the Plan upon which the denial is based;

(c) a description of any additional material or information necessary for the claimant to perfect
the claim; and

(d) an explanation of the claim review procedure under the Plan.

7.04 APPEALS PROCEDURE. In order that a claimant may appeal a denial of a claim, the claimant or
the claimant’s duly authorized representative may:

(a) request a review by written application to the Administrator, or its designee, no later than 60
days after receipt by the claimant of written notification of denial of a claim;

(b) review pertinent documents; and

(c) submit issues and comments in writing.

7.05 REVIEW. A decision on review of a denied claim shall be made not later than 60 days after
receipt of a request for review, unless special circumstances require an extension of time for
processing, in which case a decision shall be rendered within a reasonable period of time, but not
later than 120 days after receipt of a request for review. The decision on review shall be in
writing and shall include the specific reason(s) for the decision and the specific reference(s) to
the pertinent provisions of the Plan on which the decision is based.

ARTICLE VIII GENERAL

8.01 PLAN AMENDMENT OR TERMINATION. The Company reserves the right to amend or terminate the Plan
in any manner that it deems advisable, by a resolution of the Board. Notwithstanding the preceding
sentence, no amendment or termination of the Plan shall reduce the benefit of any Participant
determined
as of the day immediately preceding the effective date of such amendment or termination.

8.02 NO EMPLOYMENT RIGHTS. Nothing herein shall constitute a contract of continuing employment or
in any manner obligate the Company to continue the service of a Participant, or obligate a
Participant to continue in the service of the Company, and nothing herein shall be construed as
fixing or regulating the compensation paid to any Participant.

8.03 NONASSIGNABILITY. Neither a Participant nor any other person shall have any right to commute,
sell, assign, transfer, pledge, anticipate, mortgage or otherwise encumber, transfer,

 

 

hypothecate or convey in advance of actual receipt the amounts, if any, payable hereunder, or any
part thereof, which are, and all rights to which are, expressly declared to be unassignable and
non-transferable. No part of the amounts payable shall, prior to actual payment, be subject to
seizure or sequestration for the payment of any debts, judgments, alimony or separate maintenance
owed by a Participant or any other person, nor be transferable by operation of law in the event of
a Participant’s or any other person’s bankruptcy or insolvency.

8.04 SEVERABILITY. If any provision of the Plan shall be held illegal or invalid for any reason,
such illegality or invalidity shall not affect the remaining provisions of the Plan, but the Plan
shall be construed and enforced as if such illegal or invalid provision had never been included
herein.

8.05 NOTIFICATION OF ADDRESSES. Each Participant and each beneficiary shall file with the
Administrator, from time to time, in writing, the post office address of the Participant, the post
office address of each beneficiary, and each change of post office address. Any communication,
statement or notice addressed to the last post office address filed with the Administrator (or if
no address was filed, then to the last post office address of the Participant or beneficiary as
shown on the Company’s records) shall be binding on the Participant and each beneficiary for all
purposes of the Plan and neither the Administrator nor the Company shall be obligated to search for
or ascertain the whereabouts of any Participant or beneficiary.

8.06 APPLICABLE LAW. This Plan shall be governed and construed in accordance with the laws of the
State of Ohio, except to the extent that such state laws may be preempted by federal law.

ARTICLE IX FUNDING

9.01 UNFUNDED PLAN. The Plan, at all times, shall be entirely unfunded and shall constitute merely
the unsecured promise of the Company to make payments as provided for herein.

9.02 NO CLAIM AGAINST THE COMPANY. Neither a Participant nor any other person shall acquire by
reason of the Plan any right in or title to any assets, funds or property of the Company whatsoever
including, without limiting the generality of the foregoing, any specific funds or assets which the
Company, in its sole discretion, may set aside in anticipation of a liability hereunder. Any trust
which is created in connection with this Plan or any agreement shall provide that the assets of the
trust are subject to the claims of the Company’s general creditors. A Participant shall have only a
contractual right to the amounts, if any, payable hereunder unsecured by any asset of the Company.exv10w32

Exhibit 10.32

BOB EVANS FARMS, INC. AND AFFILIATES

2002 SECOND AMENDED AND RESTATED SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

Originally Adopted April 17, 1992

First Amendment and Restatement Effective May 1, 1998

Second Amendment and Restatement Effective May 1, 2002

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BOB EVANS FARMS, INC. AND AFFILIATES

2002 SECOND AMENDED AND RESTATED SUPPLEMENTAL EXECUTIVE

RETIREMENT PLAN

SECTION 1.00 PURPOSE

On April 17, 1992, Bob Evans Farms, Inc. (“Corporation”) adopted the Bob Evans Farms, Inc.
Supplemental Executive Retirement Plan to provide deferred and incentive compensation to a select
group of its management or highly compensated employees. Effective May 1, 1998, the Plan was
amended and restated. Effective May 1, 2002, the Corporation adopts this second amended and
restated version of the Plan. This Plan is intended to be an unfunded, nonqualified program of
deferred compensation within the meaning of Title I of ERISA.

SECTION 2.00 DEFINITIONS

When used in this Plan, the following terms will have the meanings given to them in this section
unless another meaning is expressly provided elsewhere in this Plan. When applying these
definitions, the form of any term or word will include any of its other forms.

2.01 ACCOUNT. The account established under Section 5.01 to measure the value of each Member’s Plan
benefit.

2.02 BENEFICIARY. The person a Member designates under Section 3.02 to receive any death benefit
payable under Section 6.02.

2.03 BOARD. The Corporation’s board of directors.

2.04 CAUSE. A Member’s [1] willful and continued refusal to substantially perform assigned duties
(other than any refusal resulting from incapacity due to physical or mental illness), [2] willful
engagement in gross misconduct materially and demonstrably injurious to any Group Member or [3]
breach of any term of this Plan. However, [4] Cause will not arise solely because the Member is
absent from active employment during periods of vacation, consistent with the Employer’s applicable vacation policy, or other period of absence initiated by the Member and
approved by the Employer.

2.05 CHANGE AGREEMENT. An individual agreement between the Corporation and any Member describing
the effect of a Change in Control.

2.06 CHANGE IN CONTROL.

[1] With respect to any Member who is a party to a Change Agreement, a “change in control” as
defined in (and subject to the terms of) that Member’s Change Agreement; and

2

 

[2] With respect to all Members, approval by the Corporation’s stockholders of a definitive
agreement [a] to merge or consolidate the Corporation with or into another corporation in which the
Corporation is not the continuing or surviving corporation or pursuant to which any Common Shares
would be converted into cash, securities or other property of another corporation, other than a
merger of the Corporation in which holders of Common Shares immediately before the merger have the
same proportionate ownership of shares of the surviving corporation
immediately after the merger as immediately before or [b] within a 12-consecutive calendar month
period, to sell or otherwise dispose of 50 percent or more of the book value of the Group’s assets.
For purposes of this definition, “book value” will be established on the basis of the latest
consolidated financial statement the Corporation filed with the Securities and Exchange Commission
before the date any 12-consecutive calendar month measurement period began.

2.07 CODE. The Internal Revenue Code of 1986, as amended, or any successor statute.

2.08 COMMITTEE. The committee described in Section 7.00.

2.09 COMMON SHARES. The Corporation’s common shares or any security issued in substitution,
exchange or in place of the Corporation’s common shares.

2.10 CONFIDENTIAL INFORMATION. Any and all information (other than information in the public
domain) related to the Group’s business or that of any Group Member, including all processes,
inventions, trade secrets, computer programs, engineering or technical data, drawings, or designs,
manufacturing techniques, information concerning pricing and pricing policies, marketing
techniques, plans and forecasts, new product information, information concerning suppliers, methods
and manner of operations, and information relating to the identity and
location of all past, present and prospective customers.

2.11 DISABILITY. An incapacity due to physical or mental illness that has prevented a Member from
discharging assigned duties on a full-time basis for at least 26 consecutive weeks.

2.12 EARLY RETIREMENT DATE. The date an Eligible Employee reaches age 55 and completes at least 10
“Years of Service” (as defined in the Corporation’s tax-qualified Code ss.401(k) plan, whether or
not a Member also is actively participating in that plan and whether or not that plan is terminated
while this Plan remains in effect.

2.13 EFFECTIVE DATE. April 17, 1992, with respect to the Plan, May 1, 1998 with respect to the
first amendment and restatement and May 1, 2002, with respect to this second amendment and
restatement.

2.14 ELIGIBLE EMPLOYEE. Each person who is employed by a Group Member and who [1] is a member of
its select group of management or is a highly compensated employee within

3

 

the meaning of Title I of ERISA and [2] has met the eligibility conditions described in Section
3.01.

2.15 EMPLOYER. The Group Member by which a Member is directly employed on the date of any event,
act or occurrence described in this Plan. If, without incurring a Termination, a Member becomes a
common law employee of a Group Member other than the Employer, that Group Member will automatically become that Member’s “Employer” under this Plan and will be fully
liable as the Member’s Employer for all obligations arising under this Plan with respect to that
Member during the period of that employment relationship.

2.16 EMPLOYER CONTRIBUTION. The amount calculated under Sections 5.02 and 5.03.

2.17 ENROLLMENT FORM. The form that each Eligible Employee must complete before he or she may
participate in the Plan. To be effective, this notice must include all of the information described
in Section 3.00.

2.18 ERISA. The Employee Retirement Income Security Act of 1974, as amended.

2.19 GROUP. A controlled group of corporations or of a commonly controlled group of trades or
businesses [as defined in Code ss.ss.414(b) and (c), as modified by Code ss.415(h)] or of an
affiliated service group [as defined in Code ss.414(m)] or other organization described in Code
ss.414(o) that includes the Corporation.

2.20 GROUP MEMBER. Each entity that is a member of the Group.

2.21 INACTIVE PARTICIPANT. A Member who is actively employed by an Employer but [1] no longer meets
the eligibility conditions described in Section 3.01 or [2] has terminated employment with all
Group Members but has not received a complete distribution of his or her Account balance.

2.22 MEMBER. Collectively, [1] a Participant or [2] an Inactive Participant.

2.23 NORMAL RETIREMENT DATE. The date an Eligible Employee reaches age 62.

2.24 PARTICIPANT. Each Eligible Employee who is actively participating in the Plan as provided in Section 3.01.

2.25 PLAN. The Bob Evans Farms, Inc. and Affiliates 2002 Second Amended and Restated Supplemental
Executive Retirement Plan, as described in this document and as it may be subsequently amended.

2.26 PLAN YEAR. Each of the Corporation’s fiscal years while the Plan is in effect.

2.27 SPOUSE. The individual to whom a Member is legally married.

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2.28 STOCK OPTION. An option to purchase a share of Common Stock through the Stock Option Plan.

2.29 STOCK OPTION PLAN. The Bob Evans Farms, Inc. 1998 Stock Option and Incentive Plan or any other
equity compensation plan designated by the Board.

2.30 TERMINATION. Termination of the common law employee-employer relationship between a Member and
all Group Members for any reason, whether or not the Member subsequently becomes a consultant or
adviser to any Group Member or serves as a member of the board of directors of any Group Member.
However, a Termination will not be deemed to have occurred [1] solely because the Member’s Employer
ceases to be a Group Member
and the Member continues to be employed by that former Group Member or [2] if
the Member’s common law employment relationship is transferred between Group Members without
interruption.

SECTION 3.00 PARTICIPATION

3.01 ELIGIBILITY TO PARTICIPATE.

[1] In its sole discretion, the Committee will decide which Eligible Employees may participate in
the Plan and the earliest date on which they may participate.

[2] Before he or she may participate in the Plan, each Eligible Employee must complete an
Enrollment Form specifying [a] how his or her Account will be distributed (Section 6.05) and [b]
his or her Beneficiary.

[3] An Eligible Employee will continue to be a Participant until the earlier of the date he or she
[a] becomes an Inactive Participant or [b] Terminates.

3.02 DESIGNATION OF BENEFICIARY.

[1] Each Eligible Employee must designate one or more Beneficiaries when he or she completes an
Enrollment Form. Unless a Member who designates more than one Beneficiary also specifies the
sequence or the portion of the death benefit to be paid to each Beneficiary, the death benefit will
be paid in equal shares to all named Beneficiaries.

[2] A Member may change his or her Beneficiary at any time by identifying the new Beneficiary in
the appropriate portion of a revised Enrollment Form and delivering that completed form to the
Committee. No change of Beneficiary will be effective until the revised Enrollment Form is received
by the Committee. The identity of a Member’s Beneficiary will be based only on the

5

 

designation in the Enrollment Form described in this section and will not be inferred from any
other evidence.

[3] If a Member has not made an effective Beneficiary designation or if all his or her
Beneficiaries die before the Member, Plan death benefits will be paid to the Member’s surviving
Spouse. If there is no surviving Spouse, these death benefits will be paid to [a] the Member’s
issue, then living, per stirpes; or, if there are none, [b] the Member’s executors or
administrators. Any minor’s share of a Plan death benefit will be paid to the adult who has been
appointed to act as the minor’s legal guardian and who has assumed custody and support of that
minor.

[4] The Member and the Beneficiary (and not the Committee) are responsible for ensuring that the
Committee has the Beneficiary’s current address.

SECTION 4.00 MEMBERS’ OBLIGATIONS

4.01 SERVICES DURING CERTAIN EVENTS. By accepting participation in this Plan, if any “person” or
entity [including a “group” as defined in Section 13(d)(3) or
14(d)(2) of the Securities Exchange Act of 1934, as amended, or any successor
statute] initiates a tender or exchange offer, distributes proxy materials to the Corporation’s
stockholders or takes other steps to effect, or that may result in, a Change in Control, each
Member agrees not to Terminate voluntarily during the pendency of that activity other than by
reason of retirement, and to continue to serve as a full-time employee of the Employer until those
efforts are abandoned, that activity is terminated or until a Change in Control has occurred.

4.02 CONFIDENTIAL INFORMATION. Except as otherwise required by applicable law, by accepting
participation in this Plan, each Member expressly agrees to keep and maintain Confidential
Information confidential and not, at any time during or subsequent to the Member’s employment with
any Group Member, to use any Confidential Information for the Member’s own benefit or to divulge,
disclose or communicate any Confidential Information to any person or entity in any manner except
[1] to employees or agents of the Employer or of the Corporation that need the Confidential
Information to perform their duties on behalf of any Group Member or [2] in the performance of the Member’s duties to the Employer. Each Member also agrees to
notify the Corporation promptly of any circumstance the Member believes may legally compel the
disclosure of Confidential Information and to give this notice before disclosing any Confidential
Information.

4.03 EFFECT OF BREACH OF OBLIGATIONS. If a Member breaches any obligation described in this section
or the Plan:

[1] Before the Member has Terminated, the Member will forfeit all benefits otherwise due under this
Plan; or

[2] After the Member Terminates, the Member will repay any amounts previously paid under this Plan
plus interest calculated at the prime interest rate quoted in the Wall Street Journal, or

6

 

any successor to it, over the period beginning on the date of payment and ending on the date of
repayment.

SECTION 5.00 CONTRIBUTIONS

5.01 ACCOUNTS. The Committee will establish an Account for each Participant to record:

[1] The Employer Contribution, calculated under Sections 5.02 and 5.03; minus

[2] Any distributions made to the Member under Section 6.00.

The Employer also will make a final Employer Contribution, calculated as provided in Sections 5.02
and 5.03, for the portion of the Valuation Period during which the Participant Terminates
employment but only if the Member Terminates after meeting the conditions described in Section
6.04.

5.02 PARTICIPANTS’ EARNED BENEFIT. As of the end of each Valuation Date, the Committee will
calculate the amount to be credited to each Participant’s Account by applying the following steps:

[1] First, the Employer will establish the Valuation Period for which the contribution is being
calculated. For these purposes:

[a] A Valuation Period is the period between each Valuation Date during which a Participant
performs substantial services for a Group Member [i] beginning on the later of [A] the date a
Participant first was employed by a Group Member or [B] April 26, 1991 and [ii] ending on the
earlier of the date the Participant [A] Terminates, [B] is no longer a Participant (whether or not
he or she remains a Member), [C] reaches his or her Normal Retirement Date, whether he or she also
retires at that time or [D] reaches age 65. Unless the Committee specifically provides otherwise,
all Valuation Periods will be comprised of 12 months and will end as of the last day of each Plan
Year; and

[b] Valuation Date is the date the most recent Employer Contribution was calculated.

[2] Then, the Committee will calculate the Compensation each Participant earned during the
Valuation Period for which the Employer Contribution is being calculated. For these purposes,
Compensation means [a] the total taxable remuneration the Participant earned for the Valuation
Period (or the portion of the Valuation Period during which he or she was a Participant) plus [b]
the amount the Participant deferred during the Valuation Period to a plan described in Code
ss.ss.125 or 401(k) and maintained by any Group Member minus [c][i] the amount of any long-term
incentive awards (e.g., performance share awards, restricted stock or stock appreciation rights)
granted, earned or exercised during the Valuation Period and [ii] the value of any stock options
granted or exercised under Code ss.83(b) during that Valuation Period. Also, if a Valuation Period
is less than 12 months, the taxable remuneration described in Section 5.02[1][a] will be annualized
on the basis of the whole months during that Valuation Period during which
the Participant was a Participant.

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[3] Then, the Committee will calculate each Participant’s Projected Compensation. This is done by:

[a] Averaging each Participant’s Compensation over the fewer of [i] the current and the
Participant’s four preceding Valuation Periods or [ii] the number of Valuation Periods during which
the Participant was employed by a Group Member; and

[b] Increasing that average by four percent for each Valuation Period that will elapse between [i]
the end of the Valuation Period for which the Employer Contribution is being calculated [ii] the
last Valuation Period that will end before the Participant’s Normal Retirement Date [iii] averaging
the Compensation projected to be received during the five Valuation Periods ending before the
Participant’s Normal Retirement Date.

[4] Then, the Committee will calculate each Participant’s Final Average Compensation.

[a] Until the Participant reaches his or her Normal Retirement Date, Final Average Compensation
will be calculated by averaging each Participant’s Projected Compensation (calculated under Section
5.02[3]) over the five consecutive Valuation Periods during the ten Valuation Periods that both [i]
end before the Participant’s Normal Retirement Date and [ii] produce the highest average; but

[b] At the Participant’s Normal Retirement Date, Final Average Compensation will be calculated by
averaging each Participant’s Compensation over the five consecutive Valuation Periods during the
ten Valuation Periods that end before the Participant’s Normal Retirement Date that produces the
highest average.

[c] The following rules will be applied when calculating a Participant’s Final Average
Compensation:

[i] The Final Average Compensation of a Participant who will have completed fewer than five
Valuation Periods at his or her Normal Retirement Date will be the average of the Compensation the
Participant received over his or her entire period of participation;

[ii] Compensation paid for the Valuation Period during which the Participant reaches Normal
Retirement Date will be disregarded until the Participant reaches his or her Normal Retirement
Date; and

[iii] A Participant’s Final Average Compensation will neither increase nor decrease for any
Valuation Period that begins after the Participant reaches his or her Normal Retirement Date.

[5] Then, the Committee will establish each Participant’s Prior Service Rate (if any). A
Participant’s Prior Service Rate (if any) is:

8

 

[a] The smaller of [i] 40 percent or [ii] two percent multiplied by the number of Valuation Periods
the Participant will complete if he or she continues to be a Participant until Normal Retirement
Date; multiplied by

[b] The quotient produced by dividing [i] the number of Valuation Periods the Participant had
completed as of the last day of the Corporation’s 1997 fiscal year by [ii] the number of Valuation
Periods the Participant will complete if he or she continues to be a Participant until Normal
Retirement Date.

A Participant who was first employed after the Corporation’s 1997 fiscal year will not have a Prior
Service Rate.

[6] A Participant’s Future Service Rate is:

[a] The smaller of [i] 55 percent or [ii] 2.75 percent multiplied by the number of Valuation
Periods the Participant will complete if he or she continues to be a Participant until Normal
Retirement Date; reduced, but not below zero, by

[b] The Participant’s Prior Service Rate (if any) calculated under Section 5.02[5]; and multiplied
by

[c] The smaller of [i] one or [ii] the quotient produced by dividing [A] the number of Valuation
Periods the Participant had completed after the Corporation’s 1997 fiscal year into [B] the larger
of five or the number of Valuation Periods the Participant will complete after the end of the
Corporation’s 1997 fiscal year if he or she continues to be a Participant until Normal Retirement
Date.

[7] Then, the Committee will calculate each Participant’s Target Benefit. A Participant’s Target
Benefit is:

[a] The larger of [i][A] the Participant’s Final Average Compensation (calculated under Section
5.02[4]); multiplied by [B] the Participant’s Prior Service Rate, if any, (calculated under Section
5.02[5]); plus [C] the Participant’s Final Average Compensation (calculated under Section 5.02[4]);
multiplied by [D] the Participant’s Future Service Rate (calculated under Section 5.02[6]); or [ii]
the Participant’s Target Benefit calculated as of the last day of the preceding Valuation Period;
minus

[b][i] The Participant’s Social Security Benefit plus [ii] the Participant’s Qualified Plan
Benefit; multiplied by [iii] the smaller of [A] one or [B] the quotient produced by dividing the
Participant’s actual Valuation Periods earned as of the date the Target Benefit is being calculated
by the Valuation Periods the Participant will earn if he or she remains actively employed until
Normal Retirement Date.

[c] For purposes of calculating each Participant’s Target Benefit:

9

 

[i] A Participant’s Social Security Benefit is 50 percent of the maximum annual Old Age, Survivor
and Disability Insurance benefit projected to be payable to the Participant under the Social
Security Act as of the Participant’s Normal Retirement Date. This amount will be based on the
Participant’s projected “taxable wages,” as defined in the Social Security Act, and other relevant
factors in effect as of the date the calculation is being made; and

[ii] A Participant’s Qualified Plan Benefit is the Participant’s annual benefit, expressed in the
form of a single life annuity, that can be derived from the sum of all employer-funded benefits
(and attributable earnings) under all plans that are maintained by any Group Member and that are
intended to comply with Code ss.401(a). The amount of this single life annuity will be established
by applying the 1983 Group Annuity Mortality Table for Males, an annual interest rate of eight
percent, and by assuming that benefits will begin at the Participant’s Normal Retirement Date. For
purposes of establishing a Participant’s Qualified Plan Benefit, “employer-funded benefits” means
all benefits funded through Employer contributions (and attributable earnings), for periods of
employment before the Participant’s Normal Retirement Date plus any distributions made to, in
behalf of or with respect to the Participant before Normal Retirement Date (e.g., in-service
withdrawals, retirement and disability benefits or distributions under any domestic relations
order). Also, until the Participant reaches Normal Retirement Date, his or her Qualified Plan Benefit will be projected based on procedures established by the Committee.

[8] Then, the Committee will compare the Participant’s Target Benefit calculated under Section
5.02[7] with the Target Benefit calculated for the same Participant under Section 5.02[7] as in
effect for the preceding Valuation Period.

[a] If the Participant’s Target Benefit calculated for the current Valuation Period is the same as
(or less than) the Participant’s Target Benefit calculated for the preceding Valuation Period, no
amount will be credited to the Participant’s Account for the current Valuation Period; but

[b] If the Participant’s Target Benefit calculated for the current Valuation Period is larger than
the Participant’s Target Benefit calculated for the preceding Valuation Period, an Earned Benefit
will be credited to the Participant’s Account. This amount will be calculated under the procedures
described in Section 5.02[9].

[9] If the Participant’s Target Benefit for the current Valuation Period is larger than the
Participant’s Target Benefit for the preceding Valuation Period, the Committee will calculate an
Earned Benefit for the current Valuation Period; by:

[a] Subtracting the Participant’s Target Benefit for the preceding Valuation Period from the Target
Benefit calculated for the current Valuation Period; and

[b] Calculating the Annuity Value of this difference. This is done by calculating the present value
of the difference produced under Section 5.02[9][a] by applying the 1983 Group Annuity Mortality
Table for Males, an annual interest rate of eight percent and by assuming that benefits

10

 

will begin at the Participant’s Normal Retirement Date or, if the Participant already has reached
his or her Normal Retirement Date, that benefits will begin when the Participant reaches age 65.

5.03 EMPLOYER CONTRIBUTION. The Employer Contribution for each Participant is the amount calculated
under Section 5.02[9][b]. This amount will be credited to each Participant’s Account in cash (and
credited with interest as described in Section 5.05) or, subject to Section 5.06, as Stock Options.

5.04 EFFECT OF CHANGE IN CONTROL ON EMPLOYER CONTRIBUTION.

[1] Subject to any limitation imposed under a Change Agreement, if, within 36 months after a Change
in Control, [a] the Plan is terminated and not replaced with a similar program providing comparable
benefits and features or [b] with respect to a Member who is a party to a Change Agreement, an
event occurs that generates a change in control payment under that Member’s Change Agreement, [c]
all Members Accounts will be fully vested and all Stock Options will be fully vested and [d] the
Employer will credit a special and additional Employer Contribution to the Account of each Member
who was a Participant on the date of the Change in Control, whether or not he or she is then a
Participant.

[2] This special change in control benefit will be calculated as provided in Sections 5.02 and 5.03
except that the Target Benefit (see Section 5.02[7]) will be calculated under the following
formula:

[a] 2.75% X Final Average Compensation (as defined in Section 5.02[4]); minus

[b] The Participant’s Social Security Benefit (as defined in
Section 5.02[7][c][i]); minus

[c] The Participant’s Qualified Plan Benefit (as defined in
Section 5.02[7][c][ii]); multiplied by

[d] The smaller of [i] one or [ii] the quotient produced by dividing the Participant’s actual
Valuation Periods earned as of the date the Target Benefit is being calculated by the Valuation
Periods the Participant will earn if he or she remains actively employed until Normal Retirement
Date.

Sections 5.02 and 5.03 will then be applied.

[3] Regardless of any provision of this Plan, if more than one Change in Control (whether or not
related) occurs, the total additional amount calculated under this section will be the largest
amount calculated with respect to any single Change in Control.

5.05 INTEREST. As of each Valuation Date, amounts credited as cash to Accounts will be credited
with interest at rates established by the Committee and announced to Members no later than the
beginning of the election period described in Section 5.06.

11

 

5.06 STOCK OPTION CREDITS.

[1] With the Committee’s permission (which may be withheld for any reason or for no reason), a
Participant may elect to receive his or her Employer Contribution in the form of Stock Options.

[2] To make this election, the Participant must comply with procedures established by the
Committee, no later than 60 days before the date the Employer Contribution is to be credited to
Participants’ Accounts. The Committee will apprise each Participant of the date the Employer
Contribution will be credited and the maximum number of Stock Options that may be credited under
this subsection.

[3] The maximum number of Stock Options that may be credited to any Participant’s Account for any
Valuation Period is the smaller of [a] the number specified by the Committee or [b] the amount
calculated under Section 5.03 divided by the Projected Option Value. If the number of Stock Options
made available by the Committee is smaller than the aggregate number produced by application of
Section 5.06[3][b] to all Participants requesting that their Employer Contribution be credited as
Stock Options, the Committee will allocate the number of available Stock Options among Participants
in the same proportion that the number produced by application of Section 5.06[3][b] for each
Participant bears to the aggregate number of Stock Options produced by application of Section
5.06[3][b] to all Participants.

[4] The Projected Option Value is [a] the “fair market value” (as defined in the Stock Option Plan)
of a Common Share on the date the Employer Contribution is calculated, increased by [b] eight
percent annually for each year between the last day of the Valuation Period for which the
calculation is being made and the Participant’s Normal Retirement Date and reduced by [c] the
exercise price (as defined in the Stock Option Plan) associated with the option.

[5] To the extent elected, Stock Options issued under this section will be in lieu of the Employer
Contribution otherwise due for the Valuation Period.

SECTION 6.00 DISTRIBUTIONS

6.01 DISTRIBUTIONS. Subject to Section 6.05, Members’ Accounts will be distributed at the earlier
of the date the Member [1] dies (Section 6.02), [2] becomes Disabled (Section 6.03) or [3]
Terminates with all Group Members after having earned a right to a Plan benefit as provided in
Section 6.04.

6.02 DEATH BENEFITS. The undistributed value of the Account established for a Member who dies
before Terminating will be paid to that Member’s Beneficiary as of the Valuation Date following the
Member’s death. Any Beneficiary claiming a death benefit under the Plan must provide the Committee
with satisfactory proof of the Member’s death before any death benefit will be paid. If the Member
dies before Terminating, this death benefit will be paid in a lump sum. If the Member dies after
Terminating, this benefit will be paid in the same form in which it

12

 

was being paid to the Member (or would have been paid, if benefit commencement had not then begun).

6.03 DISABILITY BENEFITS. A Member who becomes Disabled before Terminating will receive a
distribution of 100 percent of the undistributed value of his or her Account, determined as of the
Valuation Date following the date of Disability. If the Member becomes Disabled before Terminating,
this benefit will be paid in a lump sum. If the Member becomes Disabled after Terminating, this
benefit will be paid in the same form in which it was being paid to the Member (or would have been
paid, if benefit commencement had not then begun).

6.04 TERMINATION OTHER THAN DEATH OR DISABILITY. Except as provided in this section, a Member who
Terminates for any reason other than death or Disability will not be entitled to any Plan benefit
if he or she Terminates before the earlier of:

[1] His or her Early or Normal Retirement Date; or

[2] Before an event described in Section 5.04[1][a] or [b].

However, in no case will a Member be entitled to receive any Plan benefit if he or she is
Terminated for Cause.

6.05 AMOUNT AND PAYMENT OF BENEFITS.

[1] Unless the Member has effectively elected the optional benefit form described in Section
6.05[2], all distributions made to a Member who Terminates after having earned a nonforfeitable
benefit as provided in Section 6.04 will be paid in ten annual installments beginning no later than
60 days after the Member Terminates. The first of these distributions will be equal to one-tenth of
the value of the Member’s Account on the preceding Valuation Date. Subsequent distributions will be
made on the anniversary of the initial distribution date and will equal the balance of the Member’s
Account as of the most recent Valuation Date divided by the number of unpaid annual installments.

[2] Instead of the normal distribution form described in Section 6.05[1], a Member may elect to
receive his or her Plan benefit:

[a] In the form of a single lump sum. If this election is made effectively, the entire benefit will
be distributed within 60 days after the Valuation Date that coincides with or immediately follows
the date the Member Terminated; or

[b] As described in Section 6.05[1] but beginning as of the last day of the Plan Year during which
the Member reaches age 65.

[3] To effectively elect an optional benefit form, the Member must file a written election with the
Committee. This election must be made on a form prescribed by the Committee and must be delivered
to the Committee no fewer than 12 months before it is to be effective. An election to

13

 

receive an optional benefit form also may be revoked if the electing Member files a written
election with the Committee no fewer than 12 months before the benefit otherwise would have been
distributed in the optional benefit form previously elected. This revocation also must be made on a
form prescribed by the Committee. Any election to receive payment in an optional form (or any
revocation of an election to do so) will be disregarded unless the Member strictly complies with
the procedures described in this section.

[4] Once a Member’s Account has been fully distributed, the Corporation, all Employers, all Group
Members and the Plan will have no further liability to the Member or, if appropriate, to his or her
Beneficiary.

SECTION 7.00 PLAN COMMITTEE

7.01 APPOINTMENT OF COMMITTEE. The Board will appoint a committee to administer the Plan. A
Committee member may resign at any time by sending written notice to the Board specifying the
effective date of his or her termination (which must always be prospective). Vacancies in the
Committee will be filled by the Board as the need arises. Also, in its sole discretion, the Board
may remove any Committee member at any time by giving written notice of removal to the affected
Committee member and specifying the effective date of that action (which must always be
prospective).

7.02 POWERS AND DUTIES. The Committee is fully empowered to exercise complete discretion to
administer the Plan and to construe and apply all of its provisions. The Committee may delegate any
of its powers and duties to any other person or organization. These powers and duties include:

[1] Deciding which employees are Eligible Employees, which of them may participate in the Plan and
the value of their benefit;

[2] Resolving disputes that may arise with regard to the rights of Eligible Employees, Members and
their legal representatives or Beneficiaries under the terms of the Plan. Subject to Sections 7.08
and 7.09, the Committee’s decisions in these matters will be final;

[3] Obtaining from each Group Member, Member and Beneficiary information that the Committee needs
to determine any Member’s or Beneficiary’s rights and benefits under the Plan. The Committee may
rely conclusively upon any information furnished by a Group Member, Member or Beneficiary;

[4] Compiling and maintaining all records it needs to administer the Plan;

[5] Upon request, furnishing each Group Member with reasonable and appropriate reports of its
administration of the Plan;

[6] Engaging legal, administrative, actuarial, investment, accounting, consulting and other
professional services that the Committee believes are necessary and appropriate;

14

 

[7] Adopting rules and regulations for the administration of the Plan that are not inconsistent
with the terms of the Plan; and

[8] Doing and performing any other acts provided for in the Plan.

7.03 ACTIONS BY THE COMMITTEE. The Committee may act at a meeting, or in writing without a meeting,
by the vote or assent of a majority of its members. The Committee will appoint one of its members
to act as a secretary to record all Committee actions. The Committee also may authorize one or more
of its members to execute papers and perform other ministerial duties on behalf of the Committee.

7.04 INTERESTED COMMITTEE MEMBERS. No member of the Committee may participate in any Committee
action that directly affects that member’s individual interest in the Plan. These matters will be
determined by a majority of the remainder of the Committee.

7.05 INDEMNIFICATION.

[1] The Corporation will indemnify and hold harmless any Committee member or employee who performs
services to or on behalf of the Plan (“Indemnified Party”) against all liabilities and all
reasonable expenses (including attorney fees and amounts paid in settlement other than to any Group
Member) incurred or paid in connection with any threatened or pending action, suit or proceeding
brought by any party in connection with the Plan. However, this indemnification will not extend to
any Indemnified Party whose conduct in connection with the Plan is found to have been grossly
negligent or wrongful. This determination will be based on any final judgment rendered in
connection with the action, suit or proceeding complaining of the conduct or its effect or, if no
final judgment is rendered, by a majority of the Board or by independent counsel to whom the Board
has referred the matter.

[2] The obligations under this section may be satisfied, in the Corporation’s discretion, through
the purchase of a policy or policies of insurance providing equivalent protection.

7.06 CONCLUSIVENESS OF ACTION. Subject to Sections 7.08 and 7.09, any action on matters within the
discretion of the Committee will be conclusive, final and binding upon all Members and upon all
persons claiming any rights under the Plan, including Beneficiaries.

7.07 PAYMENT OF EXPENSES.

[1] Committee members will not be separately compensated for their services as Committee members.
However, the Corporation will reimburse Committee members for all appropriate expenses they incur
while carrying out their Plan duties.

[2] The compensation or fees of accountants, counsel and other specialists and any other costs of
administering the Plan will be paid by the Corporation or allocated among Employers.

15

 

7.08 CLAIMS PROCEDURE.

[1] Any Member or Beneficiary who believes that he or she is entitled to an unpaid Plan benefit may
file a claim with the Committee. By accepting participation in the Plan, each Member expressly
waives any right to proceed under Section 7.09 unless and until the administrative remedies
described in this Section 7.08 are fully exhausted.

[2] If a claim is wholly or partially denied, the Committee will send a written notice of denial to
the claimant. This notice must be written in a manner calculated to be understood by the claimant
and must include:

[a] The specific reason or reasons for which the claim was denied;

[b] Specific reference to pertinent Plan provisions, rules, procedures or protocols upon which the
Committee relied to deny the claim;

[c] A description of any additional material or information that the claimant may file to perfect
the claim and an explanation of why this material or information is necessary; and

[d] A description of the steps the claimant may take to appeal an adverse determination.

The Committee will render its decision within 90 days of receiving a benefit claim. However, if
special circumstances (such as the need for additional information) require additional time, this
decision will be rendered as soon as possible, but not later than 180 days after receipt of the
claim and only if the Committee notifies the claimant, in writing, that it needs more time to
review a claim and why that additional time is needed. If the Committee does not issue its decision
within this period, the claim will be deemed to have been denied.

[3] If a claim has been wholly or partially denied, the affected claimant, or his or her authorized
representative may:

[a] Request that the Committee reconsider its initial denial by filing a written appeal no more
than 60 days after
receiving written notice that all or part of the initial claim was denied;

[b] Review pertinent documents and other material upon which the Committee relied when denying the
initial claim; and

[c] Submit a written description of the reasons for which the claimant disagrees with the
Committee’s initial adverse decision.

An appeal of an initial denial of benefits and all supporting material must be made in writing and
directed to the Committee. The Committee is solely responsible for reviewing all benefit claims and
appeals and taking all appropriate steps to implement its decision.

16

 

The Committee’s decision on review will be sent to the claimant in writing and will include
specific reasons for the decision, written in a manner calculated to be understood by the claimant,
as well as specific references to the pertinent Plan provisions, rules, procedures or protocols
upon which the Committee relied to deny the appeal.

The Committee will render its decision within 60 days of receiving a benefit appeal. However, if
special circumstances (such as the need to hold a hearing on any matter pertaining to the denied
claim) require additional time, this decision will be rendered as soon as possible, but not later
than 120 days after receipt of the claimant’s written appeal and only if the Committee notifies the
claimant, in writing, that it needs more time to review an appeal and why that additional time is
needed. If the Committee does not issue its decision within this period, the claim will be deemed
to have been denied.

7.09 ARBITRATION. Binding arbitration will be the exclusive means of resolving all disputes or
questions not resolved to the claimant’s satisfaction through the claims procedure described in
Section 7.08.

[1] After exhausting the procedures described in Section 7.08, the claimant may initiate
arbitration by giving written notice to the Committee specifying the subject of the requested
arbitration.

[2] The arbitration will take place in the city in which the affected Member’s last principal place
of employment with a Group Member is or was located (or another location mutually agreed upon by
the claimant and the Committee) and will be conducted in accordance with the rules of the American
Arbitration Association in effect when the arbitration begins by three arbitrators, one appointed
by each party and a third appointed by those two arbitrators. The Committee and the claimant (in
his or her own behalf and on behalf of all other claimants) each waive any right to a jury trial
with respect to any matter arising from this Plan.

[3] Any determination or award made or approved by the arbitrator will be final and binding on the
claimant and all Group Members. Judgment upon any award made in any arbitration may be entered and
enforced in any court having competent jurisdiction.

[4] The arbitrators will have no authority to add to, alter, amend or refuse to enforce any portion
of this Plan or to award punitive damages against any Group Member or the claimant.

[5] The costs of arbitration (including legal and other professional fees incurred) will be borne
solely by the person by which they are incurred regardless of the result of the arbitration.

SECTION 8.00 AMENDMENT TO THE PLAN

8.01 RIGHT TO AMEND. The Corporation may modify, alter or amend the Plan at any time. However, no
amendment may affect any Member’s or Beneficiary’s vested rights accrued under the Plan before the
effective date of that amendment. If an amendment heightens the vesting conditions described in
Section 6.04, each affected Member who has completed Valuation

17

 

Periods comprised of at least 36 months may elect to have his or her vested rights computed without
regard to that amendment, but only if the Member files a written election to this effect with the
Committee during the period beginning on the date the amendment is adopted and ending on the later
of [1] 60 days after the date the amendment is adopted [2] 60 days after the amendment is effective
or [3] 60 days after the Member is issued a written notice of the amendment.

8.02 AMENDMENT PROCEDURE. The Board, an executive committee of the Board or other Board committee
or any executive officer to which or to whom the Board delegates discretionary authority over the
Plan may exercise the Corporation’s right to amend the Plan.

SECTION 9.00 TERMINATION OF THE PLAN

9.01 RIGHT TO TERMINATE. The Corporation may terminate the Plan in whole or in part at any time by
written action of the Board. Each Member affected by a full or partial Plan termination or by a
complete discontinuance of contributions will be 100 percent vested in the value of all of his or
her Account as of the date of that action. Also, the Committee may [1] distribute an affected
Member’s Account at the time the Plan terminates or partially terminates, even if this date is
earlier than the date benefits otherwise would be distributed under Section 6.05 or [2] hold those
benefits until they are otherwise payable under the terms of the Plan.

9.02 PLAN MERGER AND CONSOLIDATION. If the Plan is merged into or consolidated with any other plan,
each affected Member will be entitled to a benefit immediately after the merger, consolidation or
transfer (determined as if the surviving plan had then terminated) at least equal to the benefit he
or she had accrued immediately before the merger or consolidation (determined as if the Plan
terminated immediately before that merger or consolidation).

9.03 SUCCESSOR EMPLOYER. If any Employer dissolves into, reorganizes, merges into or consolidates
with another business entity, provision may be made by which the successor will continue the Plan,
in which case the successor will be substituted for the Employer under the terms and provisions of
this Plan. The substitution of the successor for the Employer will constitute an assumption by the
successor of all Plan liabilities and the successor will have all of the powers, duties and
responsibilities of the Employer under the Plan.

SECTION 10.00 UNFUNDED PLAN

Notwithstanding any Plan provision to the contrary, the Plan constitutes an unfunded, unsecured
promise by each Employer to pay only those benefits that are accrued by Members under the terms of
the Plan. Neither the Corporation nor any Group Member will segregate any assets into a fund
established exclusively to pay Plan benefits unless the Corporation, in its sole discretion,
establishes a trust for the purpose of holding assets from which all or part of a Plan benefit may
be paid. Neither the Corporation nor any Group Member is liable for the payment of Plan benefits
that are actually paid from a trust established for that purpose. However, the Corporation (and
each Group Member) are obliged to pay any benefits not paid from any trust. Also, Members,
Beneficiaries and other persons claiming a Plan benefit through them have only the

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rights of general unsecured creditors and do not have any interest in or right to any specific
asset of any Group Member. Nothing in this Plan constitutes a guaranty by the Corporation, any
Group Member or any other entity or person that their assets will be sufficient to pay Plan
benefits.

SECTION 11.00 MISCELLANEOUS

11.01 VOLUNTARY PLAN. The Plan is purely voluntary on the part of each Employer; neither the
establishment of the Plan nor any amendment to it nor the creation of any fund or account nor the
payment of any benefits may be construed as giving any person [1] a legal or equitable right
against any Group Member or the Committee other than those specifically granted under the Plan or
conferred by affirmative action of the Committee or any Employer in a manner that is consistent
with the terms and provisions of this Plan or [2] the right to be retained in the service of any
Employer. All Members remain subject to discharge to the same extent as though this Plan had not
been established.

11.02 NON-ALIENATION OF BENEFITS. The right of a Member, Beneficiary or any other person to receive
Plan benefits may not be assigned, transferred, pledged or encumbered except as provided in the
Member’s Beneficiary designation, by will or by applicable laws of descent and distribution. Any
attempt to assign, transfer, pledge or encumber a Plan benefit will be null and void and of no
legal effect.

11.03 INABILITY TO RECEIVE BENEFITS. Any Plan benefit payable to a Member or Beneficiary who is
declared incompetent will be paid to the guardian, conservator or other person legally charged with
the care of his or her person or estate. Also, if the Committee, in its sole discretion, concludes
that a Member or Beneficiary is unable to manage his or her financial affairs, the Committee may,
but is not required to, direct the Employer to distribute Plan benefits to any one or more of his
or her Spouse, lineal ascendants or descendants or other close living relatives of the Member or
Beneficiary who demonstrates to the satisfaction of the Committee the propriety of those
distributions. Any payment made under this section will completely discharge the Plan’s liability
with respect to that payment. The Committee is not required to see to the application of any
distribution made to any person.

11.04 LOST MEMBERS. Each Member is obliged to keep the Committee apprised of his or her current
mailing address and that of his or her Beneficiary. The Committee’s obligation to search for any
Member or Beneficiary is limited to sending a registered or certified letter to the Member’s or
Beneficiary’s last known address. Any amounts credited to the Account of any Member or Beneficiary
who does not file a claim for benefits with the Committee will be forfeited no later than 12 months
after benefits are otherwise payable and applied to reduce future Employer Contributions. However,
this forfeited benefit will be restored and paid if the Committee subsequently approves a claim for
benefits under the procedures described in Section 7.08.

11.05 LIMITATION OF RIGHTS. Nothing in the Plan, expressed or implied, is intended or may be
construed as conferring upon or giving to any person, firm or association (other than

19

 

Group Members, Members, their Beneficiaries and their successors in interest) any right, remedy or
claim under or by reason of this Plan.

11.06 INVALID PROVISION. If any provision of this Plan is held to be illegal or invalid for any
reason, the Plan will be construed and enforced as if the offending provision had not been included
in the Plan. However, that determination will not affect the legality or validity of the remaining
parts of this Plan.

11.07 ONE PLAN. This Plan may be executed in any number of counterparts, each of which will be
deemed to be an original.

11.08 GOVERNING LAW. The Plan will be governed by and construed in accordance with the laws of the
United States and, to the extent applicable, the laws of Ohio.

Executed effective May 1, 2002, unless otherwise specifically stated herein.

	 	 	 	 	 
	BOB EVANS FARMS, INC.

 	 	 
	By:  	/s/ Stewart Owens
 	 	 
	 	Date: 	5/01/02	 	 
	 	Title:  	Chairman, President, CEO 	 	 
	 

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