Document:

6736492-v12-NPC-AmendedDeferredCompensationandRetirementPlan

 
 
 
 
 
 
 
 
 
NPC INTERNATIONAL, INC. 
 
 
DEFERRED COMPENSATION 
AND 
RETIREMENT PLAN
As Amended and Restated Effective July 1, 2013

DB03/0502991.0020/6736492.12  MD31

	
				
	 
	Table of Contents
	 

	 
	 
	 

	Section 1.
	Establishment and Amendment
	2
	

	Section 2.
	Definitions
	2
	

	Section 3.
	Eligibility for Participation
	7
	

	Section 4.
	Deferral of Compensation and Bonus Compensation
	8
	

	Section 5.
	Company Discretionary Contributions
	10
	

	Section 5.
	Elections of Timing and Form of Payment
	11
	

	Section 7.
	Investment of Deferral and Vesting Accounts
	17
	

	Section 8.
	Vesting
	17
	

	Section 9.
	Designation of Beneficiaries
	20
	

	Section 10.
	Merger, Consolidation and Sale of Assets
	20
	

	Section 11.
	Rights of Participants
	21
	

	Section 12.
	Administration
	21
	

	Section 13.
	Claims and Appeals
	22
	

	Section 14.
	Amendments and Termination
	22
	

	Section 15.
	Applicable Laws
	23
	

	Section 16.
	409A Compliance
	23
	

	Section 17.
	Incompetency
	24
	

	Section 18.
	Expenses
	24
	

	Section 19.
	Notices
	24
	

	Section 12.
	Withholding and Deductions
	24
	

	Section 21.
	Invalidity of Provisions
	25
	

	Section 22.
	Tax Advantages Not Guaranteed
	25
	

	Section 23
	Return of Company Contributions
	25
	

i

DB03/0502991.0020/6736492.11  MD31

DB03/0502991.0020/6736492.12  MD31

NPC INTERNATIONAL, INC. 
DEFERRED COMPENSATION AND RETIREMENT PLAN
Section 1.  Establishment and Amendment
NPC INTERNATIONAL, INC. hereby amends and restates in its entirety, effective July 1, 2013, its deferred compensation and retirement plan for executives as described herein, which is known as the "NPC INTERNATIONAL, INC. DEFERRED COMPENSATION AND RETIREMENT PLAN" (the "Plan").  The Plan is intended to constitute an unfunded plan maintained primarily to provide deferred compensation to a select group of management or highly compensated employees.
Section 2.  Definitions
2.1    Definitions.  Whenever used herein, the following terms shall have the meanings set forth below:
		
	(a)
	"Acquiring Person" means any one person, or more than one person acting as a group. For purposes of this definition, persons will not be considered to be “acting as a group” solely because they purchase or own stock or assets of the same corporation at the same time, or as a result of the same public offering. However, persons will be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with the Company. If a person, including an entity, owns stock in both corporations that enter into a merger, consolidation, purchase or acquisition of stock, or similar transaction, such shareholder is considered to be acting as a group with other shareholders in a corporation prior to the transaction giving rise to the change and not with respect to the ownership interest in the other corporation.

		
	(b)
	"Affiliate" means a corporation, trade or business that, together with the Company, is treated as a single employer under Code Section 414(b) or (c).

		
	(c)
	"Adopting Employer" means an Affiliate who, with the consent of the Company, has adopted the Plan for the benefit of its Executives. 

		
	(d)
	"Board" means the Board of Directors of the Company.

		
	(e)
	"Beneficiary" means the persons or entities designated pursuant to Section 9 who are to receive, upon a Participant's death, payment of the amounts credited to the Participant's Deferral Account and the Nonforfeitable amounts credited to his Vesting Account as of the date of his death.

		
	(f)
	"Bonus Compensation" with respect to an active Participant or eligible Executive means the active Participant's or eligible Executive's bonus compensation for the period to which his relevant Bonus Compensation 

ii

DB03/0502991.0020/6736492.12  MD31

Deferral Election relates. Eligible bonus compensation under this Plan shall include only bonus compensation payable pursuant to and based on achievement of performance targets as defined in the NPC Annual Compensation Plan document, as amended from time to time. 
		
	(g)
	"Bonus Compensation Deferral Election" means the election made by an active Participant or eligible Executive, pursuant to Section 4.2, to defer receipt of a portion of his Bonus Compensation earned by him in the calendar year to which the election relates.

		
	(h)
	"Change of Control" means the occurrence of a "Change in the Ownership of the Company," a "Change in Effective Control of the Company", or a "Change in the Ownership of a Substantial Portion of the Company's Assets" as such terms are further defined below provided, in each case, that such event is also a change in control event for purposes of Code Section 409A:

		
	(1)
	Change in the Ownership of the Company. A Change in the Ownership of the Company shall occur if any Acquiring Person, other than one or more Excluded Persons (as defined below), acquires ownership of stock of the Company that, together with stock held by such Acquiring Person, constitutes more than 50% of the total fair market value or total voting power of the stock of the Company.  If an Acquiring Person owns 50% of the total fair market value or total voting power of the stock of the Company, the acquisition of additional stock by such Acquiring Person shall not constitute a Change in Ownership of the Company.  An increase in the percentage of stock owned by any Acquiring Person, as a result of a transaction in which the corporation acquires its stock in exchange for property will be treated as an acquisition of stock for purposes of this paragraph. In addition, this paragraph applies only when there is a transfer of stock of a corporation (or issuance of stock of a corporation) and stock in such corporation remains outstanding after the transaction.

		
	(2)
	Change in Effective Control of the Company. A Change in Effective Control of the Company shall occur if either:

		
	(i)
	any Acquiring Person, other than one or more Excluded Persons (as defined below), 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 Company possessing 35 percent or more of the total voting power of the stock of the Company, or 

		
	(ii)
	A majority of members of the Company’s board of directors is replaced during any 12-month period by directors whose 

iii

DB03/0502991.0020/6736492.12  MD31

appointment or election is not endorsed by a majority of the members of the Company's board of directors prior to the date of the appointment or election.
If a person, or more than one person acting as a group (as defined below) owns 35% of the total fair market value or total voting power of the stock of the Company, the acquisition of additional stock by such person or group shall not constitute a change in  effective control of the Company.
		
	(3)
	Change in the Ownership of a Substantial Portion of the Company's Assets. A Change in the Ownership of a Substantial Portion of the Company's assets shall occur if any Acquiring Person, other than one or more Excluded Persons (as defined below), 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 Company 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 Company immediately prior to such acquisition or acquisitions, except for transfers of assets described below.  A transfer of assets by the Company is not treated as a Change in the Ownership of a Substantial Portion of the Company's Assets if the assets are transferred to:

		
	(i)
	a shareholder of the Company (immediately before the asset transfer) in exchange for or with respect to its stock;

		
	(ii)
	an entity, 50 percent or more of the total value or voting power of which is owned, directly or indirectly, by the Company;

		
	(iii)
	a person, or more than one person acting as a group, that owns, directly or indirectly, 50 percent or more of the total value or voting power of all the outstanding stock of the Company; or

		
	(iv)
	an entity, at least 50 percent of the total value or voting power of which is owned, directly or indirectly, by a person described in subparagraph (iii).

Excluded Persons.  For purposes of this subsection (e), Excluded Persons means Gene Bicknell, his spouse, any of his lineal descendants, and any entity at least 50% owned by any of such persons.  
		
	(i)
	"Code" means the Internal Revenue Code of 1986, as amended. 

		
	(j)
	"Committee" means the Compensation Committee of the Board.

iv

DB03/0502991.0020/6736492.12  MD31

		
	(k)
	"Company" means NPC International, Inc., a Kansas corporation.  

		
	(l)
	"Company Discretionary Contribution" means the amount deposited by a Participating Employer and credited by the Trustee pursuant to Section 5.2 to the Deferral Account or Vesting Account maintained by the Trustee on behalf of an active Participant or eligible Executive.  Company Discretionary Contributions may be Class A Contributions or Class B Contributions.  Unless otherwise so designated in writing, all Company Discretionary Contributions shall be Class A Contributions.

		
	(m)
	"Company Matching Contribution" means the amount (if any) deposited by a Participating Employer and credited by the Trustee pursuant to Section 5.1 to the Deferral Account or Vesting Account maintained by the Trustee on behalf of an active Participant or eligible Executive.

		
	(n)
	"Compensation" with respect to an Executive means the Executive's taxable wages reportable on Form W-2 (as defined below) from a Participating Employer, less (i) Bonus Compensation, and (ii) gains from the exercise of stock options granted by the Company, payable to the Executive during the pay period to which the relevant Compensation Deferral Election relates. Compensation reportable on Form W-2 shall include only the following items of compensations: regular pay, overtime, vacation pay, jury duty pay, bereavement pay, short term disability pay, holiday pay, supplemental pay, tips reported, beeper pay and shift differential pay.  For the avoidance of doubt, compensation reportable on Form W-2 shall not include field and corporate fleet reimbursements, auto allowance, taxable moving expenses or similar items of de minimis compensation paid to reimburse an Executive for an expense incurred or otherwise adjust for a benefit that otherwise could be a nontaxable benefit (e.g., long-term disability gross-up payments).  

		
	(o)
	"Compensation Deferral Election" means the election made by an active Participant or eligible Executive, pursuant to Section 4.1, to defer receipt of all or a portion of his Compensation earned in the calendar year to which the election relates.

		
	(p)
	"Deferral Account" means the account maintained by the Trustee under the Trust, on behalf of a Participant, to which a Participating Employer deposits and the Trustee credits at the direction of a Participating Employer (i) the Compensation and Bonus Compensation the Participant elects to defer pursuant to his Compensation Deferral Election and/or Bonus Compensation Deferral Election, and (ii) the Company Matching Contributions and Company Discretionary Contributions pursuant to Sections 5.1 and 5.2 which are entirely Nonforfeitable when made.  Although this Plan may refer to a Deferral Account as "the Participant's Deferral Account" or as "his Deferral Account," the amounts credited to such Deferral Account shall at all times be subject to the terms and conditions of the agreement and declaration 

v

DB03/0502991.0020/6736492.12  MD31

establishing the Trust, and thus subject to the claims of a Participating Employer's general creditors.
		
	(q)
	"Employer" means, with respect to Executives it employs, the Company and each Affiliate.  

		
	(r)
	"Executive" means an employee of a Participating Employer who is:

		
	(1)
	in a select group of management or highly paid employees;

		
	(2)
	exempt from the minimum wage and maximum hour requirements of the Fair Labor Standards Act, as described in 29 U.S.C. § 213(a) and regulations promulgated thereunder; and

		
	(3)
	a "highly compensated employee" within the meaning of Code Section 414(q), or a regional manager, or both.  With respect to a newly hired employee, if the employee's annualized projected Compensation and Bonus Compensation for his first calendar year of employment exceed the limit described in Code Section 414(q)(B)(i), he shall be considered a "highly compensated employee" for such first calendar year of employment, for purposes of this Plan.

		
	(s)
	"Gross Fair Market Value" means the value of the assets of the Company, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets.

		
	(t)
	"Nonforfeitable," as applied to Company Matching Contributions and Company Discretionary Contributions (and earnings thereon) deposited by a Participating Employer and credited by the Trustee at the direction of a Participating Employer to a Participant's Deferral Account or Vesting Account, means the portion of such deposits and credits to which the Participant or his Beneficiary are "vested" in accordance with the vesting rules described in Section 8 and the other terms and conditions of the Plan, subject only to the claims of a Participating Employer's general creditors as described in the agreement and declaration establishing the Trust.  

		
	(u)
	"Participant" means a person who has amounts currently deposited and credited to a Deferral Account or Vesting Account, or both, maintained by the Trustee on his behalf pursuant to the terms of the Plan.  An active Participant is a Participant who is actively employed by a Participating Employer as an Executive and who is actively participating in the Plan.

		
	(v)
	"Participating Employer" means the Company and each Adopting Employer. 

		
	(w)
	"Separation from Service" or "Separates from Service" means a Participant's death, retirement or other termination from employment with the Employer.  

vi

DB03/0502991.0020/6736492.12  MD31

A Separation from Service will not occur if a Participant is on military leave, sick leave or other bona fide leave of absence (such as temporary employment by the government) if the period of such leave does not exceed six months, or if longer, as long as the Participant has a right (either by contract or by statute) to reemployment with the Employer.  "Separation from Service" will be interpreted in a manner consistent with Code Section 409A(a)(2)(A)(i).
		
	(x)
	"Specified Employee" means a Participant that would be a "specified employee" as defined in Code Section 409A(a)(2)(B)(i) and Department of Treasury regulations and other interpretive guidance issued thereunder.  

		
	(y)
	"Trust" means the NPC International, Inc. Deferred Compensation and Retirement Plan Group Trust 

		
	(z)
	"Trustee" means Great Plains Trust Company or the bank or trust company designated as its successor trustee under the agreement and declaration establishing the Trust.

		
	(aa)
	"Vesting Account" with respect to a Participant means the account maintained by the Trustee under the Trust, on behalf of the Participant, to which a Participating Employer deposits and the Trustee credits at the direction of a Participating Employer the Company Matching Contributions (if any) and/or Company Discretionary Contributions (if any) pursuant to Sections 5.1 and 5.2 and which are not entirely Nonforfeitable when made.  Although this Plan may refer to a Vesting Account as "the Participant's Vesting Account" or as "his Vesting Account," the amounts credited to such Vesting Account shall at all times be subject to the terms and conditions of the agreement and declaration establishing the Trust, and thus subject to the claims of a Participating Employer's general creditors.  

		
	(bb)
	"Vesting Service" with respect to a Participant means the aggregate total of the Participant's whole years (and fractional portions of years) of employment by the Employer, its predecessors and successors.  The Committee may designate, from time to time and in its sole discretion, such other service (either for the Employer or otherwise) that shall be, or shall not be, considered Vesting Service with respect to any particular Participant or eligible Executive, or with respect to any Participating Employer or any predecessor or successor thereto.  

2.2    Gender and Number.  Except when otherwise indicated by the context, any masculine terminology used herein shall also include the feminine gender, and the definition of any term herein in the singular shall also include the plural.
Section 3.  Eligibility for Participation

vii

DB03/0502991.0020/6736492.12  MD31

3.1    Eligibility.  An employee of a Participating Employer shall be eligible to participate in the Plan with respect to a calendar year if:  
		
	(a)
	He qualifies as an Executive with respect to such year; and

		
	(b)
	He is not eligible to participate, in such calendar year, in the Company's qualified cash or deferred arrangement under Code Section 401(k); and 

		
	(c)
	The Committee has selected such Executive to participate with respect to such year; where the Committee has once selected the Executive to participate, and such Executive ceases to be eligible with respect to a year due solely to his eligibility to participate in the Company's qualified cash or deferred arrangement for such year, and the Executive thereafter (for a subsequent year) ceases to be eligible to participate in the cash or deferred arrangement he shall automatically be eligible to recommence participation in this Plan without further approval by the Committee, provided the Executive continues to meet the definition of "Executive" and the Committee has not affirmatively declared the Executive to be ineligible.

An eligible Executive shall be eligible to have Company Matching Contributions (if any) deposited and credited to his Vesting Account immediately upon becoming eligible to participate in the Plan. 
3.2    Inactive Participants.  If at a future date an active Participant no longer meets the requirements for participation in this Plan for reasons other than Separation from Service, the Participant shall become an inactive Participant, retaining all of the rights accorded Participants by this Plan, except the right to make additional deferrals of Compensation and/or Bonus Compensation pursuant to Section 4, and to have additional Company Matching Contributions (if any) and/or Company Discretionary Contributions (if any) deposited and credited to his Deferral Account or Vesting Account.  Such an individual shall remain an inactive Participant unless and until he again becomes an active Participant by again qualifying as an Executive entitled to participate in this Plan.  
Amounts deposited and credited to an active Participant's Vesting Account which are not considered Nonforfeitable shall be forfeited pursuant to Section 5 at the time the Participant no longer meets the requirements for participation on account of Separation from Service.  
Section 4.  Deferral of Compensation and Bonus Compensation
4.1    Deferral of Compensation.  At the times and in the manner specified below, an active Participant or an eligible Executive may make an irrevocable election in writing to defer all or a portion of his Compensation until a specified date in the future.  
		
	(a)
	Timing and Nature of Compensation Deferral Election.  An active Participant or eligible Executive described in the preceding paragraph may make a Compensation Deferral Election, prior to December 31 of any calendar year, 

viii

DB03/0502991.0020/6736492.12  MD31

to defer receipt of any percentage of his Compensation, in whole numbers (e.g., 1%, 7%, etc.), earned during pay periods occurring between January 1 and December 31 of the following calendar year.  
		
	(b)
	Elections by Newly Eligible Executives.  Notwithstanding anything in this Section 4.1 to the contrary, an Executive who first becomes an eligible Executive during a calendar year (and has not otherwise been eligible to participate in a nonqualified deferred compensation plan of the same type which would be aggregated with this Plan under Code Section 409A)  may make the election described in subsection (a) above, as applicable, within 30 days after the date he first becomes an eligible Executive.  Such an election shall be effective only with respect to Compensation earned after the date of the election.  

		
	(c)
	Uniform Payroll Deductions.  Amounts deferred pursuant to this Section shall be deducted from the Participant's Compensation on a uniform basis for each pay period during the portion of the calendar year to which the Compensation Deferral Election relates.

		
	(d)
	Crediting of Deferred Amounts.  As soon as practicable after Compensation subject to a Compensation Deferral Election would, but for the provisions of this Plan, be payable to an active Participant or eligible Executive, a Participating Employer shall deposit with the Trustee, and direct the Trustee to credit to his Deferral Account, the amount of the Compensation that the active Participant or eligible Executive elected to defer.

4.2    Deferral of Bonus Compensation.  At the times and in the manner specified below, an active Participant or an eligible Executive may make an irrevocable election in writing to defer all or a portion of his Bonus Compensation until a specified date in the future.  
		
	(a)
	Timing and Nature of Bonus Compensation Deferral Election.  An Active Participant or eligible Executive described in the preceding paragraph may make a Bonus Compensation Deferral Election, prior to December 31 of any calendar year, to defer receipt of any percentage (up to 75%) of his Bonus Compensation, in whole numbers (e.g., 1%, 7%, etc.), earned in and payable with respect to the following calendar year.  An active Participant or eligible Executive who elects to defer more than 75% of his Bonus Compensation shall be deemed to have elected to defer 75% of his Bonus Compensation.

		
	(b)
	Elections by Newly Eligible Executives.  Notwithstanding anything in this Section 4.2 to the contrary, when an Executive first becomes an eligible Executive, he may make the election described in subsection (a) above, as applicable (to be applied to the Bonus Compensation earned by and payable to him with respect to the calendar year in which he is first an eligible Executive), within 30 days after the date he first becomes an eligible Executive.  Such an election shall be effective only with respect to the portion 

ix

DB03/0502991.0020/6736492.12  MD31

of the Bonus Compensation earned after the date of the election.  The portion of the Bonus Contribution earned after the date of the election shall be determined by multiplying x times y, where x is such Participant’s Bonus Compensation for the calendar year and y is a percentage determined by dividing the remaining days of the calendar year by the total number of days in the calendar year.
		
	(c)
	Crediting of Deferred Amounts.  As soon as practicable after Bonus Compensation that is subject to a Bonus Compensation Deferral Election would, but for the provisions of this Plan, be payable to an active Participant or eligible Executive, a Participating Employer shall deposit with the Trustee, and direct the Trustee to credit to his Deferral Account, the amount of the Bonus Compensation the active Participant or eligible Executive elected to defer.  

Section 5.  Company Discretionary Contributions
5.1    Company Matching Contributions.  At such times and in such amounts as a Participating Employer in its sole discretion may decide, a Participating Employer may deposit with the Trustee, a Company Matching Contribution in the amount determined by the Participating Employer.  Any such discretionary Company Matching Contribution shall be credited to such active Participant's or eligible Executive's (i) Deferral Account, if the Company Matching Contribution is entirely Nonforfeitable when made, or (ii) Vesting Account, if the Company Matching Contribution is not entirely Nonforfeitable when made.  See Section 8 for rules concerning whether an amount is considered Nonforfeitable.  
EXAMPLE:  Participant B is not 100% vested pursuant to the rules in Section 8.  He has on file a Compensation Deferral Election calling for the deferral of 10 percent of his Compensation, per pay period, earned between January 1 and December 31, 1999.  For the first pay period in February, 1999, the Participating Employer owes Participant B $4,000 in Compensation.  Pursuant to his Deferral Election, the Participating Employer deposits $400 with the Trustee, directs the Trustee to credit the $400 to Participant B's Deferral Account, and pays the balance to Participant B (less applicable withholdings).  Assuming the Participating Employer elects to make a nondiscretionary Matching Contribution equal to an amount not to exceed four percent (4%) of the sum of the Compensation and Bonus Compensation payable to  the Participant, the Participating Employer also deposits with the Trustee, and the Trustee credits to Participant B's Vesting Account, a Company Matching Contribution equal to $160, or four percent of the Compensation payable to Participant B for the applicable pay period.  Note that if Participant B had been 100% vested pursuant to the rules in Section 8; the discretionary Matching Contribution would have been deposited and credited to his Deferral Account.
EXAMPLE:  Assume the same facts as above, except that Participant B also has on file a Bonus Compensation Deferral Election calling for the deferral of 50 percent of his Bonus Compensation earned in 1999.  For the first pay period in April, the 

x

DB03/0502991.0020/6736492.12  MD31

Participating Employer owes Participant B $4,000 in Compensation, and $8,000 in Bonus Compensation as the Participant's bonus for the first calendar quarter of 1999.  Pursuant to Participant B's Deferral Elections, the Participating Employer deposits $4,400 ($400 in Compensation plus $4,000 in Bonus Compensation) with the Trustee, and directs the Trustee to credit this amount to Participant B's Deferral Account, and pays the balance to Participant B (less applicable withholdings).  The Participating Employer also deposits $480 (four percent of the sum of the Compensation and Bonus Compensation payable to Participant B for the applicable pay period) with the Trustee, and directs the Trustee to credit that amount to Participant B's Vesting Account.
5.2    Company Discretionary Contribution.  At such times and in such amounts as a Participating Employer in its sole discretion may decide, the Participating Employer may deposit with the Trustee, and in writing direct the Trustee to credit, a Company Discretionary Contribution to the Deferral Account or Vesting Account maintained by the Trustee on behalf of one or more Participants.  The Company Discretionary Contribution shall be deposited and credited to a Participant's Deferral Account if the Company Discretionary Contribution is entirety Nonforfeitable when made, and shall be deposited and credited to his Vesting Account in other cases.
Section 6.  Elections of Timing and Form of Payment
6.1    Electing the Time of Payment.
		
	(a)
	Compensation and Bonus Compensation.  An active Participant or eligible Executive shall, in his Compensation Deferral Election and/or Bonus Compensation Deferral Election (as the case may be), elect to receive payment of the deferred amount (and earnings thereon):

		
	(1)
	upon the Participant's Separation from Service;

		
	(2)
	on a specified date at least two years after the calendar year to which the deferral election applies;

		
	(3)
	the earlier of the Participant's Separation from Service or the date  specified in (2) above;

		
	(4)
	the earlier of the Participant's Separation from Service or a Change of Control; or 

		
	(5)
	the earlier of (i) the Participant's Separation from Service, (ii) the date specified in (2) above or (iii) a Change of Control.  

EXAMPLE:  Participant A completes a Compensation Deferral Election on December 1, 2008, for deferral of a portion of his Compensation payable for 2009.  Participant A elects to receive his deferred Compensation on July 1, 2012.  The election is permissible because his deferral ending/payment date is a date certain after the second calendar year that follows the 2009 calendar year, which is the year to which the deferral election relates.

xi

DB03/0502991.0020/6736492.12  MD31

Participant B similarly completes a Compensation Deferral Election form, but elects to receive her deferred Compensation upon her Separation from Service (e.g., termination of employment).  The election is permissible.
Participant C similarly completes a Compensation Deferral Election form and elects to receive his deferred Compensation upon the earlier of (i) his Separation from Service (e.g., termination of employment) or (ii) the July 1, 2012.  The election is permissible.
Participant D similarly completes a Compensation Deferral Election form and elects to receive his deferred Compensation on the earlier of (i)  his Separation from Service, (ii)  July 1, 2012 or (iii) a Change of Control.  The election is permissible.
		
	(b)
	Company Matching Contributions and Discretionary Contributions.

		
	(1)
	Company Matching Contributions.  Any discretionary Company Matching Contribution (and earnings thereon) deposited with the Trustee and credited on behalf of a Participant on account of his deferral of Compensation and/or Bonus Compensation shall be paid at the time at which is paid the deferred Compensation and/or deferred Bonus Compensation to which such Company Matching Contribution relates.  

		
	(2)
	Company Discretionary Contributions.  Prior to a calendar year with respect to which a Participating Employer may deposit with the Trustee, and direct the Trustee to credit, a Company Discretionary Contribution on behalf of a Participant, an active Participant or  Executive may elect, with respect to any such credit of a Company Discretionary Contribution, to receive payment thereof (and earnings thereon), on a date or event described in subsections (1), (2), (3), (4) or (5) of subsection (a) above.  Such an election will be effective only with respect to a Company Discretionary Contribution that becomes fixed and determined after the date of such election.  In the event no such election is made, the active Participant or eligible Executive shall be deemed to have elected to receive payment of such Company Discretionary Contribution upon Separation from Service.  

Notwithstanding the preceding paragraph, an Executive who first becomes an eligible Executive during a calendar year (and has not been eligible to participate any other similar type of plan within the plan aggregation rules of Code Section 409A) may make the election described in the preceding paragraph within 30 days after the date he first becomes an eligible Executive to the extent allowed pursuant to Code Section 409A.  
		
	(3)
	No Payment of Forfeitable Amounts.  Notwithstanding anything in this Section 6.1 to the contrary, payment of Company Matching Contributions or Company Discretionary Contributions deposited 

xii

DB03/0502991.0020/6736492.12  MD31

with the Trustee and credited to a Participant's Vesting Account shall be made to the Participant or his Beneficiary only to the extent such Contributions (and earnings thereon) are considered Nonforfeitable at the time such payment is otherwise due.  
		
	(c)
	Exceptions.  Notwithstanding anything in subsections (a) or (b) above, or in any other provision of the Plan, the following additional rules apply to the time at which amounts are payable by this Plan:

		
	(1)
	Death of Participant.  The balance of a Participant's Deferral Account, and the Nonforfeitable balance of his Vesting Account, shall be paid to the Participant’s Beneficiary in a single, lump-sum payment within the 90-day period immediately following the Participant's death. If such 90-day period spans two taxable years, in no event will the Participant's Beneficiary be able to select, directly or indirectly, the applicable tax year of such payment.

		
	(2)
	Disability of Participant.  The balance of a Participant's Deferral Account, and the Nonforfeitable balance of his Vesting Account, shall be paid to the Participant upon the Participant's disability. Any such payment shall be paid to the Participant in a single, lump-sum payment within the 90-day period immediately following the Participant's disability. If such 90-day period spans two taxable years, in no event will the Participant be able to select, directly or indirectly, the applicable tax year of such payment. For this purpose, "disability" of a Participant shall be deemed to have occurred if the Participant (a) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or (b) is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than 3 months under an accident and health plan covering employees of Company.  For purposes of this Plan, it is not necessary that a determination of disability be made by the Social Security Administration, but a Participant who is determined to be totally disabled by the Social Security Administration shall be deemed to have suffered a disability for purposes of this Plan. 

		
	(3)
	Unforeseeable Emergency.  Upon application by the Participant, distributions from a Participant's Deferral Account, and the Nonforfeitable balance of his Vesting Account, may be paid to the Participant in the event of an Unforeseeable Emergency. 

xiii

DB03/0502991.0020/6736492.12  MD31

An Unforeseeable Emergency will be deemed to have occurred if the payment of benefits is for or on account of a severe financial hardship of the service provider or beneficiary resulting from any of the following events (and provided that any such event also constitutes an unforeseeable emergency for purposes of Code Section 409A):  
		
	(iii)
	an illness or accident of the service provider or beneficiary, the service provider's or beneficiary's spouse, or the service provider's or beneficiary's dependent (as defined in Code Section 152(a)); 

		
	(iv)
	loss of the service provider's or beneficiary's property due to casualty (including the need to rebuild a home following damage to a home not otherwise covered by insurance, for example, not as a result of a natural disaster);

		
	(v)
	the imminent foreclosure of or eviction from the service provider's or beneficiary's primary residence;

		
	(vi)
	the need to pay for the funeral expenses of a spouse or a dependent; or

		
	(vii)
	other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the service provider or beneficiary. 

Whether a service provider or beneficiary is faced with an unforeseeable emergency permitting a distribution under this paragraph is to be determined based on the relevant facts and circumstances of each case, but, in any case, a distribution on account of unforeseeable emergency may not be made to the extent that such emergency is or may be relieved through reimbursement or compensation from insurance or otherwise, by liquidation of the service provider's assets, to the extent the liquidation of such assets would not cause severe financial hardship, or by cessation of deferrals under the arrangement.  The payment made pursuant to this subsection shall not exceed the amount the Committee, in its complete discretion, determines is necessary to satisfy the great financial hardship or unforeseeable emergency.  In addition, the purchase of a home and the payment of college tuition are not unforeseeable emergencies.
		
	(d)
	Final Payment from Trust.  The final payment from the Trust to a Participant or Beneficiary may be adjusted to account for prior overpayments or underpayments attributable to estimates of earnings allocable to prior distributions of deferred Compensation, deferred Bonus Compensation, 

xiv

DB03/0502991.0020/6736492.12  MD31

Company Matching Contributions, and/or Company Discretionary Contributions.  
6.2    Electing the Form of Payment.  
		
	(a)
	Compensation and Bonus Compensation.  Each active Participant or eligible Executive shall, in his Compensation and Bonus Compensation Deferral Elections, elect the form in which the Plan shall pay his deferred Compensation and Bonus Compensation (and earnings thereon).  Such election of the form of payment shall apply to that Compensation Deferral Election and/or Bonus Compensation Deferral Election (as the case may be) and earnings thereon.  Such an active Participant or eligible Executive may elect that such amounts be paid:

		
	(3)
	in a single lump sum;

		
	(4)
	in five substantially equal annual installments, adjusted annually for earnings on the unpaid balance (each payable during the first 75 days of such succeeding installment calendar year); or 

		
	(5)
	in ten substantially equal annual installments, adjusted annually for earnings on the unpaid balance (each payable during the first 75 days of such succeeding installment calendar year).

In the event no such election is made, such amounts shall be paid in a lump sum.
		
	(b)
	Company Matching Contributions and Discretionary Contributions.

		
	(4)
	Company Matching Contributions.  Any Company Matching Contribution (and earnings thereon) deposited with the Trustee and credited on behalf of a Participant on account of his deferral of Compensation and/or Bonus Compensation shall be paid in the form in which is paid the deferred Compensation and/or deferred Bonus Compensation to which such Company Matching Contribution relates.

		
	(5)
	Company Discretionary Contributions.  Each active Participant or eligible Executive shall, in the annual deferral election concerning Company Discretionary Contributions that the Participating Employer may make on his behalf, elect the form in which the Plan shall pay any Company Discretionary Contribution (and earnings thereon) made with respect to the year to which the election relates.  The active Participant or eligible Executive may elect that such amounts be paid in any of the forms described in subsections (1), (2) 

xv

DB03/0502991.0020/6736492.12  MD31

or (3) in subsection (a) above.  In the event no such election is made, such amounts shall be paid in a lump sum.
		
	(c)
	Subsequent Changes in Form of Payment.  Subject to limitations stated in the next sentence, a Participant was permitted during 2008 to change his election as to the form and timing of payment of deferred Compensation, Bonus Compensation and/or a Company Discretionary Contribution (and earnings thereon).  Notwithstanding the foregoing an election that was not an initial election but was made between January 1, 2008 and December 31, 2008 was not effective for benefits payable in 2008.  Installment payments shall be treated as a series of payments for purposes of the subsequent payment election rules of Code Section 409A.  After December 31, 2008, upon application to the Committee, and with the approval in its sole discretion of the Committee, a Participant may make a subsequent election to receive payment of deferred Compensation, Bonus Compensation and/or a Company Discretionary Contribution (and earnings thereon) in any of the forms described in paragraphs (1), (2) or (3) of subsection (a) above, notwithstanding the initial election as to form as reflected in the pertinent deferral election form(s), provided that the following conditions are met and provided further that such subsequent election does not result in any additional income or excise tax pursuant to Code Section 409A:

		
	(1)
	such election may not take effect until at least 12 months after the date on which the election is made;

		
	(2)
	the payments that are subject to such election (excluding payments upon death, disability, unforeseeable emergency or change of control) must be delayed at least 5 years from the date the payments would have otherwise been made; and

		
	(3)
	in the case of a distribution upon a specified date or age, such election is made at least 12 months prior to the date the payment is scheduled to be paid (or in the case of installment payments, 12 months prior to the date the first amount was scheduled to be paid). 

		
	(d)
	Exceptions.  Notwithstanding anything in subsections (a), (b) or (c) above, or any other provision of the Plan, the following additional rules apply to the form in which amounts are payable by this Plan:

		
	(1)
	Death of Participant.  Notwithstanding the provisions contained in subsections (a) and (c) of this section upon a Participant's death, all benefits payable under the Plan shall be paid in a single lump sum.  

		
	(2)
	Disability of Participant.  Subject to the requirements of subsections (a) and (c) of this section, a Participant may elect the form in which payments made pursuant to subsection 6.1(c)(2) shall be made.  If 

xvi

DB03/0502991.0020/6736492.12  MD31

the Participant fails to timely make such election, payment shall be made in a single lump sum.  
		
	(3)
	Unforeseeable Emergency.  Payments made pursuant to subsection 6.1(c)(3) shall be made in a single lump sum.  

		
	(4)
	Specified Employee.  Any payment to be made to a Participant upon his or her Separation from Service while the Participant is a Specified Employee shall be delayed until the first day of the seventh month following the Participant's Separation from Service to the extent required under Code Section 409A.

Section 7.    Investment of Deferral and Vesting Accounts
The Deferral Account and Vesting Account maintained by the Trustee on behalf of a Participant shall be credited with earnings (and losses) resulting from investment by the Trustee.  Participants may request that amounts deposited and credited to their respective Deferral Accounts and/or Vesting Accounts be invested in particular investments, chosen from a set of options established by the Committee.  The Participants' requests shall not be binding, however, and the Committee, in its sole discretion, may elect to:  
		
	(e)
	instruct the Trustee to decline to honor Participant's requests,

		
	(f)
	direct the Trustee to invest amounts deposited and credited to Deferral Accounts and/or Vesting Accounts in another manner, or

		
	(g)
	permit the Trustee to invest amounts deposited and credited to Deferral Accounts and/or Vesting Accounts in the manner the Trustee considers most appropriate.

Section 8.    Vesting
8.1    Deferral Account.  Deferred Compensation, Bonus Compensation, Company Matching Contributions and Company Discretionary Contributions (and earnings thereon) deposited and credited to an active Participant's or eligible Executive's Deferral Account shall at all times be considered entirely Nonforfeitable (that is, 100% vested).
		
	(a)
	Deferred Compensation and Bonus Compensation.  In no event shall a Participant's Deferred Compensation or Bonus Compensation be deposited and credited other than to his Deferral Account.

		
	(b)
	Company Matching Contributions.  Company Matching Contributions shall be deposited and credited to an active Participant's or eligible Executive's Deferral Account only if at the time such Company Matching Contributions are made (i) the active Participant or eligible Executive is 100% vested pursuant to the vesting schedule set forth in Section 8.2(a) below, and the Committee has not elected to apply additional vesting requirements to such 

xvii

DB03/0502991.0020/6736492.12  MD31

Company Matching Contributions (as described below), or (ii) the active Participant or eligible Executive is not 100% vested     pursuant to the vesting schedule set forth in Section 8.2(a) below, but the     Committee has elected to treat such Company Matching Contributions as entirely Nonforfeitable when made, in which event such accelerated vesting of the Company Matching Contributions shall be described by the Committee in writing, and such writing shall thereafter be considered a part of this Plan.  
		
	(c)
	Company Discretionary Contributions.  Class A Company Discretionary Contributions shall be deposited and credited to an active Participant's or eligible Executive's Deferral Account only if at the time such Company Discretionary Contributions are made the active Participant or eligible Executive is 100% vested pursuant to the vesting schedule set forth in Section 8.2(a) below.

Class B Company Discretionary Contributions shall be deposited and credited to an active Participant's or eligible Executive's Deferral Account only if at the time such Company Discretionary Contributions are made the Committee has elected to treat such Company Discretionary Contributions as entirely Nonforfeitable when made, in which event such accelerated vesting of the Company Discretionary Contributions shall be described by the Committee in writing, and such writing shall thereafter be considered a part of this Plan.  
8.2    Vesting Account.  Company Matching Contributions and Company Discretionary Contributions (and earnings thereon) not deposited and credited to an active Participant's or eligible Executive's Deferral Account shall be deposited and credited to his Vesting Account.  Such amounts shall be considered Nonforfeitable (i.e., "vested") according to the rules set forth below.
		
	(a)
	Company Matching Contributions.  Company Matching Contributions (and earnings thereon) deposited and credited to a Participant's Vesting Account shall be considered Nonforfeitable (that is, the Participant shall be considered "vested" in such amounts) according to the following vesting schedule:  

	
					
	 
	Years of Vesting Service
	Nonforfeitable Percentage

	 
	 
	 

	 
	Fewer than 1
	0
	%
	 

	 
	At least 1 but fewer than 2
	25
	%
	 

	 
	At least 2 but fewer than 3
	50
	%
	 

	 
	At least 3 but fewer than 4
	75
	%
	 

	 
	4 or more
	100
	%
	 

	 
	 
	 
	 

Notwithstanding the foregoing, the Committee reserves the discretion to apply, with respect to one or more Participants, and/or with respect to such Matching Contributions as the Committee shall designate, a different vesting 

xviii

DB03/0502991.0020/6736492.12  MD31

schedule ("discretionary vesting schedule") which the Committee shall articulate in writing and which shall thereafter be considered part of this Plan.  
		
	(b)
	Company Discretionary Contributions.  Class A Company Discretionary Contributions (and earnings thereon) deposited and credited to a Participant's Vesting Account shall be considered Nonforfeitable according the schedule described in (a) above (without regard to the last paragraph thereof).

Class B Company Discretionary Contributions (and earnings thereon) deposited and credited to a Participant's Vesting Account shall be considered Nonforfeitable at the time and in the manner prescribed by the Committee in the writing designating such Contributions as Class B Contributions.  Such writing shall thereafter be considered part of this Plan.  
		
	(c)
	Termination Prior to Vesting.  In the event a Participant terminates employment (by death, total and permanent disability, retirement or otherwise) prior to the date on which the Company Matching Contributions and/or Company Discretionary Contributions (and earnings thereon) deposited and credited to his Vesting Account are considered Nonforfeitable, such forfeitable Contributions shall thereafter be considered forfeited by the Participant and, to the extent permitted by the agreement and declaration establishing the Trust, shall remain in the Plan and shall be used by a Participating Employer to offset the Participating Employer's contributions for the year in which the forfeitures arose or in future years; provided however, that such forfeitures shall at all time be subject to the terms and conditions of the agreement and declaration establishing the Trust, and thus subject to the claims of the Participating Employer's general creditors.  A Participant shall not be deemed to have terminated his employment, notwithstanding his failure to perform services for the Employer, to the extent he remains on the Employer's rolls during a period of authorized paid or unpaid leave of absence.  

		
	(d)
	Payment of Forfeitable Contributions.  In the event amounts deposited and credited to an active Participant’s Vesting Account would, but for this Section 8.2, be payable to him prior to the date on which such Contributions are considered Nonforfeitable pursuant to subsections (a) or (b) above, payment of such Contributions shall be deferred until the date on which such Contributions are considered Nonforfeitable due to additional Vesting Service accrued by the active Participant.  Payment shall be made not later than the 15th day of the third calendar month after the close of each calendar year in which such Contributions become Nonforfeitable. 

In the event the Participant’s employment is terminated (by death, total and permanent disability, retirement or otherwise) prior to the date on which such Contributions (and earnings thereon) are considered as Nonforfeitable, such Contributions shall thereafter be considered forfeited by the Participant and, to the extent permitted by the agreement and 

xix

DB03/0502991.0020/6736492.12  MD31

declaration establishing the Trust, shall remain in the Plan and shall be used by a Participating Employer to offset the Participating Employer's contributions for the year in which the forfeitures arose or in future years; provided however, that such forfeitures shall at all time be subject to the terms and conditions of the agreement and declaration establishing the Trust, and thus subject to the claims of the Participating Employer's general creditors.  A Participant shall not be deemed to have terminated his employment, notwithstanding his failure to perform services for the Employer, to the extent he remains on the Employer's rolls during a period of authorized paid or unpaid leave of absence.
8.3    Vesting Determinations.  The Committee's determination concerning the extent to-which a Participant or eligible Executive is considered "vested," and the extent to which the Company Matching Contributions and/or Company Discretionary Contributions (and earnings thereon) deposited and credited to a Participants Vesting Account are considered Nonforfeitable shall be final and binding on all Participants and their Beneficiaries, as described in Section 12.
Section 9.    Designation of Beneficiaries
9.1    General Rule.  A Participant may designate a Beneficiary or Beneficiaries who are to receive upon his death the payments that otherwise would have been paid to him.  Subject to the requirements of Section 6.2, such Beneficiary designation may include an election concerning the form in which death benefits are to be paid by the Plan to the Beneficiary or Beneficiaries.  All designations shall be in writing and shall be effective only if and when delivered to the Committee or its designee during the lifetime of the Participant.  
9.2    Special Rule for Married Participants.  Notwithstanding Section 9.1, the spouse of a married Participant shall be deemed to be the Participant's sole primary Beneficiary, unless  the Participant designates a primary Beneficiary other than his spouse and the spouse consents to such designation in writing, on a form the Committee or its designee shall provide, and the spouse's signature is notarized.  
9.3    Changing Beneficiary Designations.  Subject to Section 9.2, a Participant may from time to time during his lifetime, change his Beneficiary or Beneficiaries by a written instrument delivered to the Committee or its designee.  The term "Beneficiary" may include a trust, so long as the trust survives the Participant's death.  
9.4    Failure to Designate a Beneficiary.  In the event that a Participant is not survived by a Beneficiary, or if for any reason a Beneficiary designation shall be ineffective in whole or in part, the distribution that otherwise would have been paid to such Participant shall be paid to his estate, and in such event the term "Beneficiary" shall include his estate.
Section 10.    Merger, Consolidation and Sale of Assets
10.1    Merger.  In the event the Company desires to consolidate with, merge into, or transfer all or substantially all of its assets to another entity (hereinafter referred to as a "Successor 

xx

DB03/0502991.0020/6736492.12  MD31

Employer"), the Company and such Successor Employer may agree that the Successor Employer shall assume the Company's obligations under this Plan in whole or in part.  In no event shall such merger, consolidation or transfer extinguish the Company's or the Successor Employer's obligations to Participants and their Beneficiaries under this Plan.  
10.2    Acquisition by Another Employer.  In the event the Company is sold to another corporation or other party(ies) ("New Company"), the Company may agree with such New Company that the New Company shall assume the obligations under this Plan in whole or in part.  In no event shall such sale extinguish the Company's or New Company's obligations to Participants and their Beneficiaries under this Plan.
Section 11.    Rights of Participants
Notwithstanding the depositing and crediting of amounts to the Deferral Account and/or Vesting Account maintained by the Trustee on behalf at a Participant, the right of the Participant, or his Beneficiary, to receive a distribution under this Plan shall be an unsecured claim against the general assets of a Participating Employer.  Participants and Beneficiaries shall have the status of general unsecured creditors of a Participating Employer.  This Plan constitutes a mere promise by a Participating Employer to make benefit payments in the future.
The Deferral Account or Vesting Account maintained by the Trustee on behalf of a Participant may not in any way be encumbered or assigned by a Participant or his Beneficiary.
Nothing in this Plan shall give any Participant the right to be retained as an Executive or an employee of the Employer, affect the right of the Employer to remove any Executive or employee, or give any Executive or employee (or his Beneficiary) the right to receive a particular amount of Compensation, Bonus Compensation or Company Discretionary Contribution from a Participating Employer.
Section 12.    Administration
12.1    Administrative Committee.  The Committee shall administer the Plan.  The Committee may appoint an administrative committee (the "Administrative Committee") to assist it in the administration of the Plan.  The Administrative Committee may act on behalf of the Committee with respect to all matters concerning the Plan, except for those matters the Committee specifically reserves, in this Plan or otherwise, for its own action.  The initial members of the Administrative Committee shall be Troy D. Cook and James K.  Schwartz.  The Board or the Committee may remove, replace, or appoint members of the Administrative Committee at any time.
12.2    Powers of Administrative Committee.  The Committee shall have the power to interpret the Plan and to determine all questions that arise under it.  Such power includes, for example, the discretionary authority necessary to determine eligibility for benefits and to construe the terms of the Plan.  All payments of benefits under the Plan shall be made by a Participating Employer or by the Trustee in accordance with the terms of this Plan and the agreement and declaration establishing the Trust.  The decision of the compensation committee upon all matters within the scope of its authority shall be final and binding on all parties, shall be subject to the most deferential 

xxi

DB03/0502991.0020/6736492.12  MD31

standard on review, and shall not be affected by any actual or alleged conflict of interest.  No member of the Committee or the Administrative Committee may act, in his capacity as a member of the Committee or Administrative Committee, with respect to a matter concerning his eligibility or benefits under the Plan.
Section 13.        Claims and Appeals
13.1    Claims for Benefits; Initial Processing.  Claims for benefits under the Plan normally will be approved or denied by the Committee within 90 calendar days after they are received by the Committee or its designee.  If an extension of time is required to process the claim, the extension will not exceed 90 calendar days, and the claimant shall be provided notice of any extension.  The notice shall explain the reason for the extension and when a decision will be made.  Claims not resolved prior to the end of the extension may be deemed denied.
13.2    Claim Denial.  If a claim for benefits is denied (or deemed denied), the Committee or its designee shall provide the claimant with written notice reflecting the reasons for the denial, with a specific reference to the Plan provisions upon which the decision was based.  The notice shall also reflect any additional information that may be necessary for the claimant’s claim to be approved.  
13.3    Appealing a Denied Claim.  A claimant may appeal the denial of a claim by writing the Committee and stating that he wishes to appeal.  In order to be considered, the appeal must be received by the Committee or its designee no more than 90 calendar days after notice of the denial is provided (or, if no notice is provided, then after the earliest date on which the claimant is entitled to deem the claim denied).
13.4    Processing Appeals.  If a claimant appeals a denial of a claim, the Board shall review the claim and any additional information furnished by the claimant.  The Board shall decide the appeal within 60 calendar days after it is received, but in unusual circumstances may delay resolution of the appeal for an additional 60 calendar days.  The claimant shall be notified of any delay within 60 calendar days after the appeal is received by the Committee or its designee.  After the appeal is decided, the Board shall notify the claimant in writing of its decision, and explain how the appeal was decided and what Plan provisions were relied upon.  
Section 14.    Amendments and Termination
14.1    Amendment.  The Company in its absolute discretion, without notice, may at any time and from time to time, modify or amend, in whole or in part, any or all of the provisions of the Plan.  No such modification or amendment may, without the consent of a Participant (or his Beneficiary in the case of his death) reduce the right of a Participant (or his Beneficiary, as the case may be) to the payment of any amount deposited and credited to his Deferral Account and any Nonforfeitable amount deposited and credited to his Vesting Account under the Plan as of the date of such modification or amendment.  Any modification or amendment of the vesting schedule described in Section 8.2 shall not apply to any amounts deposited and credited to a Participant's Vesting Account as of the date of such modification or amendment, unless the Participant otherwise consents in writing.

xxii

DB03/0502991.0020/6736492.12  MD31

14.2    Suspension and Termination.  The Company in its absolute discretion, without notice, at any time may suspend or terminate the Plan.  In addition, the Committee may suspend or terminate an active Participant's further participation in the Plan at any time.  Other than earnings on a Participant's Deferral Account or Vesting Account credited under Section 7, no additional Compensation or Bonus Compensation may be deferred, and no additional Company Matching Contributions or Company Discretionary Contributions shall be deposited or credited to the Deferral Account and/or Vesting Account of any Participant following suspension or termination of the Plan, or to such Accounts of an inactive Participant following termination of his or her participation in the Plan.  Upon termination of a Participant's participation in the Plan, distribution of a Participant's Plan benefit shall be made in the manner and at the time described under the Plan's normal provisions.
Upon suspension of the Plan, distribution of a Participant's Plan benefit shall be made in the manner and at the time described under the Plan's provisions, and the Trust shall not terminate until all monies on deposit thereunder are either paid to Participants and their Beneficiaries, or returned to the Employer, as provided for under the agreement and declaration establishing the Trust.  Upon suspension of the Plan, a Participant whose Vesting Account balance includes amounts that are not Nonforfeitable under Section 8 hereof, shall continue to be credited with vesting service, for purposes of Section 8, for and on account of his service with the Employer after suspension of the Plan.
In the event the Company elects to terminate the Plan, all forfeitable amounts then on deposit with and credited to Participants' Vesting Accounts shall be deemed Nonforfeitable and, notwithstanding anything herein to the contrary, all Plan benefits shall be paid in a lump sum at such time as is permitted under the applicable requirements under Code Section 409A and regulations issued thereunder.
Section 15.    Applicable Laws
The Plan shall be construed, administered, and governed in all respects under and by the laws of the State of Kansas, to the extent federal law does not apply.  
Section 16.    409A Compliance
In the event that any provision of this Plan shall be determined to contravene Code Section 409A, the regulations promulgated thereunder, regulatory interpretations or announcements with respect to Code Section 409A, any such provision shall be void and have no effect and may be amended by the Company without the consent of the Participant, for the purpose of Code Section 409A compliance.  Moreover, this Plan shall be interpreted at all times in such a manner that the terms and provisions of the Plan comply with Code Section 409A, the regulations promulgated thereunder, and regulatory interpretations or announcements with respect to Code Section 409A.  A Participating Employer shall have the authority to void any Participant election hereunder if necessary to maintain the Plan in compliance with Code Section 409A. 
Section 17.    Incompetency

xxiii

DB03/0502991.0020/6736492.12  MD31

Every person receiving or claiming payments under this Plan shall be conclusively presumed to be mentally competent until the date on which the Committee or its designee receives written notice, in a form and manner acceptable to the Committee, that such person is incompetent and that a guardian, conservator, or other person, legally vested with the care of his estate has been appointed.  In the event a guardian or conservator or the estate of any person receiving or claiming payments under this Plan shall be appointed by a court of competent jurisdiction, benefit payments may be made to such guardian or conservator, provided that proper proof of appointment and continuing qualification are furnished in a form and manner acceptable to the Committee or its designee.  Any such payment so made shall be a complete discharge of any liability therefor.  
Section 18.    Expenses
Costs of administration of the Plan and all taxes imposed on the Plan or Trust shall be paid by a Participating Employer.  Participants' Deferral Accounts or Vesting Accounts shall not be reduced for these amounts.  Notwithstanding the foregoing, Participants' Deferral Accounts and Vesting Accounts shall bear the expense of any and all transaction costs and fees associated with the investment of their Accounts and any per capita Trustee's fee.  The aggregate total of any Trustee's fees based on the aggregate value of assets in the Trust (both the Group Trust and Individual Trusts) may be apportioned among the Accounts of Participants on a pro rata (in the proportion that a Participant's Account balances bear to the Account balances of other Participants) or per capita basis, in the discretion of the Committee.
Section 19.    Notices
Any notice or election required or permitted to be given hereunder shall be in writing. Participant elections shall be in the form prescribed by the Committee, and shall be deemed to be filed with the Committee:  
		
	(a)
	On the date it is personally delivered to the Committee (or its designee), or

		
	(b)
	Five business days after it is sent by registered or certified mail, addressed to the Committee (or its designee) at the Company's address.  

Section 20.    Withholding and Deductions
All payments made under the Plan by a Participating Employer or the Trustee to any Participant or Beneficiary, shall be subject to applicable withholding and to such other deductions that are required by applicable law, and to the delivery to the Committee (or its designee) or the Trustee of any documents, applications or other information deemed necessary by the Committee or the Trustee, in their sole-discretion, as a condition precedent to payment.  
Section 21.    Invalidity of Provisions
If any provision of the Plan is held or found to be invalid or unenforceable, such invalidity or unenforceability shall not affect any other provisions hereof, and the Plan shall be construed and enforced as if such provision had not been included.  Similarly, in the event any provision of the 

xxiv

DB03/0502991.0020/6736492.12  MD31

Plan is held or found to be ineffective or unenforceable with respect to allowing for the deferral of income taxation as intended by the Plan, such provision shall be severed from the provisions of the Plan that are so effective or enforceable, and such latter provisions shall be considered to constitute a separate arrangement.  
Section 22.    Tax Advantages Not Guaranteed
Neither a Participating Employer, the Committee, the Administrative Committee, nor any other person guarantees that any particular Participant or Beneficiary will achieve the tax advantages contemplated by this Plan, and neither a Participating Employer, the Committee, the Administrative Committee or any other person indemnifies or holds harmless a Participant or Beneficiary with respect to liability, whether or not unintended or unforeseen, for income taxes, excise taxes, interest and/or penalties, or any other liability, arising from or incurred in connection with this Plan.
In the event any benefits payable hereunder to a Participant or Beneficiary are subjected to taxation prior to the date such benefits are payable under the terms of the Plan, the payment of such benefits shall be accelerated so that, to the extent practicable, the Participant or Beneficiary receives such benefits in the taxable year in which such amounts are subjected to taxation.
Section 23.    Return of Company Contributions
Nothing in this Plan nor the agreement and declaration establishing the Trust shall be construed to prevent the return to a Participating Employer of amounts contributed to the Trust by a Participating Employer due to a mistake of fact or law, including (but not limited to) erroneous calculations or erroneous determinations of eligibility.  
IN WITNESS WHEREOF, the Company hereby adopts this Amendment and Restatement of the NPC INTERNATIONAL, INC. DEFERRED COMPENSATION AND RETIREMENT PLAN this ____ day of ______________, 2013.

NPC INTERNATIONAL, INC.

By:                             
Title:                             

xxv

DB03/0502991.0020/6736492.12  MD316736470-v9-NPC-AmendedPOWRPlanforKeyEmployees

        

NPC INTERNATIONAL, INC. 
 
 
POWR PLAN 
for 
Key Employees

As Amended and Restated Effective July 1, 2013

DB03/0502991.0020/6736470.9  MD31

Table of Contents
Section 1.  Establishment and Amendment    1
Section 2.  Definitions    1
Section 3.  Eligibility for Participation    4
Section 4.  Company Contributions Under the Plan    5
Section 5.  Vesting of Company Contributions.    7
Section 6.  Timing and Form of Plan Payments    9
Section 7.  Designation of Beneficiaries    10
Section 8.  Merger, Consolidation and Sale of Assets    10
Section 9.  Rights of Participants    10
Section 10.  Administration    11
Section 11.  Claims and Appeals    11
Section 12.  Amendments and Termination    12
Section 13.  Applicable Laws    13
Section 14.  409A Compliance    13
Section 15.  Incompetency    13
Section 16.  Expenses    14
Section 17.  Notices    14
Section 18.  Withholding and Deductions    14
Section 19.  Invalidity of Provisions    14
Section 20.  Tax Advantages Not Guaranteed    15
Section 21.  Return of Company Contributions    15

i

DB03/0502991.0020/6736470.9  MD31

        

NPC International, Inc. 
POWR Plan for Key Employees
Section 1.  Establishment and Amendment
NPC INTERNATIONAL, INC. hereby amends and restates in its entirety, effective July 1, 2013, its deferred compensation and retirement plan for key employees as described herein, which is known as the "NPC INTERNATIONAL INC. POWR PLAN FOR KEY EMPLOYEES (hereinafter called the "Plan").  The Plan is intended to constitute an unfunded plan maintained primarily to provide deferred compensation to a select group of management or highly compensated employees.
Section 2.    Definitions
2.1.    Definitions.  Whenever used herein, the following terms shall have the meanings set forth below:
		
	(a)
	"Active Participant" means a Participant with respect to a calendar year if, for the entire calendar year, the Participant is an Eligible Employee.

		
	(b)
	"Affiliate" means a corporation, trade or business that, together with the Company, is treated as a single employer under Code Section 414(b) or (c).

		
	(c)
	"Adopting Employer" means an Affiliate who, with the consent of the Company, has adopted the Plan for the benefit of its employees.

		
	(d)
	"Board" means the Board of Directors of NPC International, Inc. 

		
	(e)
	"Beneficiary" means the persons or entities designated pursuant to Section 7 who are to receive, upon a Participant's death, payment of the Nonforfeitable amounts credited to the Participant's Account as of the date of his death.

		
	(f)
	"Committee" means the Compensation Committee of and appointed by the Board.

		
	(g)
	"Company" means NPC International, Inc., and any successor thereto, with respect to its employees; NPC Management, Inc., and any successor thereto, with respect to its employees; NPC Restaurants, L.P., and any successor thereto, with respect to its employees, and with respect to any other Adopting Employer, that Adopting Employer with respect to its employees and any successor thereto; provided, however, that for purposes of Sections 12.1 (amendments to the Plan) and 12.2 (termination of the Plan), the term "Company" means NPC International, Inc.  For purposes of Section 2.1(v) (definition of "Year of Service,"), Company means NPC International, Inc. and any corporation, trade or business under common ownership and control as described in Code Sections 414(b) or (c).

		
	(h)
	"Compensation" (for a calendar year) with respect to an Active Participant means the Active Participant's annual base pay, as determined by the Company in its sole discretion and according to its books and records, in effect as of the last day of such 

DB03/0502991.0020/6736470.9  MD31

calendar year; provided, however, that where the Active Participant's rate of annual base pay changes during the calendar year, "Compensation" means total base pay actually paid for the year, as determined by the Company in its sole discretion and according to its books and records.
		
	(i)
	"Disability" means a Participant (a) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or (b) is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than 3 months under an accident and health plan covering employees of Company provided that such disability also constitutes a “disability” for purposes of Code Section 409A.  For purposes of this Plan, it is not necessary that a determination of disability be made by the Social Security Administration, but a Participant who is determined to be totally disabled by the Social Security Administration shall be deemed to have suffered a Disability for purposes of this Plan.

		
	(j)
	"Eligible Employee" means an employee of the Company who is:

		
	(1)
	in a select group of management or highly paid employees;

		
	(2)
	exempt from the minimum wage and maximum hour requirements of the Fair Labor Standards Act, as described in 29 U.S.C. § 213(a) and regulations promulgated thereunder; and

		
	(3)
	selected to participate in this Plan by the Committee.

Employees serving indefinitely (as opposed to a temporary appointment) in one of the following positions are automatically Eligible Employees unless the Committee, in its sole discretion, affirmatively designates them as ineligible:
•    Area General Manager
•    Region Manager
•    Division Vice President
•    Corporate Support Manager
•    Field Support Manager
•    Corporate Director
•    Field Director
•    Member of the Executive Team (as designated by the Committee).
An Eligible Employee who leaves a position described above, and who remains an employee but in a position other than a position described above, shall automatically be considered ineligible as of the effective date of the transfer, unless the Committee affirmatively designates the person as eligible.

2

DB03/0502991.0020/6736470.9  MD31

An Eligible Employee who transfers from one position described above to another, with no intervening break in employment or intervening service in an position not described above, shall not be deemed to have incurred a break in continuous service as an Eligible Employee (see Section 4 for a discussion about how a change in the employment classification of an Eligible Employee who is an Active Participant affects calculation of his benefits under the Plan for the year of such change).
The Committee may at any time, in its sole discretion, designate an otherwise Eligible Employee as prospectively ineligible to participate in this Plan.
		
	(k)
	"Inactive Participant" means a Participant who is not an Active Participant.

		
	(l)
	"Nonforfeitable," as applied to Profit Sharing and POWR Plan Plus contributions (and earnings thereon) deposited by the Company and credited by the Trustee at the direction of the Company to a Participant's Account, means the portion of such deposits and credits to which the Participant or his Beneficiary are "vested" in accordance with the vesting rules described in Section 5 and the other terms and conditions of the Plan, subject only to the claims of the Company's general creditors as described in the agreement and declaration establishing the Trust.  The term "forfeitable" means not Nonforfeitable.

		
	(m)
	"Participant" means a person who is either (i) an Eligible Employee who is presumptively considered eligible to participate in this Plan or who has been selected by the Committee to participate in this Plan, and who has not been de-selected or otherwise rendered ineligible to participate by virtue of a Separation from Service or a transfer to a classification of employment under which he is not presumptively eligible to participate in the Plan; or (ii) a person who has amounts currently deposited and credited to his Participant's Account maintained by the Trust on his behalf pursuant to the terms of the Plan.

		
	(n)
	"Participant's Account" or "Account" means the bookkeeping account maintained by the Trustee under the Trust, on behalf of a Participant, to which the Company deposits and the Trustee credits at the direction of the Company the Profit Sharing and/or POWR Plan Plus Contributions made under this Plan, and to which is credited the Participant's share of the Trusts earnings and losses.  Although this Plan may refer to such an account as "the Participant's Account" or as "his Account," the amounts credited to such Account shall at all times be subject to the terms and conditions of the agreement and declaration establishing the Trust, and thus subject to the claims of the Company's general creditors.

		
	(o)
	"POWR Plan Plus Contribution" means the Company contribution (if any) made to the Plan in accordance with the provisions of Section 4.2 hereof.

		
	(p)
	"POWR Plan Profit Sharing Contribution" means the Company contribution (if any) made to the Plan in accordance with the provisions of Section 4.1 hereof.

3

DB03/0502991.0020/6736470.9  MD31

		
	(q)
	"Profitability Target" for a calendar year means NPC International, Inc.'s profitability target for such year as established by the Board in its sole discretion.

		
	(r)
	"Separation from Service" or "Separates from Service" means a Participant's death, retirement or other termination of employment with the Company.  A Separation from Service will not occur if a Participant is on military leave, sick leave or other bona fide leave of absence (such as temporary employment by the government) if the period of such leave does not exceed six months, or if longer, as long as the Participant has a right (either by contract or by statute) to reemployment with the Company.  "Separation from Service" will be interpreted in a manner consistent with Code Section 409A(a)(2)(A)(i).

		
	(s)
	"Specified Employee" means a Participant that would be a "specified employee" as defined in Code Section 409A(a)(2)(B)(i) and Department of Treasury regulations and other interpretive guidance issued thereunder.  

		
	(t)
	"Trust" means, with regard to Profit Sharing and POWR Plan Plus Contributions deposited by the Company and credited by the Trustee on behalf of a Participant, the NPC International, Inc.  POWR Plan for Key Employees Group Trust.

		
	(u)
	"Trustee" means the bank or trust company designated as the trustee or successor trustee under the agreement and declaration establishing the Trust.

		
	(v)
	"Year of Service" with respect to a Participant means a calendar year (including the calendar year in which his employment terminates) for which the Participant is credited with at least 1000 hours of service for the Company.  For this purpose, an "hour of service" means an hour with respect to which the Participant is entitled to payment by the Company for the performance of services for the Company, or entitled to payment even though no services are performed for the Company (e.g., for periods of paid leave of absence, illness, holiday, layoff, jury duty, etc.).  The Committee may designate, from time to time and in its sole discretion, such other service (either for the Company or otherwise) that shall be, or shall not be, considered Vesting Service with respect to any particular Participant and whether any service with one or more Affiliates shall be considered.

A person who terminates employment with the Company and is later reemployed shall be credited, upon his reemployment, with the Years of Service to which he was credited upon his termination.  (But see Sections 5.1 and 5.2 regarding forfeiture of nonvested benefits upon a Separation from Service; such forfeited benefits are not restored notwithstanding restoration of the person's Years of Service.)
2.2.    Gender and Number.  Except when otherwise indicated by the context, any masculine terminology used herein shall also include the feminine gender, and the definition of any term herein in the singular shall also include the plural.
Section 3.    Eligibility for Participation

4

DB03/0502991.0020/6736470.9  MD31

3.1.    Eligibility.  An employee of the Company shall be eligible to participate in the Plan with respect to a calendar year if he qualifies as an Eligible Employee with respect to such year.  The Committee may add additional Participants or remove existing Participants from time to time by written action.
3.2.    Inactive Participants.  If at a future date an Active Participant no longer meets the requirements for active participation in this Plan for reasons other than Separation from Service, the Participant shall become an inactive Participant, retaining all of the rights accorded Active Participants by this Plan except the right to accrue additional benefits under this Plan.  Such an individual shall remain an Inactive Participant unless and until he again becomes an Active Participant.  An Inactive Participant who remains an employee of the Company shall be eligible to continue to accrue Years of Service for purposes of vesting, and for purposes of qualifying for POWR Plan Plus Contributions in the event the Participant later again becomes an Active Participant.
See Section 5 for a discussion of rules concerning forfeiture of benefits accrued under the Plan, upon a Separation from Service.
Section 4.    Company Contributions Under the Plan
4.1.    POWR Plan Profit Sharing Contributions.
		
	(a)
	Nature of POWR Plan Profit Sharing Contributions; Eligibility.  The Board may, in its sole discretion, designate prior to a calendar year a Profitability Target for such calendar year for NPC International, Inc. The Board may, in its sole discretion, also set Profitability Targets for one or more Affiliates or business units of NPC International, Inc.  In the event NPC International, Inc. or, as applicable, an Affiliate thereof or designated business unit thereof, achieves its Profitability Target, persons who were Active Participants with respect to such calendar year shall be entitled to a POWR Plan Profit Sharing Contribution from the Company, which contribution shall be allocated to the Participant's Account.

		
	(b)
	Amount of POWR Plan Profit Sharing Contributions.  The amount of the POWR Plan Profit Sharing Contribution to which an eligible Active Participant is entitled shall be a percentage of the Active Participant's Compensation for the calendar year to which the Contribution relates.  The Board shall determine the percentage applicable to various employment classifications or positions of Active Participants, which percentage may vary between employment classifications or positions.  The Board may establish different percentages applicable to the same employment classifications or positions, depending on the extent to which NPC International, Inc. or, as applicable, an Affiliate thereof or business unit thereof, exceeds its Profitability Target.

Where different percentages apply to different employment classifications or positions, and an Active Participant changes employment classification or position during the calendar year, the percentage that applies to him is the percentage that applies to the classification or position that the Active Participant held for the longer period of time during the calendar year.

5

DB03/0502991.0020/6736470.9  MD31

The Board shall notify Eligible Employees regarding whether the Board will declare a Profitability Target (for purposes of this Plan) for a given calendar year, and the various POWR Plan Profit Sharing Contribution percentages that apply to the Eligible Employees in the event the Profitability Targets are attained or exceeded.
		
	(c)
	Timing of POWR Plan Profit Sharing Contributions.  The Company shall contribute the POWR Plan Profit Sharing Contributions (with respect to a calendar year) to the Trust after the Board determines, after the close of the calendar year, whether and the extent to which NPC International, Inc. or, as applicable, an Affiliate thereof or business unit thereof, achieved its Profitability Target for such calendar year.  The timing of any such POWR Profit Sharing Contributions during the succeeding year shall be determined by the Board in its sole discretion.

		
	(d)
	Crediting of POWR Plan Profit Sharing Contributions.  As soon as practicable after the Company makes its POWR Plan Profit Sharing Contribution with respect to a calendar year, the Trustee shall credit to the Participant's Account of each Active Participant with respect to such calendar year, such Active Participant's share of the POWR Plan Profit Sharing Contribution.

4.2.    POWR Plan Plus (Tenured Service) Contributions.
		
	(a)
	Nature of POWR Plan Plus Contributions; Eligibility.  Prior to or at any time during a calendar year with respect to which the Board has determined and announced, for purposes of Section 4.1, a Profitability Target, the Board may in its sole discretion determine whether it will offer a POWR Plan Plus Contribution with respect to such calendar year.  In the event the Board determines to offer such a Power Plan Plus Contribution for a calendar year, and NPC International, Inc. or, as applicable, an Affiliate thereof or business unit thereof, achieves its Profitability Target for such year, persons who (i) were Active Participants with respect to such calendar year and (ii) were credited with at least ten (10) Years of Service as of the last day of such calendar year shall be entitled to a POWR Plan Profit Sharing Contribution from the Company, which contribution shall be allocated to the Participant's Account.

		
	(b)
	Amount of POWR Plan Plus Contributions.  The amount of the POWR Plan Plus Contribution to which an eligible Active Participant is entitled shall be a percentage of the Active Participant's Compensation for the calendar year to which the Contribution relates.  The Board shall determine the percentage applicable to various employment classifications or positions of Active Participants, which percentage may vary between employment classifications or positions.  The Board may establish different percentages applicable to the same employment classification or position, depending on the extent to which NPC International, Inc. or, as applicable, an Affiliate thereof or business unit thereof, exceeds its Profitability Target.

Where different percentages apply to different employment classifications or positions, and an Active Participant changes employment classification or position during the calendar year, the percentage that applies to him is the percentage that applies to the classification or position that the Active Participant held for the longer period of time during the calendar year.

6

DB03/0502991.0020/6736470.9  MD31

The Board shall notify Eligible Employees, as soon as practicable after the Board determines to offer a POWR Plan Plus Contribution for a calendar year, regarding the fact of that determination and the various POWR Plan Plus Contribution percentages that will apply to the Eligible Employees in the event the Profitability Targets are attained or exceeded.
		
	(c)
	Timing of POWR Plan Plus Contributions.  The Company shall contribute the POWR Plan Plus Contributions (with respect to a calendar year) to the Trust after the Board determines, after the close of the calendar year, whether and the extent to which NPC International, Inc. or, as applicable, an Affiliate thereof or business unit thereof, achieved its Profitability Target for such calendar year.  The timing of any such POWR Plus Contributions during the succeeding year shall be determined by the Board in its sole discretion.  

		
	(d)
	Crediting of POWR Plan Plus Contributions.  As soon as practicable after the Company makes its POWR Plan Plus Contribution with respect to a calendar year, the Trustee shall credit, to the Participant's Account of each qualifying Active Participant with respect to such calendar year, such qualifying Active Participant's share of the POWR Plan Profit Sharing Contribution.

4.3.    Investments and Allocation of Earnings.  As of the last day of each calendar year, (or as soon as practicable thereafter) each Participant's Account maintained by the Trustee on behalf of a Participant shall be credited with earnings (and losses) for such year resulting from investment by the Trustee.  The investment gain or loss shall be allocated to a Participant's Account in the ratio that the Participant's Account balance as of the preceding valuation date, adjusted for all distributions and forfeitures occurring during the calendar year, bears to the total of all Account balances as of the preceding valuation date, as adjusted for all distributions and forfeitures occurring during the calendar year.  For purposes of this Section, a Participant's Account balance as of such preceding valuation date shall include contributions credited as of such date (even if such contributions are actually made after such date).
For example, for purposes of allocating investment gains or losses for the 2004 calendar year, such earnings and losses will be allocated based on Account balances as of December 31, 2003.  Such Account balances shall be calculated by taking into account contributions allocated to such Accounts for the 2003 calendar year, even though the contributions are actually made after December 31, 2003.  Further, such Account balances will be adjusted for any distributions or forfeitures that occurred during the 2004 calendar year.
Section 5.    Vesting of Company Contributions.
5.1.    POWR Plan Profit Sharing Contributions.  A Participant's POWR Plan Profit Sharing Contribution becomes Nonforfeitable, or "vested," ratably in accordance with the following schedule:
Years of Service        Nonforfeitable Percentage
1     25%
2     50%

7

DB03/0502991.0020/6736470.9  MD31

3     75%
4    100%
Except as otherwise provided in this Section 5.1, the Years of Service taken into account to determine the Nonforfeitability of any POWR Plan Profit Sharing Contribution include only years of Service earned for the year to which the Contribution relates, and subsequent years.  Consequently, each separate POWR Plan Profit Sharing Contribution made on behalf of an Active Participant vests separately and independently of each other POWR Plan Profit Sharing Contribution made on behalf of the Participant.
Notwithstanding the rule in the preceding paragraph, the portion of an Active or Inactive Participant's Account attributable to POWR Plan Profit Sharing Contributions, and earnings thereon, shall be considered 100% Nonforfeitable as of the date the Participant accrues 15 Years of Service or, if earlier, the date the Participant accrues 5 Years of Service and is at least age 65.  
In addition, in the event the employment of an Active or inactive Participant terminates due to death or Disability, the portion of the Participant's Account attributable to POWR Plan Profit Sharing Contributions, and earnings thereon, shall be considered 100% Nonforfeitable as of the date of death or Disability.
Upon the Separation from Service of an Active Participant or Inactive Participant for reasons other than death or Disability, the portion of the Participant's Account attributable to POWR Plan Profit Sharing Contributions, and earnings thereon, that is forfeitable as of the date the employment terminates shall be forfeited as of the last date of the calendar year in which employment terminates, unless the Participant is rehired as an employee by the Company not later than the last day of such calendar year.
5.2.    POWR Plan Plus Contributions.  The portion of a Participant's Account attributable to POWR Plan Plus Contributions, and earnings thereon, becomes Nonforfeitable, or "vested," in accordance with the following schedule:
Years of Service        Nonforfeitable Percentage
Fewer than 20              0%
20 or more            100%
For purposes of this Section 5.2, all of a Participant's Years of Service are taken into account.
Upon the Separation from Service of an Active Participant or Inactive Participant for any reason, the portion of the Participant's Account attributable to POWR Plan Plus Contributions, and earnings thereon, that is forfeitable as of the date the employment terminates shall be forfeited as of the last date of the calendar year in which employment terminates, unless the Participant is rehired as an employee by the Company not later than the last day of such calendar year.
5.3.    Forfeiture of Benefits Due to Gross Misconduct.  Notwithstanding any other provision of this Plan to the contrary, a Participant's Account balance, whether or not considered Nonforfeitable in whole or in part pursuant to Sections 5.1 and/or 5.2, will be forfeited by a Participant if the Participant’s employment is terminated (involuntarily by the Company or voluntarily in lieu of involuntary termination) due to gross misconduct.  If after payments are made 

8

DB03/0502991.0020/6736470.9  MD31

by this Plan to a Participant or his Beneficiary the Committee determines that the Participant engaged in gross misconduct that would have, in the judgment of the Committee in its sole discretion, resulted in the Participant's involuntary termination due to gross misconduct had the Company then known the facts of the misconduct, any remaining payments due to the Participant or Beneficiary shall be forfeited and the Company may, in its sole discretion, seek repayment (with interest) of amounts previously paid by the Plan to the Participant and/or Beneficiary.
For purposes of this Section, "gross misconduct" means conduct justifying Separation from Service due to factors that would render the Participant ineligible for unemployment compensation benefits under the laws of the State in which the Participant last performed services for the Company.  The Committee shall determine, in its sole discretion, whether the Participant's actions amounted to gross misconduct.
5.4    Application of Forfeitures.  Forfeitures under the Plan will not be reallocated among Participants as additional benefits but will be used to offset the Company's contribution(s) for the year in which the forfeiture arose or in future years.
Section 6.    Timing and Form of Plan Payments
6.1.    Time of Payment.  Except as provided below in Section 6.1(c), the Nonforfeitable portion of a Participant's Account shall be paid to the Participant (or his Beneficiary, as appropriate) on account of a Separation from Service, Disability or death, as follows:
		
	(a)
	Except as provided in (b) below, a Participant that Separates from Service will have his or her entire account balance distributed in the calendar year following the calendar year in which he or she Separates from Service.  Such distribution will generally be made on the 30th day following receipt of the EBITDA audit for that year.

		
	(b)
	Where a Participant Separates from Service due to death or where a Participant suffers a Disability, (i) 50% of the Participant's account balance (based on the most recent valuation) will be distributed within the 90-day period immediately following the Participant's death or Disability and if such 90-day period spans two taxable periods, the Participant shall not be permitted, directly or indirectly, to designate the taxable year of such payment, and (ii) the remaining portion of the Participant's account will be distributed in the calendar year following the calendar year in which the Participant died or became Disabled (generally within 30 days of the Company's receipt of the EBITDA audit for that year).  

		
	(c)
	Notwithstanding the above, if a Participant is a "Specified Employee" at the time of the Participant's Separation from Service, any payment provided for under this Plan shall be delayed until six months and one day following the Participant's Separation from Service to the extent required under Code Section 409A.

6.2.    Form of Payment.  When a benefit becomes payable from this Plan, the benefit shall be paid as a single, lump-sum payment unless the Participant elects a different form of payment before the end of the available Code Section 409A transition relief and as allowed by the Company.  The alternative optional form of payment is five (5) substantially equal annual installments (each 

9

DB03/0502991.0020/6736470.9  MD31

payable during the first 75 days of such succeeding installment calendar year), adjusted annually for earnings (and losses) on the unpaid balance.
Section 7.    Designation of Beneficiaries
7.1.    General Rule.  A Participant may designate a Beneficiary or Beneficiaries who are to receive upon his death the payments that otherwise would have been paid to him.  Subject to the requirements of Section 6.2, such Beneficiary designation may include an election concerning the form in which death benefits are to be paid by the Plan to the Beneficiary or Beneficiaries.  All designations shall be in writing and shall be effective only if and when delivered to the Committee or its designee during the lifetime of the Participant.  
7.2.    Special Rule for Married Participants.  Notwithstanding Section 7.1, the spouse of a married Participant shall be deemed to be the Participant's sole primary Beneficiary, unless the Participant designates a primary Beneficiary other than his spouse, the spouse consents in writing to such designation, on a form the Committee or its designee shall provide, and the spouse's signature is notarized.
7.3.    Changing Beneficiary Designations.  Subject to Section 7.2, a Participant may from time to time during his lifetime, change his Beneficiary or Beneficiaries by a written instrument delivered to the Committee or its designee.  The term "Beneficiary" may include a trust, so long as the trust survives the Participants death.
7.4.    Failure to Designate a Beneficiary.  In the event that a Participant is not survived by a Beneficiary, or if for any reason a Beneficiary designation shall be ineffective in whole or in part, the distribution that otherwise would have been paid to such Participant shall be paid to his estate, and in such event the term "Beneficiary" shall include his estate.
Section 8.    Merger, Consolidation and Sale of Assets
8.1.    Merger.  In the event the Company desires to consolidate with, merge into, or transfer all or substantially all of its assets to another entity (hereinafter referred to as a "Successor Employer"), the Company and such Successor Employer may agree that the Successor Employer shall assume the Company's obligations under this Plan in whole or in part.  In no event shall such merger, consolidation or transfer extinguish the Company's or the Successor Employer's obligations to Participants and their Beneficiaries under this Plan.
8.2.    Acquisition by Another Employer.  In the event the Company is sold to another corporation or other party(ies) ("New Company"), the Company may agree with such New Company that the New Company shall assume the obligations under this Plan in whole or in part.  In no event shall such sale extinguish the Company's or New Company's obligations to Participants and their Beneficiaries under this Plan.
Section 9.    Rights of Participants
Notwithstanding the depositing and crediting of amounts to a Participants Account on behalf of a Participant, the right of the Participant, or his Beneficiary, to receive a distribution of benefits under this Plan shall be an unsecured claim against the general assets of the Company.  Participants 

10

DB03/0502991.0020/6736470.9  MD31

and Beneficiaries shall have the status of general unsecured creditors of the Company.  This Plan constitutes a mere promise by the Company to make benefit payments in the future.
The Participant's Account maintained by the Trustee on behalf of a Participant may not in any way be encumbered or assigned by a Participant or his Beneficiary.
Nothing in this Plan shall give any Participant the right to be retained as an Eligible Employee or an employee of the Company, affect the right of the Company to remove any Eligible Employee or employee, or give any Eligible Employee or employee (or his Beneficiary) the right to receive a particular amount of Compensation.
Section 10.    Administration
10.1.    Administrative Committee.  The Committee shall administer the Plan.  The Committee may appoint an administrative committee (the "Administrative Committee") to assist it in the administration of the Plan.  The Administrative Committee may act on behalf of the Committee with respect to all matters concerning the Plan, except for those matters the Committee specifically reserves, in this Plan or otherwise, for its own action.  The initial members of the Administrative Committee shall be Troy Cook and Jim Schwartz.  The Board or the Committee may remove, replace, or appoint members of the Administrative Committee at any time.
10.2.    Powers of Committee.  The Committee shall have the power to interpret the Plan and to determine all questions that arise under it.  Such power includes, for example, the  discretionary authority necessary to determine eligibility for benefits, to construe the terms of the Plan and  to determine the extent to which a Participant's Account is Nonforfeitable (including determinations regarding Years of Service). 
The Committee shall also have the power to direct the investment of the assets of the Trust, and to delegate investment authority with respect to the Trust to one or more investment managers or to the Trustee, or to both the Trustee and one or more investment managers.  The Committee may adopt an investment policy to guide the Trustee and/or investment managers with respect to investment of the Trust assets.  Where the Committee adopts such a policy it may amend such policy at any time in its discretion, and the Trustee and/or investment manager(s) to whom the Committee delegates investment authority shall abide by the terms of the policy, provided the Committee furnishes the Trustee and/or investment manager(s) with a copy of such policy or amended policy.
All payments of benefits under the Plan shall be made by the Company or by the Trustee in accordance with the terms of this Plan and the agreement and declaration establishing the Trust.  The decision of the Committee upon all matters within the scope of its authority shall be final and binding on all parties, shall be subject to the most deferential standard on review, and shall not be affected by any actual or alleged conflict of interest.  No member of the Committee or the Administrative Committee may act, in his capacity as a member of the Committee or Administrative Committee, with respect to a matter concerning his eligibility or benefits under the Plan.
Section 11.    Claims and Appeals
11.1.    Claims for Benefits; Initial Processing.  Claims for benefits under the Plan normally will be approved or denied by the Committee within 90 calendar days (45 days in the case of a 

11

DB03/0502991.0020/6736470.9  MD31

claim for benefits due to Disability) after they are received by the Committee or its designee.  (But see Section 6 regarding the timing of actual payments from the Plan.)  If an extension of time is required to process the claim, the extension will not exceed 90 calendar days (45 days in the case of a claim for benefits due to Disability; provided that two such 45-day extensions are available), and the claimant shall be provided notice of any extension prior to the commencement of the extension period.  The notice shall explain the reason for the extension and when a decision will be made.  Claims not resolved prior to the end of the extension may be deemed denied.
11.2.    Claim Denial. If a claim for benefits is denied (or deemed denied), the Committee or its designee shall provide the claimant with written notice reflecting the reasons for the denial, with a specific reference to the Plan provisions upon which the decision was based.  The notice shall also reflect any additional information that may be necessary for the claimant’s claim to be approved.
11.3.    Appealing a Denied Claim.  A claimant may appeal the denial of a claim by writing the Committee and stating that he wishes to appeal.  In order to be considered, the appeal must be received by the Committee or its designee no more than 60 calendar days (180 days in the case of a claim for benefits due to Disability) after notice of the denial is provided (or, if no notice is provided, then after the earliest date on which the claimant is entitled to deem the claim denied).
11.4.    Processing Appeals.  If a claimant appeals a denial of a claim, the Board shall review the claim and any additional information furnished by the claimant. The Board shall decide the appeal within 60 calendar days (45 calendar days in the case of a claim for benefits due to Total and Permanent Disability) after it is received, but in unusual circumstances may delay resolution of the appeal for an additional 60 calendar days (45 calendar days in the case of a claim for benefits due to Disability).  The claimant shall be notified of any delay prior to the beginning of the extension.  After the appeal is decided, the Board shall notify the claimant in writing of its decision, and explain how the appeal was decided and what Plan provisions were relied upon.
The provisions of this Section 11 shall be administered in accordance with applicable claim processing requirements imposed by regulations issued by the U. S. Department of Labor under the Employee Retirement income Security Act of 1974, as amended.
Section 12.    Amendments and Termination
12.1.    Amendment.  The Company in its absolute discretion, without notice, may at any time and from time to time, modify or amend, in whole or in part, any or all of the provisions of the Plan.  No such modification or amendment may, without the consent of a Participant (or his Beneficiary in the case of his death) reduce the right of the Participant (or his Beneficiary, as the case may be) to the payment of any amount deposited and credited to his Participant's Account under the Plan as of the date of such modification or amendment.  Any modification or amendment of the vesting schedules described in Section 5 shall not apply to any forfeitable amounts deposited and credited to a Participant’s Account as of the date of such modification or amendment unless the Participant otherwise consents in writing.
12.2.    Suspension and Termination.  The Company in its absolute discretion, without notice, at any time may suspend or terminate the Plan.  In addition, the committee may suspend or terminate an Active Participant’s further participation in the Plan at any time.  Other than earnings 

12

DB03/0502991.0020/6736470.9  MD31

on a Participant's Account, no additional Contributions shall be deposited or credited to Participants' Accounts following suspension or termination of the Plan.  Upon termination of a Participant’s participation in the Plan, distribution of a Participant's Plan benefit shall be made in the manner and at the time described under the Plan's normal provisions.
Upon suspension of the Plan, distribution of a Participant's Plan benefit shall be made in the manner and at the time described under the Plan's provisions, and the Trust shall not terminate until all monies on deposit thereunder are either paid to Participants and their Beneficiaries, or retuned to the Employer, as provided for under the agreement and declaration establishing the Trust.  Upon suspension of the Plan, an employee whose Participant's Account balance includes amounts that are forfeitable under Section 5 hereof, shall continue to be credited with Years of Service for vesting, for purposes of Section 5, for and on account of his service with the Company after suspension of the Plan.
In the event the Company elects to terminate the Plan, all forfeitable amounts then on deposit with and credited to Participants' Accounts shall be deemed Nonforfeitable, and, notwithstanding anything herein to the contrary, all Plan benefits shall be paid in a lump sum at such time as is permitted under the applicable requirements under Code Section 409A and regulations issued thereunder.
Section 13.    Applicable Laws
The Plan shall be construed, administered, end governed in all respects under and by the laws of the State of Kansas, to the extent federal law does not apply.
Section 14.    409A Compliance
In the event that any provision of this Plan shall be determined to contravene Code Section 409A, the regulations promulgated thereunder, regulatory interpretations or announcements with respect to Section 409A any such provision shall be void and have no effect and may be amended by the Company without consent of the Participant for purposes of Section 409A compliance.  Moreover, this Plan shall be interpreted at all times in such a manner that the terms and provisions of the Plan comply with Code Section 409A, the regulations promulgated thereunder, and regulatory interpretations or announcements with respect to Section 409A.  The Company shall have the authority to void any Participant election hereunder if necessary to maintain the Plan in compliance with Code Section 409A.
Section 15.    Incompetency
Every person receiving or claiming payments under this Plan shall be conclusively presumed to be mentally competent until the date on which the Committee or its designee receives written notice, in a form and manner acceptable to the Committee, that such person is incompetent and that a guardian, conservator, or other person legally vested with the care of his estate has been appointed.  In the event a guardian or conservator of the estate of any person receiving or claiming payments under this Plan shall be appointed by a court of competent jurisdiction, benefit payments may be made to such guardian or conservator, provided that proper proof of appointment and continuing qualification are furnished in a form and manner acceptable to the Committee or its designee.  Any such payment so made shall be a complete discharge of any liability therefor.

13

DB03/0502991.0020/6736470.9  MD31

Section 16.    Expenses
Costs of administration of the Plan and all taxes imposed on the Plan or Trust shall be paid by the Company.  Participants' Accounts shall not be reduced for these amounts.  Notwithstanding the foregoing, Participants' Accounts shall bear the expense of any and all transaction costs and fees associated with the investment of their Accounts and any per capita Trustee's fee.  The aggregate total of any Trustee's fees based on the aggregate value of assets in the Trust may be apportioned among the Accounts of Participants on a pro rata (in the proportion that a Participant’s Account balances bear to the sum of Account balances of all Participants) or per capita basis, in the discretion of the Committee.
Section 17.    Notices
Any notice or election required or permitted to be given hereunder shall be in writing.  Participant elections shall be in the form prescribed by the Committee, and shall be deemed to be filed with the Committee:
		
	(a)
	On the date it is personally delivered to the Committee (or its designee), or

		
	(b)
	Five business days after it is sent by registered or certified mail, addressed to the Committee (or its designee) at the address of NPC International, Inc.

Section 18.    Withholding and Deductions
All payments made under the Plan by the Company or the Trustee to any Participant or Beneficiary, shall be subject to applicable withholding and to such other deductions that are required by applicable law, and to the delivery to the Committee (or its designee) or the Trustee of any documents, applications or other information deemed necessary by the Committee or the Trustee, in their sole discretion, as a condition precedent to payment
Section 19.    Invalidity of Provisions
If any provision of the Plan is held or found to be invalid or unenforceable, such invalidity or unenforceability shall not affect any other provisions hereof, and the Plan shall be construed and enforced as if such provision had not been included.  Similarly, in the event any provision of the Plan is held or found to be ineffective or unenforceable with respect to allowing for the deferral of income taxation as intended by the Plan, such provision shall be severed from the provisions of the Plan that are so effective or enforceable, and such latter provisions shall be considered to constitute a separate arrangement.
Section 20.    Tax Advantages Not Guaranteed
Neither the Company, the Committee, the Administrative Committee, nor any other person guarantees that any particular Participant or Beneficiary will achieve the tax advantages contemplated by this Plan, and neither the Company, the Committee, the Administrative Committee or any other person indemnifies or holds harmless a Participant or Beneficiary with respect to liability, whether or not unintended or unforeseen, for income taxes, excise taxes, interest and/or penalties, or any other liability, arising from or incurred in connection with this Plan.

14

DB03/0502991.0020/6736470.9  MD31

In the event any benefits payable hereunder to a Participant or Beneficiary are subjected to taxation prior to the date such benefits are payable under the terms of the Plan, the payment of such benefits shall be accelerated so that, to the extent practicable, the Participant or Beneficiary receives such benefits in the taxable year in which such amounts are subjected to taxation.
Section 21.    Return of Company Contributions
Nothing in this Plan nor the agreement and declaration establishing the Trust shall be construed to prevent the return to the company of amounts contributed to the Trust by the Company due to a mistake of fact or law, including (but not limited to) erroneous calculations or erroneous determinations of eligibility.

15

DB03/0502991.0020/6736470.9  MD31

IN WITNESS WHEREOF, the Company hereby adopts this Amendment and Restatement of the NPC International, Inc. POWR Plan for Key Employees this ____ day of ______________, 2013.

NPC INTERNATIONAL, INC.

By:                             
Title:                             
ATTEST:

                

16

DB03/0502991.0020/6736470.9  MD31

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00219-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00219-of-00352.parquet"}]]