NATIONAL PRESTO INDUSTRIES, INC.
INCENTIVE COMPENSATION PLAN
PURPOSE AND DURATION
1.1 Purpose . The purpose of the National Presto Industries, Inc. Incentive Compensation Plan
(the “Plan”) is to attract and retain qualified employees of National Presto Industries, Inc. (the “Company”) and
its Subsidiaries. By encouraging employees of the Company and its Subsidiaries to acquire a proprietary interest
in the Company’s growth and performance, the Company intends to motivate employees to achieve long-term
Company goals and to more closely align the interests of such persons with those of the Company’s
1.2 Duration of the Plan . The Plan shall become effective as of May 18, 2010, subject to the
approval of the stockholders of the Company at the Annual Meeting on May 18, 2010 (the “Effective
Date”). The Plan shall remain in effect, subject to the right of the Board to amend or terminate the Plan at any
time pursuant to Section 6 hereof, until the date all Shares subject to the Plan shall have been issued or acquired
and the Restrictions on all Awards granted under the Plan shall have lapsed, according to the Plan’s provisions.
As used in the Plan, in addition to terms elsewhere defined in the Plan, the following terms shall have the
meanings set forth below:
2.1 “ Award ” or “ Restricted Stock Award ” means an award of Restricted Stock granted to an
Eligible Person under this Plan.
2.2 “ Award Agreement ” means any written agreement, contract, or other instrument or document
evidencing any Award granted hereunder between the Company and a Grantee.
2.3 “ Board ” means the Board of Directors of the Company.
2.4 “ Change in Control ” means the occurrence of any one or more of the following:
An acquisition of outstanding or newly issued Company securities that results in any Person
with Beneficial Ownership (as each are def