Document:

Exhibit
10.3

 

EMPLOYMENT
AGREEMENT

 

THIS
EMPLOYMENT AGREEMENT (“Agreement”) is effective as of June 14, 2021 (the “Effective Date”), by and between
Mr. Kevin Foti (the “Executive”) and Taronis Fuels, Inc., a Delaware corporation (the “Company”).

 

WHEREAS,
the Company and the Executive desire to enter into this Agreement in order to set forth the terms and conditions of the Executive’s
employment with the Company;

 

WHEREAS,
the Company has been pursuing hiring a highly qualified chief executive officer to replace the Company’s current interim chief
executive officer; and

 

WHEREAS,
in connection with therewith, the parties intend to enter into this Agreement.

 

NOW,
THEREFORE, in consideration of the mutual agreements hereinafter set forth, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Executive and the Company hereby agree as follows:

 

1.
EMPLOYMENT. The Company hereby employs the Executive and the Executive hereby accepts employment as the President and Chief Executive
Officer of the Company. The Executive shall have all the duties, responsibilities, and authority attendant to this position and shall
render services consistent with such position on the terms set forth herein and shall report to the Board of Directors of the Company
(the “Supervisor”). In addition, the Executive shall have such other executive and managerial powers and duties with
respect to the Company as may be assigned to the Executive by the Supervisor. The Executive agrees to devote all of the Executive’s
working time and best efforts to the business and affairs of the Company, subject to reasonable periods of vacation and other leave to
which the Executive is entitled, and provided that the Executive shall be entitled to manage the Executive’s personal and family
finances and investments, serve as a member of the board of directors of a reasonable number of other companies, and to serve on civic,
charitable, educational, religious, public interest or public service boards, in each case, to the extent such activities do not substantially
interfere with the performance of the Executive’s duties and responsibilities hereunder and do not conflict with Executive’s
obligations under Section 7. Executive is anticipated to be appointed as a member of the Company’s Board of Directors effective
as of the Effective Date. The Executive shall not become a director of any entity without first obtaining the approval of the Supervisor,
which shall not be unreasonably withheld.

 

2.
TERM OF AGREEMENT. The term of this Agreement shall commence as of the Effective Date and shall continue until terminated pursuant
to Section 6. The Executive’s period of employment under this Agreement shall be referred to as the “Employment Period.”

 

3.
LOCATION. The Executive shall be based in Jupiter, Florida, initially, and any changes shall be subject to mutual agreement between
the Executive and the Company. The Executive shall engage in reasonable travel to other locations on Company business consistent with
the Executive’s position.

 

    	 

     

    

 

4.
COMPENSATION.

 

(a)
Base Salary. During the Employment Period, the Company shall pay the Executive a base salary (“Base Salary”)
at an initial annualized rate as of the Effective Date of $325,000 per year, payable in accordance with the Company’s regular payroll
practices relating to salaried employees, but not less frequently than monthly. The Supervisor may review the Base Salary from year to
year and may approve an increase in the Base Salary as the Supervisor deems appropriate.

 

(b)
Bonus. Commencing with calendar year 2021, Executive shall be entitled to earn an annual bonus with respect to each calendar year,
based on the Executive’s and the Company’s achievement of reasonable performance objectives mutually set by the Supervisor
and the Executive, with a target bonus of 80% of Executive’s Base Salary for such year, with established higher bonus targets for
“outperform”-type goals. The extent to which the objectives have been achieved will be determined by the Supervisor in its
reasonable discretion based upon the performance metrics agreed upon. Any such bonus shall be paid annually by March 15 of the year following
the end of the year to which such bonus relates. The Executive is not entitled to receive a bonus, and shall not have earned such bonus,
unless the Executive is employed at the end of the calendar year for said bonus. In calendar year 2021, Executive shall be eligible for
the above bonus on a daily pro-rata basis.

 

(c)
Equity Compensation. The Executive will be eligible to receive equity awards annually under the Company’s incentive equity
plans, as may be in force from time to time, and to participate in any future long-term incentive programs made generally available to
the Company’s executives as determined by the Board of Directors of the Company. For the year initial annual award in 2021, the
Executive shall receive a Long-Term Incentive grant in the amount of no less than $385,000, pro-rated for the partial year of 2021 from
the Effective Date, split equally between Restricted Stock Units (“RSUs”) and Stock Options, said awards to vest equally
over the subsequent three anniversary dates of said awards.

 

(d)
Initial Onboarding Awards. In addition to the equity compensation referenced in Section 4(c), the Executive shall receive an initial
grant of $650,000 upon the Effective Date of this Agreement, said grant to be payable:

 

(i)
fifty percent (50%) in RSUs valued as of the date of the grant, which RSUs shall annually vest on an equal basis on each of the three
subsequent anniversary dates; and

 

(ii)
fifty percent (50%) in Stock Options valued as of the date of the grant, which options shall vest and become exercisable on an equal
basis over each of the three subsequent anniversary dates.

 

In
the event of a termination Without Cause (as defined in Section 6(a)(ii)(C)) or a resignation for Good Reason (as defined in Section
6(a)(iii)(A)), all of the Executive’s RSUs and Stock Options issued in this Section 4(d) shall vest immediately.

 

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5.
FRINGE BENEFITS.

 

(a)
General. During the Employment Period, the Executive shall be eligible to participate in or receive benefits at least commensurate
with other C-level employees under any employee benefit plan or arrangement (e.g., health insurance) made available by the Company,
to the extent and in accordance with the terms and conditions of those plans or arrangements as they may exist from time to time.

 

(b)
Paid Time Off. During the Employment Period, the Executive shall be entitled to take paid
time off and sick leave in accordance with the Company’s standard employment policies, as they may exist and be amended from time
to time. In addition to Company holidays, the Executive shall also be entitled to four (4) weeks of paid vacation each calendar year
(and prorated for partial years) in accordance with the Company’s policies, which if not taken during any year may not be carried
forward to any subsequent calendar year and no compensation shall be payable in lieu thereof.

 

(c)
Business Expenses. During the Employment Period, the Company shall promptly reimburse the Executive for all reasonable expenses
incurred by the Executive in the performance of the Executive’s duties under this Agreement, including all reasonable travel expenses
and business meals, provided that such expenses are incurred and accounted for in accordance with the Company’s policies and procedures,
as they may exist from time to time.

 

6.
TERMINATION.

 

(a)
Permitted Terminations. The Executive’s employment during the Employment Period may be terminated by the Company or the
Executive immediately for any reason, with or without notice, including the following:

 

(i)
Death. The Executive’s employment shall terminate automatically upon the Executive’s death without any further notice
or action required by the Company or the Executive’s legal representatives.

 

(ii)
By the Company. The Company may terminate the Executive’s employment in the following circumstances:

 

(A)
Disability. The Company may terminate the Executive’s employment for Disability. “Disability” means the
Executive’s substantial inability (including by virtue of physical or mental illness, injury, disability, or other incapacity)
to perform the essential functions of the Executive’s position (with or without reasonable accommodation, as required by law for
the Executive) for a period of ninety (90) consecutive days or more than one hundred twenty (120) days in any twelve (12)-month period;
provided that until such termination, the Executive shall continue to receive the Executive’s compensation and benefits hereunder,
reduced by benefits payable, if any, under any disability insurance policy or plan. If there is a dispute as to the existence of Disability,
the Executive’s Disability will be established if a qualified medical doctor selected by the parties so certifies in writing. If
the parties are unable to agree on the selection of such a doctor, each party will designate a qualified medical doctor who together
will select a third doctor who will make the determination. The Executive will be available for an examination by a doctor selected in
accordance with this paragraph, which examination will be paid by the Company. The written medical opinion of the doctor shall be binding
upon the parties as to whether a Disability exists and the date such Disability arose. The foregoing shall be interpreted and applied
so as to comply with the provisions of the Americans with Disabilities Act (to the extent that it is applicable) and any applicable state
or local laws.

 

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(B)
Cause. The Company may immediately terminate the Executive’s employment hereunder for Cause (subject to any cure periods
described below). For purposes of this Agreement “Cause” shall mean the Executive’s: (1) material failure to
observe and comply with any of the Company’s material written conduct policies, including without limitation its policies prohibiting
harassment (sexual or otherwise) and discrimination, after notice of such breach and, if curable, an opportunity to cure such breach
within ten (10) days (it being understood that, without limitation, substantiated violations of zero-tolerance misconduct shall not be
“curable”); (2) continued failure to substantially perform the Executive’s material duties with the Company, which
is not cured within thirty (30) calendar days after receipt by the Executive of written notice of such failure; (3) substantial and repeated
willful failure to carry out, or comply with, in any material respect any lawful and reasonable written directive of the Supervisor (other
than due to physical or mental incapacity), after notice of such breach and, if curable, an opportunity to cure such breach within ten
(10) days; (4) commission of any willful or intentional act or omission that results in, or that may reasonably be expected to result
in, a conviction, plea of no contest or imposition of unadjudicated probation for any felony or any crime involving moral turpitude;
(5) commission of any act of dishonesty, illegal conduct, unethical conduct, fraud, embezzlement, misappropriation, material misconduct,
breach of fiduciary duty, or other act of moral turpitude in connection with the Executive’s employment which is or which is reasonably
expected to be materially injurious to the Company or its Affiliates (defined below); (6) material and willful breach of this Agreement,
after notice of such breach and, if curable, an opportunity to cure such breach within ten (10) days; or (7) at any time engaging in
any form of willful misconduct or any other intentional action or omission that is damaging to the Company or its Affiliates (defined
below) or their respective reputations, products, services or customers, after notice of such breach and, if curable, an opportunity
to cure such breach within ten (10) days.

 

(C)
Without Cause. The Company may immediately terminate the Executive’s employment hereunder for a reason other than Cause
or Disability.

 

(iii)
By the Executive. The Executive shall have the right to terminate the Executive’s employment in the following circumstances:

 

(A)
Good Reason. The Executive shall have the right to terminate the Executive’s employment hereunder at any time for Good Reason
(subject to any notice and cure periods described below). For purposes of this Agreement, “Good Reason” shall mean
that any of the following has occurred without the Executive’s consent: (1) a material diminution in the Executive’s Base
Salary; (2) a material diminution in the Executive’s job title, duties, responsibilities, or authority (other than changes made
due to the Executive’s incapacity); or (3) a material breach by the Company of this Agreement. To terminate the Executive’s
employment for Good Reason, (x) the Executive must provide written notice to the Supervisor within sixty (60) days of the first occurrence
of any such matter constituting Good Reason, (y) the Company shall have forty-five (45) days after receipt of written notice from the
Executive specifying the matter constituting Good Reason within which to cure such matter, and such Good Reason shall not exist unless
the Company fails to cure such matter within such cure period, and (z) the Executive must actually terminate the Executive’s employment
within thirty (30) days following the expiration of such cure period.

 

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(B)
Without Good Reason. The Executive shall have the right to immediately terminate the Executive’s employment for a reason
other than Good Reason.

 

(b)
Notice of Termination. Any purported termination of the Executive’s employment by the Company or the Executive during the
Employment Period shall be communicated by a written Notice of Termination to the other party hereto in accordance with Section 13. A
“Notice of Termination” means a written notice that indicates the specific termination provision in this Agreement
relied upon.

 

(c)
Date of Termination. “Date of Termination” shall mean:

 

(i)
if the Executive’s employment is terminated because of death, the date of the Executive’s death; and

 

(ii)
if the Executive’s employment is terminated for any other reason, the date specified in the Notice
of Termination; provided, however, that the date specified in the Notice of Termination shall not be a date prior
to the date such Notice of Termination is given or the expiration of any required notice or cure period.

 

(d)
Accrued and Unpaid Benefits Upon Termination. Following the termination of the Executive’s employment for any reason during
the Employment Period, the Executive (or the Executive’s legal representative or estate if termination is because of death) shall
receive:

 

(i)
any earned, but unpaid, Base Salary through the Date of Termination;

 

(ii)
any amounts owing to the Executive for reimbursement of expenses properly incurred by the Executive prior to the Date of Termination
which are reimbursable in accordance with Section 5(c);

 

(iii)
any annual, long-term, or other incentive award that relates to a completed fiscal year or performance period, as applicable, and is
payable (but not yet paid) on or before the Date of Termination, which shall be paid in accordance with the terms of such award, and

 

(iv)
any accrued and vested employee benefits, subject to the terms of the applicable employee benefit plans.

 

The
amounts payable under this Section 6(d) (the “Accrued Benefits”) shall be paid at the time such payments would otherwise
be due under the Company’s regular payroll practices, applicable Company policies or plans, or a time if required by applicable
law. Treatment of Executive’s equity awards upon the Executive’s death, Disability or other termination of employment shall
be in accordance with the equity plan and award documentation applicable to such awards unless otherwise specified in this Agreement.

 

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(e)
Additional Termination Benefits. If the Executive’s employment is terminated by the Company during the Employment Period
without Cause, or by the Executive for Good Reason, the Company shall pay or provide, in addition to the Accrued Benefits described in
Section 6(d) above, the following benefits, which are referred to as the “Severance Benefits”:

 

(i)
a lump sum payment equal to twelve (12) months of Base Salary then in effect, payable on the first payroll date occurring after the sixtieth
(60th) day following the Date of Termination; and

 

(ii)
if the Executive timely elects participation in the Company’s group health insurance plan pursuant to the Consolidated Omnibus
Budget Reconciliation Act of 1985, as amended or any state law statute that provides for the continuation of benefits under such plan
(collectively, “COBRA”), the Company will pay the full cost of COBRA coverage for twelve (12) months, at the coverage
level the Executive (including the Executive’s dependents) had immediately before the Date of Termination, provided, however,
that such payments shall end immediately following the earliest of the following: (1) the date the Executive becomes eligible for health,
dental, or vision coverage of a subsequent employer; (2) the date the Executive is no longer eligible to receive COBRA continuation coverage.

 

(f)
Change in Control Severance. If the Executive’s employment is terminated by the Company during the Employment Period without
Cause, or by the Executive for Good Reason, and such termination occurs within two (2) years after the occurrence of a Change in Control
(defined below), then the Severance Benefits described in Section 6(e) shall not apply and will not be paid or provided and instead,
the Company shall pay or provide, in addition to the Accrued Benefits described in Section 6(d) above, the following Severance Benefits:

 

(i)
a lump sum payment equal to eighteen (18) months of Base Salary then in effect, payable on the first payroll date occurring after the
sixtieth (60th) day following the Date of Termination; and

 

(ii)
if the Executive timely elects participation in the Company’s group health insurance plan pursuant to COBRA, the Company will pay
the full cost of COBRA coverage for twelve (12) months, at the coverage level the Executive (including the Executive’s dependents)
had immediately before the Date of Termination, provided, however, that such payments shall end immediately following the earliest
of the following: (1) the date the Executive becomes eligible for health, dental, or vision coverage of a subsequent employer; (2) the
date the Executive is no longer eligible to receive COBRA continuation coverage.

 

For
purposes of this Agreement, “Change in Control” is defined as the occurrence of any of the following after the Effective
Date: (i) a sale of all or substantially all of the assets of the Company; (ii) the acquisition of more than 50% of the voting power
of the outstanding securities of the Company by another entity by means of any transaction or series of related transactions (including,
without limitation, reorganization, merger or consolidation) unless the Company’s stockholders of record as constituted immediately
prior to such acquisition will, immediately after such acquisition (by virtue of their continuing to hold such stock and/or their receipt
in exchange therefor of securities issued as consideration for the Company’s outstanding stock) hold at least 50% of the voting
power of the surviving or acquiring entity; or (iii) any reorganization, merger or consolidation in which the Company is not the surviving
entity, excluding any merger effected exclusively for the purpose of changing the domicile of the Company and excluding any reorganization,
merger or consolidation in which the Company’s stockholders of record as constituted immediately prior to such reorganization,
merger or consolidation will, immediately after such reorganization, merger or consolidation (by virtue of their continuing to hold such
stock and/or their receipt in exchange therefor of securities issued as consideration for the Company’s outstanding stock) hold
at least 50% of the voting power of the surviving or acquiring entity in any such reorganization, merger or consolidation.

 

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(g)
Requirement of Release. Payment or provision of any of the Severance Benefits is contingent upon the Executive, within sixty (60)
days of the Date of Termination, executing and delivering to the Company, and allowing to become irrevocable and effective, a general
release of claims in a form acceptable to the Company. The Company shall tender said form of release to the Executive within ten (10)
days of the Date of Termination. Notwithstanding any other provisions of this Agreement, no portion of the Severance Benefits will be
paid or provided until the conditions of the foregoing sentence are satisfied. Payment of the Severance Benefits is also contingent upon
Executive’s full and continued compliance with the provisions of Section 7 of this Agreement.

 

(h)
Post-Employment Cooperation. Upon or after termination of the Executive’s employment at any time and for any reason, the
Executive agrees to take the following actions:

 

(i)
If requested by the Company at any time, the Executive shall immediately resign from any and all positions the Executive holds with the
Company and its Affiliates, including any positions on the Board of Directors of the Company. “Affiliates” as used
in this Agreement includes any person, corporation, partnership, general partner, or other entity that directly, or indirectly through
one or more intermediaries, controls or is controlled by or is under common control with the Company.

 

(ii)
The Executive shall cooperate with transition of the Executive’s responsibilities, and comply with other reasonable post-employment
requests by the Company including responding to reasonable requests it may make for information and assisting the Company in defense
of any pending, threatened, or anticipated litigation, proceeding, or inquiry in matters which the Company reasonably determines the
Executive’s participation to be necessary; provided that any such cooperation will take into account the Executive’s other
scheduling needs. The Executive shall not be entitled to compensation for providing the foregoing cooperation and assistance, however,
the Executive shall be reimbursed for reasonable and necessary out-of-pocket expenditures (not including attorneys’ fees).

 

(iii)
The Executive will execute any documents requested by the Company to affect the purposes of this Section 6(h).

 

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7.
RESTRICTIVE COVENANTS.

 

(a)
Acknowledgment. The Executive understands and agrees that the Executive will occupy a position of trust and confidence with respect
to the Company’s business affairs, and the Executive will be privy to non-public information relating to the Company and its Affiliates,
including, without limitation, their business relationships; negotiations; past, present and prospective activities; methods of doing
business; business models; know-how; trade secrets; customer and supplier lists; the identity of potential customers; marketing plans;
financial and technical information; discoveries; ideas; designs; drawings; specifications; techniques; programs; systems; processes;
models; data; documentation; formulae; recipes; products, services; computer software; supplier and service provider information; other
information generally regarded as confidential and proprietary; other information marked as confidential or proprietary or that would
otherwise appear to a reasonable person to be confidential or proprietary; information of third parties to which the Company or its Affiliates
have confidentiality obligations and use restrictions; and all forms of the foregoing information, as well as modifications, enhancements,
and improvements to any of the foregoing, including in digital, physical, tangible, and intangible form (hereinafter collectively referred
to as the “Confidential Information”). Notwithstanding the foregoing, it is agreed that Confidential Information does
not include information regarding the Executive’s own compensation and benefits or information that became generally available
to the public other than as a result of a direct or indirect disclosure by the Executive or a representative of the Executive in violation
of this Agreement. The Executive agrees that the following obligations are necessary to preserve the confidential and proprietary nature
of Confidential Information (including trade secrets), to protect the goodwill of the Company and its Affiliates, and to protect the
Company and its Affiliates against harmful competition, harmful solicitation of employees, and other actions by the Executive based on
the Executive’s special knowledge acquired during employment that would result in serious adverse consequences for the Company
and its Affiliates.

 

(b)
Confidentiality. The Executive shall not, except as may be required to perform the Executive’s duties hereunder or as required
by applicable law, during the Executive’s employment with the Company and after it ends (regardless of the reason), without limitation
in time or until such information shall have become public other than by the Executive’s unauthorized disclosure, disclose to any
third party or use for the Executive’s benefit or the benefit of any third party, whether directly or indirectly, any Confidential
Information without the Company’s specific prior written authorization. The Executive shall also hold Confidential Information
in the strictest confidence and take all reasonable precautions to prevent any unauthorized use or disclosure. The Executive shall not
at any time copy, transmit, reproduce, summarize, or quote or make any commercial or any other use whatsoever of any Confidential Information,
except as may be necessary to perform the Executive’s duties as an employee of the Company. The Executive agrees that, as between
the Executive and the Company, Confidential Information is property of the Company.

 

(c)
Notification and Assistance Obligations; Subpoena. The Executive shall at all times: (i) promptly notify the Company of
any unauthorized use or disclosure of Confidential Information, or any other breach of this Agreement; and (ii) assist the Company in
every reasonable way to retrieve any Confidential Information that was used or disclosed by the Executive or any representative of the
Executive in a manner inconsistent with this Section 7, and to mitigate the harm caused by the unauthorized use or disclosure. Further,
if the Executive is served with any subpoena or other compulsory judicial or administrative process calling for production of any Confidential
Information, the Executive shall immediately notify the Company so that the Company may take such action as the Company deems necessary
to protect its interests.

 

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(d)
Return of Property. The Executive acknowledges that all Confidential Information is specialized, unique in nature, and of great
value to the Company and its Affiliates, and that such Confidential Information gives the Company and its Affiliates a competitive advantage.
The Executive agrees to deliver or return to the Company, at the Company’s request at any time or upon termination of the Executive’s
employment for any reason, all Confidential Information and all Company property, including any and all documents, disks/drives, laptops,
tablets, phones, passwords and credentials, records, lists, data, drawings, prints, notes and written or recorded information (and all
copies thereof) furnished by or on behalf of or for the benefit of the Company and its Affiliates or prepared by the Executive during
the Executive’s employment with the Company, whether in tangible or electronic form, in the possession or control of the Executive.

 

(e)
Non-Competition. During the period commencing on the Effective Date and ending eighteen (18) months after the end of the Employment
Period (regardless of the reason the Employment Period has ended) (such period hereinafter, the “Restricted Period”),
the Executive shall not directly or indirectly have any equity interest in, manage, operate, control, work for, provide services to,
be employed by, advise, assist, or take similar action in connection with any person, firm, corporation, partnership, business, or other
entity (whether as director, officer, employee, agent, representative, partner, security holder, consultant, advisor, or otherwise),
that engages, in a manner and to an extent materially competitive to the Company or its Affiliates, in any aspect of their respective
businesses (such businesses are hereinafter referred to as the “Business”), where the Executive’s action or
involvement relates to the activities and services the Executive provided during the Executive’s employment with the Company or
involves the Executive’s knowledge of Confidential Information. Notwithstanding the foregoing, the Executive may own, as a passive
investor, securities of any publicly-traded entity, so long as the Executive’s direct holdings in any such entity shall not in
the aggregate constitute more than 5% of the voting power of such entity and the Executive is not a controlling person of, or a member
of a group that controls, such entity.

 

(f)
Non-Solicitation of Customers. During the Restricted Period, the Executive shall not, on behalf of the Executive or any other
individual or entity, (i) solicit or encourage any person or entity who was a client or customer of the Company or its Affiliates during
the Executive’s employment and with whom Executive had contact or about whom Executive gained Confidential Information to: (A)
terminate, reduce, or alter in a manner adverse to the Company or its Affiliates any existing business arrangements with the Company
or its Affiliates, or (B) transfer existing business from the Company or its Affiliates to any other person or entity; or (ii) solicit
any person or entity who was a client or customer of the Company or its Affiliates during the Executive’s employment and with whom
Executive had contact or about whom Executive gained Confidential Information for the purpose of providing such person or entity with
goods or services competitive with or similar to the goods or services provided by the Company or its Affiliates. Notwithstanding the
foregoing, nothing in this Section 7(f) shall be deemed to prohibit solicitation of a person whose sole relationship with the Company
or its Affiliates was as an individual consumer.

 

(g)
Non-Solicitation of Employees, Consultants, and Advisors. The Executive agrees that, during the Restricted Period, the Executive
will not, directly or indirectly, other than as an employee of and for the benefit of the Company or its Affiliates, solicit, entice,
persuade, or induce any individual who is employed by the Company or its Affiliates or engaged by the Company or its Affiliates as a
consultant or advisor or similar role (or who was so employed or engaged within six (6) months prior to the Executive’s action)
to terminate or refrain from continuing such employment or engagement.

 

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(h)
Intellectual Property. The Executive shall disclose promptly and in writing to the Company all inventions, creative works, and
any other intellectual property, whether or not patentable or copyrightable, conceived, or created solely or jointly by the Executive
during the Executive’s employment with the Company which relate to the business of the Company, and the Executive shall assign
all of the Executive’s interest in them to the Company. The Executive shall execute all papers at the Company’s expense,
which the Company shall deem necessary to apply for and obtain domestic and foreign patents and copyright registrations, and to protect
and enforce the Company’s interest in them. These obligations shall continue beyond the period of the Executive’s employment
with respect to inventions or creations conceived or made by the Executive alone or in conjunction with other employees or consultants
of the Company or its Affiliates during the Executive’s employment with the Company.

 

(i)
Remedies. In the event of a breach or threatened breach of this Section 7, the Executive acknowledges the Company, including its
business interests, will be irreparably harmed, the full extent of the damages to the Company will be impossible to ascertain, and monetary
damages alone are not an adequate remedy. Accordingly, the Executive agrees that in addition to any other remedy that may be available
to it, the Company shall be entitled to temporary, preliminary, and/or permanent injunctive relief or other equitable relief to remedy
any such breach or threatened breach, without bond and without proving actual damages or the inadequacy of money damages, in any court
of competent jurisdiction. The Executive agrees that the restrictions of this Agreement are reasonable and no broader than necessary
to protect the legitimate business interests of the Company and its Affiliates.

 

(j)
Survival of Provisions. For the avoidance of doubt, the Executive’s obligations contained in this Section 7 shall survive
the termination or expiration of the Employment Period and the Executive’s employment with the Company and, as applicable, shall
be fully enforceable thereafter in accordance with the terms of this Agreement.

 

(k)
Reformation and Severability. If it is determined by a court, arbitrator, or other adjudicator of competent jurisdiction that
any restriction in this Section 7 is excessive with respect to geographic area, duration, or scope or is otherwise unreasonable or unenforceable,
it is the intention of the parties that such restriction may be modified or amended by the court, arbitrator, or adjudicator to render
it enforceable to the maximum extent permitted by law. In the event that modification is not possible or that the applicable law does
not permit such reformation, then the Executive and the Company agree that, because each of the Executive’s obligations in this
Section 7 is a separate and independent covenant, any unenforceable obligation shall be severed and all remaining obligations shall be
enforced.

 

(l)
Tolling of Restricted Period. If the Executive violates the terms of any of the restrictions set forth in Section 7(e), Section
7(f), or Section 7(g), the Restricted Period shall automatically be extended by the period the Executive was in violation.

 

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(m)
Rights Not Subject to Limitation.

 

(i)
Notwithstanding anything in this Agreement, the Executive may (1) disclose Confidential Information that the Executive is specifically
required by court order, subpoena, or law to disclose, but agrees to disclose only that portion of Confidential Information that is legally
required to be disclosed; (2) report possible violations of law to a government agency or entity or self-regulatory organization or cooperating
with such agency or entity or organization; or (3) make whistleblower or other disclosures that are protected under whistleblower provisions
of federal or state law.

 

(ii)
The Executive understands that the Executive will not be held criminally or civilly liable under any federal or state trade secret law
for the disclosure of a trade secret that (1) is made (x) in confidence to a federal, state, or local government official, either directly
or indirectly, or to an attorney; and (y) solely for the purpose of reporting or investigating a suspected violation of law; or (2) is
made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. Additionally, an individual
suing an employer for retaliation based on the reporting of a suspected violation of law may disclose a trade secret to his or her attorney
and use the trade secret information in the court proceeding, so long as any document containing the trade secret is filed under seal
and the individual does not disclose the trade secret except pursuant to court order.

 

8.
NO VIOLATION OF THIRD-PARTY RIGHTS.

 

(a)
The Executive hereby represents, warrants, and covenants to the Company that the Executive:

 

(i)
shall not, during the Executive’s employment with the Company, knowingly infringe upon or violate any proprietary rights of any
third party (including, without limitation, any third party confidential relationships, patents, copyrights, trade secrets or other proprietary
rights);

 

(ii)
is not a party to any agreements with third parties that prevent the Executive from fulfilling the terms of employment and the obligations
of this Agreement or which would be breached as a result of the Executive’s execution of this Agreement, other than agreements
to which the Executive has secured a waiver of the provisions that would otherwise prevent the Executive from fulfilling the terms of
employment and the obligations of this Agreement or which would be breached as a result of the Executive’s execution of this Agreement;
and

 

(iii)
agrees to respect any and all valid obligations which the Executive may now have to prior employers or to others relating to confidential
information, inventions or discoveries which are the property of those prior employers or others, as the case may he.

 

(b)
If the Executive is in breach of any of the foregoing representations, warranties, and covenants, the Company may immediately terminate
this Agreement and treat the Executive as if the Executive were terminated for Cause.

 

    	11

     

    

 

9.
WITHHOLDING. The Company shall make such deductions and withhold such amounts from each payment made to the Executive hereunder as
may be required from time to time by law, governmental regulation, or order.

 

10.
SECTION 409A. The Executive and the Company acknowledge that each of the payments and benefits promised to the Executive under this
Agreement must either comply with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations
thereunder (together, “Code Section 409A”) or qualify for an exception from compliance. This Agreement shall be construed
and administered in such manner as shall be necessary to effect compliance with, or an exemption from, Code Section 409A; provided, the
preceding provisions shall not be construed as a guarantee by the Company of any particular tax effect to the Executive of the payments
and other benefits under this Agreement. With respect to payments under this Agreement, for purposes of Code Section 409A, each payment
will be considered as one of a series of separate payments. The Executive and the Company further agree that, to the extent not otherwise
exempt, the termination benefits described in this agreement are intended to be exempt from Code Section 409A pursuant to Treasury Regulation
Section 1.409A-1(b)(4) as short-term deferrals or as payments pursuant to a separation pay plan pursuant to Treasury Regulation Section
1.409A-1(b)(9)(iii). If a payment obligation under this Agreement arises on account of the Executive’s termination of employment
and if such payment obligation is considered “deferred compensation” (as defined under Treasury Regulation Section 1.409A-1(b)(1),
after giving effect to the exemptions in Treasury Regulation Sections 1.409A-1(b)(3) through (b)(12)), the payment shall be paid only
in connection with the Executive’s “separation from service” (as defined in Treasury Regulation Section 1.409A-1(h)).
If a payment obligation under this Agreement arises on account of the Executive’s “separation from service” (as defined
under Treasury Regulation Section 1.409A-1(h)) while the Executive is a “specified employee” (as defined under Treasury Regulation
Section 1.409A-1(h)), any payment of “deferred compensation” (as defined under Treasury Regulation Section 1.409A-1(b)(1),
after giving effect to the exemptions in Treasury Regulation Sections 1.409A-1(b)(3) through (b)(12)) that is scheduled to be paid within
six (6) months after such separation from service shall accrue without interest and shall be paid on the first day of the seventh (7th)
month beginning after the date of the Executive’s separation from service or, if earlier, within fifteen (15) days after the appointment
of the personal representative or executor of the Executive’s estate following the Executive’s death solely to the extent
such a delay is required to avoid the imposition of excise taxes under Code Section 409A. With respect to any reimbursement of expenses
of, or any provision of in-kind benefits to, the Executive, as specified under this Agreement, such reimbursement of expenses or provision
of in-kind benefits shall be subject to the following conditions: (i) the expenses eligible for reimbursement or the amount of in-kind
benefits provided in one taxable year shall not affect the expenses eligible for reimbursement or the amount of in-kind benefits provided
in any other taxable year, except for any medical reimbursement arrangement providing for the reimbursement of expenses referred to in
Section 105(b) of the Code, if any; (ii) the reimbursement of an eligible expense shall be made no later than the end of the year after
the year in which such expense was incurred; and (iii) the right to reimbursement or in-kind benefits shall not be subject to liquidation
or exchange for another benefit.

 

    	12

     

    

 

11.
PARACHUTE PAYMENTS. Notwithstanding any other provision of this Agreement or of any other agreement, contract, or understanding heretofore
or hereafter entered into by the Executive and the Company or its Affiliates, except an agreement, contract, or understanding hereafter
entered into that expressly modifies or excludes application of this Section 11 (the “Other Agreements”), and notwithstanding
any formal or informal plan or other arrangement heretofore or hereafter adopted by the Company or any of its Affiliates for the direct
or indirect compensation of the Executive (including groups or classes of participants or beneficiaries of which the Executive is a member),
whether or not such compensation is deferred, is in cash, or is in the form of a benefit to or for the Executive (a “Benefit
Arrangement”), if the Executive is a “disqualified individual,” as defined in Section 280G(c) of the Code, any
right to receive any payment or other benefit under this Agreement shall not become payable, exercisable or vested (i) to the extent
that such right to payment, exercise, vesting, or benefit, taking into account all other rights, payments, or benefits to or for Executive
under the Agreement, all Other Agreements, and all Benefit Arrangements, would cause any payment or benefit to the Executive under this
Agreement to be considered a “parachute payment” within the meaning of Section 280G(b)(2) of the Code as then in effect (a
“Parachute Payment”) and (ii) if, as a result of receiving a Parachute Payment, the aggregate after-tax amounts
received by the Executive from the Company or any of its Affiliates under this Agreement, all Other Agreements, and all Benefit Arrangements
would be less than the maximum after-tax amount that could be received by Executive without causing any such payment or benefit to be
considered a Parachute Payment. In the event that the receipt of any such right to exercise, vesting, payment, or benefit under this
Agreement, in conjunction with all other rights, payments, or benefits to or for the Executive under the Agreement, any Other Agreement
or any Benefit Arrangement would cause the Executive to be considered to have received a Parachute Payment under this Agreement that
would have the effect of decreasing the after-tax amount received by the Executive as described in clause (ii) of the preceding sentence,
then the Executive shall have the right, in the Executive’s sole discretion, to designate those rights, payments, or benefits under
this Agreement, any Other Agreements, and any Benefit Arrangements that should be reduced or eliminated so as to avoid having the payment
or benefit to the Executive under this Agreement be deemed to be a Parachute Payment; provided, however, that, to the extent any payment
or benefit constitutes deferred compensation under Code Section 409A, to the extent necessary to comply with Code Section 409A, the reduction
or elimination will be performed in the following order: (A) reduction of cash payments; (B) reduction of COBRA benefits; (C) cancellation
of acceleration of vesting on any equity awards for which the exercise price exceeds the then fair market value of the underlying equity;
and (D) cancellation of acceleration of vesting of equity awards not covered under (C) above; provided, however that in the event that
acceleration of vesting of equity awards is to be cancelled, such acceleration of vesting shall be cancelled in the reverse order of
the date of grant of such equity awards, that is, later granted equity awards shall be canceled before earlier granted equity awards.

 

12.
CLAWBACK POLICIES. The Executive is subject to any recoupment or clawback policies that the Company may implement or maintain at
any time regarding incentive-based compensation, which is granted or awarded to Executive on or after the date of this Agreement. Such
policies may include the right to recover incentive-based compensation (including stock options awarded as compensation) awarded or received
during the three-year period preceding the date on which the Company is required to prepare an accounting restatement due to material
noncompliance with any financial reporting requirement under federal securities laws. The Executive agrees to amend any awards and agreements
entered into on or after the date of this Agreement as the Company may request to reasonably implement to policies.

 

    	13

     

    

 

13.
INDEMNIFICATION. On our about the Effective Date, the Company and Executive shall enter into an indemnification agreement
on the form currently in place with its existing directors and officers, which form has been provided to Executive (the “Indemnification
Agreement”).

 

14.
NOTICES. Any notice, demand, or communication required, permitted, or desired to be given hereunder shall be deemed effectively given
when personally delivered or mailed by prepaid certified mail, return receipt requested, addressed as follows:

 

If
to the Company:

 

Taronis
Fuels, Inc.

24980
N 83rd Ave, Peoria, AZ 85383

Attn:
CHAIRMAN

 

If
to the Executive, at the address for the Executive then on file with the Company.

 

Either
party may change such party’s address for notices by notice duly given pursuant hereto.

 

15.
GOVERNING LAW AND FORUM SELECTION. This Agreement and the legal relations thus created between the parties hereto shall be governed
by and construed under and in accordance with the laws of the State of Delaware, without regard to its conflicts of law principles. Except
for an action by the Company seeking injunctive relief (which may be brought in any court immediately and without complying with any
dispute resolution procedures), all disputes arising out of or related to this Agreement or the Executive’s employment with the
Company shall be resolved exclusively by the state or federal courts with jurisdiction over Phoenix, Arizona and each party irrevocably
submits to the jurisdiction of any such court in any such action, suit, or proceeding and to the laying of venue in such court in connection
with such action.

 

16.
ENTIRE AGREEMENT; TERMINATION OF PRIOR AGREEMENTS. This Agreement contains the entire understanding of the parties relating to the
employment of the Executive. This Agreement terminates and supersedes and any and all prior agreements and understandings between the
parties with respect to the Executive’s employment and compensation by the Company, whether oral or written, including without
limitation any employment agreement previously entered into between the Executive and the Company, except (a) this Agreement is in addition
to and does not supersede the Indemnification Agreement, any confidentiality, intellectual, or restrictive covenant obligations owed
by the Executive to the Company in any other agreements which provide the Company with cumulative and not alternative rights; and (b)
this Agreement does not supersede the provisions of prior agreements that are expressly incorporated to this Agreement by reference.

 

17.
WAIVER; MODIFICATION. Failure to insist upon strict compliance with any of the terms, covenants, or conditions hereof shall not be
deemed a waiver of such term, covenant, or condition, nor shall any waiver or relinquishment of, or failure to insist upon strict compliance
with, any right or power hereunder at any one or more times be deemed a waiver or relinquishment of such right or power at any other
time or times. This Agreement shall not be modified in any respect except by a writing executed by each party hereto.

 

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18.
ASSIGNMENT; SUCCESSORS. This Agreement is personal to the Executive and without the prior written consent of the Company shall not
be assignable by the Executive. The obligations of the Executive hereunder shall be binding upon the Executive’s heirs, administrators,
executors, successors, permitted assigns, and other legal representatives. This Agreement shall be binding upon and shall inure to the
benefit of and be enforceable by the Company’s successors and assigns.

 

19.
SEVERABILITY. Except as provided in Section 7(k) hereof, in the event that a court of competent jurisdiction or other adjudicator
determines that any portion of this Agreement is in violation of any statute or public policy or otherwise unlawful or unenforceable,
only the portions of this Agreement that violate such statute or public policy or are otherwise unlawful or unenforceable shall be stricken.
All portions of this Agreement that do not violate any statute, public policy, or other law shall continue in full force and effect.
Furthermore, if permitted by law, any order striking any portion of this Agreement shall modify the stricken terms as little as possible
to give as much effect as possible to the intentions of the parties under this Agreement.

 

20.
SURVIVAL. The Executive acknowledges that, certain provisions, by their terms, survive termination of this Agreement.

 

21.
HEADINGS; INCONSISTENCY. Section headings in this Agreement are included herein for convenience of reference only and shall not constitute
a part of this Agreement for any other purpose. In the event of any inconsistency between the terms of this Agreement and any form, award,
plan or policy of the Company, the terms of this Agreement shall control.

 

22.
COUNTERPARTS AND DIGITAL SIGNATURE. This Agreement may be executed in two or more counterparts, each of which shall be deemed an
original, but all of which taken together shall constitute one and the same instrument. In the event that any signature is delivered
via e-mail transmission, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature
is executed) with the same force and effect as if such digital signature page were an original signature.

 

23.
REPRESENTATION BY COUNSEL; INTERPRETATION. Each party acknowledges that it has had the opportunity to be represented by counsel in
connection with this Agreement. Any rule of law or any legal decision that would require interpretation of any claimed ambiguities in
this Agreement against the party that drafted it has no application and is expressly waived.

 

[Signature
Page(s) Follow]

 

    	15

     

    

 

IN
WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized officer and the Executive has hereunto signed
this Agreement on the dates set forth below.

 

	TARONIS
    FUELS, INC.	 
	 	 
	/s/
    Tobias Welo	 
	By:
    	Tobias
    Welo	 
	Title:	Chairman
    and CEO	 
	Date:
    	6/3/2021	 

 

	EXECUTIVE	 
	 	 
	/s/
    Kevin C. Foti	 
	Mr.
    Kevin Foti	 
	Date:
    	June
    3, 2021Document

Exhibit 10.1

AMENDED AND RESTATED UNITED NATURAL FOODS, INC.
2020 EQUITY INCENTIVE PLAN

						
	TABLE OF CONTENTS
	TABLE OF CONTENTS	A-2
	Section 1. Purpose	A-3
	Section 2. Definitions	A-3
	Section 3. Administration	A-7
	Section 4. Shares Available for Awards	A-9
	Section 5. Eligibility	A-10
	Section 6. Stock Options and Stock Appreciation Rights	A-11
	Section 7. Restricted Shares and Restricted Share Units	A-13
	Section 8. Performance Awards	A-15
	Section 9. Other Stock-Based Awards	A-16
	Section 10. Non-Employee Director and Outside Director Awards	A-16
	Section 11. Separation from Service	A-17
	Section 12. Change in Control	A-20
	Section 13. Amendment and Termination	A-22
	Section 14. General Provisions	A-22
	Section 15. Term of The Plan	A-28

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AMENDED AND RESTATED UNITED NATURAL FOODS, INC.
2020 EQUITY INCENTIVE PLAN

Section 1.  Purpose.

This plan shall be known as the “The United Natural Foods, Inc. 2020 Equity Incentive Plan” (the “Plan”). The purpose of the Plan is to promote the interests of United Natural Foods, Inc. (the “Company”) and its stockholders by fulfilling one or more of the following objectives (i) attracting and retaining key officers, employees and directors of, and consultants to, the Company and its Subsidiaries and Affiliates; (ii) motivating such individuals by means of performance-related incentives to achieve long-term performance goals; (iii) enabling such individuals to participate in the long-term growth and financial success of the Company; (iv) encouraging ownership of stock in the Company by such individuals; and (v) aligning their compensation with the long-term interests of the Company and its stockholders. 

Section 2.  Definitions.

As used in the Plan, the following terms shall have the meanings set forth below:

2.1   “Acquiror” has the meaning provided in Section 12.1.

2.2   “Affiliate” means (i) any entity that, directly or indirectly, is controlled by the Company, (ii) any entity in which the Company has a significant equity interest, (iii) an affiliate of the Company, as defined in Rule 12b-2 promulgated under Section 12 of the Exchange Act; and (iv) any entity in which the Company has at least twenty percent (20%) of the combined voting power of the entity’s outstanding voting securities, in each case as designated by the Board as being a participating employer in the Plan.

2.3   “Award” means any Option, Stock Appreciation Right, Restricted Share Award, Restricted Share Unit, Performance Award, or Other Stock-Based Award granted under the Plan, whether singly, in combination or in tandem, to a Participant by the Committee (or the Board) pursuant to such terms, conditions, restrictions and/or limitations, if any, as the Committee (or the Board) may establish, or any similar award under the Prior Plan.

2.4   “Award Agreement” means any written agreement, contract or other instrument or document evidencing any Award, which may, but need not, be executed or acknowledged by a Participant.

2.5   “Board” means the Board of Directors of the Company.

2.6   “Cause” means, unless otherwise defined in the applicable Award Agreement, (i) conviction of the Participant under applicable law of (A) any felony or (B) any misdemeanor involving moral turpitude; (ii) unauthorized acts intended to result in the Participant’s personal enrichment at the material expense of the Company or any Subsidiary or Affiliate or their reputation; (iii) any violation of the Participant’s duties or responsibilities to the Company or a Subsidiary or Affiliate which constitutes willful misconduct or dereliction of duty; or (iv) material breach of the covenants described in Section 14.8 of this Plan. 

2.7    “Change in Control” means, unless otherwise provided in the applicable Award Agreement, the happening of one of the following:
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(a)   any “person”, including a “group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act, but excluding the Company, any of its Affiliates, or any employee benefit plan of the Company or any of its Affiliates) is or becomes the “beneficial owner” (as defined in Rule 13(d)(3) under the Exchange Act), directly or indirectly, of securities of the Company representing the greater of 30% or more of the combined voting power of the Company’s then outstanding securities;

(b)   the stockholders of the Company shall approve a definitive agreement and a transaction is consummated (1) for the merger or other business combination of the Company with or into another corporation if (A) a majority of the directors of the surviving corporation were not directors of the Company immediately prior to the effective date of such merger or (B) the stockholders of the Company immediately prior to the effective date of such merger own less than 60% of the combined voting power in the then outstanding securities in such surviving corporation or (2) for the sale or other disposition of all or substantially all of the assets of the Company; 

(c)   the purchase of 30% or more of the combined voting power of the Company’s then outstanding securities pursuant to any tender or exchange offer made by any “person”, including a “group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act), other than the Company, any of its Affiliates, or any employee benefit plan of the Company or any of its Affiliates; or

(d)   the disposal of any line of business representing at least 15% of the Company’s consolidated net sales for the then-most recently completed fiscal year; provided, however, that such disposal shall only be deemed a “Change in Control” for Participants primarily employed in the line of business disposed of, who cease to be employed by the Company following the disposition. 

2.8    “Code” means the Internal Revenue Code of 1986, as amended from time to time.

2.9   “Committee” means a committee of the Board composed of not less than two Non-Employee Directors, each of whom shall be (i) a “non-employee director” for purposes of Exchange Act Section 16 and Rule 16b-3 thereunder and (ii) “independent” within the meaning of the listing standards of the New York Stock Exchange and the rules and regulations of the SEC.

2.10   “Company” means United Natural Foods, Inc., a Delaware corporation, and its successors and assigns.

2.11    “Consultant” means any consultant to the Company or its Subsidiaries or Affiliates.

2.12   “Director” means a member of the Board.

2.13   “Disability” means, unless otherwise defined in the applicable Award Agreement, a disability that would qualify as a total and permanent disability under the Company’s then current long-term disability plan. With respect to Awards subject to Section 409A of the Code, unless otherwise defined in the applicable Award Agreement, the term “Disability” shall have the meaning set forth in Section 409A of the Code.

2.14   “Effective Date” has the meaning provided in Section 15.1 of the Plan.

2.15   “Employee” means a current or prospective officer or employee of the Company or of any Subsidiary or Affiliate.

2.16   “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time.

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2.17   “Fair Market Value” with respect to the Shares, means, for purposes of a grant of an Award as of any date, (i) the reported closing sales price of the Shares on the New York Stock Exchange, or any other such market or exchange as is the principal trading market for the Shares, on such date, or in the absence of reported sales on such date, the closing sales price on the immediately preceding date on which sales were reported or (ii) in the event there is no public market for the Shares on such date, the fair market value as determined, in good faith and by the reasonable application of a reasonable valuation method (as applicable), by the Committee in its sole discretion, and for purposes of a sale of a Share as of any date, the actual sales price on that date.

2.18   “Full Value Award Cap” has the meaning provided in Section 4.1 of the Plan.

2.19   “Good Reason” means, unless otherwise provided in an Award Agreement, the occurrence of any one or more of the following without the Participant’s express written consent: (i) the assignment of duties to a Participant that are materially adversely inconsistent with the Participant’s duties immediately prior to a Change in Control, and failure to rescind such assignment within thirty (30) days of receipt of notice from the Participant; (ii) a material reduction in a Participant’s title, authority or reporting status following a Change in Control as compared to such title, authority or reporting status immediately prior to a Change in Control, (iii) the Company’s requirement that a Participant relocate more than fifty (50 miles from the Participant’s place of employment prior to the Participant performed such duties prior to the Change in Control; (iv) a reduction in the Participant’s base salary as in effect immediately prior to a Change in Control or the failure of the Company to pay or cause to be paid any compensation or benefits when due, and failure to restore such annual base salary or make such payments within five (5) days of receipt of notice from the Participant; (v) the failure to include the Participant in any new employee benefit plans proposed by the Company or a material reduction in the Participant’s level of participation in any existing plans of any type; provided that a Company-wide reduction or elimination of such plans shall not constitute “Good Reason” for purposes of this Plan; or (vi) the failure of the Company to obtain a satisfactory agreement from the Acquiror to assume and perform the Award Agreement; provided that, in each case, (A) within sixty (60) days of the initial occurrence of the specified event the Participant has given the Company or any successor to the Company at least thirty (30) days to cure the Good Reason, (B) the Company or any such successor has not cured the Good Reason within the thirty (30) day period and (C) the Participant resigns within ninety (90) days from the initial occurrence of the event giving rise to the Good Reason.

2.20   “Grant Price” means the price established at the time of grant of an SAR pursuant to Section 6 hereof used to determine whether there is any payment due upon exercise of the SAR.

2.21   “Incentive Stock Option” means an option to purchase Shares from the Company that is granted under Section 6 of the Plan and that is intended to meet the requirements of Section 422 of the Code or any successor provision thereto, or a similar Award under the Prior Plan.

2.22  “Non- Employee Director” means a member of the Board who is not an officer or employee of the Company or any Subsidiary or Affiliate.

2.23   “Non-Qualified Stock Option” means an option to purchase Shares from the Company that is granted under Sections 6 or 10 of the Plan and is not intended to be an Incentive Stock Option, or a similar Award under the Prior Plan.

2.24   “Option” means an Incentive Stock Option or a Non-Qualified Stock Option.

2.25   “Option Price” means the purchase price payable to purchase one Share upon the exercise of an Option.

2.26   “Other Stock-Based Award” means any Award granted under Sections 9 or 10 of the Plan or the Prior Plan. For purposes of determining the number of Awards granted hereunder in relation to the Full Value Award Cap set forth in
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Section 4.1 hereof, an Other Stock-Based Award that is not settled in cash shall be treated as a Restricted Share Award if the amounts payable thereunder will be determined by reference to the full value of a Share.

2.27   “Outside Director” means, with respect to the grant of an Award, a member of the Board then serving on the Committee.

2.28   “Participant” means any Employee, Director, Consultant or other person who receives an Award under the Plan.

2.29   “Performance Award” means any Award granted under Section 8 of the Plan or a similar Award under the Prior Plan. For purposes of determining the number of Awards granted hereunder in relation to the Full Value Award Cap set forth in Section 4.1 hereof, a Performance Award that is not settled in cash shall be treated as a Restricted Share Award if the amounts payable thereunder will be determined by reference to the full value of a Share.

2.30   “Person” means any individual, corporation, partnership, limited liability company, association, joint-stock company, trust, unincorporated organization, government or political subdivision thereof or other entity.

2.31   “Prior Plan” means the United Natural Foods, Inc. Second Amended and Restated 2012 Equity Incentive Plan. 

2.32   “Relocation” has the meaning provided in Section 11.3 hereof.

2.33   “Restricted Share” means any Share granted under Sections 7 to 10 of the Plan, or solely for the purposes of Section 4.1, a similar Award under the Prior Plan.

2.34   “Restricted Share Unit” means any unit granted under Sections 7 to 10 of the Plan, or solely for the purposes of Section 4.1, a similar Award under the Prior Plan.

2.35   “Retirement” means retirement of a Participant from active employment with the Company or any of its Subsidiaries or Affiliates on or after the date on which both of the following have occurred: (i) the Participant’s 59th birthday and (ii) the tenth anniversary of the Participant’s employment with the Company or any of its Subsidiaries or Affiliates.

2.36   “SEC” means the Securities and Exchange Commission or any successor thereto.

2.37   “Section 16” means Section 16 of the Exchange Act and the rules promulgated thereunder and any successor provision thereto as in effect from time to time.

2.38   “Section 162(m)” means Section 162(m) of the Code and the regulations promulgated thereunder and any successor provision thereto as in effect from time to time.

2.39   “Separation from Service” or “Separates from Service” shall have the meaning ascribed to such term pursuant to Section 409A of the Code and the regulations promulgated thereunder.

2.40    “Separation from Service without Cause” has the meaning provided in Section 11.3 hereof.

2.41    “Share Reserve” has the meaning set forth in Section 4.1 hereof.

2.42    “Shares” means shares of the common stock, par value $0.01 per share, of the Company, or any security into which such shares may be converted by reason of any event of the type referred to in Sections 4.2, 12.1, and 13.3.

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2.43    “Specified Employee” has the meaning ascribed to such term pursuant to Section 409A of the Code and the regulations promulgated thereunder.

2.44   “Stock Appreciation Right” or “SAR” means a stock appreciation right granted under Sections 6, 8 or 10 of the Plan or a similar Award under the Prior Plan that entitles the holder to receive, with respect to each Share encompassed by the exercise of such SAR, the amount determined by the Committee and specified in an Award Agreement. If the Award Agreement fails to specify the amount to be received by the holder, the holder shall be entitled to receive, with respect to each Share encompassed by the exercise of such SAR, the excess of the Fair Market Value of such Share on the date of exercise over the Grant Price.

2.45   “Subsidiary” means any Person (other than the Company) of which 50% or more of its voting power or its equity securities or equity interest is owned directly or indirectly by the Company.

2.46   “Substitute Awards” means Awards granted solely in assumption of, or in substitution for, outstanding awards previously granted by a company acquired by the Company or with which the Company combines.

2.47   “Vesting Period” means the period of time specified by the Committee during which vesting restrictions for an Award are applicable.

Section 3.  Administration.

3.1   Authority of Committee. The Plan shall be administered by a Committee, which shall be appointed by and serve at the pleasure of the Board; provided, however, with respect to Awards to Outside Directors, all references in the Plan to the Committee shall be deemed to be references to the Board. Subject to the terms of the Plan and applicable law, and in addition to other express powers and authorizations conferred on the Committee by the Plan, the Committee shall have full power and authority in its discretion (and in accordance with Section 409A of the Code with respect to Awards subject thereto) to: 

(a)   designate Participants;

(b)   determine eligibility for participation in the Plan and decide all questions concerning eligibility for and the amount of Awards under the Plan; 

(c)   determine the type or types of Awards to be granted to a Participant; 

(d)   determine the number of Shares to be covered by, or with respect to which payments, rights or other matters are to be calculated in connection with Awards; 

(e)   determine the timing, terms, and conditions, including performance objectives, as applicable, and any adjustments thereto, of any Award; 

(f)   accelerate the time at which all or any part of an Award may be vested, settled or exercised; 

(g)   determine whether, to what extent, and under what circumstances Awards may be settled or exercised in cash, Shares, other securities, other Awards or other property, or canceled, forfeited or suspended and the method or methods by which Awards may be settled, exercised, canceled, forfeited or suspended; 

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(h)   determine whether, to what extent, and under what circumstances cash, Shares, other securities, other Awards, other property, and other amounts payable with respect to an Award shall be deferred either automatically or at the election of the holder thereof or of the Committee; 

(i)   grant Awards as an alternative to, or as the form of payment for grants or rights earned or payable under, other bonus or compensation plans, arrangements or policies of the Company or a Subsidiary or Affiliate; 

(j)   grant Substitute Awards on such terms and conditions as the Committee may prescribe, subject to compliance with the Incentive Stock Option rules under Section 422 of the Code and the nonqualified deferred compensation rules under Section 409A of the Code, where applicable; 

(k)   make all determinations under the Plan concerning any Participant’s Separation from Service with the Company or a Subsidiary or Affiliate, including whether such separation occurs by reason of Cause, Good Reason, Disability, or Retirement, and whether a leave of absence constitutes a Separation from Service; 

(l)   make all determinations under the Plan, including by setting a policy, concerning the treatment of a leave of absence that the Committee determines not to constitute a Separation from Service;

(m)   interpret and administer the Plan, any Award Agreement and any instrument or agreement relating to the Plan or an Award made under the Plan; 

(n)   except to the extent otherwise prohibited by the Plan, including Section 6.2 of the Plan, amend or modify the terms of any Award at or after grant with the consent of the holder of the Award, or in the case of an amendment or modification that is to the Participant’s benefit, without the consent of the holder of the Award; 

(o)   establish, amend, suspend or waive such policies, processes, rules and regulations and, if desired, appoint such agents as it shall deem appropriate for the proper administration of the Plan; 

(p)   adopt special guidelines and provisions for Persons who are residing in, employed in or subject to the taxes of any domestic or foreign jurisdiction to comply with applicable tax and securities laws of such domestic or foreign jurisdiction; 

(q)   correct any defect, supply any omission, or reconcile any inconsistency in the Plan or in any agreement related thereto; and

(r)   make any other determination and take any other action that the Committee deems necessary or desirable for the administration of the Plan, subject to the exclusive authority of the Board under Section 13 hereunder to amend or terminate the Plan.

3.2   Committee Discretion Binding. Unless otherwise expressly provided in the Plan, all designations, determinations, interpretations, and other decisions under or with respect to the Plan or any Award shall be within the sole discretion of the Committee, may be made at any time and shall be final, conclusive, and binding upon all Persons, including the Company, any Subsidiary or Affiliate, any Participant and any holder or beneficiary of any Award. The Committee shall have no obligation to treat Participants or eligible Participants uniformly, and the Committee may make determinations under the Plan selectively among Participants who receive, or Employees or Directors who are eligible to receive, Awards (whether or not such Participants or eligible Employees or Directors are similarly situated). A Participant or other holder of an Award may contest a decision or action by the Committee with respect to such person or Award only 
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on the grounds that such decision or action was arbitrary or capricious or was unlawful, and any review of such decision or action shall be limited to whether the Committee’s decision or action was arbitrary or capricious or was unlawful.

3.3   Delegation. Subject to the terms of the Plan and applicable law, the Committee may delegate to one or more officers of the Company or to a Committee of such officers, the authority, subject to such terms and limitations as the Committee shall determine, to grant Awards to or to cancel, modify or waive rights with respect to, or to alter, discontinue, suspend or terminate Awards held by Participants who are not officers or directors of the Company for purposes of Exchange Act Section 16 or who are otherwise not subject to Section 16. Any resolution delegating authority to grant Awards shall specify the maximum number of Shares underlying Awards that may be granted pursuant to such delegated authority.

3.4   No Liability. No member of the Board or Committee shall be liable for any action taken or determination made in good faith with respect to the Plan or any Award granted hereunder. 

Section 4.  Shares Available for Awards.

4.1   Shares Available; Assumption of Prior Plan Awards. Subject to the provisions of Section 4.2 below, the maximum aggregate number of Shares reserved and available for distribution under the Plan shall not exceed the sum of (i) 10,800,000 Shares, plus (ii) the number of shares available for grant under the Prior Plan as of the Effective Date (such aggregate amount, the “Share Reserve”). Awards made under the Prior Plan are hereby assumed as of the Effective Date. The number of Shares with respect to which Incentive Stock Options may be granted under this Plan shall be no more than 1,000,000. Subject to the application of the last sentence of this Section 4.1, the maximum number of Awards that the Company may issue under this Plan from the Share Reserve as Restricted Share Awards and Restricted Share Unit Awards shall be equal to the Share Reserve (the “Full Value Award Cap”). If any Award granted under this Plan or the Prior Plan (whether before or after the Effective Date of this Plan) shall expire, terminate, be settled in cash or otherwise be forfeited or canceled for any reason without the delivery of Shares, then the Shares covered by such Award, or to which such Award relates, or the number of Shares otherwise counted against the Share Reserve, to the extent of any such forfeiture, termination, settlement, expiration or cancellation, shall be added back to the Share Reserve. The Committee may make such other determinations regarding the counting of Shares issued pursuant to this Plan or the Prior Plan as it deems necessary or advisable, provided that such determinations shall be permitted by law. Notwithstanding the foregoing, if an Option or SAR is exercised, in whole or in part, by tender of Shares, or if the Company’s tax withholding obligation for any Award (including Awards granted prior to the Effective Date) is satisfied by withholding Shares, the number of Shares deemed to have been issued for purposes of the limitation set forth in this Section 4.1 shall be the number of Shares that were subject to the Award or portion thereof, and not the net number of Shares actually issued, and any SARs to be settled in Shares shall be counted in full against the number of Shares available for issuance under the Plan, regardless of the number of Shares issued upon the settlement of the SAR. Any Shares that again become available for grant pursuant to this Section 4.1 shall be added back to the Full Value Award Cap if the original Award of such Shares was a Restricted Share Award or Restricted Share Unit Award (or treated as such hereunder).

4.2   Per Participant Limitations. The maximum number of Shares in respect of which Options and SARs may be granted to a Participant during any fiscal year under the Plan is 900,000. The maximum value of Restricted Share Awards, Restricted Share Unit Awards and Performance Awards denominated in Shares that may be granted to any Participant during any fiscal year under the Plan is $10,000,000, excluding, for this purpose, the value of any dividends or dividend equivalents payable in accordance with the Plan on any Award. The value of such Awards shall be based on the grant date fair value. For Performance Awards denominated in Shares, the value shall be the grant date fair value of the target number of Shares. For Performance Awards that are denominated in cash, the maximum value that may be granted to any Participant during any fiscal year under the Plan is $10,000,000. The individual Participant limitations set 
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forth in this Section 4.2 shall be cumulative; that is, to the extent that Shares or cash for which Awards are permitted to be granted to a Participant during a fiscal year are not covered by an Award to such Participant in that fiscal year (such shortfall, the “Shortfall Amount”), the number of Shares (or amount of cash, as the case may be) available for Awards to such Participant shall automatically increase in the subsequent fiscal years during the term of the Plan until the earlier of the time the Shortfall Amount has been granted to the Participant, or the end of the third fiscal year following the year to which such Shortfall Amount relates (determined on a “first-in-first-out” basis).

4.3   Adjustments. Without limiting the Committee’s discretion as provided in Section 12 hereof, if there shall occur any change in the capital structure of the Company by reason of any extraordinary dividend or other distribution (whether in the form of cash, Shares, other securities or other property, and other than a normal cash dividend), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase or exchange of Shares or other securities of the Company, issuance of warrants or other rights to purchase Shares or other securities of the Company, or other corporate transaction or event having an effect similar to the foregoing, then the Committee shall, in an equitable and proportionate manner as determined by the Committee (and, as applicable, in such manner as is consistent with Sections 162(m), 422 and 409A of the Code and the regulations thereunder), take action as provided in clauses (i), (ii) or (iii) of this Section 4.3, as follows: 

(i)    adjust any or all of (1) the aggregate number of Shares or other securities of the Company (or number and kind of other securities or property) with respect to which Awards (or any particular type of Awards) may be granted under the Plan, in the aggregate or on a per Participant basis, including the Full Value Award Cap; (2) the number of Shares or other securities of the Company (or number and kind of other securities or property) subject to outstanding Awards under the Plan, provided that the number of Shares subject to any Award shall always be a whole number; (3) the grant or exercise price with respect to any Award under the Plan, and (4) the limits on the number of Shares or Awards that may be granted to Participants under the Plan in any calendar year; 

(ii)   provide for an equivalent award in respect of securities of the Acquiror or surviving entity of any merger, consolidation or other transaction or event having a similar effect; or 

(iii)   make provision for a cash payment to the holder of an outstanding Award.

Any such adjustments to outstanding Awards shall be effected in a manner that precludes the material enlargement or dilution of rights and benefits under such Awards.

4.4   Substitute Awards. Any Shares issued by the Company as Substitute Awards in connection with the assumption or substitution of outstanding grants from any acquired corporation shall not reduce the Shares available for Awards under the Plan to the extent that the rules and regulations of any stock exchange or other trading market on which the Shares are listed or traded provide an exemption from shareholder approval for assumption, substitution, conversion, adjustment, or replacement of outstanding awards in connection with mergers, acquisitions, or other corporate combinations.

4.5   Sources of Shares Deliverable under Awards. Any Shares delivered pursuant to an Award may consist, in whole or in part, of authorized and unissued Shares or of issued Shares which have been reacquired by the Company.

Section 5.  Eligibility.

Any current or prospective Employee, Director or Consultant shall be eligible to be designated a Participant; provided, however, that Outside Directors shall only be eligible to receive Awards granted consistent with Section 10 and Awards to 
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Non-Employee Directors shall be subject to Section 10.3. The vesting and exercise of an Award to a prospective Employee, Director or Consultant shall be conditioned upon such individual attaining such status.

Section 6.  Stock Options and Stock Appreciation Rights.

6.1   Grant. Subject to the provisions of the Plan, the Committee shall have sole and complete authority to determine the Participants to whom Options and SARs shall be granted, the number of Shares subject to each Award, the Option Price or Grant Price and the conditions and limitations applicable to the exercise of each Option and SAR. An Option may be granted with or without a related SAR. An SAR may be granted with or without a related Option. The grant of an Option or SAR shall occur when the Committee by resolution, written consent or other appropriate action determines to grant such Option or SAR for a particular number of Shares to a particular Participant at a particular Option Price or Grant Price, as the case may be, or such later date as the Committee shall specify in such resolution, written consent or other appropriate action. The Committee shall have the authority to grant Incentive Stock Options and to grant Non-Qualified Stock Options. In the case of Incentive Stock Options, the terms and conditions of such grants shall be subject to and comply with Section 422 of the Code, as from time to time amended, and any regulations implementing such statute. An Employee who has been granted an Option under the Plan may be granted additional Options under the Plan if the Committee shall so determine; provided, however, that to the extent the aggregate Fair Market Value (determined at the time the Incentive Stock Option is granted) of the Shares with respect to which all Incentive Stock Options are exercisable for the first time by an Employee during any calendar year (under all plans described in Section 422(d) of the Code of the Employee’s employer corporation and its parent and Subsidiaries) exceeds $100,000, or if Options fail to qualify as Incentive Stock Options for any other reason, such Options shall constitute Non-Qualified Stock Options. No dividends or dividend equivalents shall be paid or accrue on any Option.

6.2   Price. The Committee in its sole discretion shall establish the Option Price at the time each Option is granted and the Grant Price at the time each SAR is granted. Except in the case of Substitute Awards, the Option Price of an Option may not be less than the Fair Market Value of a Share on the date such Option is deemed to have been granted pursuant to Section 6.1 hereof, and the Grant Price of an SAR may not be less than the Fair Market Value of a Share on the date such SAR is deemed to have been granted pursuant to such Section 6.1. In the case of Substitute Awards or Awards granted in connection with an adjustment provided for in Section 4.3 hereof in the form of Options or SARs, such grants shall have an Option Price (or Grant Price) per Share that is intended to maintain the economic value of the Award that was replaced or adjusted as determined by the Committee. Notwithstanding the foregoing and except as permitted by the provisions of Section 4.3 hereof, the Committee shall not have the power to (i) lower the Option Price of an Option after it is granted, (ii) lower the Grant Price of an SAR after it is granted, (iii) cancel an Option when the Option Price exceeds the Fair Market Value of the underlying Shares in exchange for cash or another Award (other than in connection with a Change in Control or a Substitute Award) and grant substitute Options with a lower Option Price than the cancelled Options, (iv) cancel an SAR when the Grant Price exceeds the Fair Market Value of the underlying Shares in exchange for cash or another Award (other than in connection with a Change in Control or a Substitute Award), or (v) take any other action with respect to an Option or SAR that would be treated as a repricing under the rules and regulations of the principal securities exchange on which the Shares are traded, in each case without the approval of the Company’s stockholders.

6.3   Term. Subject to the Committee’s authority under Section 3.1 and the provisions of Section 6.6 hereof, each Option and SAR and all rights and obligations thereunder shall expire on the date determined by the Committee and specified in the Award Agreement. The Committee shall be under no duty to provide terms of like duration for Options or SARs granted under the Plan. Notwithstanding the foregoing, but subject to Section 6.4(a) hereof, no Option or SAR shall be exercisable after the expiration of ten (10) years from the date such Option or SAR was granted.

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6.4   Exercise.

(a)   Each Option and SAR shall be exercisable at such times and subject to such terms and conditions as the Committee may, in its sole discretion, specify in the applicable Award Agreement or thereafter. The Committee shall have full and complete authority to determine whether an Option or SAR will be exercisable in full at any time or from time to time during the term of the Option or SAR, or to provide for the exercise thereof in such installments, upon the occurrence of such events and at such times during the term of the Option or SAR as the Committee may determine. The Committee may provide, at or after the grant, that the period of time over which an Option, other than an Incentive Stock Option, or SAR may be exercised shall be automatically extended if on the scheduled expiration of such Award, the Participant’s exercise of such Award would violate applicable securities law; provided, however, that during the extended exercise period the Option or SAR may only be exercised to the extent such Award was exercisable in accordance with its terms immediately prior to such scheduled expiration date; provided further, however, that such extended exercise period shall end not later than thirty (30) days after the exercise of such Option or SAR first would no longer violate such laws.

(b)   The Committee may impose such conditions with respect to the exercise of Options or SARs, including without limitation, any relating to the application of federal, state or foreign securities laws or the Code, as it may deem necessary or advisable.

(c)   An Option or SAR may be exercised in whole or in part at any time, with respect to whole Shares only, within the period permitted thereunder for the exercise thereof, and shall be exercised by written notice of intent to exercise the Option or SAR, delivered to the Company at its principal office, and payment in full to the Company at the direction of the Committee of the amount of the Option Price for the number of Shares with respect to which the Option is then being exercised. Notwithstanding the foregoing, an Award Agreement may provide, or be amended to provide, that if on the last day of the term of an Option or SAR the Fair Market Value of one Share exceeds the Option Price or Grant Price, as applicable, of such Award by an amount as may be determined by the Committee, the Participant has not exercised the Option or SAR and the Option or SAR has not otherwise expired, the Option or SAR shall be deemed to have been exercised by the Participant on such day with payment of the Option Price made by withholding Shares otherwise issuable in connection with the exercise of the Option. In such event, the Company shall deliver to the Participant the number of Shares for which the Option was deemed exercised, less the number of Shares required to be withheld for the payment of the total purchase price and required withholding taxes, and any fractional Share shall be settled in cash; and in the case of an SAR, the net number of Shares that the Participant would have received had the Participant actually exercised such SAR on such date.

(d)   Payment of the Option Price shall be made in (i) cash or cash equivalents, (ii) at the discretion of the Committee, by transfer, either actually or by attestation, to the Company of unencumbered Shares previously acquired by the Participant, valued at the Fair Market Value of such Shares on the date of exercise (or next succeeding trading date, if the date of exercise is not a trading date), together with any applicable withholding taxes (which taxes may be satisfied in accordance with Section 14.6 of the Plan), such transfer to be upon such terms and conditions as determined by the Committee, (iii) by a combination of (i) or (ii), or (iv) by any other method approved or accepted by the Committee in its sole discretion, including, if the Committee so determines, (x) a cashless (broker-assisted) exercise that complies with applicable laws or (y) withholding Shares (net-exercise) otherwise deliverable to the Participant pursuant to the Option having an aggregate Fair Market Value at the time of exercise equal to the total Option Price together with any applicable withholding taxes (which taxes may be satisfied in accordance with Section 14.6). Until the optionee has been issued the Shares subject to such exercise, he or she shall possess no rights as a stockholder with respect to such Shares. The Company reserves, at any and all times in the Company’s sole discretion, the right to establish, decline to approve or terminate any program or procedures for the exercise of Options by means of a method set forth in subsection (iv) above, including with respect to one or more Participants specified by the Company notwithstanding that such program or procedures may be available to other Participants.

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(e)   At the Committee’s discretion, the amount payable as a result of the exercise of an SAR may be settled in cash, Shares or a combination of cash and Shares. A fractional Share shall not be deliverable upon the exercise of a SAR but a cash payment will be made in lieu thereof.

6.5   Separation from Service. Except as otherwise provided in the applicable Award Agreement, an Option or SAR may be exercised only to the extent that it is then exercisable, and if at all times during the period beginning with the date of granting such Award (or if later, the date on which the Participant first became an Employee, Director or Consultant) and ending on the date of exercise of such Award the Participant is an Employee, Non-Employee Director or Consultant, and shall terminate immediately upon a Separation from Service by the Participant. Notwithstanding the foregoing provisions of this Section 6.5 to the contrary, the Committee may determine in its discretion that an Option or SAR may be exercised following any such Separation from Service, whether or not exercisable at the time of such separation; provided, however, that in no event may an Option or SAR be exercised after the expiration date of such Award specified in the applicable Award Agreement, except as provided in Section 6.4(a). If provided in the applicable Award Agreement or in accordance with any determination of the Committee at or after grant, an Award shall continue to vest and be exercisable after Retirement.

6.6   Ten Percent Stock Rule. Notwithstanding any other provisions in the Plan, if at the time an Option is otherwise to be granted pursuant to the Plan, the optionee or rights holder owns directly or indirectly (within the meaning of Section 424(d) of the Code) Shares of the Company possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or its parent or Subsidiary or Affiliate corporations (within the meaning of Section 422(b)(6) of the Code), then any Incentive Stock Option to be granted to such optionee or rights holder pursuant to the Plan shall satisfy the requirement of Section 422(c)(5) of the Code, and the Option Price shall be not less than one hundred ten percent (110%) of the Fair Market Value of the Shares of the Company, and such Option by its terms shall not be exercisable after the expiration of five (5) years from the date such Option is granted.     
     
Section 7.  Restricted Shares and Restricted Share Units.

7.1   Grant.

(a)   Subject to the provisions of the Plan, the Committee shall have sole and complete authority to determine the Participants to whom Restricted Shares and Restricted Share Units shall be granted, the number of Restricted Shares and/or the number of Restricted Share Units to be granted to each Participant, the duration of the period during which, and the conditions under which, the Restricted Shares and Restricted Share Units may be forfeited to the Company, and the other terms and conditions of such Awards. The Restricted Share and Restricted Share Unit Awards shall be evidenced by Award Agreements in such form as the Committee shall from time to time approve, which agreements shall comply with and be subject to the terms and conditions provided hereunder and any additional terms and conditions established by the Committee that are consistent with the terms of the Plan.

(b)   Each Restricted Share and Restricted Share Unit Award made under the Plan shall be for such number of Shares as shall be determined by the Committee and set forth in the Award Agreement containing the terms of such Restricted Share or Restricted Share Unit Award. Such agreement shall set forth a period of time during which the Participant receiving such Award must remain in the continuous employment (or other service-providing capacity) of the Company in order for the forfeiture and transfer restrictions to lapse. If the Committee so determines, the restrictions may lapse during such restricted period in installments with respect to specified portions of the Shares covered by the Restricted Share or Restricted Share Unit Award. As provided in this Plan, in an applicable Award Agreement or in accordance with any determination of the Committee at or after grant, an Award shall continue to vest and be exercisable after Retirement and may vest in part upon Separation from Service without Cause. The Award Agreement may also, in the discretion of 
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the Committee, set forth performance or other conditions that will subject the Shares to forfeiture and transfer restrictions. The Committee may, at its discretion, waive all or any part of the restrictions applicable to any or all outstanding Restricted Share and Restricted Share Unit Awards.

7.2   Delivery of Shares and Transfer Restrictions.

(a)   At the time a Restricted Share Award is granted, a certificate representing the number of Shares awarded thereunder shall be registered in the name of the Participant receiving such Award. Such certificate shall be held by the Company or any custodian appointed by the Company for the account of the Participant receiving such Award subject to the terms and conditions of the Plan, and shall bear such a legend setting forth the restrictions imposed thereon as the Committee, in its discretion, may determine. The foregoing to the contrary notwithstanding, the Committee may, in its discretion, provide that a Participant’s ownership of Restricted Shares prior to the lapse of any transfer restrictions or any other applicable restrictions shall, in lieu of such certificates, be evidenced by a “book entry” (i.e., a computerized or manual entry) in the records of the Company or its designated agent in the name of the Participant who has received such Award, and confirmation and account statements sent to the Participant with respect to such book-entry Shares may bear the restrictive legend referenced in the preceding sentence. Such records of the Company or such agent shall, absent manifest error, be binding on all Participants who receive Restricted Share Awards evidenced in such manner. The holding of Restricted Shares by the Company or such an escrow holder, or the use of book entries to evidence the ownership of Restricted Shares, in accordance with this Section 7.2(a), shall not affect the rights of Participants as owners of the Restricted Shares awarded to them, nor affect the restrictions applicable to such shares under the Award Agreement or the Plan, including the transfer restrictions.

(b)   Unless otherwise provided in the applicable Award Agreement, the Participant receiving an Award of Restricted Shares shall have all rights of a stockholder with respect to the Restricted Shares, including the right to receive dividends and the right to vote such Shares, subject to the following restrictions: (i) the Participant shall not be entitled to delivery of the stock certificate until the expiration of the restricted period and the fulfillment of any other restrictive conditions set forth in the Award Agreement with respect to such Shares; (ii) none of the Shares may be sold, assigned, transferred, pledged, hypothecated or otherwise encumbered or disposed of during such restricted period or until after the fulfillment of any such other restrictive conditions; (iii) dividends payable on Restricted Shares for which the forfeiture restrictions have not yet lapsed shall be held in escrow and shall not be payable to the Participant until the expiration of the restricted period and the fulfillment of any other restrictive conditions set forth in the Award Agreement with respect to such Restricted Shares and any dividends paid with respect to Restricted Shares for which the restricted period shall not expire or for which any other restrictive conditions shall not be fulfilled shall be forfeited by the Participant; and (iv) except as otherwise set forth in this Plan, the applicable Award Agreement, or as otherwise determined by the Committee at or after grant, all of the Shares shall be forfeited and all rights of the Participant to such Shares shall terminate, without further obligation on the part of the Company, unless the Participant remains in the continuous employment of the Company for the entire restricted period in relation to which such Shares were granted and unless any other restrictive conditions relating to the Restricted Share Award are met. Restricted Share Units (and any dividend equivalent rights with respect thereto) shall be subject to similar transfer (and payment) restrictions as Restricted Share Awards, except that no Shares are actually awarded to a Participant who is granted Restricted Share Units on the date of grant, and such Participant shall have no rights of a stockholder with respect to such Restricted Share Units until the restrictions set forth in the applicable Award Agreement have lapsed.

7.3   Termination of Restrictions. At the end of the restricted period and provided that any other restrictive conditions of the Restricted Share Award are met, or at such earlier time as otherwise determined by the Committee, all restrictions set forth in the Award Agreement relating to the Restricted Share Award or in the Plan shall lapse as to the Restricted Shares subject thereto, and a stock certificate for the appropriate number of Shares, free of the restrictions and restricted stock legend, shall be delivered to the Participant or the Participant’s beneficiary or estate, as the case may be (or, in the case 
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of book-entry Shares, such restrictions and restricted stock legend shall be removed from the confirmation and account statements delivered to the Participant or the Participant’s beneficiary or estate, as the case may be, in book-entry form). The Company shall have the right to repurchase Restricted Shares at their original issuance price or other stated or formula price (or to require forfeiture of such Shares if issued at no cost) in the event that conditions specified in the Award Agreement with respect to such Restricted Shares are not satisfied prior to the end of the applicable restricted period.

7.4   Payment of Restricted Share Units. Each Restricted Share Unit shall have a value equal to the Fair Market Value of a Share. Restricted Share Units may be paid in cash, Shares, other securities or other property, as determined in the sole discretion of the Committee, upon the lapse of the restrictions applicable thereto, or otherwise in accordance with the applicable Award Agreement. If the applicable Award Agreement specifies that a Participant will be entitled to dividend equivalent rights, the amount of any such dividend equivalent right (i) shall equal the amount that would be payable to the Participant as a stockholder in respect of a number of Shares equal to the number of vested Restricted Share Units then credited to the Participant, (ii) shall not be payable to the Participant until the fulfillment of any restrictive conditions set forth in the Award Agreement with respect to such Restricted Share Units and any dividends equivalent rights with respect to Restricted Share Units for which the restrictive conditions shall not be fulfilled shall be forfeited by the Participant, and (iii) shall otherwise be payable in accordance with Section 409A of the Code with regard to Awards subject thereto. Except as otherwise determined by the Committee at or after grant, Restricted Share Units may not be sold, assigned, transferred, pledged, hypothecated or otherwise encumbered or disposed of.  Except as otherwise determined by the Committee at or after grant, or as provided in this Plan or the applicable Award Agreement, all Restricted Share Units and all rights of the grantee to such Restricted Share Units (and any dividend equivalents with respect thereto) shall terminate, without further obligation on the part of the Company, unless the Participant remains in continuous employment of the Company for the entire restricted period in relation to which such Restricted Share Units were granted and unless any other restrictive conditions relating to the Restricted Share Unit Award are met.
    
Section 8.  Performance Awards.

8.1   Grant. The Committee shall have sole and complete authority to determine the Participants who shall receive a Performance Award, which shall consist of a right that is (i) denominated in cash or Shares (including but not limited to Restricted Shares and Restricted Share Units), (ii) valued, as determined by the Committee, in accordance with the achievement of such performance goals during such performance periods as the Committee shall establish, and (iii) payable at such time and in such form as the Committee shall determine.

8.2   Terms and Conditions. Subject to the terms of the Plan and any applicable Award Agreement, the Committee shall determine the performance goals to be achieved during any performance period, the length of any performance period, the amount of any Performance Award and the amount and kind of any payment or transfer to be made pursuant to any Performance Award, and may amend specific provisions of the Performance Award; provided, however, that such amendment may not adversely affect existing Performance Awards made within a performance period commencing prior to implementation of the amendment.

8.3   Payment of Performance Awards. Performance Awards may be paid in a lump sum or in installments following the close of the performance period or, in accordance with the procedures established by the Committee, on a deferred basis. Separation from Service prior to the end of any performance period, other than for reasons of death, Disability, or Retirement or Separation from Service without Cause, will result in the forfeiture of the Performance Award, and no payments will be made. As set forth in accordance with the terms of this Plan, the applicable Award Agreement, or in accordance with any determination of the Committee at or after grant, Performance Awards shall continue to vest after Retirement or Separation from Service without Cause, but Performance Awards granted in the year in which Retirement occurs and Performance Awards held by a Participant upon a Separation from Service without Cause shall be pro-rated to reflect the length of the Participant’s service during the applicable performance period prior to such Retirement or Separation from Service without Cause. Notwithstanding the foregoing, the Committee may in its discretion, waive any performance goals and/or other terms and conditions relating to a Performance Award. A Participant’s rights to any 
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Performance Award may not be sold, assigned, transferred, pledged, hypothecated or otherwise encumbered or disposed of in any manner, except by will or the laws of descent and distribution, and/or except as the Committee may determine at or after grant.

8.4   Establishment of Performance Criteria. In the case of grants of Performance Awards, the Committee shall, in writing, (1) select the performance goal or goals applicable to the performance period, (2) establish the various targets and bonus amounts which may be earned for such performance period, and (3) specify the relationship between performance goals and targets and the amounts to be earned by each Participant for such performance period. The Committee shall make such determination within 90 days after the commencement of the performance period, unless the Committee determines that it is necessary or appropriate to extend the time for determining the performance criteria. Following the completion of each performance period, the Committee shall certify in writing (which may be set forth in the minutes of the Committee) whether the applicable performance targets have been achieved and the amounts, if any, payable for such performance period. In determining the amount earned by a Participant for a given performance period, the Committee shall have the right to adjust the amount of cash or number of Shares payable at a given level of performance to take into account additional factors that the Committee may deem relevant in its sole discretion to the assessment of individual or corporate performance for the performance period. 

8.5   Adjustment of Performance Criteria. The Committee may appropriately adjust any evaluation of performance to exclude any of the following events that occurs during a performance period: (i) asset impairments or write-downs, (ii) litigation or claim judgments or settlements, (iii) the effect of changes in tax law, accounting principles or other such laws or provisions affecting reported results, (iv) accruals for reorganization and restructuring programs, (v) any items that are unusual in nature or infrequently occurring (within the meaning of applicable accounting standards or otherwise in the reasonable determination of the Committee) and/or described in management’s discussion and analysis of financial condition and results of operations appearing in the Company’s annual report to stockholders for the applicable year, (vi) the effect of adverse federal, governmental or regulatory action, or delays in federal, governmental or regulatory action; (vii) any other event either not directly related to the operations of the Company or not within the reasonable control of the Company’s management; and (viii) any other event, condition or circumstance for which the Committee determines that an adjustment would be appropriate based on Committee guidelines, prior practice or other considerations.

Section 9.  Other Stock-Based Awards.

The Committee shall have the authority to determine the Participants who shall receive an Other Stock-Based Award, which shall consist of any right that is (i) not an Award described in Sections 6, 7 or 8 above and (ii) an Award of Shares or an Award denominated or payable in, valued in whole or in part by reference to, or otherwise based on or related to, Shares (including, without limitation, securities convertible into Shares), as deemed by the Committee to be consistent with the purposes of the Plan. Subject to the terms of the Plan and any applicable Award Agreement, the Committee shall determine the terms and conditions of any such Other Stock-Based Award. 

Section 10.  Non-Employee Director and Outside Director Awards.

10.1   Non-Employee Director Awards. The Board may provide that all or a portion of a Non-Employee Director’s annual retainer, meeting fees and/or other awards or compensation as determined by the Board, be payable (either automatically or at the election of a Non-Employee Director) in the form of Non-Qualified Stock Options, Restricted Shares, Restricted Share Units and/or Other Stock-Based Awards, including, subject to Section 14.17, unrestricted Shares. The Board shall determine the terms and conditions of any such Awards, including the terms and conditions which shall apply upon a termination of the Non-Employee Director’s service as a member of the Board, and shall have full power and authority in its discretion to administer such Awards, subject to the terms of the Plan and applicable law.

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10.2   Outside Director Awards. The Board may also grant Awards to Outside Directors pursuant to the terms of the Plan, including any Award described in Sections 6, 7 and 9 above. With respect to such Awards, all references in the Plan to the Committee shall be deemed to be references to the Board.

10.3   Equity Limits to Directors. Notwithstanding anything in the Plan to the contrary, the maximum number of Shares subject to Awards granted during any 12-month period to any Non-Employee Director shall not exceed $400,000 in total value (calculating the value of any such Awards based on the grant date fair value of such Awards for financial reporting purposes and excluding, for this purpose, the value of any dividends or dividend equivalents paid in accordance with the Plan on certain Awards) (the “Director Limit”). The Board may not, without the approval of the stockholders, increase the Director Limit.

10.4   Post-Service Vesting. If a Non-Employee Director ceases to serve as a director for any reason, other than an involuntary removal during the pendency of a term as director, any Award made to such Non-Employee Director may continue to vest if so provided in the Award Agreement or in accordance with any determination of the Board at or after grant.

Section 11.  Separation from Service.

11.1   Impact on Awards. Except as provided in Section 11.2 of this Plan, the Committee shall have the full power and authority to determine the terms and conditions that shall apply to any Award upon a Separation from Service with the Company and its Subsidiaries and Affiliates, including a separation from the Company with or without Cause, by a Participant voluntarily, including for Good Reason, or by reason of death, Disability, or Retirement, and may provide such terms and conditions in the Award Agreement or in such rules and regulations as it may prescribe. Unless otherwise provided in the Award Agreement, Awards shall fully vest on death or Disability.

11.2   Forfeiture of Performance Awards on Separation from Service; No Acceleration of Vesting. Unless otherwise provided in (i) this Plan or (ii) an Award Agreement or a written employment or similar agreement between the Company or a Subsidiary and a Participant, if a Participant’s employment with or service to the Company or a Subsidiary or Affiliate terminates before the restrictions imposed on the Award lapse, the performance goals have been satisfied or the Award otherwise vests, such Award shall be forfeited. Except as otherwise provided in this Plan, an Award Agreement or a written employment agreement or similar agreement between the Company or a Subsidiary and a Participant, if a Participant’s employment with or service to the Company or a Subsidiary terminates prior to a Change in Control, for any reason other than death or Disability, the vesting of any unvested Award shall not be triggered by such termination of employment or service. Notwithstanding the foregoing, termination of employment without Cause or for Good Reason that takes place within four (4) months prior to a Change in Control and that is made at the behest of an Acquiror or in contemplation of such Change in Control shall be treated as if such termination of employment took place after such Change in Control, if such Change in Control actually occurs.

11.3  Separation from Service without Cause.  

(a) The provisions of this Section 11.3 shall apply automatically to Award Agreements in effect on and after June 3, 2021 with Participants who are Employees but are not  party to an employment agreement or separate written agreement with the Company governing equity treatment upon termination of employment.    

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(b)  With respect to Restricted Share Units, upon a Participant’s Separation from Service without Cause:

 (i) any Restricted Share Units that were scheduled to vest within 365 days from the date of Separation from Service without Cause and were granted more than 365 days preceding the date of Separation from Service without Cause, shall vest effective as of the date of Separation from Service without Cause;

(ii)  the RSU Separation Pro-Rated Number of Restricted Share Units (defined below) that were scheduled to vest within 365 days from the date of Separation from Service without Cause, and were granted less than 365 days prior to the date of Separation from Service without Cause, shall vest effective as of the date of Separation from Service without Cause; and

(iii) any remaining time-vesting Restricted Share Units not vesting as provided herein shall be forfeited effective as of the date of Separation from Service without Cause.

The “RSU Separation Pro-Rated Number” for time-vesting Restricted Share Units shall be the product of (A) the total number of time-vesting Restricted Share Units granted under the Award Agreement less than 365 days prior to the date of Separation from Service without Cause and (B) the quotient of (1) the number of days from the grant date of such award to the date of Separation from Service without Cause and (2) 365. 

(c)  With respect to performance-based Restricted Share Units, upon a Participant’s Separation from Service without Cause:

(i) the PSU Separation Pro-Rated Number of performance-based Restricted Share Units shall continue to vest, on the same terms that such performance-based Restricted Share Units would have vested had the Participant remained an Employee, but without the requirement of continued employment; and 

(ii) any remaining performance-based Restricted Share Units not vesting as provided herein above shall be forfeited effective as of the date of Separation from Service without Cause.

The “PSU Separation Pro-Rated Number” for performance-based Restricted Share Units shall be the product of (A) the total number of performance-based Restricted Share Units and (B) the quotient of (1) the number of days beginning on the first day of the performance period and ending on the date of Separation from Service without Cause, and (2) the total number of days in the performance period (for example 1,095 days for a three-year performance period).  

(d)     With respect to Other Stock-based Awards, as contemplated by Section 9 of this Plan, the Committee shall have the authority to determine the terms and conditions of any such Other Stock-Based Award, including without limitation, the treatment of such awards upon a Participant’s Retirement or Separation from Service without Cause at the time of grant of such Other Stock-Based Awards. 

(e)    A “Separation from Service without Cause” shall mean a Separation from Service that meets the following criteria:
(i)  The Company provides written notice to the Participant that the Separation from Service results from one or more of the following: 

        (A) Workforce reduction or reorganization;

        (B)  A significant reduction in job responsibilities, accountabilities or authorities;

    
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(C)  A determination by the Company that the Participant’s qualifications, experience or abilities (including demonstrated cultural, leadership or behavioral characteristics or traits), are not sufficient to meet the demands and requirements of the job consistently at the nature and level expected for the title, role, authority, or position;

    (D)  a material reduction equal to ten percent (10%) or more in the Participant’s total target compensation (including base, bonus and equity) (other than as a result of an across-the-board reduction affecting substantially all Employees with similar authority, status, or job title); or 

    (E)  the Participant’s job being relocated to a location that is more than 50 miles from the Participant’s then current job location (“Relocation”) and the Participant declines Relocation;

(ii)  at the time of the Separation from Service, the Participant has been actively at work (or on an approved leave of absence) during the six-month period immediately preceding the date of the Separation from Service and continues working through the date designated by the Company as the Participant’s Separation from Service date or any earlier date that is designated by the Company as the Participant’s release from duty date;   

(iii) the Separation from Service is not for “Cause” as defined in this Plan;

(iv) the Separation from Service does not qualify as Retirement;

(v) the Company has not determined that the Separation from Service was for failure to meet the performance requirements of  the Participant’s position, including violations of the UNFI Code of Conduct and/or UNFI stated values or commitments, as documented in written performance feedback previously provided to the Participant;

(vi) except as otherwise determined by the Authorized Officers, the Participant has not accepted another position with (or to perform work for) the Company or a subsidiary of the Company (whether as an associate, consultant, or agent) following the Separation from Service;

(vii) except as otherwise determined by the Authorized Officers, if the Participant was employed at a business unit of the Company that was sold or otherwise transferred to a new employer, (A) the Participant has not, within 120 days following such sale or other transfer, accepted a position of employment from the new employer at such business unit, or received an offer of a position from the new employer  that does not require Relocation and with base pay that is not less than the Participant’s then current base pay, even if the Participant has not accepted such offer, and (B) the Participant’s position with such business unit has not been continued immediately following the closing of that transaction by operation of law or otherwise.  For purposes of this subparagraph (viii), “business unit” shall mean any subunit of the Company as defined at the discretion of the Company (by way of example, a subsidiary, district, region, or cost center may be “business units” under this subparagraph);

(viii) except as otherwise determined by the Authorized Officers, if the Participant’s job at a facility is involuntarily terminated because the Company ceases operations at that facility, but another employer commences operations at that facility, and, prior to such termination of employment, (A) that other employer has not offered the Participant a position at that facility with base pay that is not less than the Participant’s current base pay from the Company, even if the Participant does not accept such offer, and (B) the Participant has not accepted any position with that other employer; 

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(ix) except as otherwise determined by the Authorized Officers, if the Company has outsourced the Participant’s job function, the Participant has not accepted any position with the outsource vendor and the outsource vendor has not offered the Participant a position that does not require Relocation and with base pay that is not less than the Participant’s current base pay, even if the Participant has not accepted such offer; and

(x) except as otherwise determined by the Authorized Officers, the Participant has not failed to return Company property on or before the Participant’s last day of work.

(f) The determination by any two of the Chief Executive Officer, Chief Human Resources Officer, or Chief Legal Officer (the “Authorized Officers”) of the Company that a Separation from Service constitutes a Separation from Service without Cause for purposes of the foregoing shall constitute a final determination of such status for purposes of the vesting provisions described herein with no further action required by the Committee; the decisions of such two officers, taken together shall be recorded and retained with the books and records relative to equity awards of the Company.

Section 12.  Change in Control.

12.1   Assumption, Continuation or Substitution. In the event of a Change in Control, the surviving, continuing, successor, or purchasing corporation or other business entity or parent thereof, as the case may be (the “Acquiror”), may (in accordance with Section 409A, to the extent applicable), without the consent of any Participant, either assume or continue the Company’s rights and obligations under each or any Award or portion thereof outstanding immediately prior to the Change in Control or substitute for each or any such outstanding Award or portion thereof a substantially equivalent award with respect to the Acquiror’s stock, as applicable; provided, that in the event of such an assumption, the Acquiror must grant the rights set forth in Section 12.2 of this Plan to the Participant in respect of such assumed Awards. For purposes of this Section, an Award denominated in Shares shall be deemed assumed if, following the Change in Control, the Award (as adjusted, if applicable, pursuant to Section 4.3 hereof) confers the right to receive, subject to any vesting or other terms and conditions of the Plan and the applicable Award Agreement, for each Share subject to the Award immediately prior to the Change in Control, the consideration (whether stock, cash, other securities or property or a combination thereof) to which a holder of a Share on the effective date of the Change in Control was entitled; provided, however, that if such consideration is not solely common stock of the Acquiror, the Committee may, with the consent of the Acquiror, provide for the consideration to be received upon the exercise or settlement of the Award, for each Share subject to the Award, to consist solely of common stock of the Acquiror equal in Fair Market Value to the per share consideration received by holders of Shares pursuant to the Change in Control.

12.2   Vesting of Assumed or Continued Awards. Unless otherwise expressly provided in (i) the Award Agreement, (ii) an employment agreement or other written agreement with the Company or a Subsidiary and a Participant, or (iii) the definitive transaction agreement governing such Change in Control, in the event of a Change in Control in which the Acquiror does assume or continue outstanding Awards upon the Change in Control, if the Participant’s employment with or service to the Company or a Subsidiary (or any of their successors) is terminated involuntarily for any reason other than Cause, or a Participant terminates his or her employment or service for Good Reason, within twelve (12) months of such Change in Control:

(a)   Stock Options and Stock Appreciation Rights shall become fully vested as of the termination date, and exercisable no later than 30 days following such termination date;

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(b)   Restricted Shares and Restricted Share Units shall become fully vested as of such termination date, and shall be delivered no later than 30 days following such termination date; and

(c)   Any then-in-progress Performance Awards shall become fully vested at target performance levels as of such termination date, and shall be delivered no later than 30 days following such termination date. Any outstanding Performance Awards relating to performance periods ending prior to the termination date which have been earned but not paid shall become immediately payable.

12.3   No Assumption or Continuation of Awards. Unless otherwise expressly provided in (i) the Award Agreement, (ii) an employment agreement or similar written agreement with the Company or a Subsidiary, or (iii) the definitive transaction agreement governing such Change in Control, in the event of a Change in Control in which the Acquiror does not assume or continue outstanding Awards upon the Change in Control, all outstanding Awards that are not assumed or continued shall be treated as follows (to the extent permitted by Section 409A of the Code):

(a)   Stock Options and Stock Appreciation Rights shall become fully vested and exercisable as of date and time immediately prior to the Change in Control;

(b)   Restricted Shares and Restricted Share Units shall become fully vested as of the date and time immediately prior to the Change in Control and shall settle immediately following the Change in Control; and
(c)   Unless otherwise determined by the Committee pursuant to Section 12.5, to the extent permitted by Section 409A of the Code, any Performance Awards relating to performance periods that will not have ended as of the date of a Change in Control shall automatically vest and become payable at the target level of performance. Any outstanding Performance Awards relating to performance periods ending prior to the Change in Control date which have been earned but not paid shall become immediately payable.

12.4   Cash-Out of Awards. Notwithstanding Sections 12.2 and 12.3, the Committee may (in accordance with Section 409A, to the extent applicable), in its discretion at or after grant and without the consent of any Participant, determine that, upon the occurrence of a Change in Control, each or any Award or a portion thereof outstanding immediately prior to the Change in Control and not previously exercised or settled shall be canceled in exchange for a payment with respect to each Share subject to such Award, whether vested or unvested, in (i) cash, (ii) stock of the Company or of a corporation or other business entity a party to the Change in Control, or (iii) other property which, in any such case, shall be in an amount having a Fair Market Value equal to the Fair Market Value of the consideration to be paid per Share in the Change in Control, reduced by the exercise or purchase price per share, if any, under such Award (which payment may, for the avoidance of doubt, be $0, in the event the per share exercise or purchase price of an Award is greater than the per share consideration in connection with the Change in Control). In the event such determination is made by the Committee, the amount of such payment (reduced by applicable withholding taxes, if any), if any, shall be paid to Participants in respect of the vested portions of their canceled Awards as soon as practicable following the date of the Change in Control and may be paid in respect of the unvested portions of their canceled Awards in accordance with the vesting schedules applicable to such Awards.

12.5   Performance Awards. The Committee may (in accordance with Section 409A, to the extent applicable), in its discretion at or after grant, provide that in the event of a Change in Control, (i) any outstanding Performance Awards relating to performance periods ending prior to the Change in Control which have been earned but not paid shall become immediately payable, (ii) all then-in-progress performance periods for Performance Awards that are outstanding shall end, and either (A) any or all Participants shall be deemed to have earned an award equal to the relevant target award opportunity for the performance period in question, or (B) at the Committee’s discretion, the Committee shall determine the extent to which performance criteria have been met with respect to each such Performance Award, if at all, but not above target, and (iii) the Company shall cause to be paid to each Participant such Performance Awards, in cash, Shares 
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or other property as determined by the Committee, within thirty (30) days of such Change in Control, based on the Change in Control consideration, which amount may be zero if applicable. In the absence of such a determination, any Performance Awards relating to performance periods that will not have ended as of the date of a Change in Control shall be terminated and canceled for no further consideration.

Section 13.  Amendment and Termination.

13.1   Amendments to the Plan. The Board may amend, alter, suspend, discontinue or terminate the Plan or any portion thereof at any time (and in accordance with Section 409A of the Code with regard to Awards subject thereto); provided that no such amendment, alteration, suspension, discontinuation or termination shall be made without stockholder approval if such approval is necessary to comply with any tax or regulatory requirement for which or with which the Board deems it necessary or desirable to comply.

13.2   Amendments to Awards. Subject to the restrictions of the Plan, including Section 6.2 hereof, the Committee may waive any conditions or rights under, amend any terms of or alter, suspend, discontinue, cancel or terminate, any Award theretofore granted, prospectively or retroactively in time (and in accordance with Section 409A of the Code with regard to Awards subject thereto); provided that any such waiver, amendment, alteration, suspension, discontinuance, cancellation or termination that would materially and adversely affect the rights of any Participant or any holder or beneficiary of any Award theretofore granted shall not to that extent be effective without the consent of the affected Participant, holder or beneficiary.

13.3   Adjustments of Awards upon the Occurrence of Certain Unusual or Nonrecurring Events. The Committee is hereby authorized to make equitable and proportionate adjustments in the terms and conditions of, and the criteria included in, Awards in recognition of unusual or nonrecurring events (and shall make such adjustments for the events described in Section 4.2 hereof) affecting the Company or any Subsidiary or Affiliate, or the financial statements of the Company or any Subsidiary or Affiliate, or of changes in applicable laws, regulations or accounting principles.

13.4   Foreign Employees. In order to facilitate the making of any Award or combination of Awards under the Plan, the Committee may provide for such special terms for Awards to Participants who are foreign nationals or who are employed by the Company or any Subsidiary outside of the United States of America as the Committee may consider necessary or appropriate to accommodate differences in local law, tax policy or custom. Moreover, the Committee may approve such supplements to or amendments, restatements or alternative versions of the Plan as it may consider necessary or appropriate for such purposes, without thereby affecting the terms of the Plan as in effect for any other purpose, and the Corporate Secretary or other appropriate officer of the Company may certify any such document as having been approved and adopted in the same manner as the Plan. No such special terms, supplements, amendments or restatements, however, shall include any provisions that are inconsistent with the terms of the Plan as then in effect unless the Plan could have been amended to eliminate such inconsistency without further approval by the shareholders of the Company.

Section 14.  General Provisions.

14.1   Limited Transferability of Awards. Except as otherwise provided in the Plan, an Award Agreement or by the Committee at or after grant, no Award shall be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by a Participant, except by will or the laws of descent and distribution. No transfer of an Award by will or by laws of descent and distribution shall be effective to bind the Company unless the Company shall have been furnished with written notice thereof and an authenticated copy of the will and/or such other evidence as the Committee may deem necessary or appropriate to establish the validity of the transfer. No transfer of an Award for value shall be permitted under the Plan.

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14.2   Dividend Equivalents. In the sole and complete discretion of the Committee, but subject to any conditions set forth in this Plan, an Award may provide the Participant with dividends or dividend equivalents, payable in cash, Shares, other securities or other property, but only when the related Award vests. In the case of dividends or dividend equivalents credited in connection with Performance Awards, such amounts shall be subject to the same restrictions as apply to dividends or dividend equivalents payable with respect to the applicable Performance Award type (such as Restricted Shares or Restricted Share Units). The total number of Shares available for grant under Section 4 shall not be reduced to reflect any dividends or dividend equivalents until payment thereof. Notwithstanding the foregoing, with respect to an Award subject to Section 409A of the Code, the payment, deferral or crediting of any dividends or dividend equivalents shall conform to the requirements of Section 409A of the Code and such requirements shall be specified in writing.

14.3   Compliance with Section 409A of the Code. No Award (or modification thereof) shall provide for deferral of compensation that does not comply with Section 409A of the Code unless the Committee, at the time of grant, specifically provides that the Award is not intended to comply with Section 409A of the Code. Notwithstanding any provision of this Plan to the contrary, if one or more of the payments or benefits received or to be received by a Participant pursuant to an Award would cause the Participant to incur any additional tax or interest under Section 409A of the Code, the Committee may reform such provision to maintain to the maximum extent practicable the original intent of the applicable provision without violating the provisions of Section 409A of the Code. In addition, if a Participant is a Specified Employee at the time of his or her Separation from Service, any payments with respect to any Award subject to Section 409A of the Code to which the Participant would otherwise be entitled by reason of such Separation from Service shall be made on the date that is six months after the Participant’s Separation from Service (or, if earlier, the date of the Participant’s death). Although the Company intends to administer the Plan so that Awards will be exempt from, or will comply with, the requirements of Section 409A of the Code, the Company does not warrant that any Award under the Plan will qualify for favorable tax treatment under Section 409A of the Code or any other provision of federal, state, local or foreign law. The Company shall not be liable to any Participant for any tax, interest, or penalties that Participant might owe as a result of the grant, holding, vesting, exercise, or payment of any Award under the Plan.

14.4   No Rights to Awards. No Person shall have any claim to be granted any Award, and there is no obligation for uniformity of treatment of Participants or holders or beneficiaries of Awards. The terms and conditions of Awards need not be the same with respect to each Participant.

14.5   Share Certificates. All certificates for Shares or other securities delivered under the Plan pursuant to any Award or the exercise thereof shall be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under the Plan or the rules, regulations and other requirements of the SEC or any state securities commission or regulatory authority, any stock exchange or other market upon which such Shares or other securities are then listed, and any applicable Federal or state laws, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions.

14.6   Tax Withholding. A Participant may be required to pay to the Company or any Subsidiary or Affiliate, and the Company or any Subsidiary or Affiliate shall have the right and is hereby authorized to withhold from any Award, from any payment due or transfer made under any Award or under the Plan, or from any compensation or other amount owing to a Participant the amount (in cash, Shares, other securities, other Awards or other property) of any applicable withholding or other tax-related obligations in respect of an Award, its exercise or any other transaction involving an Award, or any payment or transfer under an Award or under the Plan and to take such other action as may be necessary in the opinion of the Company to satisfy all obligations for the payment of such taxes. The Committee may provide for additional cash payments to holders of Options to defray or offset any tax arising from the grant, vesting, exercise or payment of any Award. Without limiting the generality of the foregoing, the Committee may in its discretion permit a Participant to satisfy or arrange to satisfy, in whole or in part, the tax obligations incident to an Award by: (a) electing to 
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have the Company withhold Shares or other property otherwise deliverable to such Participant pursuant to the Award (provided, however, that the amount of any Shares so withheld shall not exceed the amount necessary to satisfy required federal, state local and foreign withholding obligations using the maximum statutory withholding rates for federal, state, local and/or foreign tax purposes, including payroll taxes, that are applicable to supplemental taxable income) and/or (b) tendering to the Company Shares owned by such Participant (or by such Participant and his or her spouse jointly) and purchased or held for the requisite period of time, if any, as may be required to avoid the Company’s or the Subsidiaries’ or Affiliates’ incurring an adverse accounting charge, based, in each case, on the Fair Market Value of the Shares on the payment date as determined by the Committee. All such elections shall be irrevocable, made in writing, signed by the Participant, and shall be subject to any restrictions or limitations that the Committee, in its sole discretion, deems appropriate.

14.7   Award Agreements. Each Award hereunder shall be evidenced by an Award Agreement that shall be delivered (including, but not limited to, through an online equity incentive plan management portal) to the Participant and may specify the terms and conditions of the Award and any rules applicable thereto. In the event of a conflict between the terms of the Plan and any Award Agreement, the terms of the Plan shall prevail. The Committee shall, subject to applicable law, determine the date an Award is deemed to be granted. The Committee or, except to the extent prohibited under applicable law, its delegate(s) may establish the terms of agreements or other documents evidencing Awards under this Plan and may, but need not, require as a condition to any such agreement’s or document’s effectiveness that such agreement or document be executed by the Participant, including by electronic signature or other electronic indication of acceptance, and that such Participant agree to such further terms and conditions as specified in such agreement or document. The grant of an Award under this Plan shall not confer any rights upon the Participant holding such Award other than such terms, and subject to such conditions, as are specified in this Plan as being applicable to such type of Award (or to all Awards) or as are expressly set forth in the agreement or other document evidencing such Award.

14.8   Restrictive Covenants. Each Award Agreement shall include, or be deemed to include, the following covenants (in the words set forth below or with such modifications as may be approved by the Committee) and each Participant shall agree to adhere to such covenants as a condition to receipt of an Award: 

(a)   The Participant shall not disclose or reveal to any unauthorized person or knowingly use for the Participant’s own benefit or another person or entity’s benefit, any trade secret or other confidential information relating to the Company, or to any of the businesses operated by it, including, without limitation, any customer lists, customer needs, price and performance information, processes, specifications, hardware, software, devices, supply sources and characteristics, business opportunities, potential business interests, marketing, promotional pricing and financing techniques, or other information relating to the business of the Company, and the Participant confirms that such information (including all copies of or notes regarding such confidential information) constitutes the exclusive property of the Company and must be returned to the Company upon the termination of the Participant’s employment. Such restrictions shall not apply to information which is (i) generally available in the industry, or (ii) disclosed through no fault of the Participant or (iii) required to be disclosed pursuant to applicable law or regulation or the order of a governmental or regulatory body (provided that the Company is given reasonable notice of any such required disclosure). The Participant agrees that the Participant will return to the Company upon request, but in any event upon termination of employment, any physical embodiment of any confidential information and/or any summaries containing any confidential information, in whole in part, in any media. For the avoidance of doubt, nothing in this Agreement prohibits the Participant from reporting possible violations of federal law or regulation to any governmental agency or entity, including but not limited to the Department of Justice, the Securities and Exchange Commission, the Congress, and any Inspector General, or making other disclosures that are protected under the whistleblower provisions of applicable law or regulation. The Participant does not need the prior authorization of the Company to make any such reports or disclosures, and the Participant is not required to notify the Company that the Participant has made such reports or disclosure.

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The Participant acknowledges and agrees that the Company has provided the Participant with written notice below that the Defend Trade Secrets Act, 18 U.S.C. § 1833(b), provides an immunity for the disclosure of a trade secret to report suspected violations of law and/or in an anti-retaliation lawsuit, as follows:

(1) IMMUNITY. — An individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that —

(A) is made —

(i) in confidence to a Federal, State or local government official, either directly or indirectly, or to an attorney; and

(ii) solely for the purpose of reporting or investigating a suspected violation of law; or

(B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.

(2) USE OF TRADE SECRET INFORMATION IN ANTI-RETALIATION LAWSUIT. — An individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual —

(A) files any document containing the trade secret under seal; and

(B) does not disclose the trade secret, except pursuant to court order.

(b)   Except with the prior written consent of the Company’s Chief Legal Officer or Chief Human Resources Officer (or their designee), during the period commencing on the date of grant and ending on the first anniversary of the termination of the Participant’s employment for any reason with the Company or any Subsidiary or Affiliate (the “Restricted Period”), the Participant shall not engage, directly or indirectly (which includes, without limitation, owning, managing, operating, controlling, being employed by, giving financial assistance to, participating in or being connected in any material way with any person or entity), anywhere in the United States, in any activities with any company which is a direct competitor of the Company and any other company that conducts any business for which the Participant is uniquely qualified to serve as a member of senior management as a result of his or her service to the Company. By way of illustration, direct competitors of the Company include, but are not limited two, the following companies: KeHe Distributors, LLC, DPI Specialty Foods, Lipari Foods, C&S Wholesale Grocers, Inc., Sysco Corporation, Performance Food Group Company, US Foods Holding Corp., SpartanNash Company, Associated Grocers, Inc., Associated Wholesale Grocers, Inc., URM Stores, Inc. and Bozzuto’s Inc. (or any subsidiary or affiliated entity of the foregoing companies) or any other company or group of companies that may be specified in an Award Agreement approved by the Board or the Committee with respect to (i) the Company’s activities on the date of grant and/or (ii) any activities which the Company becomes involved in during the Participant’s term of employment; provided, however, that the Participant’s ownership as a passive investor of less than five percent (5%) of the issued and outstanding stock of a publicly held corporation so engaged, shall not by itself be deemed to constitute such competition. 

(c)   Further, during such Restricted Period, the Participant shall not solicit or otherwise act to induce any of the Company’s vendors, customers or employees to cease or limit any relationship or otherwise take action that might be disadvantageous to the Company or otherwise disturb such party’s relationship with the Company.

(d)   The Participant acknowledges that the Participant will treat as for the Company’s sole benefit, and fully and promptly disclose and assign to the Company without additional compensation, all ideas, information, discoveries, inventions and improvements which are based upon or related to any confidential information protected under 
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subsection (a), and which are made, conceived or reduced to practice by the Participant during the Participant’s period of employment by the Company or any Subsidiary and within one (1) year after termination thereof. The provisions of this subsection (d) shall apply whether such ideas, discoveries, inventions, improvements or knowledge are conceived, made or gained by the Participant alone or with others, whether during or after usual working hours, either on or off the job, directly or indirectly related to the Company’s business interests (including potential business interests), and whether or not within the realm of the Participant’s duties.

(e)   The Participant shall, upon request of the Company, but at no expense to the Participant, at any time during or after employment by the Company, sign all instruments and documents and cooperate in such other acts reasonably required to protect rights to the ideas, discoveries, inventions, improvements and knowledge referred to above, including applying for, obtaining and enforcing patents and copyrights thereon in any and all countries.

(f)   During the Restricted Period, upon reasonable request of the Company, the Participant shall cooperate in any internal or external investigation, litigation or any dispute relating to any matter in which he or she was involved during his or her employment with the Company; provided, however, that the Participant shall not be obligated to spend time and/or travel in connection with such cooperation to the extent that it would unreasonably interfere with the Participant’s other commitments and obligations. The Company shall reimburse the Participant for all expenses the Participant reasonably incurs in so cooperating.

(g)   Before accepting employment with any other person, organization or entity while employed by the Company and during the Restricted Period, the Participant will inform such person, organization or entity of the restrictions contained herein. The Participant further consents to notification by the Company to the Participant’s subsequent employer or other third party of the Participant’s obligations under this Agreement.

(h)   The Participant recognizes that the possible restrictions on the Participant’s activities which may occur as a result of the Participant’s performance of the Participant’s obligations under subsections (a) and (b) hereof are required for the reasonable protection of the Company and its investments, and the Participant expressly acknowledges that such restrictions are fair and reasonable for that purpose. The Participant acknowledges that money damages would not be an adequate or sufficient remedy for any breach of subsections (a) and (b), and that in the event of a breach or threatened breach of subsections (a) and (b), the Company, in addition to other rights and remedies existing in its favor, shall be entitled, as a matter of right, to injunctive relief, including specific performance, from a court of competent jurisdiction in order to enforce, or prevent any violations of, the provisions of subsections (a) and (b). The terms of this subsection (g) shall not prevent the Company from pursuing any other available remedies for any breach or threatened breach hereof, including but not limited to the recovery of damages from the Participant. If any of the provisions hereof are held to be in any respect an unreasonable restriction upon the Participant, then they shall be deemed to extend only over the maximum period of time, geographic area, and/or range of activities as to which they may be enforceable. The Participant expressly agrees that all payments and benefits due the Participant under the Award Agreement shall be subject to the Participant’s compliance with the provisions set forth in subsections (a) and (b).

(i)   Except with respect to any shorter term as expressly provided herein, this these provisions shall survive the expiration or earlier termination of the Participant’s relationship with the Company for a period of ten (10) years.

14.9   Other Compensation Arrangements. Nothing contained in the Plan shall prevent the Company or any Subsidiary or Affiliate from adopting or continuing in effect other compensation arrangements, which may, but need not, provide for the grant of Options, Restricted Shares, Restricted Share Units, Other Stock-Based Awards or other types of Awards provided for hereunder. No payment under the Plan shall be taken into account in determining any benefits under any pension, retirement, savings, profit sharing, group insurance, welfare or benefit plan of the Company or any Subsidiary or Affiliate unless provided otherwise in such other plan.

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14.10   No Right to Employment. The grant of an Award shall not be construed as giving a Participant the right to be retained in the employ of the Company or any Subsidiary or Affiliate. Further, the Company or a Subsidiary or Affiliate may at any time dismiss a Participant from employment, free from any liability or any claim under the Plan, unless otherwise expressly provided in an Award Agreement.

14.11   No Rights as Stockholder. Subject to the provisions of the Plan and the applicable Award Agreement, no Participant or holder or beneficiary of any Award shall have any rights as a stockholder with respect to any Shares to be distributed under the Plan until such person has become a holder of such Shares. Notwithstanding the foregoing, in connection with each grant of Restricted Shares hereunder, the applicable Award Agreement shall specify if and to what extent the Participant shall not be entitled to the rights of a stockholder in respect of such Restricted Shares.

14.12   Governing Law. The validity, construction and effect of the Plan and any rules and regulations relating to the Plan and any Award Agreement shall be determined in accordance with the laws of the State of Delaware without giving effect to conflicts of laws principles.

14.13   Severability. If any provision of the Plan or any Award is, or becomes, or is deemed to be invalid, illegal or unenforceable in any jurisdiction or as to any Person or Award, or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to the applicable laws, or if it cannot be construed or deemed amended without, in the determination of the Committee, materially altering the intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction, Person or Award and the remainder of the Plan and any such Award shall remain in full force and effect.

14.14   Other Laws. The Company will not be obligated to issue, deliver or transfer any Shares pursuant to the Plan or to remove restrictions from Shares previously delivered pursuant to the Plan until: (a) all conditions of the applicable Award Agreement have been met or removed to the satisfaction of the Committee; (b) all other legal matters, including receipt of consent or approval of any regulatory body and compliance with any state or federal securities or other law, in connection with the issuance and delivery of such Shares have been satisfied; (c) the Participant or holder or beneficiary of the Shares or Award has executed and delivered to the Company such representations or agreements as the Committee may consider appropriate to satisfy the requirements of any state or federal securities or other law; and (d) such issuance would not entitle the Company to recover amounts under Section 16(b) of the Exchange Act from such Participant or holder or beneficiary of the Shares or Award. The inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel necessary to the lawful issuance of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue the Shares as to which such requisite authority shall not have been obtained.

14.15   No Trust or Fund Created. Neither the Plan nor any Award shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company or any Subsidiary and a Participant or any other Person. To the extent that any Person acquires a right to receive payments from the Company or any Subsidiary or Affiliate pursuant to an Award, such right shall be no greater than the right of any unsecured general creditor of the Company or any Subsidiary.

14.16   No Fractional Shares. No fractional Shares shall be issued or delivered pursuant to the Plan or any Award, and any obligation to deliver fractional Shares shall be deemed fully satisfied by the delivery of the next lower number of whole Shares.

14.17   Clawback; Cancellation of Awards. Each Award granted to a Participant under the Plan shall be subject to forfeiture or repayment pursuant to the terms of any applicable compensation recovery policy adopted by the Company 
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as in effect from time to time, including any such policy that may be adopted or amended to comply with the Dodd-Frank Wall Street Reform and Consumer Protection Act or any rules or regulations issued by the SEC or the New York Stock Exchange. In addition, the Committee or the Board may cancel unpaid Awards held by a Participant from whom the Committee or the Board would be entitled to recover compensation under any compensation recovery policy then in effect.

14.18   Minimum Vesting Requirements. Except for Substitute Awards, as determined by the Committee following the grant of an Award in connection with the death or Disability of the Participant, or in the event of a Change in Control or a Separation from Service without Cause, Awards granted hereunder shall have a Vesting Period of not less than one (1) year from the date of grant; provided, that the Committee has the discretion to waive this requirement with respect to an Award at the time of granting such Award so long as the total number of Shares that are issued under this Plan pursuant to Awards having an originally stated Vesting Period of less than one year from the date of grant (or, in the case of vesting of Performance Awards or other Awards the vesting of which is subject to the achievement of performance-based objectives, over a period of less than one year measured from the commencement of the period over which performance is evaluated) shall not exceed 5% of the Share Reserve.

14.19   Headings. Headings are given to the sections and subsections of the Plan solely as a convenience to facilitate reference. Such headings shall not be deemed in any way material or relevant to the construction or interpretation of the Plan or any provision thereof.

Section 15.  Term of The Plan.

15.1   Effective Date. The Plan shall be effective upon the date that it is adopted by the Board (the “Effective Date”), subject to the approval of the Plan by the Company’s stockholders at a meeting duly held in accordance with applicable law within twelve (12) months following the Effective Date. Upon such approval of the Plan, all Awards granted under the Plan on or after the Effective Date shall be fully effective as if such approval had occurred on the Effective Date. If the Plan is not approved as set forth in this section, any Awards granted under the Plan following the Effective Date shall be null and void and of no effect.

15.2   Expiration Date. No new Awards shall be granted under the Plan after the seventh (7th) anniversary of the Effective Date. Unless otherwise expressly provided in the Plan or in an applicable Award Agreement, any Award granted hereunder may, and the authority of the Board or the Committee to amend, alter, adjust, suspend, discontinue or terminate any such Award or to waive any conditions or rights under any such Award shall, continue after the seventh (7th) anniversary of the Effective Date.
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