Document:

Employment and Non-Competition Agreement - Richard Markee

 Exhibit 10.26 
 EMPLOYMENT 
 AND NON-COMPETITION AGREEMENT 
 This EMPLOYMENT AND NON-COMPETITION AGREEMENT (this “Agreement”) made as of this 9th day of September 2009 (the “Effective
Date”), by and among Richard Markee (the “Executive”), VS Parent, Inc., a Delaware corporation (together with its successors and assigns, “Parent”), VS Direct, Inc. (together with its successors and
assigns, “VS Direct”) and VS Holdings, Inc., a Delaware corporation (together with its successors and assigns, “Holdings”), and Vitamin Shoppe Industries, Inc., a New York corporation (together with its successors
and assigns, the “Company”). 
 W I T N E S S E T H:

 WHEREAS, Parent, Holdings, VS Direct, the Company and the Executive desire to memorialize the terms of the Executive’s employment
effective as of the Effective Date under this Agreement. 
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, and in consideration of the mutual covenants and obligations herein contained, the parties hereto agree as follows: 
 1. Position and Responsibilities. During the Term, the Executive shall serve as Chief Executive Officer of each of Parent, Holdings, VS Direct and the Company and, in such capacity, shall be responsible for the
general management of the business, affairs and operations of Parent, Holdings, VS Direct and the Company, shall perform such duties as are customarily performed by a chief executive officer of a company of a similar size, and shall have such power
and authority as shall reasonably be required to enable him to perform his duties hereunder; provided, however, that in exercising such power and authority and performing such duties, he shall at all times be subject to the authority
of the Board of Directors of Parent, Holdings, VS Direct and the Company. The Executive shall report to the Board of Directors of Parent, Holdings VS Direct and the Company. The Executive shall not report or be subject to the authority of any
officer or employee of Parent, Holdings, VS Direct or the Company. The Executive agrees to devote substantially all of his business time, attention and services to the diligent, faithful and competent discharge of such duties for the successful
operation of Parent’s, Holdings’, VS Directs’ and the Company’s business. 
 2. Compensation; Salary, Bonus and Other
Benefits. During the Term, the Company shall pay the Executive the following compensation, including the following annual salary, bonus and other fringe benefits, subject to all applicable federal and state withholding, payroll and other taxes.

 (A) Salary. In consideration of the services to be rendered by the Executive to the Company, the Company shall pay
to the Executive a base salary of $600,000 per annum (such salary as it may be increased from time to time being hereinafter referred to as the “Base Salary”). Except as may otherwise be agreed, the Base Salary shall be payable in
conformity with the Company’s customary practices for executive compensation as such practices shall be established or modified from time to time but shall be payable not less 

 
frequently than monthly. The Executive shall receive such increases in his Base Salary as the Board of Directors of the Company may from time to time approve
in its discretion; provided, however, that the Executive’s Base Salary will be reviewed not less often than annually. The Executive’s Base Salary may not be decreased without his written consent. 
 (B) Bonus. Each fiscal year ending after the Effective Date during the Term (which, for the avoidance of doubt, shall include
fiscal year 2011 if the Executive’s employment terminates on or after the expiration of the Term), the Executive shall be eligible for a cash bonus award (the “Annual Cash Bonus”). 
 For the fiscal year ending December 26, 2009, the Executive shall receive an Annual Cash Bonus equal to $300,000, payable in calendar year 2010 at the same time
annual bonuses are paid to other senior executives of the Company (but in all events prior to March 15, 2010), and except as otherwise set forth in Sections 5(C)(ii), 5(D)(i), 5(E), and 5(F), subject to the Executive’s continued employment
with the Company on December 26, 2009. For each fiscal year thereafter beginning during the Term, the Executive shall be eligible for an Annual Cash Bonus for any such fiscal year, based on a target opportunity for such Annual Cash Bonus of
100% of the Executive’s Base Salary, payable at the same time annual bonuses are paid to other senior executives of the Company (but in all events within two and half months after the end of the applicable fiscal year), subject to Sections
5(A), 5(C)(ii), 5(E) and 5(F), so long as Executive is employed by the Company on the last day of the calendar year in which most of the fiscal year occurs, based on such criteria as shall be established by Parent’s Compensation Committee of
the Board of Directors in consultation with the Executive not later than thirty days after the commencement of the fiscal year. 
 (C) Benefits. The Executive will be entitled to participate, in accordance with the provisions thereof, in any health, disability and life insurance and other employee benefit plans and programs made available by the Company to its
management employees generally. During the Term and so long as the Executive is not participating in the Company’s group health plan, the Company shall pay the Executive on a monthly basis a cash amount equal to the then monthly premium
equivalent for such group health plan, as determined by the Company’s benefit consultant, that would have otherwise been payable by the Company on behalf of the Executive had the Executive been a participant in such group health plan (the
“Opt-Out Amount”). 
 (D) Reimbursement of Expenses. The Company shall reimburse the Executive for any
and all out-of-pocket expenses reasonably incurred by the Executive during the term of his employment in connection with his duties and responsibilities as Chief Executive Officer of Parent, Holdings, VS Direct or the Company, provided that the
Executive complies with the policies, practices and procedures of the Company for submission of expense reports, receipts or similar documentation of such expenses. Upon presentation of appropriate documentation, the Company shall pay the
Executive’s reasonable counsel fees incurred in connection with the negotiation and documentation of this Agreement, up to a maximum of $10,000, which shall be paid within sixty (60) days of the Effective Date. 
 (E) Automobile Allowance. During the Term, the Executive shall receive a monthly automobile allowance of $1,000 to be payable on a
monthly basis as a reimbursement for automobile expenses in accordance with the plans, practices, policies, and programs applicable to the Company’s management employees generally. 
  

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 (F) Vacation. The Executive shall be entitled to five (5) weeks of vacation
time per fiscal year in accordance with the plans, practices, policies, and programs applicable to the Company’s management employees generally. 
 (G) Options. As promptly as practicable after the date hereof (but in all events no later than 15 days after the Effective Date), Parent shall grant the Executive an option to purchase 200,000 shares of common
stock of Parent (the “Options”), par value $0.01 (“Parent Common Stock”) under the Amended and Restated VS Holdings, Inc. 2002 Stock Option Plan, as adopted by Parent (the “Plan”) and in accordance
with the stock option agreement attached hereto as Exhibit A (“Stock Option Agreement”). The Options shall (i) have a strike price of $28.13 per share of Parent Common Stock, which the compensation committee of
Parent’s Board of Directors (the “Parent Board”) has determined to be equal to or greater than the fair market value of a share of Parent Common Stock, (ii) subject to earlier vesting as provided in the Plan or the Stock
Option Agreement, vest quarterly over four (4) years, at the rate of 6.25% of the shares of Parent Common Stock underlying the Options on each quarterly anniversary following the Effective Date, (iii) expire on the 90-month anniversary of
the date of grant and (iv) to the extent not inconsistent with this Agreement or the Stock Option Agreement, be subject to all terms and conditions of the Plan. 
 (H) Restricted Stock. As promptly as practicable after the date hereof (but in all events no later than 15 days after the Effective
Date), Parent shall adopt the Parent 2009 Equity Incentive Plan, and issue to the Executive 48,658 restricted shares of Parent Common Stock under such plan, which grant shall be in the form of the restricted stock award agreement attached hereto as
Exhibit B (“Restricted Stock Award Agreement”). Such restricted shares of Parent Common Stock shall (i) subject to earlier vesting as provided in the Parent 2009 Equity Incentive Plan or the Restricted Stock Award
Agreement, vest quarterly over four (4) years at the rate of 6.25% of the restricted shares on each quarterly anniversary following the Effective Date, and (ii) to the extent not inconsistent with this Agreement or the Restricted Stock
Award Agreement, be subject to all terms and conditions of the Parent 2009 Equity Incentive Plan. 
 (I) Acquired
Securities. On the date the restricted shares under Section 2(H) are granted to the Executive (or promptly thereafter), the Executive shall purchase from Parent, by check or wire transfer of immediately available funds, 26,839 shares of
Parent Common Stock (the “Acquired Securities”) at a price per share of Parent Common Stock of $28.13, for an aggregate cash purchase price of $754,981, pursuant to a subscription agreement attached hereto as Exhibit C (the
“Subscription Agreement”). 
 3. Term. The term of Executive’s employment hereunder shall commence on the
Effective Date and shall terminate on December 31, 2011 (the “Term”), unless earlier terminated as provided in Section 5 of this Agreement. 
 4. Key Man Life Insurance. The Company may apply for and obtain and maintain a Key Man Life Insurance policy in the name of the Executive in such amount as the Company may determine, the beneficiary of which
shall be the Company. The Executive shall submit to physical examinations and answer reasonable questions in connection with the application for and, if obtained, the maintenance of, as may be required, such insurance policy. 
  

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 5. Termination. The Executive’s term of employment under this Agreement may be earlier
terminated as follows (as well as automatically upon expiration of the Term): 
 (A) At the Executive’s Option; Upon
Expiration of the Term. The Executive may terminate his employment at any time upon at least three months’ advance written notice to the Company. In addition, the Executive’s employment hereunder shall automatically terminate upon
expiration of the Term. In either such event, the Executive shall be entitled to no severance or other termination benefits from and after the termination of his employment, except as provided in Section 5(G), (H) and (I) hereof.
Notwithstanding the foregoing, upon the termination of the Executive’s employment upon the expiration of the Term, the Executive shall also be entitled to an Annual Cash Bonus for fiscal year 2011 in accordance with Section 2(B) and
retiree medical to the extent provided in Section 5(K). 
 (B) At the Election of the Board With Cause. The Parent
Board may, unilaterally, terminate the Executive’s employment hereunder “with cause” at any time during the Term upon written notice to the Executive. Termination of the Executive’s employment by the Board shall constitute a
termination “with cause” under this Agreement only if such termination is for one or more of the following causes: (i) wrongful misappropriation by the Executive of Company assets of a material value and not remedied within thirty
(30) days after receipt of written notice from the Company; (ii) alcoholism or drug addiction, any of which materially impairs the ability of the Executive to perform his duties and responsibilities hereunder or is seriously injurious to
the business of the Company and not remedied within thirty (30) days after receipt of written notice from the Company; (iii) the conviction of a felony; (iv) gross neglect or willful misconduct by the Executive in the conduct or
management of the Company not remedied within thirty (30) days after receipt of written notice from the Company which neglect or misconduct materially affects the Company; (v) willful refusal to comply with any significant policy,
directive or decision of the Board in furtherance of a legitimate business purpose of the Company or willful refusal to perform the duties reasonably assigned to the Executive by the Board consistent with the Executive’s functions, duties and
responsibilities set forth in Section 1 hereof, in each case, in any material respect, and only if not remedied within thirty (30) days after receipt of written notice from the Company; or (vi) breach by the Executive of
Section 7 or 8(A) or 9 of this Agreement, in any material respect, not remedied within thirty (30) days after receipt of written notice from the Company. Notwithstanding the foregoing, the Executive shall not be terminated “with
cause” under this Agreement or otherwise unless he is given an opportunity to be heard before the Parent Board (accompanied by counsel, if he so chooses) and, after such hearing, there is a vote of majority of the members of the Parent Board
(not including the Executive but including at least one independent director voting in favor) to terminate the Executive’s employment “with cause”. Any such termination shall be subject to de novo review in accordance with
Section 23. In the event of a termination “with cause” pursuant to the provisions of clauses (i) through (vi) above, inclusive, the Executive shall be entitled to no severance or other termination benefits, except as
provided in Section 5(G), (H) and (I) hereof. 
  

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 (C) At the Election of the Company for Reasons Other than With Cause or by Executive
for Good Reason. The Company may, unilaterally, terminate the Executive’s employment hereunder at any time during the Term without Cause upon five (5) business days prior written notice to the Executive of the Company’s election
to terminate. The Executive may terminate the Executive’s employment following the removal of the Executive as the Chief Executive Officer of Parent, Holdings, VS Direct or the Company (or any of their successors or assigns) (“Good
Reason”) without the written consent of the Executive which is not remedied by Parent, Holdings, VS Direct or the Company within 30 days after the Executive gives written notice to the Board of such change (which written notice shall be given
within 30 days of such change), provided that Executive actually terminates employment within 15 days following the expiration of the 30 day remedy period. Upon any such termination under this Section 5(C), the Company shall: 
 (i) Pay the Executive his Base Salary from the date of the termination of the Executive’s employment through the earlier to occur of
(1) the last date of the Term and (2) the date that is twelve (12) months following Executive’s termination. Such payments shall be payable on a quarterly basis following the Executive’s termination and shall be subject to
all applicable federal and state withholding taxes. 
 (ii) Pay to the Executive (x) the full amount of any unpaid Annual
Cash Bonus for any fiscal year of the Company prior to the fiscal year in which the Executive’s employment is terminated in accordance with the provisions of Section 2(B) hereof, and (y) for the fiscal year in which the
Executive’s employment is terminated, the pro rata amount of the Annual Cash Bonus calculated by multiplying (A) a fraction the numerator of which is the number of full calendar months that the Executive was employed by the Company in such
fiscal year and the denominator of which is 12 and (B) an amount equal to the current fiscal year’s Annual Cash Bonus determined and paid at the time and in the manner set forth in Section 2(B) (provided that if the Executive’s
employment is terminated on or prior to the last day of fiscal year 2009, the Company shall pay the Executive the full guaranteed bonus for 2009). 
 (iii) Subject to the Executive’s timely election of continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), until the earlier to occur of
(x) a period of twelve months from the date of termination of Executive or (y) the time when the Executive becomes eligible for insurance coverage offered by any subsequent employer (the “Insurance Continuation Period”),
allow the Executive to continue to participate in all life, health, disability and similar insurance plans and programs of the Company to the extent that such continued participation is possible under the general terms and provisions of such plans
and programs, with the Company and the Executive paying the same portion of the cost of each such plan or program as existed at the time of the Executive’s termination. In the event that the Executive’s continued participation in any group
plans and programs is not permitted, then in lieu thereof, the Company shall acquire, with the same cost sharing, individual insurance policies providing comparable coverage for the Executive for the Insurance Continuation Period; provided,
that the Company shall not be obligated to pay for any such individual coverage more than three (3) times the Company’s cost of such group coverage; and provided further that in the event that the Executive is receiving the Opt-Out
Amount at the time of such termination in accordance with the terms of Section 2(C) and is also participating in continuing health insurance coverage pursuant to the Toys Agreement (as defined in Section 5(K)), the maximum obligation of
the Company under this Section 5(C)(iii) shall be limited to paying the Opt-Out Amount to the Executive during the Insurance Continuation Period (the “Continued Benefits”). 
  

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 Notwithstanding the foregoing, if during the period from the date of the termination of
the Executive’s employment hereunder through the end of the period for which any severance is payable pursuant to this Section 5(C), the Executive (i) becomes employed or (ii) performs 390 or more hours of consulting services for
a single client in any ninety (90) day period (other than serving as a director of Parent, Holdings, VS Direct or the Company), the Executive shall promptly notify the Company of such employment or consulting engagement, and the severance
payable pursuant to paragraphs 5(C)(i) hereof shall be reduced by the gross amount of the compensation or consulting fees earned by the Executive pursuant to such employment or consulting engagement during the applicable severance period. Nothing
herein, however, shall require the Executive to mitigate damages by seeking other employment (including self-employment). 
 (D) At the Election of the Executive for Certain Reasons. The Executive may terminate his employment immediately upon written notice to the Company upon the occurrence of a Change of Control (as defined below) followed, within twelve
(12) months after the date of the Change of Control, by a material adverse change in the Executive’s function, duties or responsibilities from those described in Section 1 hereof without the written consent of the Executive which is
not remedied by the Company within 30 days after the Executive gives written notice to the Board of such change. In the event the Executive exercises his right to terminate his employment under this Section 5(D), the Company shall: 

(i) Pay to the Executive his Base Salary from the date of the termination of the Executive’s employment for a period of twelve
months following termination of the Executive. Such payments shall be payable on a quarterly basis following the Executive’s termination and shall be subject to all applicable federal and state withholding taxes. 
 (ii) Pay to the Executive (x) the full amount of any unpaid Annual Cash Bonus for any fiscal year of the Company prior to the year in
which the Executive’s employment is terminated in accordance with the provisions of Section 2(B) hereof, and (y) $100,000 for the fiscal year of the Company in which the Executive’s employment is terminated (or $300,000 if such
termination is in fiscal year 2009), payable in a lump-sum within sixty (60) days following termination. 
 (iii) Provide
the Continued Benefits. 
 For the purposes of this Agreement, a “Change of Control” shall have the meaning
ascribed to such term in the Parent 2009 Equity Incentive Plan. 
 (E) Disability of the Executive. In the event of the
disability of the Executive, the Company may, unilaterally, terminate the Executive’s employment hereunder at any time upon written notice to the Executive. In the event the Executive’s employment is terminated pursuant to this
Section 5(E), the Executive shall be entitled to no severance or other termination benefits from and after the termination of his employment except as provided in Sections 5(G), (H), (I) and (K) hereof. For purposes of this Agreement,
“disability” shall mean 

  

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the inability, by reason of bodily injury or physical or mental disease, or any combination thereof, of the Executive to perform his customary or other
comparable duties with the Company for ninety (90) consecutive days. In the event the parties are unable to agree as to whether the Executive is suffering a disability, the Executive and the Company shall each select a physician and the two
physicians so chosen shall make the determination or, if they are unable to agree, they shall select a third physician, and the determination as to whether the Executive is suffering a disability shall be based upon the determination of a majority
of the three physicians. Any other rights and benefits the Executive may have under employee benefit plans and programs of the Company generally in the event of the Executive’s disability shall be determined in accordance with the terms of such
plans and programs. 
 (i) Notwithstanding the foregoing, in the event that the Executive’s employment is terminated
pursuant to this Section 5(E), the Executive shall be entitled to receive (i) the full amount of any unpaid Annual Cash Bonus for any fiscal year of the Company prior to the year in which the Executive’s employment is terminated, and
(ii) for the calendar year in which the Executive’s employment is terminated, the pro rata amount of the Annual Cash Bonus calculated by multiplying (A) a fraction the numerator of which is the number of full calendar months that the
Executive was employed by the Company in such fiscal year and the denominator of which is 12 and (B) an amount equal to the current fiscal year’s Annual Cash Bonus determined and paid at the time and in the manner set forth in
Section 2(B) (provided that if the Executive’s employment is terminated on or prior to the last day of fiscal year 2009, the Company shall pay the Executive the full guaranteed bonus for 2009). 
 (F) Executive’s Death. The Executive’s employment shall be terminated upon the death of the Executive. Any rights and
benefits that the Executive’s estate or any other person may have under employee benefit plans and programs of the Company generally in the event of the Executive’s death shall be determined in accordance with the terms of such plans and
programs. In the event the Executive’s employment is terminated pursuant to this Section 5(F), the Executive shall be entitled to no severance or other termination benefits from and after the termination of his employment except as
provided in Sections 5(G), (H), (I) and (K) hereof. 
 (i) Notwithstanding the foregoing, in the event that the
Executive’s employment is terminated pursuant to this Section 5(F), the Executive (or his estate) shall be entitled to receive (i) the full amount of any unpaid Annual Cash Bonus for any fiscal year of the Company prior to the year in
which the Executive’s employment is terminated, (ii) for the fiscal year in which the Executive’s employment is terminated, the pro rata amount of the Annual Cash Bonus calculated by multiplying (A) a fraction the numerator of
which is the number of full calendar months that the Executive was employed by the Company in such fiscal year and the denominator of which is 12 and (B) an amount equal to the current fiscal year’s Annual Cash Bonus determined and paid at
the time and in the manner set forth in Section 2(B) (provided that if the Executive’s employment is terminated on or prior to the last day of fiscal year 2009, the Company shall pay the Executive the full guaranteed bonus for 2009).

 (G) Accrued and Unpaid Base Salary. If the Executive’s employment is terminated pursuant to this
Section 5, the Executive (or his estate) shall be entitled to receive any and all accrued but unpaid Base Salary earned through the date of termination by the Executive pursuant to the terms of this Agreement. 
  

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 (H) Reimbursement of Expenses. In the event of the Executive’s termination
pursuant to this Section 5, the Company shall reimburse the Executive (or his estate) for any and all out-of-pocket expenses reasonably incurred by the Executive consistent with Company policy prior to the date of such termination. 

(I) Continuing Benefits and Entitlements. Termination pursuant to this Section 5 shall not modify or affect in any way
whatsoever any vested right of the Executive to benefits payable under any retirement or pension plan or under any other employee benefit plan of Parent, Holdings, VS Direct, the Company or any of their affiliates, and all such benefits shall
continue, in accordance with, and subject to, the terms and conditions of such plans, to be payable in full to or on account of the Executive (or his estate) after such termination. In addition, in the event of the Executive’s termination
pursuant to this Section 5, he shall remain entitled to any rights or benefits under any equity agreement or plan applicable to him, including without limitation, the Stock Option Agreement, the Restricted Stock Award Agreement, the
Subscription Agreement and the Securityholders’ Agreement (as defined in the Parent 2009 Equity Incentive Plan). 
 (J)
Company’s Obligation. The Company’s obligation to make the severance payments and provide benefits in each case required under Sections 5(C) and 5(D) is conditioned upon the Executive’s (i) execution and delivery to the
Company of a general release covering employment-related claims (but not claims as a shareholder) in form satisfactory to the Company and (ii) continued observance in all material respects of the covenants contained Sections 7 or 8(A) or 9 of
this Agreement. Except as set forth in this Section 5(C), (D), or (J) or Section 6, Parent, Holdings, VS Direct, the Company or any of their affiliates shall not otherwise have a right of offset, recoupment or forfeiture with respect
to any payments, benefits or entitlements due to the Executive. 
 (K) Retiree Medical Benefits. Following termination
of the Executive’s employment hereunder as a result of expiration of the Term or pursuant to Sections 5(C), (D), (E) or (F), and following the expiration of any applicable Insurance Continuation Period, (i) the Executive shall be
responsible for paying the full COBRA premiums for the remainder (if any) of the applicable COBRA continuation period, and (ii) provided that the Executive is no longer eligible to participate in continuing health insurance coverage pursuant to
his employment letter with Toys “R” Us, Inc. dated as of October 13, 2006 (the “Toys Agreement”), following expiration of the applicable COBRA continuation period (if any) and until the date on which the Executive turns age
65 (or would have turned age 65 had the Executive survived until such date), the Executive and his eligible dependents (but only to the extent that his eligible dependents would have been eligible to receive coverage under the Toys Agreement had
such coverage remained available) shall be eligible to continue to participate in a Company provided health insurance plan that provides health coverage at a level commensurate with the level at which active senior executives of the Company and
their dependents participate so long as the Executive (or his spouse, in the case of his death) pays the full cost of such coverage. Notwithstanding the foregoing, the Company reserves the right, subject to the limitations of applicable law, to
amend or otherwise alter the health coverage made available pursuant to the foregoing sentence (including, without limitation, reducing such coverage) at any time so long as such coverage is commensurate with the coverage provided to active senior
executives of the Company. 
  

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 6. Repurchase Option. 
 (A) If the Executive voluntarily terminates his employment with the Company prior to the expiration of the Term (and does not continue as
a director of Parent, Holdings, VS Direct or the Company immediately following such termination) or the Board terminates the Executive’s employment hereunder “with cause”, then all of the Acquired Securities (whether then held by the
Executive or his transferees) shall be subject to repurchase by Parent pursuant to this Section 6 (the “Repurchase Option”). 
 (B) The purchase price of the Acquired Securities subject to the Repurchase Option shall be the lesser of (i) the Fair Market Value of such Acquired Securities, and (ii) the Original Cost of such Acquired
Securities. As used herein, the term “Original Cost” means the original issue price thereof, as such amount may be adjusted to account for any subdivision (by any stock split, stock dividend, recapitalization or otherwise) or
proportionate reduction (by reverse stock split or otherwise) of Parent Common Stock, and “Fair Market Value” means (a) if the Parent’s Common Stock is readily traded on an established national or regional securities
exchange, the price as determined pursuant to clause (a) of the definition of Fair Market Value in the 2009 Equity Incentive Plan and (b) if the Parent’s Common Stock is not so readily traded, the fair market value of the Acquired
Securities, as determined by Parent Board in good faith; provided that if within 10 days after the Executive is notified of Parent Board’s determination, the Executive notifies the Chairman of the Parent Board in writing that he objects to
Parent Board’s determination and the Executive and Parent Board are unable to reach agreement upon the Fair Market Value of the Acquired Securities subject to repurchase, then the Fair Market Value shall be determined by an independent
appraiser jointly selected by Parent Board and the Executive (and if the Executive and Parent Board are unable to agree upon the choice of an independent appraiser, they will select an independent appraiser by lot from a list comprised of four
nationally-recognized appraisal or investment banking firms, two of whom shall be selected by Parent Board and two of whom shall be selected by the Executive). The determination of the appraiser shall be set forth in a written report delivered to
Parent and the Executive and shall be conclusive and binding on the parties. The fees and expenses of the appraiser shall be borne equally by Parent and the Executive. 
 (C) Parent may elect to purchase all or any portion of the Acquired Securities that becomes subject to a Repurchase Option by delivering
written notice (the “Purchase Notice”) to the holder or holders of such Acquired Securities within 90 days after the date of termination of the Executive’s employment hereunder. The Purchase Notice will set forth the type and
amount of Acquired Securities to be acquired from each holder, the aggregate consideration to be paid for such securities and the time and place for the closing of the transaction. The amount of Acquired Securities to be purchased by Parent shall
first be satisfied to the extent possible from the Acquired Securities held by the Executive at the time of delivery of the Purchase Notice. If the amount of Acquired Securities then held by the Executive is less than the amount of Acquired
Securities that Parent has elected to purchase, Parent shall purchase the remaining Acquired Securities elected to be purchased ratably from the Executive’s transferees, in accordance with the amount of Acquired Securities held by such other
holder(s) at the time of delivery of such Purchase Notice. 
  

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 (D) The closing of the purchase of Acquired Securities pursuant to the Purchase Option
shall take place on the date designated by Parent in the Purchase Notice, which date shall not be more than 30 days nor less than five days after the delivery of the Purchase Notice. Parent may pay for the Acquired Securities to be purchased by it
pursuant to the Purchase Option (i) by cash payable by delivery of a check or a wire transfer of funds or (ii) if the terms of any financing arrangement entered into by Parent prohibit the payment of cash to the Executive, then (1) by
the issuance of a subordinated promissory note in the principal amount equal to 50% of the aggregate purchase price of the Acquired Securities being purchased by Parent, which subordinated promissory note shall mature on the fifth anniversary of the
Effective Date and accrue interest payable only at maturity at a rate of 8% per annum, and which shall be subordinated to all of Parent’s existing financing arrangements and (2) by cash payable by delivery of a check or a wire
transfer of funds equal to 50% of the aggregate purchase price of such Acquired Securities. Parent may assign its rights under this Section 6 to any of its subsidiaries; to the extent Parent is prohibited by law or by its or its
subsidiaries’ financing agreements from repurchasing any Acquired Securities subject to the Purchase Option, Parent may assign its right to exercise the Purchase Option with respect to such Acquired Securities to any of its stockholders or
their affiliates. The purchasers of Acquired Securities hereunder will be entitled to receive customary representations and warranties from the sellers regarding such sale and to require all sellers’ signatures be guaranteed. 
 (E) All repurchases of Acquired Securities pursuant to this Section 6 shall be subject to all applicable restrictions under law or
contained in Parent’s and its subsidiaries’ financing agreements. 
 7. Noncompetition Covenant. The Executive acknowledges
and agrees with respect to the Company that the business of the Company is conducted primarily in the United States (the “Territory”), and that the Company’s reputation and goodwill are an integral part of its business success
throughout the Territory. If the Executive deprives the Company of any of the Company’s goodwill or in any manner utilizes its reputation and goodwill in competition with the Company, the Company will be deprived of the benefits it has
bargained for. Accordingly, the Executive agrees that during the term of the Executive’s employment by the Company and for a period of three (3) years thereafter (the “Non-competition Period”), the Executive shall not,
without the Company’s prior written consent, directly or indirectly, own, manage, operate, join, control or participate in the ownership, management, operation or control of, or be connected as a director, officer, employee, partner, consultant
or otherwise with, any profit or non-profit business or organization in the Territory that, directly or indirectly, manufactures, markets or distributes (through wholesale, retail or direct marketing channels including, but not limited to, mail
order and internet distribution) (i) vitamins, minerals, nutritional supplements, herbal products, sports nutrition products, bodybuilding formulas or homeopathic remedies or (ii) any other product category sold by the Company or its
subsidiaries which represented four percent (4%) or more of the Company’s consolidated gross revenue in the month preceding the Executive’s termination (any such business being a “Competitive Business”).
Notwithstanding the foregoing, the Executive may be a passive owner (which shall not prohibit the exercise of any rights as a shareholder) of not more than 5% of the outstanding stock of any class of any public corporation that engages in a
Competitive Business. 
  

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 8. Nonsolicitation. 
 (A) For a period commencing on the Effective Date and ending on the fifth anniversary of the termination of the Executive’s
employment, the Executive shall not directly, or cause any other person or entity to, either for himself or for any other person, business, partnership, association, firm, company or corporation, hire from the Company or its subsidiaries or attempt
to hire, divert or take away from the Company or its subsidiaries, any of the officers or employees of the Company or its subsidiaries who are employed by the Company or its subsidiaries; provided that if the Executive’s employment has
terminated, this prohibition shall apply only with respect to officers and employees employed on the date of the Executive’s termination of employment or within six months prior to such date. For a period commencing on the Effective Date and
ending on the fifth anniversary of the termination of the Executive’s employment, the Executive shall not directly, or cause any other person or entity to, either for himself or for any other person, business, partnership, association, firm,
company or corporation, attempt to divert or take away from the Company or its subsidiaries any of the business of the Company or its subsidiaries; provided that if the Executive’s employment has terminated, this prohibition shall apply only
with respect to business as of the date of the Executive’s termination of employment. 
 (B) For a period commencing on
the date of the Executive’s termination of employment and ending on the fifth anniversary of the termination of the Executive’s employment, the Executive shall not directly, or cause any other person or entity to, knowingly make any
statement or other communication that impugns or attacks the reputation or character of the Company or its subsidiaries, or damages the goodwill of the Company or its subsidiaries, or knowingly take any action directly, or cause any other person or
entity to take any action, that would interfere with any contractual or customer or supplier relationships of the Company or its subsidiaries. 
 9. Nondisclosure Obligation. The Executive shall not at any time, whether during or after the termination of his employment, reveal to any person, association or company marketing plans, strategies, pricing policies, product
formulations and other specifications, customer lists and accounts, business finances or financial information of the Company or its subsidiaries so far as they have come or may come to his knowledge, except as may be required in the ordinary course
of performing his duties as an officer of Parent, Holdings, VS Direct or the Company or as may be in the public domain through no fault of his or as may be required by law and after prior notification to the Company (including a court,
administrative agency or arbitrator) or to the extent necessary to enforce or defend the Executive’s rights under this Agreement (including its Exhibits) or any other agreement between or among Parent, Holdings, VS Direct or the Company (and
related parties). 
 10. Intellectual Property, Inventions and Patents. The Executive acknowledges that all discoveries, concepts,
ideas, inventions, innovations, improvements, developments, methods, designs, analyses, drawings, reports, patent applications, copyrightable work and mask work (whether or not including any confidential information) and all registrations or
applications related thereto, all other proprietary information and all similar or related information (whether or not patentable) which relate to the Company’s or its subsidiary’s actual or anticipated business, research and development
or existing or future products or services and which are conceived, developed or made by the Executive (whether above or jointly with others) while employed by the Company whether before or after the date of this Agreement (“Work
Product”), 

  

 -11- 

 
belong to the Company or such subsidiary. The Executive shall promptly disclose such Work Product to the Company’s Board of Directors and, at the
Company’s expense, perform all actions reasonably requested by the Board (whether during or after the Executive’s employment with the Company) to establish and confirm such ownership (including, without limitation, assignments, consents,
powers of attorney and other instruments). 
 11. Remedies Upon Breach. The Executive agrees that any material breach of
Section 7, 8, 9 or 10 of this Agreement by him could cause irreparable damage to the Company and that in the event of such breach the Company shall have, in addition to any and all remedies of law, the right to an injunction, specific
performance or other equitable relief to prevent the violation of any obligations hereunder, without the necessity of posting a bond. 
 12.
Excise Taxes. Notwithstanding any other provision of this Agreement to the contrary, if any payment or benefit Executive would receive from the Company, Parent, VS Direct or VS Holdings under this Agreement or otherwise (including, without
limitation, any payment, benefit, entitlement or distribution paid or provided by the person or entity effecting the change in control) in connection with a change of control (the “Total Payments”) (a) constitute “parachute
payments” within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), and (b) but for this Section 12, would be subject to the excise tax imposed by Section 4999 of the Code,
then Executive will be entitled to receive either (i) the full amount of the Total Payments (taking into account the full value of the equity awards), or (ii) a portion of the Total Payments having a value equal to $1 less than three
(3) times Executive’s “base amount” (as such term is defined in Section 280G(b)(3)(A) of the Code), whichever of clauses (i) and (ii), after taking into account applicable federal, state, and local income and employment
taxes and the excise tax imposed by Section 4999 of the Code, results in the receipt by Executive, on an after-tax basis, of the greatest portion of the Total Payments. Any determination required under this Section 12 shall be made in
writing by the independent public accountants of the Company (the “Accountants”), whose determination shall be conclusive and binding for all purposes upon the Company and Executive. For purposes of making the calculations required by this
Section 12, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good-faith interpretations concerning the application of Sections 280G and 4999 of the Code. If there is a
reduction pursuant to this Section 12 of the Total Payments to be delivered to Executive, such reduction shall occur in the following order: (i) any cash severance payable by reference to Executive’s base salary or annual bonus,
(ii) any other cash amount payable to Executive, (iii) any benefit valued as a “parachute payment,” and (iv) acceleration of vesting of any equity award This Section 12 shall not apply, however, to any payment or
benefit if the application of Section 280G(b)(5) of the Code to such payment or benefit results in such payment or benefit not constituting a parachute payment under Section 280G(b)(2). For the avoidance of doubt, in the event additional
Total Payments are made to the Executive after the application of the cutback in this Section 12, which additional Total Payments result in the cutback no longer being applicable, the Company shall pay the Executive an additional amount equal
to the value of the Total Payments which were originally cutback. The Company shall determine at the end of each calendar year whether any such restoration is necessary based on additional Total Payments (if any) made during such calendar year, and
shall pay such restoration within 90 days of the last day of such calendar year. 
  

 -12- 

 13. Indemnification. If the Executive becomes a party to or is threatened to be made a party to
any threatened, pending or completed action, suit or proceeding (including being called as a witness) by reason of the fact that he is or was an officer, director, agent or employee of Parent, Holdings, VS Direct and/or the Company or is or was
serving at the request of any such party as an officer, director, agent or employee of another corporation or other entity, he shall be indemnified (and advanced expenses as incurred (subject to proper documentation) prior to a final disposition of
the matter, provided that the Executive agrees to repay such advanced expenses when required pursuant to the certificate of incorporation and by-laws of Parent, Holdings, VS Direct or the Company) by Parent, Holdings, VS Direct and the Company to
the maximum extent permitted by applicable law and not inconsistent with the provisions of the certificate of incorporation and by-laws of Parent, Holdings, VS Direct or the Company, as applicable. The right of indemnification herein provided for
shall not be deemed exclusive of any other rights to which the Executive may be entitled as a matter of law and any rights of indemnity under any policy of insurance carried by Parent, Holdings, VS Direct or the Company. Parent, Holdings, VS Direct
and the Company each individually agree to cover the Executive under its directors’ and officers’ liability insurance policies on a basis no less favorable to the Executive as any other director or senior executive is covered until such
time as suits can no longer be brought against the Executive as a matter of law. 
 14. Acknowledgements. The Executive hereby
acknowledges that the enforcement of the provisions of Sections 7 and 8 hereof may potentially interfere with his ability to pursue a proper livelihood. The Executive recognizes and agrees that the enforcement of this Agreement is necessary to
ensure the preservation, protection and continuity of the business, trade secrets and goodwill of the Company. The Executive agrees that, due to the proprietary nature of the Company’s business, the restrictions set forth in this Agreement are
reasonable as to time and scope. The Executive hereby acknowledges that he has been advised to consult with an attorney before executing this Agreement and that he has done so or, after careful reading and consideration, he has chosen not to do so
of his own volition. 
 15. Representations. The Executive hereby represents and warrants that his employment with the Company on the
terms and conditions set forth herein and his execution and performance of this Agreement do not constitute a breach or violation of any other written agreement or obligation with any third party. The Executive represents that he is not bound by any
written agreement which conflicts with, or may conflict with, the performance of his obligations hereunder or prevent the full performance of his duties and obligations hereunder. Parent, Holdings, VS Direct and the Company each represents and
warrants to the Executive that it is fully authorized by action of its board (or of any other person or body whose action is required) to enter into this Agreement and, if applicable, its Exhibits, and to perform its obligations under such agreement
and upon the execution and delivery of this Agreement and, to the extent applicable, its Exhibits by it and the Executive, this Agreement and, to the extent applicable, its Exhibits, shall be its valid and binding obligation, enforceable against it
in accordance with its terms, except to the extent that enforceability may be limited by applicable bankruptcy, insolvency or similar laws affecting the enforcement of creditors’ rights generally. 
 16. Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Delaware, without giving
effect to any conflict of law provisions thereof. In the event of a conflict between any provision of this Agreement 

  

 -13- 

 
(including its Exhibits) and any provision of any other plan, policy, program or agreement, the provisions of this Agreement (including its Exhibits) shall
govern unless the Executive has otherwise agreed in a writing that expressly references the provision of this Agreement or its Exhibits whose control he is waiving. Except as otherwise provided in Section 23, each of the parties agrees
that any dispute between the parties shall be resolved only in the courts of the State of Delaware located in Wilmington, Delaware or the United States District Court for the District of Delaware and the appellate courts having jurisdiction of
appeals in such courts. In that context, and without limiting the generality of the foregoing, each of the parties hereto irrevocably and unconditionally (a) submits in any proceeding relating to this Agreement or the Executive’s
employment by the Company or any affiliate, or for the recognition and enforcement of any judgment in respect thereof (a “Proceeding”), to the exclusive jurisdiction of the courts of the State of Delaware located in Wilmington,
Delaware, the court of the United States of America for the District of Delaware, and appellate courts having jurisdiction of appeals from any of the foregoing, and agrees that all claims in respect of any such Proceeding shall be heard and
determined in such Delaware State court or, to the extent permitted by law, in such federal court, (b) consents that any such Proceeding may and shall be brought in such courts and waives any objection that the Executive or the Company may now
or thereafter have to the venue or jurisdiction of any such Proceeding in any such court or that such Proceeding was brought in an inconvenient court and agrees not to plead or claim the same, (c) waives all right to trial by jury in any
Proceeding (whether based on contract, tort or otherwise) arising out of or relating to this Agreement or Executive’s employment by the Company or any affiliate of the Company, or the Executive’s or the Company’s performance under, or
the enforcement of, this Agreement, (d) agrees that service of process in any such Proceeding may be effected by mailing a copy of such process by registered or certified mail (or any substantially similar form of mail), postage prepaid, to
such party at the Executive’s or the Company’s address as provided in Section 21 hereof, and (e) agrees that nothing in this Agreement shall affect the right to effect service of process in any other manner permitted by
the laws of the State of Delaware. 
 17. Severability. In case any one or more of the provisions contained in this Agreement for any
reason shall be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision of this Agreement but this Agreement shall be construed as if such invalid, illegal or
unenforceable provisions has never been contained herein. Moreover, if one or more of the provisions contained in this Agreement shall for any reason be held to be excessively broad as to the scope, activity or subject so as to be unenforceable at
law, such provision or provisions shall be construed and reformed by the appropriate judicial body of limiting and reducing such provision or provisions, so as to be enforceable to the maximum extent compatible with the applicable law as it shall
then appear. 
 18. Waivers and Modifications. This Agreement may be modified, and the rights and remedies of any provisions hereof
may be waived, only in accordance with this Section 18. No modification or waiver by the Company shall be effective without the consent of at least a majority of the Company’s Board of Directors then in office at the time of such
modification or waiver. No waiver by either party of any breach by the other or any provision hereof shall be deemed to be a waiver of any later or other breach thereof or as a waiver of any other provision of this Agreement. 
  

 -14- 

 19. Entire Agreement. This Agreement, together with the Exhibits attached hereto, sets forth all
of the terms of the understandings between the parties with reference to the subject matter set forth herein and, as of the Effective Date, supersedes all prior agreements and understandings, both written and oral, between the Company and the
Executive concerning such subject matter, and may not be waived, changed, discharged or terminated orally or by any course of dealing between the parties, but only by an instrument in writing signed by the party against whom any waiver, change,
discharge or termination is sought. 
 20. Assignment. The Executive acknowledges that the services to be rendered by him are unique
and personal. Accordingly, the Executive may not assign any of his rights or delegate any of his duties or obligations under this Agreement. Parent, Holdings, VS Direct and the Company shall not be able to assign or transfer their rights, duties and
obligations under this Agreement without the Executive’s prior consent; provided that the Parent shall have the right to assign this Agreement to its successors and assigns provided such successor or assign agrees to perform Parent’s,
Holding’s, VS Direct’s and the Company’s duties under this Agreement and its Exhibits. The rights and obligations of Parent, Holdings, VS Direct and the Company under this Agreement shall inure to the benefit of, and shall be binding
upon, the successors and assigns of such party. The rights and obligations of the Executive shall inure to the benefit of, and shall be binding upon, his heirs. In the event the Executive dies while any payment or entitlement is due to him, such
payment or benefit shall be paid to his designated beneficiaries or if no beneficiary is designated, to his estate. 
 21. Notices.
All notices and other communications hereunder shall be in writing and shall be deemed to have been given to the person or entity (i) when delivered by hand, (ii) three days after being sent by first-class certified mail, postage prepaid,
return receipt requested, (iii) when delivered by overnight commercial courier, or (iv) when transmitted by telecopy or facsimile machine (with confirmation of receipt), to the following address of the party to whom such notice is to be
made, or to such other address as such party may designate in the same manner provided herein: 
 If to the Company, Parent, VS Direct or
Holdings: 
 Vitamin Shoppe Industries Inc. 
 2101 91st. Street 
 North Bergen, New Jersey 07047 
 Attention:  James M. Sander 
 Facsimile:
(201) 868-0727 
 with copies (which shall not constitute notice) to: 
 Irving Place Capital 
 277 Park Avenue, 39th
Floor 
 New York, New York 10172 
 Attention:  Douglas R. Korn and Richard L. Perkal 
 Facsimile: (212) 551-4542 
 and 
  

 -15- 

 Kirkland & Ellis LLP 
 601 Lexington Avenue 
 New York, NY 10022

 Attention:  Michael T. Edsall, Esq. 
 Facsimile: (212) 446-6460 
 If to the Executive: 
 Richard Markee 
 360 Mendham Road 

Bernardsville, NJ 07924 
 Facsimile:
(            )     - 
 with a copy (which shall not
constitute notice) to: 
 Morrison Cohen LLP 
 909 Third Avenue, 27th Floor 
 New York, New York 10022 
 Attention:  Colleen Westbrook, Esq. 
 Facsimile: (917) 522-3156 
 22. Survival of Obligations. The provisions of Sections 5, 6, 7, 8, 9, 10, 11, 12, 13, 15, 16,
17, 18, 19, 20, 21, 22, 23, 24 and 25 shall survive the termination or expiration of the Term as a continuing agreement of the Company, Holdings, Parent, VS Direct and the Executive. The existence of any claim or cause of action by the Executive
against the Company shall not constitute and shall not be asserted as a defense to the enforcement by the Company of this Agreement. 
 23.
Arbitration. Any dispute, controversy, or claim arising out of or in connection with this Agreement or its Exhibits shall be determined and settled by arbitration pursuant to the Commercial Arbitration rules then in effect of the American
Arbitration Association, to be held in the Borough of Manhattan in New York City. Any award rendered shall be final and conclusive upon the parties and a judgment thereon may be entered in a court having competent jurisdiction. Notwithstanding the
foregoing, nothing in this Section 23 shall prevent the parties from exercising their right to bring an action in any court of competent jurisdiction for injunctive or other provisional relief to compel the other party hereto to comply with its
obligations under Sections 7, 8 and 9 of this Agreement. In the event of any dispute between the parties relating to this Agreement or its Exhibits (including pursuant to Section 11 hereof), each party agrees to be responsible for its or his
own costs and expenses, including legal fees; provided that the costs of paying the arbitrator(s), if applicable, shall be split evenly between the parties. 
 24. Code Section 409A Compliance. 
 (A) The intent of the parties is that
payments and benefits under this Agreement comply with Code Section 409A and the regulations and guidance promulgated thereunder (collectively “Code Section 409A”) and, accordingly, to the maximum extent permitted, this
Agreement shall be interpreted to be in compliance therewith. In the event that the Company determines reasonably and in good faith that there is any provision of this Agreement 

  

 -16- 

 
that could cause the Executive to be subject to additional tax, interest or penalties under the provisions of Code Section 409A, such provision shall be
interpreted and resolved in the manner the Company reasonably and in good faith deems necessary to prevent the application of such taxes, interest or penalties under Code Section 409A. In no event whatsoever shall the Company be liable for any
additional tax, interest or penalty that may be imposed on the Executive by Code Section 409A or damages for failing to comply with Code Section 409A. 
 (B) A termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the
payment of any amount or benefit upon or following a termination of employment if such payment or benefit constitutes a “deferral of compensation” under Code Section 409A unless such termination is also a “separation from
service” within the meaning of Code Section 409A and, for purposes of any such payment or benefit, references to a “termination,” “termination of employment” or like terms shall mean “separation from service.”
Notwithstanding anything to the contrary in this Agreement, if the Executive is deemed on the date of termination to be a “specified employee” within the meaning of that term under Code Section 409A(a)(2)(B), then with regard to any
payment or the provision of any benefit that is considered deferred compensation under Code Section 409A payable on account of a “separation from service”, such payment or benefit shall not be made or provided until the date which is
the earlier of (i) the expiration of the six (6)-month period measured from the date of such “separation from service” of the Executive, and (ii) the date of the Executive’s death, to the extent required under Code
Section 409A. Upon the expiration of the foregoing delay period, all payments and benefits delayed pursuant to this Section (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay) shall
be paid or reimbursed to the Executive in a lump sum, and any remaining payments and benefits due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein. 
 (C) To the extent that severance payments or benefits pursuant to this Agreement are conditioned upon the execution and delivery by the
Executive of a release of claims, the Executive shall forfeit all rights to such payments and benefits which constitute a “deferral of compensation” under Code Section 409A unless such release is signed and delivered within sixty
(60) days following the date of the Executive’s termination of employment. In this regard, the Company agrees to provide the Executive with the form of release required under Section 5(J) no later than 5 days after the
Executive’s termination date. If the foregoing release is executed and delivered and no longer subject to revocation as provided in the preceding sentence, then the following shall apply: 
 (i) To the extent that any such cash payment or continuing benefit to be provided is not “nonqualified deferred compensation”
for purposes of Code Section 409A, then such payment or benefit shall commence upon the first scheduled payment date immediately following the date that the release is executed, delivered and no longer subject to revocation (the
“Release Effective Date”). The first such cash payment shall include payment of all amounts that otherwise would have been due prior to the Release Effective Date under the terms of this Agreement applied as though such payments
commenced immediately upon the Executive’s termination of employment, and any payments made thereafter shall continue as provided herein. 
  

 -17- 

 (ii) To the extent that any such cash payment or continuing benefit to be provided is
“nonqualified deferred compensation” for purposes of Code Section 409A, then, subject to the delay set forth above in clause (B), if applicable, such payments or benefits shall be made or commence upon the sixtieth (60th) day
following the Executive’s termination of employment. The first such cash payment shall include payment of all amounts that otherwise would have been due prior thereto under the terms of this Agreement had such payments commenced immediately
upon the Executive’s termination of employment, and any payments made thereafter shall continue as provided herein. 
 (D) To the extent that reimbursements or other in-kind benefits under this Agreement constitute “nonqualified deferred compensation” for purposes of Code Section 409A, (i) all expenses or other reimbursements hereunder
shall be made on or prior to the last day of the taxable year following the taxable year in which such expenses were incurred by the Executive, (ii) any right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange
for another benefit, and (iii) no such reimbursement, expenses eligible for reimbursement, or in-kind benefits provided in any taxable year shall in any way affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in
any other taxable year. 
 (E) For purposes of Code Section 409A, the Executive’s right to receive installment
payments pursuant to this Agreement shall be treated as a right to receive a series of separate and distinct payments. Whenever a payment under this Agreement specifies a payment period with reference to a number of days, the actual date of payment
within the specified period shall be within the sole discretion of the Company. 
 (F) Notwithstanding any other provision of
this Agreement to the contrary, in no event shall any payment under this Agreement that constitutes “nonqualified deferred compensation” for purposes of Code Section 409A be subject to offset by any other amount unless otherwise
permitted by Code Section 409A. 
 25. Counterparts. This Agreement may be executed in two or more counterparts, each of which
shall be deemed to be an original and all of which together shall be deemed to be one and the same instrument. Signatures delivered by facsimile (including by “pdf”) shall be effective for all purposes. 
 [END OF PAGE] 
 [SIGNATURE PAGE
FOLLOWS] 
  

 -18- 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

  

			
	VITAMIN SHOPPE INDUSTRIES, INC.
		
	By:	 	/s/ James M. Sander
		 	Name: James M. Sander
		 	Title: Vice President and General Counsel

  

			
	VS HOLDINGS, INC.
		
	By:	 	/s/ James M. Sander
		 	Name: James M. Sander
		 	Title: Vice President and General Counsel

  

			
	VS DIRECT, INC.
		
	By:	 	/s/ James M. Sander
		 	Name: James M. Sander
		 	Title: Vice President and General Counsel

  

			
	VS PARENT, INC.
		
	By:	 	/s/ James M. Sander
		 	Name: James M. Sander
		 	Title: Vice President and General Counsel
	
	/s/ Richard Markee
	Richard Markee

 Signature Page to Employment and Non-Competition Agreement 

 Exhibit A 
 Form of Stock Option Agreement 
  

 20 

 Exhibit B 
 Form of Restricted Stock Award Agreement 
  

 21 

 Exhibit C 
 Subscription Agreement 
  

 222009 Vitamin Shoppe Equity Incentive Plan

 Exhibit 10.27 
 VITAMIN SHOPPE 
 2009 EQUITY INCENTIVE PLAN 
 ARTICLE I 
 PURPOSE 

Effective Date. The Plan shall be known as the Vitamin Shoppe 2009 Equity Incentive Plan (the “Plan”), and shall be effective
as of September 2, 2009 (the “Effective Date”), subject to the approval of the Plan by the shareholders of VS Parent, Inc. (the “Company”) within 12 months of the Effective Date in accordance with
Section 422 of the Code. 
 Purpose of the Plan. The Plan is intended to further the growth and profitability of the Company by
increasing incentives and encouraging Share ownership on the part of the Employees, Members of the Board, and Independent Contractors of the Company and its Subsidiaries. The Plan is intended to permit the grant of Awards that constitute Incentive
Stock Options, Non-Qualified Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units and Other Stock Awards. 
 ARTICLE II 
 DEFINITIONS 
 The following words and phrases shall have the following meanings unless a different meaning is plainly required by the context: 
 “1934 Act” means the Securities Exchange Act of 1934, as amended. Reference to a specific section of the 1934 Act or regulation thereunder shall include such section or regulation, any valid
regulation or interpretation promulgated under such section, and any comparable provision of any future legislation or regulation amending, supplementing or superseding such section or regulation. 
 “Affiliate” means any corporation or any other entity (including, but not limited to, partnerships and joint ventures) directly or
indirectly controlled by the Company. 
 “Award” means, individually or collectively, a grant under the Plan of
Non-Qualified Stock Options, Incentive Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, or Other Stock Awards. 
 “Award Agreement” means the written agreement setting forth the terms and conditions applicable to an Award. 
 “Base Price” means the price at which a SAR may be exercised with respect to a Share. 
 “Board”
means the Company’s Board of Directors, as constituted from time to time. 
 “Change in Control” shall mean the first
(and only the first) to occur of the following: 

	 	(a)	any “person” as such term is used in Sections 13(d) and 14(d) of the 1934 Act (other than the Company, any trustee or other fiduciary holding securities under any employee
benefit plan of the Company, or any company owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of Common Stock of the Company), becoming the beneficial owner (as defined in Rule
13d-3 under the 1934 Act), directly or indirectly, of securities of the Company representing more than 50% of the combined voting power of the Company’s then outstanding securities; or 

  

	 	(b)	a merger or consolidation of the Company with any other corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding
immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 50% of the combined voting power of the voting securities of the Company or such
surviving entity outstanding immediately after such merger or consolidation; provided, however, that a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no person (other than those
covered by the exceptions in paragraph (a) of this definition) acquires more than 50% of the combined voting power of the Company’s then outstanding securities shall not constitute a Change in Control of the Company; or

  

	 	(c)	The sale of all or substantially all of the Company’s assets other than the sale or disposition of all or substantially all of the assets of the Company to a person or persons
who beneficially own, directly or indirectly, 50% or more of the combined voting power of the outstanding voting securities of the Company at the time of the sale. 

 “Code” means the Internal Revenue Code of 1986, as amended. Reference to a specific section of the Code or regulation thereunder shall
include such section or regulation, any valid regulation or other guidance promulgated under such section, and any comparable provision of any future legislation or regulation amending, supplementing or superseding such section or regulation.

 “Committee” means the committee of the Board described in ARTICLE III. 
 “Employee” means an employee of the Company, a Related Company, an Affiliate or a Subsidiary designated by the Committee.
Notwithstanding anything to the contrary contained herein, the Committee may grant Awards to an individual who has been extended an offer of employment by the Company, a Related Company or a Subsidiary; provided that any such Award shall be subject
to forfeiture if such individual does not commence employment by a date established by the Committee. 
 “Exercise Price”
means the price at which a Share subject to an Option may be purchased upon the exercise of the Option. 
 “Fair Market
Value” means, except as otherwise specified in a particular Award Agreement, (a) while the Shares are readily traded on an established national or regional securities exchange, 

 
the closing transaction price of such a Share as reported by the principal exchange on which such Shares are traded on the date as of which such value is
being determined or, if there were no reported transaction for such date, the opening transaction price as reported by exchange for the first trading date following the date by which such value is being determined on the next preceding date for
which a transaction was reported, (b) if the Shares are not readily traded on an established national or regional securities exchange, the average of the bid and ask prices for such a Share on the date as of which such value is being
determined, where quoted for such Shares, or (c) if Fair Market Value cannot be determined under clause (a) or clause (b) above, or if the Committee determines in its sole discretion that the Shares are too thinly traded for Fair
Market Value to be determined pursuant to clause (a) or clause (b), the value as determined by the Committee, in its sole discretion, on a good faith basis. 
 “Grant Date” means the date that the Award is granted. 
 “Immediate
Family” means the Participant’s children, stepchildren, grandchildren, parents, stepparents, grandparents, spouse, siblings (including half-brothers and half-sisters), in-laws (including all such relationships arising because of legal
adoption) and any other person required under applicable law to be accorded a status identical to any of the foregoing. 
 “Incentive
Stock Option” means an Option that is designated as an Incentive Stock Option and is intended by the Committee to meet the requirements of Section 422 of the Code. 
 “Independent Contractor” means an independent contractor or consultant of the Company, a Related Company or a Subsidiary designated by
the Committee. Notwithstanding anything to the contrary contained herein, the Committee may grant Awards to an individual who has been extended an offer to become an independent contractor or consultant by the Company, a Related Company or a
Subsidiary; provided that any such Award shall be subject to forfeiture if such individual does not commence employment by a date established by the Committee. 
 “Member of the Board” means an individual who is a member of the Board or of the board of directors of a Related Company or a Subsidiary. 
 “Non-Qualified Stock Option” means an Option that is not an Incentive Stock Option. 
 “Option” means an option to purchase Shares granted pursuant to ARTICLE V. 
 “Other Stock Award” means an Award granted pursuant to ARTICLE VIII to receive Shares on the terms specified in any applicable Award
Agreement. 
 “Participant” means an Employee, Independent Contractor, or Member of the Board with respect to whom an Award
has been granted and remains outstanding. 
 “Performance Goals” means goals established by the Committee as contingencies
for Awards to vest and/or become exercisable or distributable. 
 “Performance Period” means the designated period during
which the Performance Goals must be satisfied with respect to the Award to which the Performance Goals relate. 

 “Period of Restriction” means the period during which Restricted Stock or an RSU is
subject to forfeiture and/or restrictions on transferability. 
 “Plan” means this Vitamin Shoppe 2009 Equity Incentive
Plan, as set forth in this instrument and as hereafter amended from time to time. 
 “Related Company” means any person or
entity that would be considered a single employee with the Company under Section 414(b) or (c) of the Code if the language “at least 80 percent” as used in connection with the application of these provisions were replaced by
“at least 50%.” 
 “Restricted Stock” means a Stock Award granted pursuant to ARTICLE VI under which the Shares
are subject to forfeiture upon such terms and conditions as specified in the relevant Award Agreement. 
 “Restricted Stock
Unit” or “RSU” means a Stock Award granted pursuant to ARTICLE VI subject to a period or periods of time after which the Participant will receive Shares if the conditions contained in such Stock Award have been met.

 “Rule 16b-3” means Rule 16b-3 promulgated under the 1934 Act, as amended, and any future regulation amending,
supplementing or superseding such regulation. 
 “Share” means the Company’s common stock, par value $.01 per share, or
any security issued by the Company or any successor in exchange or in substitution therefor. 
 “Stock Appreciation Right”
or “SAR” means an Award granted pursuant to ARTICLE VII, granted alone or in tandem with a related Option which is designated by the Committee as an SAR. 
 “Stock Award” means an Award of Restricted Stock or an RSU pursuant to ARTICLE VI. 
 “Subsidiary(ies)” means any corporation (other than the Company) in an unbroken chain of corporations, including and beginning with the Company, if each of such corporations, other than the last corporation in the unbroken
chain, owns, directly or indirectly, more than fifty percent (50%) of the voting stock in one of the other corporations in such chain. 
 “Ten Percent Holder” means an Employee (together with persons whose stock ownership is attributed to the Employee pursuant to Section 424(d) of the Code) who, at the time an Option is granted, owns stock representing
more than ten percent of the voting power of all classes of stock of the Company. 
 ARTICLE III 
 ADMINISTRATION 
 3.1 The
Committee. The Plan shall be administered by the compensation committee of the Board (the “Committee”). To the extent advisable or otherwise required by applicable law, regulation or rule, it is intended that each member of the
Committee shall qualify as (a) a “non-employee director” under Rule 16b-3, (b) an “outside director” under Section 162(m) of the Code and (c) an “independent director” under the rules of any national
securities exchange or national securities association, as applicable. If it is later determined that one or more members of the 

 
Committee do not so qualify, actions taken by the Committee prior to such determination shall be valid despite such failure to qualify. 
 Reference to the Committee shall refer to the Board if the Committee ceases to exist and the Board does not appoint a successor Committee. 
 3.2 Authority and Action of the Committee. It shall be the duty of the Committee to administer the Plan in accordance with the Plan’s
provisions. The Committee shall have all powers and discretion necessary or appropriate to administer the Plan and to control its operation, including, but not limited to, the power to (a) determine which Employees, Members of the Board and
Independent Contractors shall be eligible to receive Awards and to grant Awards, (b) prescribe the form, amount, timing and other terms and conditions of each Award, (c) interpret the Plan and the Award Agreements, (d) adopt such
procedures as it deems necessary or appropriate to permit participation in the Plan by eligible Employees, Members of the Board and Independent Contractors, (e) adopt such rules as it deems necessary or appropriate for the administration,
interpretation and application of the Plan, (f) interpret, amend or revoke any such procedures or rules, (g) correct any technical defect(s) or technical omission(s), or reconcile any technical inconsistency(ies), in the Plan and/or any
Award Agreement, (h) accelerate the vesting of any award, (i) extend the period during which an Option may be exercisable, and (j) make all other decisions and determinations that may be required pursuant to the Plan and/or any Award
Agreement or as the Committee deems necessary or advisable to administer the Plan. 
 The acts of the Committee shall be either (i) acts
of a majority of the members of the Committee present at any meeting at which a quorum is present or (ii) acts approved in writing by all of the members of the Committee without a meeting. A majority of the Committee shall constitute a quorum.
The Committee’s determinations under the Plan need not be uniform and may be made selectively among Participants, whether or not such Participants are similarly situated. Each member of the Committee is entitled to, in good faith, rely or act
upon any report or other information furnished to that member by any Employee of the Company or any of its Subsidiaries or Affiliates, the Company’s independent certified public accountants or any executive compensation consultant or other
professional retained by the Company to assist in the administration of the Plan. 
 The Company shall effect the granting of Awards under
the Plan, in accordance with the determinations made by the Committee, by execution of written agreements and/or other instruments in such form as is approved by the Committee. 
 3.3 Delegation by the Committee. The Committee in its sole discretion and on such terms and conditions as it may provide may delegate all or any
part of its authority and powers under the Plan to one or more Members of the Board of the Company and/or officers of the Company; provided, however, that the Committee may not delegate its authority or power if prohibited by law, or if such
delegation would cause the Awards or other transactions under the Plan to cease to be exempt from Section 16(b) of the 1934 Act or not to qualify for, or cease to qualify for, exemption under Code § 162(m). 
 3.4 Decisions Binding. All determinations, decisions and interpretations of the Committee, the Board, and any delegate of the Committee pursuant
to the provisions of the Plan or 

 
any Award Agreement shall be final, conclusive, and binding on all persons, and shall be given the maximum deference permitted by law. 
 3.5 Performance Goals. The Committee shall have the authority to grant Awards under this Plan that are contingent upon the achievement of
Performance Goals. Such Performance Goals are to be specified in the relevant Award Agreement and may be based on such factors including, but not limited to: (a) revenue, (b) earnings per Share, (c) net income per Share,
(d) Share price, (e) pre-tax profits, (f) net earnings, (g) net income, (h) operating income, (i) cash flow, (j) earnings before interest, taxes, depreciation and amortization, (k) sales, (l) total
stockholder return relative to assets, (m) total stockholder return relative to peers, (n) financial returns (including, without limitation, return on assets, return on equity and return on investment), (o) cost reduction targets,
(p) customer satisfaction, (q) customer growth, (r) employee satisfaction, (s) gross margin, (t) revenue growth, (u) store openings, (v) any combination of the foregoing, or, (w) such other criteria as the
Committee may determine. Performance Goals may be in respect of the performance of the Company, any of its Subsidiaries or Affiliates or any combination thereof on either a consolidated, business unit or divisional level. Performance Goals may be
absolute or relative (to prior performance of the Company or to the performance of one or more other entities or external indices) and may be expressed in terms of a progression within a specified range. The foregoing criteria shall have any
reasonable definitions that the Committee may specify, which may include or exclude any or all of the following items, as the Committee may specify: extraordinary, unusual or non-recurring items; effects of accounting changes; effects of currency
fluctuations; effects of financing activities (e.g., effect on earnings per share of issuing convertible debt securities); expenses for restructuring, productivity initiatives or new business initiatives; non-operating items; acquisition expenses;
and effects of divestitures. Any such performance criterion or combination of such criteria may apply to the participant’s award opportunity in its entirety or to any designated portion or portions of the award opportunity, as the Committee may
specify. 
 ARTICLE IV 
 SHARES SUBJECT TO THE PLAN 
 4.1 Number of Shares. Subject to adjustment as provided in Section 9.12, the number
of Shares available for grants of Awards under the Plan shall be the sum of (a) 750,000 Shares plus (b) the number of Shares subject to awards granted under the 2006 Stock Option Plan of the Company (the “Prior Plan”), that
thereafter would meet the requirements of Section 4.3 if such awards had been granted under this Plan. Shares awarded under the Plan may be either authorized but unissued Shares, authorized and issued Shares reacquired (including Shares
reacquired under the Prior Plan) and held as treasury Shares or a combination thereof. To the extent permitted by applicable law or exchange rules, Shares issued in assumption of, or in substitution for, any outstanding awards of any entity acquired
in any form of combination by the Company or any Subsidiary or Affiliate shall not reduce the Shares available for grants of Awards under this Section 4.1. The maximum number of shares with respect to which Incentive Stock Options may be
granted shall be 750,000. 
 4.2 Limit on Individual Awards. Subject to adjustment as provided in Section 10.13, the maximum
number of Shares with respect to which (i) Options and SARs, (ii) Restricted Stock, RSUs and Other Stock Awards that vest only if the Participant achieves Performance Goals 

 
established by the Committee or (iii) any combination of (i) and (ii), may be granted during any calendar year to any Participant shall be 187,500
Shares. 
 4.3 Lapsed Awards. To the extent that Shares subject to an outstanding Option (except to the extent Shares are issued or
delivered by the Company in connection with the exercise of a tandem SAR) or other Award are not issued or delivered by reason of (i) the expiration, cancellation, forfeiture or other termination of such Award, (ii) the withholding of such
Shares in satisfaction of applicable federal, state or local taxes or (iii) of the settlement of all or a portion of such Award in cash, then such Shares shall again be available under this Plan. 
 ARTICLE V 
 STOCK OPTIONS

 5.1 Grant of Options. Subject to the provisions of the Plan, Options may be granted to Participants at such times, and subject
to such terms and conditions, as determined by the Committee in its sole discretion. An Award of Options may include Incentive Stock Options, Non-Qualified Stock Options, or a combination thereof; provided, however, that an Incentive Stock Option
may only be granted to an Employee of the Company or a Subsidiary and no Incentive Stock Option shall be granted more than ten years after the earlier of (i) the date this Plan is adopted by the Board or (ii) the date this Plan is approved
by the Company’s shareholders. 
 5.2 Award Agreement. Each Option shall be evidenced by an Award Agreement that shall specify
the Exercise Price, the expiration date of the Option, the number of Shares to which the Option pertains, any conditions to the exercise of all or a portion of the Option, and such other terms and conditions as the Committee, in its discretion,
shall determine. The Award Agreement pertaining to an Option shall designate such Option as an Incentive Stock Option or a Non-Qualified Stock Option. Notwithstanding any such designation, to the extent that the aggregate Fair Market Value
(determined as of the Grant Date) of Shares with respect to which Options designated as Incentive Stock Options are exercisable for the first time by a Participant during any calendar year (under this Plan or any other plan of the Company, or any
parent or subsidiary as defined in Section 424 of the Code) exceeds $100,000, such Options shall constitute Non-Qualified Stock Options. For purposes of the preceding sentence, Incentive Stock Options shall be taken into account in the order in
which they are granted. 
 5.3 Exercise Price. Subject to the other provisions of this Section, the Exercise Price with respect to
Shares subject to an Option shall be determined by the Committee in its sole discretion; provided, however, that the Exercise Price shall be not less than one hundred percent (100%) of the Fair Market Value of a Share on the Grant Date; and
provided further, that the Exercise Price with respect to an Incentive Stock Option granted to a Ten Percent Holder shall not be less than one hundred and ten percent (110%) of the Fair Market Value of a Share on the Grant Date. 
 5.4 Expiration Dates. Each Option shall terminate not later than the expiration date specified in the Award Agreement pertaining to such Option;
provided, however, that the expiration date with respect to an Option shall not be later than the tenth anniversary of its Grant Date and the expiration date with respect to an Incentive Stock Option granted to a Ten Percent Holder shall not be
later than the fifth anniversary of its Grant Date. 

 5.5 Exercisability of Options. Subject to Section 5.4, Options granted under the Plan shall
be exercisable at such times, and shall be subject to such restrictions and conditions, as the Committee shall determine in its sole discretion. The exercise of an Option is contingent upon payment by the Optionee of the amount sufficient to pay all
taxes required to be withheld by any governmental agency. Such payment may be in any form approved by the Committee. 
 5.6 Method of
Exercise. Options shall be exercised by the Participant’s delivery of a written notice of exercise to the Corporate Secretary of the Company (or his or her designee), setting forth the number of Shares with respect to which the Option is to
be exercised, accompanied by full payment of the Exercise Price with respect to each such Share and an amount sufficient to pay all taxes required to be withheld by any governmental agency. The Exercise Price shall be payable to the Company in full
in cash or its equivalent. The Committee, in its sole discretion, also may permit exercise (a) by tendering previously acquired Shares which have been held by the Optionee for at least six months having an aggregate Fair Market Value at the
time of exercise equal to the aggregate Exercise Price of the Shares with respect to which the Option is to be exercised, or (b) by any other means which the Committee, in its sole discretion, determines to both provide legal consideration for
the Shares, and to be consistent with the purposes of the Plan. As soon as practicable after receipt of a written notification of exercise and full payment for the Shares with respect to which the Option is exercised, the Company shall deliver to
the Participant Share certificates (which may be in book entry form) for such Shares with respect to which the Option is exercised. 
 5.7
Restrictions on Share Transferability. Incentive Stock Options are not transferable, except by will or the laws of descent. The Committee may impose such additional restrictions on any Shares acquired pursuant to the exercise of an Option as
it may deem advisable, including, but not limited to, restrictions related to applicable federal securities laws, the requirements of any national securities exchange or system upon which Shares are then listed or traded, or any blue sky or state
securities laws. 
 5.8 Cashing Out of Option. On receipt of written notice of exercise, the Committee may elect to cash out all or
part of the portion of the Shares for which an Option is being exercised by paying the optionee an amount, in cash or Shares, equal to the excess of the Fair Market Value of the Shares over the option price times the number of Shares for which the
Option is being exercised on the effective date of such cash-out. 
 ARTICLE VI 
 STOCK AWARDS 
 6.1 Grant of Stock Awards. Subject to the provisions of
the Plan, Stock Awards may be granted to such Participants at such times, and subject to such terms and conditions, as determined by the Committee in its sole discretion. 
 6.2 Stock Award Agreement. Each Stock Award shall be evidenced by an Award Agreement that shall specify the number of Shares granted, the price, if any, to be paid for the Shares and the Period of Restriction
applicable to a Restricted Stock Award or RSU Award and such other terms and conditions as the Committee, in its sole discretion, shall determine. 

 6.3 Transferability/Share Certificates. Shares subject to an Award of Restricted Stock may not be
sold, transferred, pledged, assigned, or otherwise alienated or hypothecated during a Period of Restriction. During the Period of Restriction, a Restricted Stock Award may be registered in the holder’s name or a nominee’s name at the
discretion of the Company and may bear a legend as described in Section 6.4.2. Unless the Committee determines otherwise, shares of Restricted Stock shall be held by the Company as escrow agent during the applicable Period of Restriction,
together with stock powers or other instruments of assignment (including a power of attorney), each endorsed in blank with a guarantee of signature if deemed necessary or appropriate by the Company, which would permit transfer to the Company of all
or a portion of the Shares subject to the Restricted Stock Award in the event such Award is forfeited in whole or part. 
 6.4 Other
Restrictions. The Committee, in its sole discretion, may impose such other restrictions on Shares subject to an Award of Restricted Stock as it may deem advisable or appropriate. 
 6.4.1 General Restrictions. The Committee may set restrictions based upon applicable federal or state securities laws, or any other
basis determined by the Committee in its discretion. 
 6.4.2 Legend on Certificates. The Committee, in its sole
discretion, may legend the certificates representing Restricted Stock during the Period of Restriction to give appropriate notice of such restrictions. For example, the Committee may determine that some or all certificates representing Shares of
Restricted Stock shall bear the following legend: “The sale or other transfer of the shares of stock represented by this certificate, whether voluntary, involuntary, or by operation of law, is subject to certain restrictions on transfer as set
forth in the Vitamin Shoppe 2009 Equity Incentive Plan (the “Plan”), and in a Restricted Stock Award Agreement (as defined by the Plan). A copy of the Plan and such Restricted Stock Award Agreement may be obtained from the Vitamin
Shoppe Corporate Secretary. 
 6.5 Removal of Restrictions. Shares of Restricted Stock covered by a Restricted Stock Award made under
the Plan shall be released from escrow as soon as practicable after the termination of the Period of Restriction and, subject to the Company’s right to require payment of any taxes, a certificate or certificates evidencing ownership of the
requisite number of Shares shall be delivered to the Participant. 
 6.6 Voting Rights. During the Period of Restriction, Participants
holding Shares of Restricted Stock granted hereunder may exercise full voting rights with respect to those Shares, unless otherwise provided in the Award Agreement. 
 6.7 Dividends and Other Distributions. During the Period of Restriction, Participants holding shares of Restricted Stock shall be entitled to receive all dividends and other distributions paid with respect to
such Shares unless otherwise provided in the Award Agreement. If any such dividends or distributions are paid in Shares, the Shares shall be deposited with the Company and shall be subject to the same restrictions on transferability and
forfeitability as the Shares of Restricted Stock with respect to which they were paid. 

 6.8 Performance Goals and Performance Periods. The Committee may grant Stock Awards that become
earned if the Participant achieves the applicable Performance Goals during and in respect of the designated Performance Period. The Performance Goals and the Performance Period shall be established by the Committee, in its sole discretion. The
Committee shall establish Performance Goals for each Performance Period prior to, or as soon as practicable after, the commencement of such Performance Period. The Committee shall also establish a schedule or schedules for the Stock Awards setting
forth the portion of the Award which will be earned or forfeited based on the degree of achievement, or lack thereof, of the Performance Goals at the end of the relevant Performance Period. The Performance Goals shall be defined as to their
respective components and meaning by the Committee (in its sole discretion). During any Performance Period, the Committee shall have the authority to adjust the Performance Goals and/or the Performance Period in such manner as the Committee, in its
sole discretion, deems appropriate at any time and from time to time. The payout of any such Award may be adjusted at the discretion of the Committee. 
 ARTICLE VII 
 STOCK APPRECIATION RIGHTS 
 7.1 Grant of SARs. Subject to the provisions of the Plan, SARs may be granted to such Participants at such times, and subject to such terms and
conditions, as shall be determined by the Committee in its sole discretion; provided, however, that any tandem SAR (i.e., a SAR granted in tandem with an Option) related to an Incentive Stock Option shall be granted at the same time that such
Incentive Stock Option is granted. 
 7.2 Base Price and Other Terms. The Committee, subject to the provisions of the Plan, shall have
complete discretion to determine the terms and conditions of SARs granted under the Plan. Without limiting the foregoing, the Base Price with respect to Shares subject to a tandem SAR shall be the same as the Exercise Price with respect to the
Shares subject to the related Option. 
 7.3 SAR Agreement. Each SAR grant shall be evidenced by an Award Agreement that shall specify
the Base Price (which shall not be less than one hundred percent (100%) of the Fair Market Value of a Share on the Grant Date), the term of the SAR, the conditions of exercise, and such other terms and conditions as the Committee, in its sole
discretion, shall determine. 
 7.4 Expiration Dates. Each SAR shall terminate no later than the tenth anniversary of its Grant Date;
provided, however, that the expiration date with respect to a tandem SAR shall not be later than the expiration date of the related Option. 
 7.5 Payment of SAR Amount. Unless otherwise specified in the Award Agreement pertaining to a SAR, a SAR may be exercised (a) by the Participant’s delivery of a written notice of exercise to the Corporate Secretary of the
Company (or his or her designee) setting forth the number of whole SARs which are being exercised, (b) in the case of a tandem SAR, by surrendering to the Company any Options which are cancelled by reason of the exercise of such SAR, and
(c) by executing such documents as the Company may reasonably request. Except as otherwise provided in the relevant Award Agreement, upon exercise of a SAR, the Participant shall be entitled to receive payment from the Company in an amount
determined by multiplying: (i) the amount by which the Fair Market Value of a Share on the date of exercise exceeds the Base Price 

 
specified in the Award Agreement pertaining to such SAR; by (ii) the number of Shares with respect to which the SAR is exercised. 
 7.6 Payment Upon Exercise of SAR. Payment to a Participant upon the exercise of the SAR shall be made, as determined by the Committee in its sole
discretion, either (a) in cash, (b) in Shares with a Fair Market Value equal to the amount of the payment or (c) in a combination thereof, as set forth in the applicable Award Agreement. 
 ARTICLE VIII 
 OTHER STOCK AWARDS

 Subject to the provisions of the Plan, the Committee may develop sub-plans or grant other equity-based awards (“Other Stock
Awards”) on such terms as it may determine, including, but not limited to, Awards designed to comply with or take advantage of applicable local laws of jurisdictions outside of the United States. 
 ARTICLE IX 
 CHANGE IN CONTROL 

 Unless otherwise provided in an Award Agreement, in the event of a Change in Control, unless the right to accelerated vesting, the lapse
of restrictions or risks of forfeiture, or accelerated delivery or receipt of cash provided for herein is waived or deferred by a Participant and the Company by written notice prior to the Change in Control, all restrictions and risks of forfeiture
on Awards (other than those imposed by law or regulation) shall lapse, and all deferral or vesting periods relating to Awards shall immediately expire. In the event of a Change in Control, the Board can unilaterally implement or negotiate a
procedure with any party to the Change in Control pursuant to which all Participants’ unexercised Options may be cashed out as part of the purchase transaction, without requiring exercise, for the difference between the purchase price and the
Exercise Price. 
 ARTICLE X 
 MISCELLANEOUS 
 10.1 No Effect on Employment or Service. Nothing in the Plan shall interfere with or limit in any way
the right of the Company to terminate any Participant’s employment or service at any time, for any reason and with or without cause. 
 10.2 Participation. No person shall have the right to be selected to receive an Award under this Plan, or, having been so selected, to be selected to receive a future Award. 
 10.3 Unfunded Status. The Plan is intended to constitute an “unfunded” plan for incentive and deferred compensation. With respect to any
payments not yet made to a Participant by the Company, nothing set forth herein shall give any Participant any rights that are greater than those of a general creditor of the Company. In its sole and absolute discretion, the Committee may authorize
the creation of trusts or other arrangements to meet the obligations created under the Plan to deliver Shares or payments in lieu of or with respect to Awards hereunder; provided, however, that the existence of such trusts or other arrangements is
consistent with the unfunded status of the Plan. 

 10.4 Indemnification. Each person who is or shall have been a member of the Committee, or of the
Board, shall be indemnified and held harmless by the Company against and from (a) any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by him or her in connection with or resulting from any claim, action, suit,
or proceeding to which he or she may be a party or in which he or she may be involved by reason of any good faith action taken or good faith failure to act under the Plan or any Award Agreement, and (b) from any and all amounts paid by him or
her in settlement thereof, with the Company’s approval, or paid by him or her in satisfaction of any judgment in any such claim, action, suit, or proceeding against him or her, provided he or she shall give the Company an opportunity, at its
own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own behalf. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may
be entitled under the Company’s Certificate of Incorporation or By-Laws, by contract, as a matter of law, or otherwise, or under any power that the Company may have to indemnify them or hold them harmless. 
 10.5 Successors. All obligations of the Company under the Plan, with respect to Awards granted hereunder, shall be binding on any successor to the
Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation or otherwise, of all or substantially all of the business or assets of the Company. 
 10.6 Beneficiary Designations. Subject to the restrictions in Section 10.7 below, a Participant under the Plan may name a beneficiary or
beneficiaries to whom any vested but unpaid Award shall be paid in the event of the Participant’s death. For purposes of this Section, a beneficiary may include a designated trust having as its primary beneficiary a family member of a
Participant. Each such designation shall revoke all prior designations by the Participant and shall be effective only if given in a form and manner acceptable to the Committee. In the absence of any such designation, any vested benefits remaining
unpaid at the Participant’s death shall be paid to the Participant’s estate and, subject to the terms of the Plan and of the applicable Award Agreement, any unexercised vested Award may be exercised by the administrator or executor of the
Participant’s estate. 
 10.7 Nontransferability of Awards. No Award granted under the Plan may be sold, transferred, pledged,
assigned, or otherwise alienated or hypothecated, other than by will, by the laws of descent and distribution; provided, however, that except as provided by in the relevant Award Agreement, a Participant may transfer, without consideration, an Award
other than an Incentive Stock Option to one or more members of his or her Immediate Family, to a trust established for the exclusive benefit of one or more members of his or her Immediate Family, to a partnership in which all the partners are
members of his or her Immediate Family, or to a limited liability company in which all the members are members of his or her Immediate Family; provided, further, that any such Immediate Family, and any such trust, partnership and limited liability
company, shall agree to be and shall be bound by the terms of the Plan, and by the terms and provisions of the applicable Award Agreement and any other agreements covering the transferred Awards. All rights with respect to an Award granted to a
Participant shall be available during his or her lifetime only to the Participant and may be exercised only by the Participant or the Participant’s legal representative. 

 10.8 No Rights as Stockholder. Except to the limited extent provided in Sections 6.6 and 6.7, no
Participant (nor any beneficiary) shall have any of the rights or privileges of a stockholder of the Company with respect to any Shares issuable pursuant to an Award (or exercise thereof), unless and until certificates representing such Shares shall
have been issued, recorded on the records of the Company or its transfer agents or registrars, and delivered to the Participant (or beneficiary). 
 10.9 Withholding Requirements. Prior to the delivery of any Shares or cash pursuant to an Award (or exercise thereof), the Company shall have the power and the right to deduct or withhold, or require a Participant to remit to the
Company, an amount sufficient to satisfy any federal, state, local and foreign taxes of any kind (including, but not limited to, the Participant’s FICA and SDI obligations) which the Committee, in its sole discretion, deems necessary to be
withheld or remitted to comply with the Code and/or any other applicable law, rule or regulation with respect to such Award (or exercise thereof). 
 10.10 Withholding Arrangements. The Committee, in its sole discretion and pursuant to such procedures as it may specify from time to time, may permit or require a Participant to satisfy all or part of the tax withholding obligations
in connection with an Award by (a) having the Company withhold otherwise deliverable Shares, or (b) delivering to the Company already-owned Shares, in each case having a Fair Market Value equal to the amount sufficient to satisfy the
minimum statutory tax withholding obligations, provided such Shares have been held by the Participant for at least six months. 
 10.11 No
Corporate Action Restriction. The existence of the Plan, any Award Agreement and/or the Awards granted hereunder shall not limit, affect or restrict in any way the right or power of the Board or the shareholders of the Company to make or
authorize (a) any adjustment, recapitalization, reorganization or other change in the Company’s or any Subsidiary’s or Affiliate’s capital structure or business, (b) any merger, consolidation or change in the ownership of
the Company or any Subsidiary or Affiliate, (c) any issue of bonds, debentures, capital, preferred or prior preference stocks ahead of or affecting the Company’s or any Subsidiary’s or Affiliate’s capital stock or the rights
thereof, (d) any dissolution or liquidation of the Company or any Subsidiary or Affiliate, (e) any sale or transfer of all or any part of the Company’s or any Subsidiary’s or Affiliate’s assets or business, or (f) any
other corporate act or proceeding by the Company or any Subsidiary or Affiliate. No Participant, beneficiary or any other person shall have any claim against any Member of the Board or the Committee, the Company or any Subsidiary or Affiliate, or
any employees, officers, shareholders or agents of the Company or any Subsidiary or Affiliate, as a result of any such action. 
 10.12
Stockholders Agreement and Other Requirements. Notwithstanding anything herein to the contrary, as a condition to the receipt of any Award or the receipt of any Shares pursuant to a the exercise of any Option under the Plan, to the extent
required by the Committee, the Participant shall execute and deliver a stockholder’s agreement or such other documentation which shall set forth certain restrictions on transferability of any Shares, and such other terms as the Board or
Committee shall from time to time establish. Such stockholder’s agreement or other documentation shall apply to the Shares acquired under the Plan and covered by such stockholder’s agreement or other documentation. The Company may require,
in connection with the grant of any Award or as 

 
a condition of exercise of any Option, that the Participant become a party to any other existing stockholder agreement (or other agreement). 
 10.13 Restrictions on Shares. Each Award made hereunder shall be subject to the requirement that if at any time the Company determines that the
listing, registration or qualification of the Shares subject to such Award upon any securities exchange or under any law, or the consent or approval of any governmental body, or the taking of any other action is necessary or desirable as a condition
of, or in connection with, the exercise or settlement of such Award or the delivery of Shares thereunder, such Award shall not be exercised or settled and such Shares shall not be delivered unless such listing, registration, qualification, consent,
approval or other action shall have been effected or obtained, free of any conditions not acceptable to the Company. The Company may require that certificates evidencing Shares delivered pursuant to any Award made hereunder bear a legend indicating
that the sale, transfer or other disposition thereof by the holder is prohibited except in compliance with the Securities Act of 1933, as amended, and the rules and regulations thereunder. Finally, no Shares shall be issued and delivered under the
Plan, unless the issuance and delivery of those Shares shall comply with all relevant regulations and any registration, approval or action thereunder. 
 10.14 Changes in Capital Structure. In the event that any dividend or other distribution (whether in the form of cash, Shares, other securities, or other property), recapitalization, stock split, reverse stock
split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, change of control or exchange of Shares or other securities of the Company, or other corporate transaction or event (each a “Corporate
Event”) affects the Shares, the Board shall, in such manner as it in good faith deems equitable, adjust any or all of (i) the number of Shares or other securities of the Company (or number and kind of other securities or property) with
respect to which Awards may be granted, (ii) the number of Shares or other securities of the Company (or number and kind of other securities or property) subject to outstanding Awards, and (iii) the Exercise Price or Base Price with
respect to any Award, or make provision for an immediate cash payment to the holder of an outstanding Award in consideration for the cancellation of such Award. 
 If the Company enters into or is involved in any Corporate Event, the Board may, prior to such Corporate Event and effective upon such Corporate Event, take such action as it deems appropriate, including, but not
limited to, replacing Awards with substitute awards in respect of the Shares, other securities or other property of the surviving corporation or any affiliate of the surviving corporation on such terms and conditions, as to the number of shares,
pricing and otherwise, which shall substantially preserve the value, rights and benefits of any affected Awards granted hereunder as of the date of the consummation of the Corporate Event. Notwithstanding anything to the contrary in the Plan, if any
Corporate Event occurs, the Company shall have the right, but not the obligation, to cancel each Participant’s Awards immediately prior to such Corporate Event and to pay to each affected Participant in connection with the cancellation of such
Participant’s Awards, an amount equal that the Committee, in its sole discretion, in good faith determines to be the equivalent value of such Award (e.g., in the case of an Option or SAR, the amount of the spread), it being understood that the
equivalent value of an Option or SAR with an exercise price greater than or equal to the fair market value of the underlying stock shall be $0. 
 Upon receipt by any affected Participant of any such substitute awards (or payment) as a result of any such Corporate Event, such Participant’s affected Awards for which such substitute 

 
awards (or payment) were received shall be thereupon cancelled without the need for obtaining the consent of any such affected Participant. Any actions or
determinations of the Committee under this Section 10.13 need not be uniform as to all outstanding Awards, nor treat all Participants identically. 
 ARTICLE XI 
 AMENDMENT, TERMINATION AND DURATION 
 11.1 Amendment, Suspension or Termination. The Board, in its sole discretion, may amend, suspend or terminate the Plan, or any part thereof, at
any time and for any reason, subject to any requirement of stockholder approval required by applicable law, rule or regulation, including, without limitation, Section 422 of the Code, Section 162(m) of the Code and the rules of the New
York Stock Exchange; provided, however, the Board may amend the Plan and any Award Agreement without shareholder approval as necessary to avoid the imposition of any taxes under Section 409A of the Code. Subject to the preceding sentence, the
amendment, suspension or termination of the Plan shall not, without the consent of the Participant, materially adversely alter or impair any rights or obligations under any Award theretofore granted to such Participant. Notwithstanding the
foregoing, the Committee may, but shall not be required to, amend or modify any Award to the extent necessary to avoid the imposition of taxes under Section 409A of the Code. The Company intends to administer the Plan and all Awards granted
thereunder in a manner that complies with Code Section 409A, however, the Company shall not be responsible for any additional tax imposed pursuant to Code Section 409A, nor will the Company indemnify or otherwise reimburse Participant for
any liability incurred as a result of Code Section 409A. No Award may be granted during any period of suspension or after termination of the Plan. Notwithstanding anything in this Plan to the contrary and subject to Section 10.13, without
the approval of stockholders of the Company, no amendment and no substitution or exchange of an outstanding award shall reduce the exercise price of any outstanding Option, Base Price of any outstanding SAR, or purchase price of any other
outstanding Award conferring a right to purchase Stock to an amount less than the Fair Market Value of a share at the date of grant of the outstanding award. 
 11.2 Duration of the Plan. The Plan shall, subject to Section 11.1, terminate ten years after adoption by the Board, unless earlier terminated by the Board and no further Awards shall be granted under the
Plan. The termination of the Plan shall not affect any Awards granted prior to the termination of the Plan. 
 ARTICLE XII 

LEGAL CONSTRUCTION 
 12.1 Gender
and Number. Except where otherwise indicated by the context, any masculine term used herein also shall include the feminine; the plural shall include the singular and the singular shall include the plural. 
 12.2 Severability. In the event any provision of the Plan or of any Award Agreement shall be held illegal or invalid for any reason, the
illegality or invalidity shall not affect the remaining parts of the Plan or the Award Agreement, and the Plan and/or the Award Agreement shall be construed and enforced as if the illegal or invalid provision had not been included. 

 12.3 Requirements of Law. The granting of Awards and the issuance of Shares under the Plan shall
be subject to all applicable laws, rules and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. 
 12.4 Governing Law; Waiver of Jury Trial. The Plan and all Award Agreements shall be construed in accordance with and governed by the laws of the State of Delaware, but without regard to its conflict of law
provisions. Participant hereby agrees to waive all rights to trial by jury in any proceeding (whether based on contract, tort or otherwise) arising out of or relating to any Award Agreement. 
 12.5 Captions. Captions are provided herein for convenience only, and shall not serve as a basis for interpretation or construction of the Plan.

 12.6 Incentive Stock Options. Should any Option granted under this Plan be designated an “Incentive Stock Option,” but
fail, for any reason, to meet the requirements of the Code for such a designation, then such Option shall be deemed to be a Non-Qualified Stock Option and shall be valid as such according to its terms.

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