Document:

EX-10.1

 Exhibit 10.1 

 
 

 
 Separation from Service Agreement 
 To:     Steven Dykman 
 From: Gentex Corporation 

Date:  May 17, 2013 
  

	1.	Timing: 

 I, Steven
Dykman, understand that my employment with Gentex Corporation will end effective December 31, 2014 (“Separation Date”). I will be on paid administrative leave starting May 17, 2013 and lasting through December 31, 2014
(“Administrative Leave”). My role as CFO and Officer of Gentex will end on May 17, 2013. From May 17, 2013 through May 17, 2014 I will receive full salary and benefits. From May 18, 2014 through December 31, 2014 I will
receive a monthly consulting fee as a part-time employee of $2,500 per month. While on Administrative Leave my title will be Financial Consultant, and I agree to be reasonably available to be contacted for Information regarding company needs on an
as-needed basis and as further outlined below. 
  

	2.	Pay and Benefits End Date: 

On December 31, 2014, I will be officially terminated from the payroll system. I agree that Gentex Corporation has fulfilled its
obligation to me in terms of all past payment of wages, and any other earned benefit that is due to me (vacation pay earned, etc.). I agree that I will forfeit my currently accrued vacation time, and while on Administrative Leave I will not accrue
additional vacation time. Additionally, I understand that my medical coverage will continue through May 17, 2014 on the same basis as an active employee of Gentex, as Gentex’s plans and practices may be amended from time to time.

  

	3.	Stock Options: 

 All
vested stock options must be exercised on or before the Close of business on December 31,2014, or they will be forfeited. I understand that I must adhere to Gentex blackout periods and abide by Gentex’s policies on refraining from trading
on insider information. I understand that my December 27, 2012 restricted stock grants will be forfeited upon the signing this agreement. I understand that I will receive a cash incentive bonus of $76,120 for the equivalent prorated share of my
7,500 shares restricted stock grant (Issued on December 27, 2012 and pro-rated through December 31, 2014) equaling 3,017 shares. The prorated share value of $76,120 was calculated based on $25.23 per share times 3,017 shares. This amount
will be paid on or around January 8, 2015, subject to the fulfillment of my obligations under this agreement. This $76,120 payment and future restricted stock and stock option exercises between now and December 31, 2014 are subject to the
fulfillment of my obligations under this agreement and the 4 year claw back provision the same as my previous 4 years of stock option and restricted stock compensation-totaling $548,744.50. I further agree that the monies I have received under this
Section are conditioned on me, within 21 days after my Separation Date, signing, delivering to Gentex, and not revoking a Supplemental Release and Waiver of Claims, essentially identical to the release and waiver set forth in Section 8 below.

  

	4.	Employment Agreement: 

 (a) I agree to abide by the confidentiality and non-compete provisions in the attached Employment Agreement, signed by me, on November 2, 1993, as well as the daw-back provisions in Gentex’s
Grant Agreements (for restricted non-qualified stock options) that governed my stock options during my employment and will govern my stock options during my Administrative Leave (collectively “Prior Agreements”). In addition, during the
period of my Administrative Leave, I agree to remain available at reasonable times for reasonable and customary. consultation with Gentex with respect to transitional matters, including but not limited to resigning from my role in EC Aviation as
well as the boards of any Gentex subsidiaries and other Gentex-related roles, and to provide reasonable assistance in matters with which I was involved prior to May 17, 2013. Gentex agrees to provide me access to Gentex files as necessary to provide
such consultation. 

  
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 (b) I agree that I will protect Confidential Information, as defined herein,
and that i will never, directly or Indirectly, use or disclose it unless specifically authorized by Gentex, except as required by law, governmental regulations, or pursuant to an order of a court or governmental agency, and provided that nothing set
forth in this Agreement shall be construed to restrict either party’s cooperation with any governmental investigation. For the purposes of this Agreement, “Confidential Information” means any and all information of or about or related
to Gentex, its Affiliates (as defined below), and any of their respective officers, directors, shareholders or employees that was acquired by me as a result of my employment with Gentex and is not generally available to the public. Confidential
information also includes all information received by Gentex or any of its Affiliates from customers or other third parties with any understanding, express or implied, that the information would not be disclosed. 

(c) I agree that I will never disparage or criticize in any fashion, directly, indirectly, or by implication, Gentex, its
Affiliates (as defined herein), their business, their operations or management, their products, or services or practices, or any of their respective officers, directors, shareholders or past and present employees (each, a “Gentex Party”
and collectively, the “Gentex Parties”), and that I will not otherwise do or say anything that could disrupt the good morale of any of the Gentex Parties or harm the interests or reputation of any of the Gentex Parties, Gentex or any of
its Affiliates. For the purposes of this Agreement, “Affiliates” means all persons and entities directly or indirectly controlling, controlled by or under common control with Gentex, whether control may be by management authority, equity
interest or otherwise. Gentex likewise agrees that it will not disparage me. 
 (d) In consideration of the
payments during the period of my Administrative Leave, for a period of one (1) year following the end of the term of the Administrative Leave (the “Restrictive Period”), except pursuant to prior permission from Gentex, I may not
engage in competition with Gentex on my own behalf or work (as an employee, partner, agent, officer, director, advisor, or consultant, or otherwise, and regardless of whether compensation is received) for, engage in or acquire or invest in any
business anywhere in the world having assets in (or actively considering engagement in) businesses that are in competition with Gentex (“Restricted Businesses”). 

(e) During the Restrictive Period, I also may not in any manner solicit, recruit or hire any Gentex employees,
contractors, or customers of Gentex to cease to be employed by or otherwise do business with Gentex or to reduce the same, or to be employed by or otherwise do business with any Restricted Business. 

(f) If any court determines that any of the provisions of subsections (d) and (e) above are invalid or
unenforceable, the remainder of such provisions shall not be affected thereby and shall be given full effect without regard to the invalid provisions. If any court construes any of the provisions of subsections (d) and (e) to be
unreasonable because of the duration of such provision or the geographic or other scope thereof, such court shall have the power to reduce the duration or restrict the geographic or other scope of such provisions and enforce such provision as so
reduced or restricted. 
  

	5.	Indemnification. 

 During
and subsequent to the Administrative Leave, Gentex shall Indemnify me to the extent permitted by my Indemnity Agreement and by applicable law, against all costs, charges and expenses, including, without limitation, reasonable attorney’s fees,
incurred or sustained by me in connection with any action, suit or proceeding (including Internal investigations by Gentex) to which I am made a party by reason of having been an officer or employee of Gentex. In such action, suit or proceeding, I
shall be represented by counsel selected by me and approved by Gentex, such approval not to be unreasonably withheld. 
  

	6.	Return of Company Documents and Other Property. 

 Effective as of the date of signing this Agreement, I represent and warrant that I have returned to Gentex any and all copies or derivations of documents, materials and Information (whether in hardcopy,
on electronic media or otherwise) related to the business of Gentex and its Affiliates, Including without limitation copies or derivations of electronic mail correspondence (whether present or otherwise), and all keys, access cards, credit cards,
computer hardware and software, telephones and telephone-related equipment and all other property of Gentex or any of its Affiliates in my possession or control. Gentex agrees that I may retain a copy of the documents currently in my possession so
long as a true and accurate copy is returned to Gentex. Further, I 

  
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agree that I will destroy or return to Gentex, on or before the Separation Date any materials that Gentex provides to me following the signing of this Agreement as a part of my role as Financial
Consultant, and that I will not retain, any copy or derivation of any documents, materials or information (whether in-hardcopy; on electronic media or otherwise) of Gentex or any of its Affiliates, Including without limitation copies or derivations
of electronic mail correspondence. Further, I agree that I will not, following the signing of this Agreement, for any purpose, attempt to access or use any computer or computer network or system of Gentex or any of its Affiliates, including without
limitation the electronic mail system. Further, I acknowledge that I have disclosed to Gentex all passwords necessary or desirable to enable Gentex to access all information which I have password-protected on any computer equipment, network or
system of Gentex or any of its Affiliates. I have the option to request the retrieval of personal date on company owned hard drives. 
  

	7.	Compliance Confirmation and Indemnification. 

 I represent and warrant that to the best of my knowledge I have performed my duties as Chief Financial Officer of Gentex in accordance with Gentex’s Code of Ethics for Certain Senior Officers and
applicable law. I further represent and warrant that I have no knowledge of any regulatory violations, other potentially illegal activity or other wrongdoing by any Gentex Party (as such term is defined in Section 4(c)), which I have not
already disclosed to Gentex’s counsel. 
  

	8.	Release and Waiver of Claims. 

 (a) In consideration of the payments during the period of my Administrative Leave, to which I would not otherwise be entitled, on my own behalf and that of my heirs, executors, administrators,
beneficiaries, personal representatives and assigns, I agree that this Agreement shall be in complete and final settlement of any and all causes of action, rights, claims, charges, complaints and grievances (collectively, “Claims”),
whether known or unknown, that I have had in the past, now have, or might now have, in any way related to, connected with or arising out of my employment or its termination or pursuant to Title VII of the Civil Rights Act of 1964, the Americans with
Disabilities Act, the Age Discrimination in Employment Act, the Employee Retirement Income Security Act, the fair employment practices, wage payment and wage and hour statutes of the State of Michigan and any other state or states in which I have
provided services to Gentex and/or any other federal, state or local law, regulation or other requirement, each as amended from time to time, including without limitation my right to recover, directly or Indirectly, all or part of any penalty
imposed on Gentex or any of its Affiliates as a result of any action brought by or on behalf of any federal, state or local government or by me or on my behalf against Gentex or any of its Affiliates, and I hereby waive any and all such Claims and
release and forever discharge Gentex, its Affiliates and all of their respective past, present and future officers, directors, shareholders, employees, employee benefit plans, administrators, trustees, agents, representatives, successors and
assigns, and all others connected with any of them, both individually and in their official capacities, from any and all such Claims. 
 (b) This Agreement, Including the release and waiver of claims set forth in this Section 8, creates legally binding obligations, and I understand that Gentex and its Affiliates have advised me to
consult an attorney before signing this Agreement. In signing this Agreement, I give Gentex and its Affiliates assurance that I have signed it voluntarily and with a full understanding of its terms; that I have had sufficient opportunity of at least
twenty-one (21) days, before signing this Agreement, to consider its terms and to consult with an attorney, If I wished to do so, or to consult with any other of those persons to whom reference is made in Section 3(c) above; and that, in
signing this Agreement, I have not relied on any promises or representations, express or implied, that are not set forth expressly in this Agreement. 
  

	9.	Medical Coverage / Cobra; 

I understand that Gentex Corporation will fulfill its obligation to me by providing me with the opportunity to subscribe to Gentex’s
Group Medical Plan costing me 102% of the monthly premium, payable in advance. This option will occur on May 18, 2014. 
  

	10.	Expense Reports: 

 I will
complete an expense report for all outstanding receipts within the next 30 days. 

  
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	11.	Acknowledgement: 

 I
acknowledge I have been advised to consult with an attorney prior to signing this Release; I have been offered twenty-one (21) days within which to consider the release, but may sign at any time prior to the 21 days; I understand that the ADEA
Release will not apply to claims arising after the date this Release is signed; and I have seven (7) days after signing this Release to revoke the ADEA Waiver, and this Agreement shall not become effective and enforceable until that 7 day
revocation period has expired, and only if you do not timely revoke it by providing written notice to Mr. Kurt Wassink, at Gentex Corporation’s Zeeland, Michigan headquarters. 

 

	12.	Future Visits to Gentex: 

I understand that all future visits to Gentex are subject to the Gentex Corporation Visitor Policy. 

 

	13.	Miscellaneous. 

 (a) This Agreement constitutes the entire agreement between me and Gentex and supersedes all prior and contemporaneous communications, agreements and understandings with Gentex, whether written or oral,
with respect to my employment, Its termination and all related matters, excluding the confidentiality and non-competition provisions of my Employment Agreement as well as the claw-back provisions in Gentex’s Grant Agreements (for restricted
non-qualified stock options), which shall remain in full force and effect in accordance with their terms. 
 (b)
This Agreement may not be modified or amended, and no breach shall be deemed to be waived, unless agreed to in writing by me and Fred Bauer of Gentex or his expressly authorized designee. The captions and headings in this Agreement are for
convenience only, and in no way define or describe the scope or content of any provision of this Agreement. 

(c) The obligation of Gentex to make payments to me or on my behalf under this Agreement, and my right to retain the same,
is expressly conditioned upon my continued full performance of my obligations under this Agreement and any Prior Agreements. 
 (d) This is a Michigan contract and shall be governed and construed in accordance with the laws of the State of Michigan, without regard to the conflict of laws principles thereof. I agree to submit to
the jurisdiction of the courts of the State of Michigan in connection with any dispute arising out of this Agreement. 
  

	14.	Signature: 

 I understand
the following in regards to signing this agreement. 
  

	 	a.	If I sign this document at the time it is provided to me, I need to do nothing further; my pay and benefits will continue through the length of the defined
Administrative Leave. 

  

	 	b.	If the signed agreement is returned to Gentex Zeeland Headquarters postmarked no later than one week from the date it was issued to me (see the top of this document),
my pay and benefits will continue through the length of the period of the Administrative Leave. 

  

	 	c.	If the signed agreement is returned to Gentex Zeeland Headquarters postmarked later than one week from the date it was issued to me, my severance pay and benefits will
stop until the signed agreement is received if within 21 days of the date it was issued. Full severance benefits will be paid but delayed, If I sign and postmark within the 21 days. 

 

	 	d.	If the agreement is not returned within a 21 day period of the date it was issued, the separation agreement and payments are no longer available to me.

  

									
	Signed:	 	/s/ Steven Dykman	 		 	Date:	 	7/2/13
		 	 Steven Dykman
 Financial
Consultant
	 		 		 	
					
	Signed:	 	/s/ Fred Bauer	 		 	Date:	 	7-1-13
		 	 Fred Bauer
 Chairman and
CEO
	 		 		 	
					
	Signed:	 	/s/ Bruce Los	 		 	Date:	 	7-1-13
		 	 Bruce Los
 Senior Vice
President
	 		 		 	

  
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 Exhibit 10.11 
 A request for confidential treatment has been made with respect to portions of the following document that are marked with [*CONFIDENTIAL*]. The redacted portions have been filed separately with the
SEC. 
 DISTRIBUTION AGREEMENT 
 GENERAL: Sprouts Farmer’s Markets (SFM) and Nature’s Best (NB) seek to build on their long-standing relationship, which through this agreement will enable both organizations to plan and
implement future distribution logistics to support SFM’s growth. 
 This Agreement for Distribution of
Products (Agreement) is effective April 14th, 2010
between SFM, an Arizona corporation, and NB, a California corporation. 
 ASSUMPTIONS 

A. SFM is primarily engaged in the sale of natural and organic products in a ranch market format. Its operations include
retail stores and distribution centers. SFM currently operates in several regions, including Arizona, California, Texas and Colorado. 
 B. NB provides the distribution of natural and organic products to all SFM stores. NB also provides various customized support services (Special Services – see Exhibit A) to SFM’s
headquarters, tailored to SFM’s operations. 
 C. The parties desire to enter into this Agreement to set
forth the terms upon which NB will sell and distribute to SFM locations and SFM locations will purchase these goods and services. 
 NOW, THEREFORE, the parties agree as follows: 
  

	 	1)	 TERM: This Agreement shall have an initial term of seven years commencing as of April 14th, 2010 (the Effective Date).

  

	 	2)	 DISTRIBUTION AGREEMENT: 

  

	 	a.	 SFM Distribution: SFM will continue to self-distribute produce to its stores, with the objective of maintaining quality produce expertise.
SFM will also continue to purchase and distribute certain other commodities that, from time to time are compatible with, and complement, SFM produce operations. Current examples include [*CONFIDENTIAL*] custom bulk products, key bulk
commodities and strategic buys. 

  

	 	b.	 NB Distribution: NB will be SFM’s Primary Supplier for all remaining natural product stock keeping units (SKUs) that are not
direct-store delivered. NB will provide the distribution of selectable, defined as slotted and picked from inventory, SKUs, which will enable SFM to capitalize on NB’s system to realize the overall lowest product cost.

  
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 A request for confidential treatment has been made with respect to portions of the
following document that are marked with [*CONFIDENTIAL*]. The redacted portions have been filed separately with the SEC. 
  

 

	 	c.	 Primary Supplier: Shall be defined as: 

 

	 	i.	 All SFM stores will order a [*CONFIDENTIAL*] of their distributor-sourced organic and natural purchases from NB, Other than products
distributed though its distribution facilities, SFM will source [*CONFIDENTIAL*] natural and organic products carried in SFM stores, if available from NB, through NB in the following SFM Categories: [*CONFIDENTIAL*].

  

	 	ii.	 SFM will maintain a [*CONFIDENTIAL*], (current purchase average for stores operating at least 3 months), adjusted annually according to
changes in the Consumer Price Index. 

  

	 	iii.	 If SFM elects to move their private label items into distribution at NB, the minimum referenced in section (2)(c)(ii) will be adjusted upward
by [*CONFIDENTIAL*] 

  

	 	iv.	 New Regions: If SFM opens locations beyond the states in which NB currently supplies SFM stores, and NB does not service those states, NB will have
a [*CONFIDENTIAL*] to establish distribution for SFM in that area. [*CONFIDENTIAL*], if NB has not established distribution in that new region, SFM has the option to utilize another distributor for these locations
[*CONFIDENTIAL*]. 

 If, during the [*CONFIDENTIAL*] specified above, NB
supplies a new region’s store(s) via NB’s existing distribution center(s), and SFM’s distribution system is utilized for delivery, NB will pay SFM a delivery allowance [*CONFIDENTIAL*]. 

If SFM exercises its option to utilize another distributor in a new region for the interim period specified above,
[*CONFIDENTIAL*]. SFM will make a good faith effort to negotiate the best rate possible from that temporary supplier to mitigate the impact. 
  

	 	3)	 NB SUPPLIER PERFORMANCE: 

  

	 	a.	 New Products: 

  

	 	i.	 NB will stock all new products that are specifically requested by SFM and are placed chain wide (all SFM stores). 

 

	 	ii.	 Regional product requests will be stocked if carried by all stores in the region, and there are reasonable aggregate product turns.

  
 Page 2 of 14

 A request for confidential treatment has been made with respect to portions of the
following document that are marked with [*CONFIDENTIAL*]. The redacted portions have been filed separately with the SEC. 
  

 

	 	b.	 Accuracy: NB shall maintain an average of 99% or better order selection accuracy rate. 

 

	 	c.	 In-Stock Level: NB and SFM will continue their mutual efforts to eliminate the causes of out-of-stock product in order to maintain the
highest fill rate possible. 

  

	 	i.	 NB will utilize its commercially reasonable efforts to maintain an NB controlled in-stock level of 97%. [*CONFIDENTIAL*]

  

	 	d.	 Delivery: NB will provide [*CONFIDENTIAL*] deliveries a week based on a regularly published order/delivery schedule. Select stores
will receive [*CONFIDENTIAL*] deliveries as requested from time to time by SFM. 

  

	 	4)	 TEXAS DISTRIBUTION CENTER: 

  

	 	a.	 In order to support SFM’s growth, NB will open a distribution center in Texas by mid-year, 2011. 

 

	 	5)	 NB SPECIAL SERVICES: 

  

	 	a.	 NB will continue to provide SFM with customized support services. See Special Services – Exhibit A. NB will add support services
from time to time as deemed appropriate by both companies, as has been past practice. 

  

	 	6)	 PROMOTION ASSISTANCE ALLOWANCE: 

 

	 	a.	 At the end of each calendar quarter NB will pay SFM a Promotion Assistance Allowance of [*CONFIDENTIAL*] . 

 

	 	7)	 ACCELERATED COST PLUS RATE: 

  

	 	a.	 The day following the Effective Date of this agreement, the cost plus rate will be moved to [*CONFIDENTIAL*] on the Cost Plus Program. See
Exhibit D. 

  

	 	b.	 The cost plus rate will remain at [*CONFIDENTIAL*] until SFM’s purchase volume reaches [*CONFIDENTIAL*].

  

	 	8)	 PRIVATE LABEL: 

  

	 	a.	 Pricing: SFM will be billed at the [*CONFIDENTIAL*] . Pricing shown on Cost Plus Program – Exhibit D.

  
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 A request for confidential treatment has been made with respect to portions of the
following document that are marked with [*CONFIDENTIAL*]. The redacted portions have been filed separately with the SEC. 
  

 

	 	b.	 Special Situations: If the turns on a private label item (or line) are significantly below [*CONFIDENTIAL*] SFM and NB will
work in good faith to [*CONFIDENTIAL*] 

  

	 	c.	 Responsibilities: SFM will negotiate directly with the manufacturer for all new private label items. NB will provide the purchasing and distribution
functions. 

  

	 	d.	 Discontinued Private Label: NB will purchase and stock all private label items in good faith to fulfill SFM’s needs,
[*CONFIDENTIAL*]. Existing, successful coordination will continue between SFM and NB buyers to minimize product loss. 

  

	 	9)	 CONTROL LABEL PRODUCTS: 

  

	 	a.	 Pricing: NB will purchase and stock Control Label Products under the same terms and conditions as the SFM private label above.

  

	 	10)	 CROSS DOCK PALLETS: See Exhibit C 

 

	 	a.	 NB will, from time to time at SFM request, ship product by means of cross-docking. Cross-dock shipments will be subject to specific parameters (see
cross-dock parameters Exhibit C). NB will bill SFM the following per pallet charge: 

  

	 	i.	 Pallet Charges 

  

	 	1.	 California and Arizona
- [*CONFIDENTIAL*] 

 

	 	2.	 Texas - [*CONFIDENTIAL*] (NB warehouse handling only) 

 

	 	3.	 Colorado - [*CONFIDENTIAL*] 

  

	 	ii.	 The above pallet charges will be adjusted on January 1 each year by the percentage movement in the Consumer Price Index.

  

	 	11)	 FUEL SURCHARGE (FSC): 

  

	 	a.	 To address the problem of fluctuations in world oil markets, a fuel surcharge is applied per store delivery on all NB delivered shipments. The
amount of the fuel surcharge is adjusted monthly and correlated to movements in diesel fuel prices as shown in Exhibit B. 

  

	 	b.	 FSC Rebate: A special fuel surcharge rebate will be sent to SFM at the completion of each month based on [*CONFIDENTIAL*] of the
aggregate fuel surcharge dollar amount, if any, applicable to that month’s deliveries. 

  
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 A request for confidential treatment has been made with respect to portions of the
following document that are marked with [*CONFIDENTIAL*]. The redacted portions have been filed separately with the SEC. 
  

 

	 	12)	 PALLETS, TOTES, TRANSAFES: 

  

	 	a.	NB Deliveries: At the time of delivery SFM stores will return all totes from their prior delivery. They will also exchange a number of pallets equal to the
amount received on their current delivery. 

  

	 	b.	NB Facility Pickup: SFM will exchange, by periodic return shipments to the corresponding NB distribution 

	 	    	center(s), a quantity of pallets equal to the amount loaded on outbound pickups. Pallet counts will be reconciled monthly to ensure an even exchange.

  

	 	c.	Transafes: In order to minimize the outstanding transafe inventory, SFM will continue to coordinate with NB to expedite the return of all
transafes, per current practice. 

  

	 	13)	NEW STORE OPENINGS: 

  

	 	a.	In addition to the special services outlined in Exhibit A for new openings, all opening order invoices will be incorporated into a side note with 13 equal
weekly payments, starting the first week after the final opening order shipment. 

  

	 	14)	CREDITS: 

  

	 	a.	NB’s existing credit policy will continue to apply to all shipments (see Exhibit E). 

 

	 	15)	CONFIDENTIALITY: 

  

	 	a.	Both SFM and NB agree to keep all terms of this agreement strictly confidential. 

 

	 	b.	In the process of making this Agreement, both parties may also have acquired or developed confidential information relating to each party’s businesses that
includes quality standards, business methods, sales data and trends, intellectual property, purchasing history, pricing, marketing and pricing strategies, technical data, and general or specific customer information. Each party agrees to maintain
this information as confidential. 

  

	 	16)	 COMPLIANCE WITH LAWS: 

  

	 	a.	 General: Each party covenants and agrees during the term of this agreement it will fully comply with all applicable laws, ordinances,
regulations, licenses and permits of or issued by any federal, state or local government entity, agency or instrumentality applicable to its responsibilities hereunder. Each party agrees that it shall comply with all certification procedures and
regulations. Each party shall promptly notify the other party after it becomes aware of any material adverse proposed law, regulation or order that, to its knowledge, may or does conflict with the parties’ obligations under this Agreement. The
parties will then use reasonable efforts to promptly decide whether a change may be made to the terms of this Agreement to eliminate any such conflict or impracticability. 

  
 Page 5 of 14

 A request for confidential treatment has been made with respect to portions of the
following document that are marked with [*CONFIDENTIAL*]. The redacted portions have been filed separately with the SEC. 
  

 

	 	17)	 TERMINATION PROVISION: 

  

	 	a.	 Either party may terminate this Agreement immediately by providing written notice to the other party for a material breach of any obligations under
the Agreement, and failure to cure such breach after [*CONFIDENTIAL*] days’ prior written notice of the breach. 

  

	 	b.	 SFM may terminate this agreement for cause if the quality of service provided by NB does not meet industry standards, and Nature’s Best fails
to substantially remedy the service within [*CONFIDENTIAL*] days of written notice by SFM. 

  

	 	18)	 MISCELLANEOUS: 

 (a) Binding Effect: This Agreement, including its exhibits, supersedes all prior agreements between SFM and NB and is the only agreement between SFM and NB, either oral or in writing relating to
the subject matter hereof. 
 (b) Force Majeure: “Force Majeure” events shall be events beyond
the reasonable control of a party (and not through the fault or negligence of such party) that make timely performance of an obligation not possible. Force Majeure events are those that are not reasonably foreseeable with the exercise of reasonable
care, nor avoidable through the payment of nonmaterial additional sums. In the event of a Force Majeure, the party so affected shall give prompt written notice to the other party of the cause and shall take whatever reasonable steps are necessary to
relieve the effect of such cause as rapidly as possible. 
 (c) Governing Law; Forum and
Jurisdiction; Waiver of Punitive and Similar Types of Damages: The relationship of the parties hereto and all claims arising out of or related to that relationship, including but not limited to, the construction and interpretation of any written
agreements, including this Agreement, shall be governed by the substantive laws of the State of California (without regard to conflicts of law principles). The parties agree and consent to the jurisdiction of the state and federal courts located in
Orange County, California and acknowledge that such courts are proper and convenient forums for the resolution of any actions between the parties with respect to the subject matter of this Agreement, and agree that, in such case, these courts shall be the sole and exclusive forums for the resolution of any
actions between the parties with respect to the subject matter hereof. The parties hereby waive any right to a jury trial under any applicable law. The parties also waive any and all right to punitive, incidental or consequential damages, except in
the case an action is brought for breach of provisions relating to confidential information. The prevailing party in any action to enforce this Agreement shall be entitled to recover all related costs of the suit, including reasonable
attorneys’ fees and court costs. 
 (d) Amendment; Assignment: This Agreement may not be amended or
modified except by a writing signed by an authorized officer of each party specifically referencing this Agreement and the intent to amend or modify. 

  
 Page 6 of 14

 A request for confidential treatment has been made with respect to portions of the
following document that are marked with [*CONFIDENTIAL*]. The redacted portions have been filed separately with the SEC. 
  

(e) Change of Control: The parties hereto agree that all of the provisions of this Agreement shall bind and insure to the benefit of the parties
hereto and their respective heirs, legal representatives, successors and assigns, including but not limited to, a Change of Control. A “Change of Control” means (A) any transaction or series of related transactions in which a party or
group, acting in concert, acquires beneficial ownership of more than 50% of the equity interests in a party or its direct or indirect parent, or (B) a merger or consolidation of another entity with or into a party or its direct or indirect
parent, with the effect that any third party becomes beneficial owner of more than 50% of the equity interests of a party or its direct or indirect parent. A Change in Control does not include the internal transfer of shares within a family
structure for family planning reasons. 
 (f) Entire Agreement; Survival: All exhibits to this Agreement
are incorporated by reference. This Agreement (and any documents referred to herein) represents the entire agreement and understanding of the parties with respect to the matters set forth herein, and there are no representations, warranties or
conditions or agreements (other than implementing invoices, purchase orders and the like necessary to implement this Agreement) not contained herein that constitute any part hereof or that are being relied upon by any party hereunder. 

(g) Severability: If any provision of this Agreement is held by a court of competent jurisdiction to be invalid,
void, or unenforceable, the remaining provisions shall be enforced. 
 (h) Notices: Unless otherwise
stated, all notices given in connection with this Agreement will be in writing and will be deemed delivered at the time of personal delivery or 3 business days after being sent by facsimile (with a confirmation) or mailed by express, certified or
registered mail, or sent by a recognized national or international courier, as appropriate (in all cases postage prepaid and return receipt requested). Notices shall be addressed to the parties at the addresses set forth below or to such other
address as shall have been so notified to the other party in accordance with this section. Notices to NB shall be addressed to: Chief Financial Officer, Natures’ Best, 6 Pointe Drive, Suite 300, Brea, California 92821. Notices to SFM shall be
addressed to: Vice President Procurement, Sprout’s Farmer’s Markets, 11811 N. Tatum Blvd, Suite 2400, Phoenix, Arizona 85028. 
 Signatures: next page: 

  
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 A request for confidential treatment has been made with respect to portions of the
following document that are marked with [*CONFIDENTIAL*]. The redacted portions have been filed separately with the SEC. 
  

WHEREAS, the parties have entered into this Agreement as of the Effective Date. 

 

							
				
	By:	  	 /s/ Doug Sanders
	  		  	 /s/ James A. Beck

		  	Signature	  		  	Signature
				
		  	 Doug Sanders
	  		  	 James A. Beck

		  	Print Name	  		  	Print Name
				
		  	 4/19/10
	  		  	 4/19/10

		  	Date	  		  	Date
				
		  	 Doug Sanders

President and Chief Operation Officer
 Sprouts Farmer’s Market
	  		  	 Jim Beck
 President and
CEO
 Nature’s Best

  
 Page 8 of 14

 A request for confidential treatment has been made with respect to portions of the
following document that are marked with [*CONFIDENTIAL*]. The redacted portions have been filed separately with the SEC. 
  

Exhibit A 

NB Special Services 
  

	•	 	 AD COORDINATOR: Dedicated California-based Key Account Manager ([*CONFIDENTIAL*]) and dedicated Support Assistant
([*CONFIDENTIAL*]) 

  

	•	 	 MERCHANDISING SUPPORT: Dedicated Arizona-based merchandising specialist ([*CONFIDENTIAL*]) & dedicated Texas-based merchandiser
([*CONFIDENTIAL*]); backup by NB Retail Services Team 

  

	•	 	 CATEGORY MANAGEMENT: Dedicated in-house Planogram Specialist ([*CONFIDENTIAL*]) 

 

	•	 	 IT SUPPORT: Top-level IT specialist ([*CONFIDENTIAL*]) 

 

	 	•	 	 Project manager for all business initiatives 

  

	 	•	 	 Integration/efficiency specialist 

  

	•	 	 OPERATIONS SUPPORT: 

  

	 	•	 	 Service Center Manager personal support ([*CONFIDENTIAL*]) 

 

	 	•	 	 NB signature 30 Second Service - store response team 

 

	•	 	 AD & DEMO BILLING SERVICE: Billing service and special tracking system 

 

	•	 	 SPECIALIZED STORE OPENING SERVICES: 

  

	 	•	 	 Administration of opening order discounts off invoice 

 

	 	•	 	 Store set orders processed by aisle 

  

	 	•	 	 Project management by NB Retail Services Team 

  

	•	 	 NEW ITEM EXPRESS: Priority slotting & order tracking for sets 

 

	•	 	 PURCHASING TEAM Priority Access 

 

	 	•	 	 Immediate personal contact with NB buyers 

  

	 	•	 	 SFM Buyer-to-NB Buyer planning/execution 

  
 Page 9 of 14

 A request for confidential treatment has been made with respect to portions of the
following document that are marked with [*CONFIDENTIAL*]. The redacted portions have been filed separately with the SEC. 
  

Exhibit B 

Fuel Surcharge Schedule 
  

			
	 Price Per Gallon*
	  	 FUEL SURCHARGE (FSC)

	 $2.25
	  	 [*CONFIDENTIAL*]

	 $2.38
	  	 [*CONFIDENTIAL*] 

	 $2.50
	  	 [*CONFIDENTIAL*]

	 $2.63
	  	 [*CONFIDENTIAL*]

	 $2.75
	  	 [*CONFIDENTIAL*]

	 $2.88
	  	 [*CONFIDENTIAL*]

	 $3.00
	  	 [*CONFIDENTIAL*]

	 $3.13
	  	 [*CONFIDENTIAL*]

	 $3.25
	  	 [*CONFIDENTIAL*]

	 $3.38
	  	 [*CONFIDENTIAL*]

	 $3.50
	  	 [*CONFIDENTIAL*]

	 $3.63
	  	 [*CONFIDENTIAL*]

	 $3.75
	  	 [*CONFIDENTIAL*]

	 $3.88
	  	 [*CONFIDENTIAL*]

	 $4.00
	  	 [*CONFIDENTIAL*]

	 $4.13
	  	 [*CONFIDENTIAL*]

	 $4.25
	  	 [*CONFIDENTIAL*]

  

	*	FSC adjusted monthly based on the average price per gallon during the prior calendar month: Department of Energy Weekly U.S. National Average Retail On-Highway
Diesel Price; published at http://tonto.eia.doe.gov/oog/info/wohdp/diesel.asp. FSC applied per delivery. 

  
 Page 10 of 14

 A request for confidential treatment has been made with respect to portions of the
following document that are marked with [*CONFIDENTIAL*]. The redacted portions have been filed separately with the SEC. 
  

Exhibit C 

Cross Dock Parameters 

FULL PALLETS: 
  

	 	1.	Vendor electronic ASN (weight, cube, case, pallet counts per destination) by 5:00 PM prior day. 

 

	 	2.	No mixed pallets handled by NB drivers at delivery point 

  

	 	a.	Note: mixed pallets ok if SFM DC is the destination and segregation is done at SFM DC by SFM personnel 

 

	 	3.	Regular weekly activity (enables logistics planning). 

  

	 	4.	Delivery to Chino by 10:00 a.m. on the day of the scheduled evening loading shift. 

 

	 	5.	 Pallets clearly identified with SFM store #, address (matching ASN data). 

 

	 	6.	Subject to space availability on truck; default to next scheduled delivery. SFM option to have shipped LTL and billed to SFM and/or vendor if critical.

  

	 	7.	Must be food compatible product 

  

	 	8.	Applies to non-produce pallets 

  
 Page 11 of 14

 A request for confidential treatment has been made with respect to portions of the
following document that are marked with [*CONFIDENTIAL*]. The redacted portions have been filed separately with the SEC. 
  

Exhibit D 

Cost Plus Program 
 January, 2010 
  

									
	 Plateau Level
	  	Annualized
Purchases	 	  	CA, AZ, TX
Cost Plus %	  	Colorado
Cost Plus
	 1
	  	$	63,000,000	  	  	[*CONFIDENTIAL*]	  	[*CONFIDENTIAL*]
	 2
	  	$	69,000,000	  	  	[*CONFIDENTIAL*]	  	[*CONFIDENTIAL*]
	 3
	  	$	75,000,000	  	  	[*CONFIDENTIAL*] 	  	[*CONFIDENTIAL*]
	 4
	  	$	81,000,000	  	  	[*CONFIDENTIAL*] 	  	[*CONFIDENTIAL*]
	 5
	  	$	87,000,000	  	  	[*CONFIDENTIAL*] 	  	[*CONFIDENTIAL*]
	 6
	  	$	93,000,000	  	  	[*CONFIDENTIAL*] 	  	[*CONFIDENTIAL*]
	 7
	  	$	99,000,000	  	  	[*CONFIDENTIAL*] 	  	[*CONFIDENTIAL*]
	 8
	  	$	105,000,000	  	  	[*CONFIDENTIAL*] 	  	[*CONFIDENTIAL*]
	 9
	  	$	111,000,000	  	  	[*CONFIDENTIAL*]	  	[*CONFIDENTIAL*]
	 10
	  	$	117,000,000	  	  	[*CONFIDENTIAL*]	  	[*CONFIDENTIAL*]
	 11
	  	$	123,000,000	  	  	[*CONFIDENTIAL*]	  	[*CONFIDENTIAL*]
	 12
	  	$	129,000,000	  	  	[*CONFIDENTIAL*]	  	[*CONFIDENTIAL*]
	 13
	  	$	135,000,000	  	  	[*CONFIDENTIAL*]	  	[*CONFIDENTIAL*]
	 14
	  	$	141,000,000	  	  	[*CONFIDENTIAL*]	  	[*CONFIDENTIAL*]
	 15
	  	$	147,000,000	  	  	[*CONFIDENTIAL*]	  	[*CONFIDENTIAL*]
	 16
	  	$	153,000,000	  	  	[*CONFIDENTIAL*]	  	[*CONFIDENTIAL*]
	 17
	  	$	159,000,000	  	  	[*CONFIDENTIAL*]	  	[*CONFIDENTIAL*]
	 18
	  	$	165,000,000	  	  	[*CONFIDENTIAL*]	  	[*CONFIDENTIAL*]
	 19
	  	$	171,000,000	  	  	[*CONFIDENTIAL*]	  	[*CONFIDENTIAL*]
	 20
	  	$	177,000,000	  	  	[*CONFIDENTIAL*]	  	[*CONFIDENTIAL*]
	 21
	  	$	183,000,000	  	  	[*CONFIDENTIAL*]	  	[*CONFIDENTIAL*]
	 22
	  	$	189,000,000	  	  	[*CONFIDENTIAL*]	  	[*CONFIDENTIAL*]
	 23
	  	$	195,000,000	  	  	[*CONFIDENTIAL*]	  	[*CONFIDENTIAL*]
	 24
	  	$	203,000,000	  	  	[*CONFIDENTIAL*]	  	[*CONFIDENTIAL*]
	 25
	  	$	211,000,000	  	  	[*CONFIDENTIAL*]	  	[*CONFIDENTIAL*]
	 26
	  	$	219,000,000	  	  	[*CONFIDENTIAL*]	  	[*CONFIDENTIAL*]
	 27
	  	$	227,000,000	  	  	[*CONFIDENTIAL*]	  	[*CONFIDENTIAL*]
	 28
	  	$	235,000,000	  	  	[*CONFIDENTIAL*]	  	[*CONFIDENTIAL*]
	 29
	  	$	243,000,000	  	  	[*CONFIDENTIAL*]	  	[*CONFIDENTIAL*]
	 30
	  	$	251,000,000	  	  	[*CONFIDENTIAL*]	  	[*CONFIDENTIAL*]
	 31
	  	$	259,000,000	  	  	[*CONFIDENTIAL*]	  	[*CONFIDENTIAL*]
	 32
	  	$	267,000,000	  	  	[*CONFIDENTIAL*]	  	[*CONFIDENTIAL*]
	 32
	  	$	275,000,000	  	  	[*CONFIDENTIAL*] 	  	[*CONFIDENTIAL*]

 VOLUME REVIEW: Rate adjusted (if applicable) on the 15th of the month following each completed calendar quarter 

TEXAS STORES: [*CONFIDENTIAL*] rebate on all purchases 
 TERMS: 7 Days ACH 

  
 Page 12 of 14

 A request for confidential treatment has been made with respect to portions of the
following document that are marked with [*CONFIDENTIAL*]. The redacted portions have been filed separately with the SEC. 
  

Exhibit E 

Credit Requests, Invoice Adjustment, Return Authorizations 
 Nature’s Best guarantees that all merchandise arrives in a fresh and saleable condition. We will promptly rectify any errors such as mispicks, shortages, overages, damages, and out-of-code-date
products. The following information is requested when calling Customer Service: Account Number; Invoice Number; Item Number(s), and reason for the credit request/return. 
 Requests for Credit 
  

	 	•	 	 Please check in your order immediately upon receipt. Requests for credit, invoice adjustments, and return authorizations must be called or faxed into
our Customer Service Department as soon as possible, but no later than 7 days from invoice date. 

  

	 	•	 	 Bulk items are subject to insect contamination. Please inspect these products promptly and store them properly. We cannot issue credits for insect
contamination when we are notified of the problem more than 7 days after invoice date. 

  

	 	•	 	 Requests received beyond these dates will not be approved. 

 Returns 
  

	 	•	 	 All returns must be approved by Customer Service prior to being returned, and must be in clean, resalable condition. Credit will not be issued for
merchandise that has been defaced, marked, or altered in any way that makes the product unsaleable. Any goods requiring refurbishment (e.g., removing price stickers) will be subject to a [*CONFIDENTIAL*] refurbishment charge.

  

	 	•	 	 Customer Service will issue a Returns Authorization for products meeting Nature’s Best and our manufacturers return criteria.

  

	 	•	 	 All merchandise authorized for return must be securely boxed and protected. Please separate resalable returns from damaged items.

  

	 	•	 	 Our driver will deliver your Return Authorization with your next order. Match your prepared returns with the Return Authorization and give both to our
driver. Our drivers are not authorized to accept returns without a Returns Authorization. 

  

	 	•	 	 Nature’s Best does not accept returns on the following: 

 

	 	•	 	 Mis-ordered refrigerated and frozen products. All sales are final. 

 

	 	•	 	 Broker/Manufacturer Representative Turnover Orders 

  

	 	•	 	 Discontinued items 

  

	 	•	 	 Products that do not sell 

  

	 	•	 	 Seasonal/Holiday merchandise 

  

	 	•	 	 Special ordered products 

  

	 	•	 	 Retailer’s ad or promotional items 

  
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 A request for confidential treatment has been made with respect to portions of the
following document that are marked with [*CONFIDENTIAL*]. The redacted portions have been filed separately with the SEC. 
  

 

	 	•	 	 Appliances 

  

	 	•	 	 Consumer returns not authorized by the manufacturer 

  

	 	•	 	 Mis-ordered items that are returned will be subject to a 15% restocking charge. 

 

	 	•	 	 Refused orders or orders that must be returned to stock will be subject to a 15% restocking charge. There will be a 100% restocking
charge for all nonrecoverable refrigerated and frozen products. 

 End 

  
 Page 14 of 14

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