Document:

EXHIBIT 4.1

 

MACROGENICS,
INC.

 

2016 EMPLOYEE
STOCK PURCHASE PLAN

 

The purpose of this 2016
Employee Stock Purchase Plan (the “Plan”) is to provide eligible employees of MacroGenics, Inc. (the “Company”)
and certain of its subsidiaries with opportunities to purchase shares of the Company’s common stock, $0.01 par value per share
(the “Common Stock”). The Plan was approved by the Company’s Board of Directors (the “Board”) on September
14, 2016 (the “Adoption Date”), and is subject to shareholder approval as described below. An aggregate of 800,000
shares of Common Stock have been approved for this purpose. This Plan is intended to qualify as an “employee stock purchase
plan” as defined in Section 423 of the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder
(the “Code”), and shall be interpreted consistent therewith.

 

1. Administration.
The Plan will be administered by the Board or by a Committee appointed by the Board (the “Committee”). The Board or the
Committee has authority to make rules and regulations for the administration of the Plan and its interpretation and decisions with
regard thereto shall be final and conclusive.

 

2. Eligibility. Participation
in the Plan will neither be permitted nor denied contrary to the requirements of Section 423 of the Code. All employees of the
Company and all employees of any subsidiary of the Company (as defined in Section 424(f) of the Code) unless the Board or the Committee
specifies otherwise (each subsidiary participating in the Plan is referred to herein as a “Participating Subsidiary”),
are eligible to participate in any one or more of the offerings of Options (as defined below) to purchase Common Stock under the
Plan, subject to Section 11, provided that:

 

(a)   The individual is
customarily employed by the Company or a Participating Subsidiary for more than 20 hours a week; and

 

(b)   The individual is
an employee of the Company or a Participating Subsidiary not later than the last day of the enrollment period for the next applicable
Plan Period (as defined below).

 

No employee may be granted
an Option hereunder if such employee, immediately after the Option is granted, would own five percent (5%) or more of the total
combined voting power or value of the stock of the Company or any subsidiary. For purposes of the preceding sentence, the attribution
rules of Section 424(d) of the Code shall apply in determining the stock ownership of an employee, and all stock which the employee
has a contractual right to purchase shall be treated as stock owned by the employee. The Company retains the discretion to determine
which eligible employees may participate in an offering pursuant to and consistent with Treasury Regulation Sections 1.423-2(e)
and (f).

 

3. Offerings. The Company
will make one or more offerings (“Offerings”) to eligible employees to purchase Common Stock under this Plan. Each
offering shall extend for a six (6) month period (“Plan Period”) during which payroll deductions shall be made and
held for the purchase of common stock at the end of the Plan Period. The Plan Period commencing on December 1 and ending on May
31 is the “December Plan Period” and the Plan Period commencing on June 1 and ending on November 30 is the “June
Plan Period.” Notwithstanding the foregoing, however, the Board or the Committee may, at its discretion, choose a different
Plan Period of twelve (12) months or fewer. For purposes of the Plan, “Offering Commencement Date” shall mean the
first business day of any Plan Period. For the avoidance of doubt, the Offering Commencement Date shall be the date of grant for
purposes of Section 423 of the Code and the regulations thereunder.

 

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4. Participation. An employee
eligible on the Offering Commencement Date of any Offering may participate in such Offering by completing a registration form
during the applicable enrollment period preceding the plan period. An employee who elects to participate in an Offering is referred
to herein as a “Participant”. The form will authorize a regular payroll deduction from the Compensation (as defined
below) received by the employee during the Plan Period. Unless an employee files a new form or withdraws from the Plan, his or
her deductions and purchases will continue at the same rate for future Offerings under the Plan as long as the Plan remains in
effect. The term “Compensation” means the amount of money reportable on the employee’s Federal Income Tax Withholding
Statement, excluding overtime, shift premium, incentive or bonus awards, allowances and reimbursements for expenses such as relocation
allowances for travel expenses, income or gains on the exercise of Company stock options or stock appreciation rights, and similar
items, whether or not shown on the employee’s Federal Income Tax Withholding Statement, but including, in the case of salespersons,
sales commissions to the extent determined by the Board or the Committee.

 

5. Deductions. The
Company will maintain payroll deduction accounts for all Participants. With respect to any Offering made under this Plan, an eligible
employee may elect to withhold any whole percentage up to a maximum of 10% of employee’s Compensation. Any payroll deductions
authorized must be in whole percentages only. These deductions will continue at the same rate for future offerings under the Plan
as long as the Plan remains in effect unless the employee makes a change to the

deduction or withdraws from the Plan.

 

6. Deduction Changes.
An employee may discontinue his or her payroll deduction once during any Plan Period, by filing a new payroll deduction authorization
form. However, an employee may not decrease or increase his or her payroll deduction during a Plan Period. If an employee elects
to discontinue his or her payroll deductions during a Plan Period, but does not elect to withdraw his or her funds pursuant to
Section 8 hereof, funds deducted prior to his or her election to discontinue will be applied to the purchase of Common Stock on
the Exercise Date (as defined below).

 

7. Interest. Interest
will not be paid on any employee accounts, except to the extent that the Board or the Committee, in its sole discretion, elects
to credit employee accounts with interest at such per annum rate as it may from time to time determine.

 

8. Withdrawal of Funds.
An employee may at any time prior to the close of business on the last business day of the Plan Period and for any reason permanently
draw out the balance accumulated in the employee’s account and thereby withdraw from participation in an Offering. Partial withdrawals
are not permitted. The employee may not resume participation during the remainder of the Plan Period. The employee may participate
in any subsequent Offering in accordance with terms and conditions established by the Board or the Committee.

 

9. Purchase of Shares.
On the Offering Commencement Date of each Plan Period, the Company will grant to each eligible employee who is then a participant
in the Plan an option (“Option”) to purchase on the last business day of such Plan Period (the “Exercise Date”)
at the applicable Option Price (as defined below) the largest number of whole shares of Common Stock resulting from the employee’s
accumulated payroll deductions as of the Exercise Date divided by the Option Price for such Plan Period up to a maximum of 800
shares for a Plan Period of six months (the Board shall have discretion to adjust the maximum number of shares an employee may
purchase for Plan Periods of more or less than six months); provided, however, that no employee may be granted an Option which
permits his or her rights to purchase Common Stock under this Plan and any other employee stock purchase plan (as defined in Section
423(b) of the Code) of the Company and its subsidiaries, to accrue at a rate which exceeds $25,000 of the fair market value of
such Common Stock for each calendar year in which the Option is outstanding at any time.

 

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The purchase price for each
share purchased will be 85% of the closing price of the Common Stock on the Exercise Date (the “Option Price”). Such
closing price shall be the closing price on the NASDAQ Global Select Market or other national securities exchange on which the
Common Stock is listed. If the Common Stock is not listed on the NASDAQ Global Select Market or another national securities exchange,
the purchase price will be 85% of the fair market value of the Common Stock as determined by the Board in good faith in compliance
with applicable laws, including but not limited to Section 423(b)(6) of the Code and Treas. Reg. § 1.423-2(g).

 

Each employee who continues
to be a participant in the Plan on the Exercise Date shall be deemed to have exercised his or her Option at the Option Price on
such date and shall be deemed to have purchased from the Company the number of whole shares of Common Stock reserved for the purpose
of the Plan that his or her accumulated payroll deductions on such date will pay for (but not in excess of the maximum number determined
in the manner set forth above).

 

Any balance remaining in an
employee’s payroll deduction account at the end of a Plan Period will be automatically refunded to the employee, except that any
balance which is less than the purchase price of one share of Common Stock will be carried forward into the employee’s payroll
deduction account for the following Offering, unless the employee elects not to participate in the following Offering under the
Plan, in which case the balance in the employee’s account shall be refunded.

 

10. Issuance of Shares.
Promptly following the end of each Offering, the number of shares of Common Stock purchased under the Plan shall be deposited into
an account established in the name of the employee at a stock brokerage or other financial services firm designated by the Company
(the “ESPP Broker”).

 

11. Rights on Retirement,
Death or Termination of Employment. In the event of a Participant’s termination of employment prior to the last business day
of a Plan Period, no payroll deduction shall be taken from any pay due and owing to an employee following the effective date of
such termination. The balance in the employee’s account shall be paid to the employee or, in the event of the employee’s death,
(a) to a beneficiary previously designated in a revocable notice signed by the employee (with any spousal consent required under
state law), (b) in the absence of such a designated beneficiary, to the executor or administrator of the employee’s estate, or
(c) if no such executor or administrator has been appointed to the knowledge of the Company, to such other person(s) as the Company
may, in its discretion, designate. If, prior to the last business day of the Plan Period, the Participating Subsidiary by which
an employee is employed shall cease to be a subsidiary of the Company, or if the employee is transferred to a subsidiary of the
Company that is not a Participating Subsidiary, the employee shall be deemed to have terminated employment for the purposes of
this Plan.

 

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12. Optionees Not Stockholders.
Neither the granting of an Option to an employee nor the deductions from his or her pay shall constitute such employee a stockholder
of the shares of Common Stock covered by an Option under this Plan until such shares have been purchased by and issued to him or
her.

 

13. Rights Not Transferable.
Rights under this Plan are not transferable by a Participant other than by will or the laws of descent and distribution, and are
exercisable during the employee’s lifetime only by the employee.

 

14. Application of Funds.
All funds received or held by the Company under this Plan may be combined with other corporate funds and may be used for any corporate
purpose.

 

15. Changes in Capitalization.
In the event of any stock split, reverse stock split, stock dividend, recapitalization, combination of shares, reclassification
of shares, spin-off or other similar change in capitalization or event, or any distribution to holders of Common Stock other than
an ordinary cash dividend, (i) the number and class of securities available under this Plan, (ii) the share limitations set forth
in Section 9, and (iii) the Option Price shall be appropriately adjusted to the extent determined by the Board or the Committee.

 

16. Reorganization Events.
A “Reorganization Event” shall mean: (a) any merger or consolidation of the Company with or into another entity as
a result of which all of the Common Stock of the Company is converted into or exchanged for the right to receive cash, securities
or other property or is cancelled, (b) any exchange of all of the Common Stock of the Company for cash, securities or other property
pursuant to a share exchange transaction or (c) any liquidation or dissolution of the Company.

 

In connection with a Reorganization
Event, the Board or the Committee shall take any one or more of the following actions as to outstanding Options on such terms
as the Board or the Committee determines: (i) provide that Options shall be assumed, or substantially equivalent Options shall
be substituted, by the acquiring or succeeding corporation (or an affiliate thereof), (ii) upon written notice to employees, provide
that all outstanding Options will be terminated as of the effective date of the Reorganization Event and that all such outstanding
Options will become exercisable to the extent of accumulated payroll deductions as of a date specified by the Board or the Committee
in such notice, which date shall not be less than ten (10) days preceding the effective date of the Reorganization Event, (iii)
upon written notice to employees, provide that all outstanding Options will be cancelled as of a date prior to the effective date
of the Reorganization Event and that all accumulated payroll deductions will be returned to Participants on such date, (iv) in
the event of a Reorganization Event under the terms of which holders of Common Stock will receive upon consummation thereof a
cash payment for each share surrendered in the Reorganization Event (the “Acquisition Price”), make or provide for
a cash payment to an employee equal to (A) the Acquisition Price times the number of shares of Common Stock subject to the employee’s
Option (to the extent the Option Price does not exceed the Acquisition Price) minus (B) the aggregate Option Price of such Option,
in exchange for the termination of such Option, (v) provide that, in connection with a liquidation or dissolution of the Company,
Options shall convert into the right to receive liquidation proceeds (net of the Option Price thereof) and (vi) any combination
of the foregoing.

 

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For purposes of clause (i) above,
an Option shall be considered assumed if, following consummation of the Reorganization Event, the Option confers the right to
purchase, for each share of Common Stock subject to the Option immediately prior to the consummation of the Reorganization Event,
the consideration (whether cash, securities or other property) received as a result of the Reorganization Event by holders of
Common Stock for each share of Common Stock held immediately prior to the consummation of the Reorganization Event (and if holders
were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding shares
of Common Stock); provided, however, that if the consideration received as a result of the Reorganization Event is not solely
common stock of the acquiring or succeeding corporation (or an affiliate thereof), the Company may, with the consent of the acquiring
or succeeding corporation, provide for the consideration to be received upon the exercise of Options to consist solely of common
stock of the acquiring or succeeding corporation (or an affiliate thereof) equivalent in value (as determined by the Board) to
the per share consideration received by holders of outstanding shares of Common Stock as a result of the Reorganization Event.

 

17. Amendment of the Plan.

 

(a) Amendment
of the Plan. The Board may at any time, and from time to time, amend this Plan in any respect, except that (i) if Section 423
of the Code requires that such amendment be approved by the shareholders of the Company, such amendment shall not be effected without
such approval, and (b) in no event may any amendment be made which would cause the Plan to fail to comply with Section

423 of the Code.

 

(b) Suspension of the Plan.
The Board may, at any time, suspend the Plan; provided that the Company shall provide notice to the Participants prior to
the effectiveness of such suspension. The Board may resume the operation of the Plan following any such suspension; provided
that the Company shall provide notice to the Participants prior to the date of termination of the suspension period. A Participant
shall remain a Participant in the Plan during any suspension period (unless he or she withdraws pursuant to Section 8), however
no Options shall be granted or exercised, and no payroll deductions shall be made in respect of any Participant during the suspension
period.

 

18. Insufficient Shares.
In the event that the total number of shares of Common Stock specified in elections to be purchased under any Offering plus the
number of shares purchased under previous Offerings under this Plan exceeds the maximum number of shares issuable under this Plan,
the Board or the Committee will allot the shares then available on a pro rata basis in a manner consistent with the requirements
of Section 423(b)(4) and (5) of the Code and the regulations thereunder.

 

19. Termination of the
Plan. Except as otherwise provided in Section 25(b) of the Plan, the Plan and all rights of employees under any offering hereunder
shall terminate on the earlier of:

 

(a)   the day that Participants
become entitled to purchase a number of shares of Common Stock equal to or greater than the number of such shares then available
for purchase hereunder; or

(b)   any other date determined by the Board of
Directors in its discretion.

 

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20. Governmental Regulations.
The Company’s obligation to sell and deliver Common Stock under this Plan is subject to the listing requirements of the NASDAQ
Global Select Market or other applicable national stock exchange and the approval of all governmental authorities required in connection
with the authorization, issuance or sale of such stock.

 

21. Issuance of Shares.
Shares may be issued upon exercise of an Option from authorized but unissued Common Stock, from shares of Common Stock held in
the treasury of the Company, or from any other proper source.

 

22. Notification upon
Sale of Shares. Each employee agrees, by enrolling in the Plan, to promptly give the Company notice of any disposition of shares
purchased under the Plan where such disposition occurs within two years after the date of grant of the Option pursuant to which
such shares were purchased.

 

23. Grants to Employees in Foreign
Jurisdictions. The Company may, in order to comply with the laws of a foreign jurisdiction, grant Options to employees of
the Company or a Participating Subsidiary who are citizens or residents of such foreign jurisdiction (without regard to whether
they are also citizens of the United States or resident aliens (within the meaning of Section 7701(b)(1)(A) of the Code)) with
terms that are less favorable (but not more favorable) than the terms of Options granted under the Plan to employees of the Company
or a Participating Subsidiary who are resident in the United States. Notwithstanding the preceding provisions of this Plan, employees
of the Company or a Participating Subsidiary who are citizens or residents of a foreign jurisdiction (without regard to whether
they are also citizens of the United States or resident aliens (within the meaning of Section 7701(b)(1)(A) of the Code)) may
be excluded from eligibility under the Plan if (a) the grant of an Option under the Plan to a citizen or resident of the foreign
jurisdiction is prohibited under the laws of such jurisdiction or (b) compliance with the laws of the foreign jurisdiction would
cause the Plan to violate the requirements of Section 423 of the Code. The Company may add one or more appendices to this Plan
describing the operation of the Plan in those foreign jurisdictions in which employees are excluded from participation or granted
less favorable Options.

 

24. Authorization of Sub-Plans.
The Board may from time to time establish one or more sub- plans under the Plan with respect to one or more Participating Subsidiaries,
provided that such sub-plan complies with Section 423 of the Code.

 

25. General.

 

(a)   Effective Date. The Plan shall
become effective on the date that the Plan is approved by the Company’s shareholders (the “Effective Date”).

 

(b)   Shareholder Approval.
In accordance with Treas. Reg. § 1.423-2(a)(2)(ii), the Company shall seek shareholder approval of the Plan within 12 months
after the Adoption Date. If shareholder approval is not received by that date, the Plan shall be terminated and any amounts withheld
from Company employees shall be returned to the employees without interest.

 

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(c)   No Right to Options;
No Shareholder Rights. No employee shall have any right to be granted any option under the Plan. No person shall have any
rights as a shareholder with respect to any common stock to be issued under the Plan prior to the issuance thereof.

 

(d)   No Right to Employment.
No person shall have any claim or right to be granted an option, and the grant of an option shall not be construed as giving any
person the right to be retained in the employ of the Company or any subsidiary. Further, the Company and each subsidiary expressly
reserve the right at any time to dismiss an employee free from any liability, or any claim under the Plan, except as expressly
provided herein.

 

(e)   Severability of Provisions.
If any provision of the Plan shall be held invalid or unenforceable, such invalidity or unenforceability shall not affect any
other provision hereof, and the Plan shall be construed and enforced as if such provision had not been included.

 

(f)   Incapacity. Any
benefit payable to or for the benefit of a minor, an incompetent person, or other person incapable of receipting therefore shall
be deemed paid when paid to such person’s guardian or to the party providing or reasonably appearing to provide for the
care of such person, and such payment shall fully discharge any liability or obligation of the Committee, the Board of Directors,
the Company, and all other parties with respect thereto.

 

(g)   Rules of Construction.
Whenever used in the Plan, words in the masculine gender shall be deemed to refer to females as well as to males; words in the
singular shall be deemed to refer also to the plural; and references to a statute or statutory provision shall be construed as
if they referred also to that provision (or to a successor provision of similar import) as currently in effect, as amended, or
as reenacted, and to any regulations and other formal guidance of general applicability issued thereunder.

 

(h)   Headings and Captions.
The headings and captions herein are provided for reference and convenience only, shall not be considered part of the Plan, and
shall not be employed in the construction of the Plan.

 

(i)    Applicable Law.
The validity, construction, interpretation, administration, and effect of the Plan and of its rules and regulations, and rights
relating to the Plan, shall be determined solely in accordance with the laws of the State of Delaware, without regard to its rules
regarding choice of law, except to the extent such law is preempted by federal law.

 

    	 	7Exhibit

Exhibit 10.1

EMPLOYMENT AGREEMENT 

This EMPLOYMENT AGREEMENT (the “Agreement”), dated as of October 28, 2016 (the “Effective Date”), is by and among United Natural Foods, Inc., a Delaware corporation (the “Company”) and Steven L. Spinner (the “Employee”).
W I T N E S S E T H:
WHEREAS, the Company desires to continue to retain Employee to act as its President and Chief Executive Officer and upon election by the Company’s Board of Directors to act as its Chairman, upon the terms and conditions contained in this Agreement; and 
WHEREAS, Employee desires to serve in such capacities, upon the terms and conditions contained in the Agreement.
NOW, THEREFORE, in consideration of the foregoing recitals, the mutual promises and covenants set forth below and other good and valuable consideration, the receipt of which is hereby acknowledged, the Company and the Employee do hereby agree as follows:
1.Employment; Position; Duties; Full-Time Status. 
1.1.    Position. The Company hereby agrees to employ the Employee and the Employee hereby accepts employment with the Company as its President and Chief Executive Officer, upon the terms and subject to the conditions set forth herein. In addition, the Company will use its reasonable best efforts to cause the Employee to be elected to be a member of the Company’s Board of Directors and, from and after December 15, 2016, to serve as its Chairman.
1.2    Duties. The Employee shall perform and discharge faithfully the duties and responsibilities which may be assigned to the Employee from time to time in connection with the conduct of the Company’s business. The Employee shall report to the Company’s Board of Directors.
1.3    Full-Time Status. In addition to the duties and responsibilities specifically assigned to the Employee pursuant to Section 1.2 hereof, the Employee shall:
(a)    subject to Section 1.4, devote substantially all of his time, energy and skill during regular business hours to the performance of the duties of his employment (reasonable vacations and reasonable absences due to illness excepted) and faithfully and industriously perform such duties;
(b)    diligently follow and implement all lawful management policies and decisions communicated to the Employee by the Board of Directors of the Company; and
(c)    timely prepare and forward to the Board of Directors of the Company all reports and accountings as may be requested of the Employee.
1.4    Permitted Activities. The Employee shall devote substantially all of his entire business time, attention and energies to the business of the Company and its Affiliates and shall not during the Term be engaged (whether or not during normal business hours) in any other significant business or professional activity, whether or not such activity is pursued for gain, profit or other pecuniary advantage, but as long as the following activities do not interfere with the Employee’s obligations to the Company, this shall not be construed as preventing the Employee from:

(a)    investing his personal assets in any manner which will not require any services on the part of the Employee in the operation or affairs of the entity and in which the Employee’s participation is solely that of an investor; provided that such investment activity following the date hereof shall not result in his owning beneficially at any time any equity securities of any business that is materially competitive with the business of the Company as determined from time to time by the Nominating and Governance Committee of the Company’s Board of Directors; or
(b)    participating in civic and professional affairs and organizations and conferences, preparing or publishing papers or books, teaching or serving on the board of directors of an entity approved by the Company’s Board of Directors and that is not engaged in business that is competitive with the business of the Company so long as any such activity does not interfere with the ability of the Employee to effectively discharge his duties hereunder; provided further, that the Board of Directors of the Company may direct the Employee in writing to resign from any such organization and/or cease such activities should the Board of Directors of the Company reasonably conclude that continued membership and/or activities of the type identified would not be in the best interests of the Company. It is agreed that the activities that the Employee is conducting at the time of this Agreement, and any substitute activities that are similar in scope and extent, are permitted for purposes of this Section 1.4.
2.    Term. Subject to the provisions of termination as hereinafter provided, the initial term of the Employee’s employment under this Agreement shall begin on the date hereof and shall terminate on the third anniversary of the Effective Date (including all renewal periods, if any, the “Term”). Following expiration of the initial Term, the term of the Employee’s employment under this Agreement shall automatically renew for successive additional one-year terms unless either party provides the other with written notice of its intent not to renew this Agreement at least one hundred eighty (180) days prior to the end of the Term (including any renewal term, as applicable) unless terminated earlier pursuant to the provisions of this Agreement. 
3.    Compensation.
3.1    Base Salary. Until termination of the Employee’s employment with the Company pursuant to this Agreement, the Company shall pay the Employee a base salary (“Base Salary”) of at least Nine Hundred Twenty Two Thousand Five Hundred Dollars ($922,500) per annum, which shall be payable to the Employee in regular installments in accordance with the Company’s general payroll policies and practices.  The Company’s Board of Directors, or the Compensation Committee thereof (the “Committee”), shall review the Employee’s Base Salary annually during the period of employment hereunder and, in its sole discretion, may increase, but not decrease, such Base Salary from time to time.
3.2    Inducement Payment.  On the date hereof, the Company shall pay to the Employee a cash payment in the amount of One Million Two Hundred Fifty Thousand Dollars ($1,250,000) as an inducement to enter into this Agreement (the “Inducement Payment”).
3.3    Incentive Compensation. 
(a)    One-Time Equity Awards.  On or prior to the date hereof, the Employee shall be awarded performance share unit awards in respect of 175,000 shares at target level performance of the Company’s common stock pursuant to the Company’s Amended and Restated 2012 Equity Incentive Plan, which awards shall vest in accordance with performance criteria established by the Committee for the Company’s 2017, 2018 and 2019 fiscal years as set forth in, and subject to the additional terms and conditions of, award agreements mutually agreed upon between the Employee and the Company.

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(b)    Annual Plans.  The Employee shall be entitled to participate in all compensation plans or programs for which any salaried employees of the Company with similar titles or levels of responsibilities are eligible under any existing or future plan or program established by the Company for salaried employees.  Without limiting the generality of the foregoing, during the Term, the Employee will be eligible to participate in the Annual Cash Incentive Plan (“AIP”) and Long-term Incentive Plan (“LTIP”) offered by the Company to its senior management with potential incentive opportunities no less favorable than those available to other senior executive officers. The Employee shall be eligible to receive cash incentive compensation annually pursuant to the AIP based upon the achievement of performance criteria established by the Committee, with the actual amount of any such compensation paid to be determined in the sole discretion of the Committee as determined in accordance with the applicable plan.  The amount of the cash incentive compensation the Employee shall be eligible to receive pursuant to the AIP or a successor plan at target level of performance shall be established annually by the Committee and shall not be less than 100% of the Employee’s Base Salary paid to the Employee during the applicable performance period.  All future equity grants to the Employee pursuant to the LTIP or a successor plan will be made at the sole discretion of the Committee.  However, it is currently contemplated that additional grants will be considered by the Committee on an annual basis.  Nothing in this Agreement shall preclude the Company from amending or terminating any of the plans or programs applicable to salaried employees as long as such amendment or termination is applicable to all salaried employees.
3.4    Benefit Plans. During the Term, the Employee shall be entitled to participate in all employee benefit plans or programs (including deferred compensation and equity plans and programs, but excluding any severance or change in control severance plans or programs) for which any similarly situated salaried employees of the Company are eligible under any existing or future plan or program established by the Company for salaried employees. The Employee will participate to the extent permissible under the terms and provisions of such plans or programs in accordance with program provisions. Nothing in this Agreement shall preclude the Company from amending or terminating any of the plans or programs applicable to salaried employees as long as such amendment or termination is applicable to all salaried employees.
3.5    Paid Leave.  The Employee shall be entitled to paid leave in accordance with the Company’s policies in effect from time to time; provided that Employee shall be entitled to at least four weeks of paid leave per fiscal year.  The use of the Employee’s paid leave shall be determined in accordance with the Company’s paid leave policy as in effect from time to time.
3.6    Expenses Incurred in Performance of Duties. The Company shall pay or promptly reimburse the Employee for all reasonable travel and other business expenses incurred by the Employee in the performance of the Employee’s duties under this Agreement in accordance with the Company’s policies in effect from time to time with respect to business expenses. All expenses eligible for reimbursements described in this Agreement must be incurred by the Employee during the Term of this Agreement to be eligible for reimbursement. The Employee shall, as a condition of any such reimbursement, submit verification of the nature and amount of such expenses in accordance with the Company’s reimbursement policies.
3.7    Withholdings. All compensation payable hereunder shall be subject to all applicable withholding for federal income taxes, FICA and all other applicable federal, state and local withholding requirements.
3.8    Recoupment of Incentive Compensation. In the event that the Company restates, in a filing made with the Securities and Exchange Commission (the “SEC”), all or a portion of its financial statements within two (2) years of the original filing of such financial statements with the SEC, the Board of Directors of the Company (or a duly authorized committee thereof consisting solely of independent

3

directors) will, to the extent permitted by applicable law and as it deems appropriate in its sole discretion, in whole or in part, require Employee to promptly repay any bonus or incentive compensation paid or granted to the Employee (including, without limitation, amounts paid in respect thereof pursuant to Section 4.4), if and to the extent that (a) the amount of bonus or incentive compensation was calculated based upon the achievement of certain financial results that were subsequently reduced due to a restatement, and (b) the amount of the bonus or incentive compensation that would have been awarded to the Employee had the financial results been properly reported would have been lower than the amount actually awarded. The Employee’s bonus and incentive compensation received pursuant to this Agreement shall be subject to recoupment in accordance with this Section 3.8 regardless of the fault, misconduct or responsibility of the Employee in connection with the restatement. If the Employee fails to return such compensation promptly, the Employee agrees that the amount of such compensation may be deducted from any and all other compensation owed to the Employee by the Company, to the extent permitted by Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), if applicable. The Employee acknowledges that the Company  may engage in any legal or equitable action or proceeding in order to enforce the provisions of this Section 3.8. The provisions of this Section 3.8 shall be modified to the extent, and remain in effect for the period, required by applicable law, including, without limitation, any rules or regulations adopted implementing the clawback or recoupment requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.
4.    Termination of Agreement.
4.1    General. During the Term of this Agreement, the Company may, at any time and in its sole discretion, terminate the Employee’s employment and this Agreement with Cause, subject to any prior notice requirements of Section 4.2 of this Agreement or, upon thirty (30) days prior written notice from the Board of Directors of the Company, without Cause, and the Employee may, at any time and in his sole discretion, resign from his employment with the Company and terminate this Agreement, subject to any prior notice requirements of Section 4.3 of this Agreement, if applicable (any such date of termination, the “Termination Date”).
4.2    Effect of Termination with Cause. If the Employee’s employment with the Company shall be terminated by the Company with Cause during the Term of this Agreement the Company shall pay in a cash lump sum within ten (10) days of the Termination Date to the Employee (i) the Base Salary earned through the Termination Date, (ii) accrued and unpaid vacation as of the Termination Date, (iii) reimbursement for any amounts due to the Employee pursuant to Section 3.6 and (iv) at such time as it would have been paid if the Employee had not been terminated, any cash incentive compensation earned as of the Termination Date in respect of the prior fiscal year which has not been paid as of the Termination Date (collectively such unpaid Base Salary, reimbursements, accrued vacation and earned incentive compensation, the “Accrued Amounts”), and the Company shall not have any further obligations to the Employee under this Agreement except those required to be provided by law. For purposes of this Agreement, “Cause” shall mean termination of the Employee’s employment with the Company due to (1) conviction of the Employee under applicable law of any felony or any misdemeanor involving moral turpitude, (2) unauthorized acts intended to result in the Employee’s personal enrichment at the material expense of the Company or its reputation, (3) any violation of the Employee’s duties or responsibilities to the Company which constitutes willful misconduct or dereliction of duty or (4) material breach of Sections 1.4 and 5.1 of this Agreement by the Employee, provided however, that in the case of circumstances described in this Section 4.2, the nature of the circumstances shall be set forth with reasonable particularity in a written notice to the Employee approved by a majority of the membership of the Board of Directors of the Company. The Employee shall have twenty (20) business days following delivery of such written notice to cure such alleged breach, provided that such breach is, in the reasonable discretion of the Board of Directors of the Company, susceptible to a cure and provided further that 

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delivery of such written notice shall have been approved by a majority of the members of the Board of Directors of the Company. 
4.3    Resignation by the Employee. If the Employee resigns without Good Reason the Company shall pay to the Employee the Accrued Amounts in a cash lump sum within ten (10) days of the Termination Date and the Company shall not have any further obligations to the Employee under this Agreement except those required to be provided by applicable law.  For purposes of this Agreement, “Good Reason” shall mean without the Employee’s express written consent, the occurrence of any one or more of the following: (1) the assignment of the Employee to duties materially adversely inconsistent with his duties as of the date hereof; (2) a material reduction in the Employee’s title, executive authority or reporting status, including failure of the Company to appoint Employee as the Company’s Chief Executive Officer; (3) a relocation more than 50 miles from the Employee’s then current place of employment; (4) a reduction by the Company in the Employee’s Base Salary, or a failure of the Company to pay or cause to be paid any compensation or benefits when due or under the terms of any plan established by the Company and failure to restore such Base Salary or make such payments within five (5) days of receipt of notice from the Employee, (5) failure to include the Employee in any new employee benefit plans proposed by the Company or a material reduction in the Employee’s level of participation in any benefit plans of the Company; provided that a Company-wide reduction or elimination of such plans shall not give rise to a “Good Reason” termination; (6) a material breach of this Agreement by the Company; or (7) the failure of the Company to obtain a satisfactory agreement from any successor to the Company with respect to the ownership of substantially all the stock or assets of the Company to assume and agree to perform the terms of this Agreement, provided that, in each case, (A) within sixty (60) days of the initial occurrence of the specified event the Employee has given the Company written notice giving the Company at least thirty (30) days to cure the Good Reason, (B) the Company has not cured the Good Reason within the (30) thirty day period and (C) the Employee resigns within ninety (90) days from the initial occurrence of the event giving rise to the Good Reason.  
4.4    Effect of Termination without Cause or Resignation for Good Reason. 
(a)    If the Employee’s employment with the Company is terminated by the Company without Cause or if the Employee resigns for Good Reason: (i) the Company shall pay to the Employee the Accrued Amounts in a cash lump sum within ten (10) days of the Termination Date; and (ii) so long as the Employee complies with Sections 4.4(b), 5.1 and 5.2 of this Agreement, the Company shall (A) pay to the Employee an amount equal to two (2) times (x) the greater of the Employee’s Base Salary as stated in Section 3.1, or the Employee’s Base Salary, as in effect on the Termination Date, and (y) the Employee’s annual cash incentive bonus at target levels of performance under the applicable annual cash incentive plan approved by the Committee for the fiscal year in which the Termination Date occurs, payable in pro rata installments over a period of two years following the Termination Date (the “Severance Payment Period”), commencing on the first payroll period (the “Initial Payment”) occurring on or after the 60th day (but no later than the earlier of March 15th of the calendar year, or the 90th day) following the Termination Date (the “Severance Delay Period”), (B) pay to the Employee a pro rata annual cash incentive bonus based on the number of full calendar months elapsed in the fiscal year of termination and the Company’s actual performance for such fiscal year, paid at such time as it would have been paid if the Employee had not been terminated and (C) cause (I) stock options awarded to the Employee under any Equity Plan not previously exercisable and vested which would otherwise become exercisable by the next anniversary date following the Termination Date to become fully vested and exercisable and (II) restricted stock (including, for purposes of clarification, restricted stock units settled in shares of common stock) and performance-based vesting equity awards (including, for purposes of clarification, performance-based restricted stock units settled in shares of common stock) granted to Employee under any Equity Plan which is still subject to restrictions that would have otherwise vested or had restrictions thereon removed by the next anniversary date following the Termination Date to become 

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vested and/or have any restrictions thereon removed, as the case may be, with such restrictions with respect to any performance-based vesting equity awards to be removed on that number of awards as the Employee would have earned based on performance at the greater of target or actual levels of performance pursuant to the applicable award agreement under which such award was granted for the fiscal year in which the Employee’s employment is terminated, but only if the Committee shall determine that any performance metric applicable to the award for purposes of the rules and regulations adopted under Section 162(m) of the Code (such metric, the “Performance Award Gateway Metric”) shall have been met with respect to such fiscal year, which performance-based vesting equity awards shall be paid or settled to the Employee upon the later to occur of (y) the third business day following the last day of the Severance Delay Period and (z) the third business day following the date the Committee certifies that the Performance Award Gateway Metric has been achieved (such later date, the “Performance Award Severance Payment Date”); provided, however, that if there is no Performance Award Gateway Metric applicable to a particular performance-based vesting equity award with performance criteria tied to the fiscal year in which the Employee’s employment is terminated, the number of such awards for which the forfeiture restrictions shall be removed shall equal the number of awards for which the forfeiture restrictions would have been removed based on the Company’s actual performance for the fiscal year in which the Employee’s employment is terminated, which forfeiture restrictions shall lapse on the Performance Award Severance Payment Date.  The Initial Payment shall include payment for any payroll periods which occur during the Severance Delay Period, and the remaining payments shall continue for the remainder of the Severance Payment Period and on the same terms and with the same frequency as the Employee’s Base Salary was paid prior to such termination.  Payments pursuant to this Section 4.4 shall be in lieu of any other severance benefits that the Employee may be eligible to receive under the Company’s or any of the Company’s Affiliates’ benefit plans or programs.  For the avoidance of doubt, settlement of any restricted stock units (including any performance units), the vesting of which is accelerated pursuant to this Section 4.4(a), shall occur upon vesting pursuant to this Section 4.4(a), subject to any previous legally binding deferral election regarding such units. In addition, if the Employee’s employment with the Company is terminated by the Company without Cause or if the Employee resigns for Good Reason, the Company will pay the Employee a lump sum amount equal to $35,000 (the “COBRA Amount”) that the Employee may use to procure group health plan coverage for himself and his eligible dependents or otherwise. If the Employee desires to elect continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), it shall be the sole responsibility of the Employee (and/or other family members who are qualified beneficiaries, as described in the COBRA election notice, and who desire COBRA continuation coverage) to timely elect COBRA continuation coverage and timely make all applicable premium payments therefore. The Employee acknowledges that the COBRA Amount is taxable to the Employee and that the payment of the COBRA Amount shall only be made to the extent that the payment of the COBRA Amount would not result in any excise taxes on the Company for failure to comply with the nondiscrimination requirements of the Patient Protection and Affordable Care Act of 2010 as amended, and/or the Health Care and Education Reconciliation Act of 2010, as amended (to the extent applicable) (collectively, such laws, the “PPACA”).  Should the Company be unable to pay the COBRA Amount without triggering an excise tax under the PPACA, the Company and the Employee shall use reasonable efforts to provide a benefit to the Employee which represents the economic equivalent of the COBRA Amount and which does not result in an excise tax on the Company under the PPACA, which benefit shall be paid in a lump sum.
(b)    As a condition to receiving the payments provided for in clause (ii) of Section 4.4(a) and clauses (ii), (iii) and (iv) of Section 4.4(c), the Employee agrees to sign and deliver to the Company a release in form and substance reasonably satisfactory to the Company and the Employee and delivered to the Employee within five (5) business days of the Termination Date, which must become effective within sixty (60) days following the Termination Date.  Notwithstanding the foregoing, the Employee shall not be required to release (i) any rights the Employee has under this Agreement, (ii) any rights that Employee has pursuant to any plan, program or agreement subject to the Employee Retirement

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Security Act of 1974, as amended, (iii) any rights pursuant to any incentive or compensation plans of the Company or its Affiliates, any Equity Plan or any rights pursuant to any award agreements issued pursuant to any incentive or compensation plan of the Company or its Affiliates or any Equity Plan, (iv) any rights the Employee and his beneficiaries may have to continued medical coverage under the continuation coverage provisions of the Code, the Employee Retirement Income Security Act of 1974 or applicable state law or (v) any rights the Employee may have to indemnification under state or other law or the Certificate of Incorporation or by-laws of the Company and its Affiliated companies, or under any indemnification agreement with the Company or under any insurance policy providing directors’ and officers’ coverage for any lawsuit or claim relating to the period when the Employee was a director or officer of the Company or any Affiliated company.
(c)       If the Employee’s employment with the Company is terminated by the Company without Cause or if the Employee resigns for Good Reason, and such termination or resignation takes place on or within one (1) year after the Change in Control Date, then, in lieu of the compensation and benefits set forth in Section 4.4(a) hereof, and subject to any limitation imposed under applicable law and Sections 4.4(b) and 4.4(e) of this Agreement, so long as the Employee complies with Sections 4.4(b), 5.1 and 5.2 of this Agreement, (i) the Company shall pay to the Employee the Accrued Amounts in a cash lump sum within ten (10) days of the Termination Date; (ii) the Company shall pay to the Employee a lump sum payment equal to (x) three (3) times the greater of the Employee’s Base Salary as stated in Section 3.1, or the Employee’s Base Salary, as in effect on the Termination Date,  plus (y) an amount equal to three (3) times the Employee’s annual cash incentive payment payable to the Employee based on performance at target levels of performance for the fiscal year in which the Employee’s employment is terminated, which shall be paid within sixty (60) days of such termination or resignation; (iii) the Company shall pay to the Employee a pro rata annual cash incentive bonus based on the number of full calendar months elapsed in the fiscal year of termination and actual performance for such fiscal year, which shall be paid at such time as it would have been paid if the Employee had not been terminated, and (iv) any and all unvested and unexercised stock options, restricted stock, restricted stock units and performance-based vesting equity awards awarded to the Employee under any Equity Plan as of the Termination Date shall be treated in accordance with the applicable award agreement evidencing such equity-based awards and any applicable election forms related thereto, which such award agreements provide and any future equity-based award agreements shall provide, at a minimum, that such awards will become fully vested and exercisable as of the Termination Date following a Change in Control (with all performance-based criteria deemed met at target levels of performance) in the event that the Employee’s employment during the Term is terminated by the Company without Cause or if the Employee resigns for Good Reason and such termination takes place on or within one year after the Change in Control Date. In addition, if the Employee’s employment with the Company is terminated by the Company without Cause or if the Employee resigns for Good Reason, and such termination or resignation takes place on or within one (1) year after the Change in Control Date, then, in lieu of the COBRA Amount, and subject to any limitation imposed under applicable law and Sections 4.4(b) and 4.4(e) of this Agreement, the Company will pay the Employee a lump sum amount equal to $105,000 (the “Change in Control COBRA Amount”) that the Employee may use to procure group health plan coverage for himself and his eligible dependents or otherwise. If the Employee desires to elect COBRA continuation coverage, it shall be the sole responsibility of the Employee (and/or other family members who are qualified beneficiaries, as described in the COBRA election notice, and who desire COBRA continuation coverage) to timely elect COBRA continuation coverage and timely make all applicable premium payments therefore. The Employee acknowledges that the Change in Control COBRA Amount is taxable to the Employee and that the payment of the Change in Control COBRA Amount shall only be made to the extent that the payment of the Change in Control COBRA Amount would not result in any excise taxes on the Company for failure to comply with the nondiscrimination requirements of the PPACA.  Should the Company be unable to pay the Change in Control COBRA Amount without triggering an excise tax under the PPACA, the Company and the Employee shall use reasonable efforts to provide a benefit to the Employee which 

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represents the economic equivalent of the Change in Control COBRA Amount and which does not result in an excise tax on the Company under the PPACA, which benefit shall be paid in a lump sum. 
(d)    The following terms shall have the following definitions:

(i)    The term “Change in Control” means the happening of any of the following:
(1)    any “person”, including a “group” (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Act”), but excluding the Company, any of its Affiliates, or any employee benefit plan of the Company or any of its Affiliates) is or becomes the “beneficial owner” (as defined in Rule 13(d)(3) under the Act), directly or indirectly, of securities of the Company representing the greater of 30% or more of the combined voting power of the Company’s then outstanding securities;
(2)    the stockholders of the Company shall approve a definitive agreement (1) for the merger or other business combination of the Company with or into another corporation if (A) a majority of the directors of the surviving corporation were not directors of the Company immediately prior to the effective date of such merger or (B) the stockholders of the Company immediately prior to the effective date of such merger own less than 60% of the combined voting power in the then outstanding securities in such surviving corporation or (2) for the sale or other disposition of all or substantially all of the assets of the Company; or
(3)    the purchase of 30% or more of the combined voting power of the Company’s then outstanding securities pursuant to any tender or exchange offer made by any “person”, including a “group” (as such terms are used in Sections 13(d) and 14(d) of the Act), other than the Company, any of its Affiliates, or any employee benefit plan of the Company or any of its Affiliates.
(ii)    The term “Change in Control Date” means the date on which a Change in Control occurs.  Anything in this Agreement to the contrary notwithstanding, if a Change in Control occurs, and if the Employee’s employment with the Company is terminated prior to the date on which the Change in Control occurs, and if it is reasonably demonstrated by the Employee that such termination of employment (i) was at the request of a third party who has taken steps reasonably calculated to effect a Change in Control or (ii) otherwise arose in connection with or in anticipation of a Change in Control, then for all purposes of this Agreement, the “Change of Control Date” shall mean the date immediately prior to the date of such termination of employment.
(iii)    The term “Equity Plan” shall mean the Company’s 2002 Stock Incentive Plan, as amended from time to time, and any other current or future plan, program or arrangement of the Company or its Affiliates pursuant to which stock options, restricted stock, restricted stock units, performance units or other equity awards are made, including, but not limited to, the Company’s 2004 Equity Incentive Plan, the Company’s 2012 Equity Incentive Plan and the Company’s Amended and Restated 2012 Equity Incentive Plan.
(a)    In the event any payments or benefits otherwise payable to the Employee, whether or not pursuant to this Agreement, (1) constitute “parachute payments” within the meaning of Section 280G of the Code, and (2) but for this Section 4.4(e), would be subject to the excise tax imposed by Section 4999 of the Code, then such payments and benefits will be either (x) delivered in full, or (y) delivered as to such lesser extent that would result in no portion of such payments and benefits being subject to excise tax under Section 4999 of the Code, whichever of the foregoing amounts, taking into 

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account the applicable federal, state and local income and employment taxes and the excise tax imposed by Section 4999 of the Code (and any equivalent state or local excise taxes), results in the receipt by the Employee on an after-tax basis, of the greatest amount of benefits, notwithstanding that all or some portion of such payments and benefits may be taxable under Section 4999 of the Code.  Unless the Company and the Employee otherwise agree in writing, any determination required under this Section 4.4(e) will be made in writing by a nationally-recognized accounting firm selected by the Employee (the “Accountants”), whose determination will be conclusive and binding upon the Employee and the Company for all purposes.  For purposes of making the calculations required by this Section 4.4(e), the Accountants (i) may make reasonable assumptions and approximations concerning applicable taxes, (ii) may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code, and (iii) shall take into account a “reasonable compensation” (within the meaning of Q&A-9 and Q&A-40 to Q&A 44 of the final regulations under Section 280G of the Code) analysis of the value of services provided or to be provided by the Employee, including any agreement by the Employee (if applicable) to refrain from performing services pursuant to a covenant not to compete or similar covenant applicable to the Employee that may then be in effect (including, without limitation, those contemplated by Section 5.1 of this Agreement). The Company and the Employee agree to furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this provision. The Company will bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this provision.  To the extent such aggregate parachute payment amounts are required to be so reduced, the parachute payment amounts due to the Employee (but no non-parachute payment amounts) shall be reduced in the following order: (i) the parachute payments that are payable in cash shall be reduced (if necessary, to zero) with amounts that are payable last reduced first; (ii) payments and benefits due in respect of any equity, valued at full value (rather than accelerated value) (as such values are determined under Treasury Regulation Section 1.280G-1, Q&A 24) shall be reduced in each case in reverse order beginning with payments or benefits which are to be paid the furthest in time; and (iii) all other non-cash benefits not otherwise described in clause (ii) of this Section 4.4(e) reduced last.  In applying these principles, any reduction or elimination of the Payments shall be made in a manner consistent with the requirements of Section 409A of the Code and where two economically equivalent amounts are subject to reduction but payable at different times, such amounts shall be reduced on a pro rata basis but not below zero.
4.5    Section 409A. 
(a)     It is intended that (i) each payment or installment of payments provided under this Agreement is a separate “payment” for purposes of Section 409A (“Section 409A”) of the Code, and (ii) that the payments satisfy, to the greatest extent possible, the exemptions from the application of Section 409A, including those provided under Treasury Regulations 1.409A-1(b)(4) (regarding short-term deferrals), 1.409A-1(b)(9)(iii) (regarding the two-times, two (2) year exception) and 1.409A-1(b)(9)(v) (regarding reimbursements and other separation pay).  Notwithstanding anything to the contrary herein, if (i) on the date of the Employee’s “separation from service” (as such term is defined under Treasury Regulation 1.409A-1(h)), the Employee is deemed to be a “specified employee” (as such term is defined under Treasury Regulation 1.409A-1(i)(1)) of the Company, as determined in accordance with the Company’s “specified employee” determination procedures, and (ii) any payments to be provided to the Employee pursuant to this Agreement which constitute “deferred compensation” for purposes of Section 409A and are or may become subject to the additional tax under Section 409A(a)(1)(B) of the Code or any other taxes or penalties imposed under Section 409A if provided at the time otherwise required under this Agreement, then such payments shall be delayed until the date that is six (6) months after the date of the Employee’s “separation from service” (as such term is defined under Treasury Regulation 1.409A-1(h)) or, if sooner, the date of the Employee’s death.  Any payments delayed pursuant to this Section 4.5(a) shall be made in a lump sum on the first day of the seventh month following the Employee’s “separation from service” (as such term is defined under Treasury Regulation 1.409A-1(h)) or, if sooner, 

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the date of the Employee’s death.  In addition to the foregoing provisions of this Section 4.5(a), in the event that the Change in Control that triggers payments and benefits under Section 4.4(c) does not constitute a “change in ownership,” “change in effective control,” or “change in the ownership of a substantial portion of the assets” of the Company within the meaning of Section 409A, the payment of two years of base salary and annual cash incentive bonus under Sections 4.4(c)(ii)(x) and (y) shall be paid in pro rata installments over a two-year period in accordance with the normal payroll practices of the Company rather than as a single lump sum and the remainder shall be paid as a lump sum in accordance with the requirements of Section 4.4(c) and this Section 4.5. 
(b)    Notwithstanding any other provision herein to the contrary, a termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of “deferred compensation” (as such term is defined in Section 409A and the Treasury Regulations promulgated thereunder) upon or following a termination of employment unless such termination is also a “separation from service” from the Company within the meaning of Section 409A and Section 1.409A-1(h) of the Treasury Regulations and, for purposes of any such provision of this Agreement, references to a “separation,” “termination,” “termination of employment” or like terms shall mean “separation from service.
(c)    Notwithstanding any other provision herein to the contrary, in no event shall any payment under this Agreement that constitutes “deferred compensation” for purposes of Section 409A and the Treasury Regulations promulgated thereunder be subject to offset by any other amount unless otherwise permitted by Section 409A of the Code.
(d)    Notwithstanding any other provision herein to the contrary, to the extent that any reimbursement (including expense reimbursements), fringe benefit or other, similar plan or arrangement in which the Employee participates during the Term or thereafter provides for a “deferral of compensation” within the meaning of Section 409A and the Treasury Regulations promulgated thereunder, then such reimbursements shall be made in accordance with Treasury Regulations 1.409A-3(i)(1)(iv) including; (i) the amount eligible for reimbursement or payment under such plan or arrangement in one calendar year may not affect the amount eligible for reimbursement or payment in any other calendar year (except that a plan providing medical or health benefits may impose a generally applicable limit on the amount that may be reimbursed or paid), (ii) subject to any shorter time periods provided herein or the applicable plans or arrangements, any reimbursement or payment of an expense under such plan or arrangement must be made on or before the last day of the calendar year following the calendar year in which the expense was incurred, and (iii) the right to any reimbursement or in-kind benefit may not be  subject to liquidation or exchange for another benefit.
(e)    For the avoidance of doubt, any payment due under this Agreement within a period following the Employee’s termination of employment, death, disability or other event, shall be made on a date during such period as determined by the Company in its sole discretion.
(f)    This Agreement shall be interpreted in accordance with, and the Company and the Employee will use their best efforts to achieve timely compliance with, Section 409A and the Treasury Regulations and other interpretive guidance promulgated thereunder, including without limitation any such regulations or other guidance that may be issued after the effective date of this Agreement.  By accepting this Agreement, the Employee hereby agrees and acknowledges that the Company does not make any representations with respect to the application of Section 409A to any tax, economic or legal consequences of any payments payable to the Employee hereunder.  Further, by the acceptance of this Agreement, the Employee acknowledges that (i) the Employee has obtained independent tax advice regarding the application of Section 409A to the payments due to the Employee hereunder, (ii) the Employee retains full responsibility for the potential application of Section 409A

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to the tax and legal consequences of payments payable to the Employee hereunder and (iii) the Company shall not indemnify or otherwise compensate the Employee for any violation of Section 409A that my occur in connection with this Agreement.  The parties agree to cooperate in good faith to amend such documents and to take such actions as may be necessary or appropriate to comply with Section 409A of the Code.
5.    Non-Competition, Non-Solicitation, Confidentiality and Non-Disclosure.    
5.1    Non-Competition and Non-Solicitation.  Except with the prior written consent of the Company or as directed by the Board of Directors of the Company, or in the performance of Employee’s duties to the Company in accordance with the terms hereof, Employee covenants and agrees that during the period commencing on the Effective Date and ending on the first anniversary of the Termination Date, or upon a termination of employment by the Company for Cause or resignation by the Employee without Good Reason, ending on the second anniversary of the Termination Date (the “Restricted Period”), Employee shall not engage, directly or indirectly (which includes, without limitation, owning, managing, operating, controlling, being employed by, giving financial assistance to, participating in or being connected in any material way with any person or entity), anywhere in the United States in any activities with KeHe Distributors, LLC (or any subsidiary or Affiliated entity thereof), any other company which is a direct competitor of the Company and any other company that conducts any business for which the Employee is uniquely qualified to serve as a member of senior management as a result of his service to the Company, which for purposes of this Agreement shall mean the following companies: C&S Wholesale Grocers, Inc., Sysco Corporation, Performance Food Group Company and US Foods, Inc. (or any subsidiary or Affiliated entity thereof) with respect to (i) the Company’s activities on the date hereof and/or (ii) any activities which the Company becomes involved in during the Employee’s term of employment; provided, however, that Employee’s ownership as a passive investor of less than five percent (5%) of the issued and outstanding stock of a publicly held corporation so engaged, shall not by itself be deemed to constitute such competition. Further, during such Restricted Period Employee shall not act to induce any of the Company’s vendors, customers or employees to take action that might be disadvantageous to the Company or otherwise disturb such party’s relationship with the Company.
5.2    Confidential Information; Ownership of Intellectual Property.
(a)    Obligation to Maintain Confidentiality. The Employee shall not disclose or reveal to any unauthorized person or knowingly use for the Employee’s own benefit, any trade secret or other confidential information relating to the Company, or to any of the businesses operated by it, including, without limitation, any customer lists, customer needs, price and performance information, processes, specifications, hardware, software, devices, supply sources and characteristics, business opportunities, potential business interests, marketing, promotional pricing and financing techniques, or other information relating to the business of the Company, and the Employee confirms that such information constitutes the exclusive property of the Company. Such restrictions shall not apply to information which is (i) generally available in the industry, (ii) disclosed through no fault of the Employee or (iii) required to be disclosed pursuant to applicable law or regulation or the order of a governmental or regulatory body (provided that the Company is given reasonable notice of any such required disclosure). The Employee agrees that the Employee will return to the Company upon request, but in any event upon termination of employment, any physical embodiment of any confidential information and/or any summaries containing any confidential information, in whole in part, in any media.  For the avoidance of doubt, nothing in this Agreement is intended to impair the Employee’s rights to make disclosures under any applicable Federal whistleblower law.
(b)    Ownership of Intellectual Property. If the Employee creates, invents, designs, develops, contributes to or improves any works of authorship, inventions, materials, documents or other work product or other intellectual property, either alone or in conjunction with third parties, at any time 

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during the time that the Employee is employed by the Company (“Works”), to the extent that such Works were created, invented, designed, developed, contributed to, or improved with the use of any Company resources and/or within the scope of such employment (collectively, the “Company Works”), the Employee shall promptly and fully disclose such Company Works to the Company. Any copyrightable work falling within the definition of Company Works shall be deemed a “work made for hire” as such term is defined in 17 U.S.C. § 101. The Employee hereby (i) irrevocably assigns, transfers and conveys, to the extent permitted by applicable law, all right, title and interest in and to the Company Works on a worldwide basis (including, without limitation, rights under patent, copyright, trademark, trade secret, unfair competition and related laws) to the Company or such other entity as the Company shall designate, to the extent ownership of any such rights does not automatically vest in the Company under applicable law, and (ii) waives any moral rights therein to the fullest extent permitted under applicable law. The Employee agrees not to use any Company Works for the Employee’s personal benefit, the benefit of a competitor, or for the benefit of any person or entity other than the Company or its Affiliates. The Employee agrees to execute any further documents and take any further reasonable actions requested by the Company to assist it in validating, effectuating, maintaining, protecting, enforcing, perfecting, recording, patenting or registering any of its rights hereunder, all at the Company’s sole expense. 
(c)    Assignment of Inventions. The Employee will and hereby does assign and transfer to the Company the Employee’s entire right, title and interest in and to all Inventions (defined to mean inventions, ideas, improvements, discoveries, trade secrets, processes, data, programs, knowledge, know-how, designs, techniques, formulas, test data, computer code, other works of authorship and designs whether or not patentable, copyrightable or otherwise protected by law, and whether or not reduced to practice, made, learned or conceived of or prepared by the  Employee, either alone or jointly with others) during the period of the Employee’s employment with the Company which relate in any manner at the time of conception or reduction to practice to the business of the Company or actual or demonstrably anticipated research or development by the Company, or result from or are suggested by any task assigned to the Employee or any work performed by the Employee for or on behalf of the Company, or invented using Company materials, information, or any of the Company’s customers’ materials or information.  The Employee agrees that all such Inventions shall be the sole and exclusive property of the Company and its assigns, and the Company and  its  assigns shall  be  the  sole  owners  of  all  Inventions and  any  and  all  patents, copyrights  and  other  proprietary  rights  related  thereto.  If the Employee has any right or rights to Inventions that cannot be assigned to the Company or waived by the Employee, the Employee unconditionally grants to the Company during the term of such rights, a non-exclusive, irrevocable, perpetual, worldwide, fully paid and royalty-free license, with rights to sublicense through multiple levels of sublicenses, to use, reproduce, publish, create derivative works of, market, advertise, distribute, sell, publicly perform and publicly display and otherwise exploit by all means now known or later developed, such Inventions.
(d)    Disclosure of Inventions; Patents. The Employee agrees that in connection with any Invention: (i) the Employee will disclose such Invention promptly in writing to the Employee’s immediate supervisor at the Company, with a copy to the Company’s then acting General Counsel in order to permit the Company to claim rights to which they may be entitled under this Agreement, and such disclosure shall be received in confidence by the Company; and (ii) the Employee will, at the Company’s request, promptly execute a written assignment of title  to  the  Company  for  any  Invention required  to  be  assigned  as set forth above (“Assignable Invention”) and the Employee will preserve any such Assignable Invention as confidential information of the Company.
(e)    Prior Inventions. It is understood that all Inventions, if any, patented or unpatented, which are made by the Employee prior to the Employee’s employment by the Company, are excluded from the scope of this Agreement.

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(f)    Further Cooperation.  The Employee shall, upon request of the Company, but at no expense to the Employee, at any time during or after employment by the Company, sign all instruments and documents and cooperate in such other acts reasonably required to protect rights to the ideas, discoveries, inventions, improvements and knowledge referred to in this Section 5.2, including applying for, obtaining and enforcing patents or copyrights thereon in any and all countries.
5.3    Enforcement. The Employee recognizes that the possible restrictions on the Employee’s activities which may occur as a result of the Employee’s performance of the Employee’s obligations under Sections 5.1 and 5.2 of this Agreement are required for the reasonable protection of the Company and its investments, and the Employee expressly acknowledges that such restrictions are fair and reasonable for that purpose.  The Employee acknowledges that money damages would not be an adequate or sufficient remedy for any breach of Sections 5.1 and 5.2, and that in the event of a breach or threatened breach of Sections 5.1 or 5.2, the Company, in addition to other rights and remedies existing in its favor, shall be entitled, as a matter of right, to injunctive relief, including specific performance, from a court of competent jurisdiction in order to enforce, or prevent any violations of, the provisions of Sections 5.1 or 5.2. The terms of this Section 5.3 shall not prevent the Company from pursuing any other available remedies for any breach or threatened breach hereof, including but not limited to the recovery of damages from the Employee.  If any of the provisions of this Agreement are held to be in any respect an unreasonable restriction upon Employee then they shall be deemed to extend only over the maximum period of time, geographic area, and/or range of activities as to which they may be enforceable.  The Employee expressly agrees that all payments and benefits due the Employee under this Agreement shall be subject to the Employee’s compliance with the provisions set forth in Sections 5.1 and 5.2. 
6.    Notices. All notices, consents, waivers, and other communications under this Agreement must be in writing and will be deemed to have been duly given when (a) delivered by hand (with written confirmation of receipt), (b) sent by facsimile with confirmation of transmission by the transmitting equipment, (c) received by the addressee, if sent by certified mail, return receipt requested, or (d) received by the addressee, if sent by a nationally recognized overnight delivery service, return receipt requested, in the case of Employee, to the address or facsimile number set forth on the signature page hereto, and in the case of the Company, to the address or facsimile number set forth below (or in either case to such other addresses or facsimile numbers as a party may designate by notice to the other parties):
If to the Company, to:
United Natural Foods, Inc.
313 Iron Horse Way
Providence, Rhode Island 02908
Attention: Board of Directors
Fax No.: (401) 278-1896
with a copy to:
Bass, Berry & Sims PLC
150 Third Avenue South, Suite 2800
Nashville, Tennessee 37201
Attention:  F. Mitchell Walker, Jr.
Fax No.:  (615) 742-2775
If to the Employee, to:
to his address on record with the Company

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with a copy to:
Sullivan & Cromwell, LLP
125 Broad Street
New York, NY 10004
Attention:  Marc Trevino
Fax No.:  (212) 291-9157

7.    Waiver of Breach. The waiver by any party of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach by any other party. No waiver of any provision of this Agreement shall be implied from any course of dealing between the parties hereto or from any failure by any party hereto to assert any rights hereunder on any occasion or series of occasions. 
8.    Assignment. The rights and obligations of the Company under this Agreement shall inure to the benefit of and shall be binding upon their successors and assigns. The Company may assign its rights and obligations under this Agreement to any Affiliate of the Company. “Affiliate” shall mean any entity which controls, is controlled by, or is under common control with another entity. The Employee acknowledges that the services to be rendered by him are unique and personal, and the Employee may not assign any of his rights or delegate any of his duties or obligations under this Agreement. 
9.    Entire Agreement; Amendment. This Agreement contains the entire agreement of the parties relating to the subject matter herein and supersedes in full and in all respects any prior oral or written agreement, arrangement or understanding between the parties with respect to Employee’s employment with the Company, including without limitation, the Offer Letter between the Employee and the Company dated September 16, 2008, as amended, and the Severance Agreement between the Employee and the Company dated September 16, 2008, as either may have previously been amended, and such Offer Letter and Severance Agreement are hereby terminated as of the Effective Date and are of no further force and effect from and after the Effective Date. This Agreement may not be amended or changed orally but only by an agreement in writing signed by the party against whom enforcement of any waiver, change, modification, extension or discharge is sought.
10.    Controlling Law. All issues and questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware, without giving effect to any choice of law or conflict of law rules or provisions (whether of the State of Delaware or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Delaware. 
11.    Waiver of Jury Trial. AS A SPECIFICALLY BARGAINED FOR INDUCEMENT FOR EACH OF THE PARTIES HERETO TO ENTER INTO THIS AGREEMENT (AFTER HAVING THE OPPORTUNITY TO CONSULT WITH COUNSEL), EACH PARTY HERETO EXPRESSLY WAIVES THE RIGHT TO TRIAL BY JURY IN ANY LAWSUIT OR PROCEEDING RELATING TO OR ARISING IN ANY WAY FROM THIS AGREEMENT OR THE MATTERS CONTEMPLATED HEREBY.
12.    No Set-Off by the Employee.  The existence of any claim, demand, action or cause of action by the Employee against the Company whether predicated upon this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company of any of its rights hereunder.

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13.    Survival.  The obligations of the parties pursuant to Sections 4.2, 4.3, 4.4, 4.5, 5.1, 5.2, 5.3, 6, 8, 9, 10, 11, 13, 14 and 15, as applicable, shall survive the termination of the Employee’s employment hereunder for the period designated under each of those respective sections.
14.    Severability. If any provision of this Agreement or the application of any such provision to any party or circumstances will be determined by any court of competent jurisdiction to be invalid and unenforceable to any extent, the remainder of this Agreement or the application of such provision to such person or circumstances other than those to which it is so determined to be invalid and unenforceable, will not be affected thereby, and each provision hereof will be validated and will be enforced to the fullest extent permitted by law.
15.    Headings. The sections, subjects and headings in this Agreement are inserted for convenience only and shall not affect in any way the meaning or interpretation of this Agreement.
 [signature page to follow] 

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

EMPLOYEE:

    
/s/Steven L. Spinner                                    
 
Steven L. Spinner

Address and Facsimile Number for Notice:

_[CONFIDENTIAL] ________________
__________________________________
__________________________________
Fax No.:___________________________
    
    
COMPANY:

UNITED NATURAL FOODS, INC.

By: /s/Joseph J. Traficanti
Name: Joseph J. Traficanti                                        
Title:      Senior Vice President, General Counsel and 
Chief Compliance Officer                              

[Signature Page to Employment Agreement]

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