Document:

Exhibit 10.2

 

Third Amendment to Award Numbers: 13-023 and 13-024

 

SMART & FINAL STORES, INC.

 

THIRD AMENDMENT TO

 

NON-QUALIFIED STOCK OPTION AGREEMENT
 PURSUANT TO THE
 SF CC HOLDINGS, INC.
  2012 STOCK INCENTIVE PLAN

 

Preliminary Statement

 

The terms of the Non-Qualified Stock Option Agreement (designated as Award Number 13-023), dated as of February 1, 2013, amended effective May 30, 2014, and amended again effective September 23, 2014, evidencing an option (the “Option”) granted to David G. Hirz (“Participant”) to purchase 4,419 shares of Common Stock of Smart & Final Stores, Inc. (the “Company”), at a price per share of $1,000; and the Non-Qualified Stock Option Agreement (designated as Award Number 13-024), dated as of February 1, 2013, amended effective May 30, 2014, and amended again effective September 23, 2014, evidencing an Option granted to David G. Hirz to purchase 4,419 shares of Common Stock of the Company, at a price per share of $1,500 (together, the “Agreements”), hereby are amended by this amendment (“Amendment”) effective July 20, 2016.

 

1.                                      Section 3(f) of each of the Agreements shall be deleted in its entirety and replaced with the following:

 

(f)                                   Unvested Options.

 

(i)                                     Any portion of the Option that is not vested as of the date of the Participant’s Termination by involuntary termination without Cause or resignation for Good Reason (each as defined in the employment agreement between the Company and the Participant) shall, as of the date of such Termination, immediately vest with respect to the portion of the Option that would have vested if the Participant had remained continuously and actively employed until the date two years after the date of such Termination per the vesting schedule provided in Section 3(a).

 

(ii)                                  Any portion of the Option that is not vested as of the date of the Participant’s Termination for any reason (or, if a Change in Control occurs within 60 days following the date of the Participant’s Termination, the date of a Change in Control) shall terminate on the 60th day following the date of Termination.

 

 

2.                                      Section 3(g) of each of the Agreements shall be deleted in its entirety and replaced with the following:

 

(g)                                  Post-Termination Exercise.  Any vested portion of the Option shall be exercisable following Termination pursuant to the terms of the Plan; provided that to the extent that any portion of the Option vests and becomes exercisable following the date of the Participant’s Termination pursuant to Section 3(e)(iii), such portion of the Option may be exercised by the Participant at any time within a period beginning on the date of the applicable Change in Control and ending on the earlier of (A) two years after the date of the applicable Change in Control, and (B) the Expiration Date.

 

3.                                      Section 6 of each of the Agreements shall be deleted in its entirety and replaced with the following:

 

6.                                      Termination and Change in Control.  The provisions in the Plan regarding Termination and Change in Control shall apply to the Option, provided if any portion of the Option is vested and exercisable on the date of the Participant’s Termination by involuntary termination without Cause, resignation for Good Reason or Retirement (each as defined in the employment agreement between the Company and the Participant), the vested portion of the Option may be exercised by the Participant at any time within a period beginning on the date of such Termination and ending on the earlier of (A) two years after the date of such Termination, and (B) the Expiration Date.

 

4.                                      Except as expressly modified by this Amendment, the Agreements shall continue to be and remain in full force and effect in accordance with its terms.

 

5.                                      Capitalized terms used but not defined herein have the meaning ascribed to them in the applicable Agreement.

 

 

	
 
    	
SMART &   FINAL STORES, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Richard N. Phegley
    
	
 
    	
Name:
    	
Richard   N. Phegley
    
	
 
    	
Title:
    	
Senior   Vice President and Chief Financial Officer
    

 

2Exhibit 10.3

 

Amendment to Award Number: 2014-14-0422

 

SMART & FINAL STORES, INC.

 

AMENDMENT TO

 

NON-QUALIFIED STOCK OPTION AGREEMENT
 PURSUANT TO THE
 SMART & FINAL STORES, INC.
  2014 STOCK INCENTIVE PLAN

 

Preliminary Statement

 

The terms of the Non-Qualified Stock Option Agreement (designated as Award Number 2014-14-0422), dated as of September 23, 2014, evidencing an option (the “Option”) granted to David G. Hirz (“Participant”) to purchase 555,556 shares of Common Stock of Smart & Final Stores, Inc. (the “Company”), at a price per share of $12.00 (the “Agreement”), is hereby amended by this amendment (“Amendment”) effective July 20, 2016.

 

1.                                      Section 3(b) of the Agreement shall be deleted in its entirety and replaced with the following:

 

(b)                                 Termination without Cause or for Good Reason.

 

(i)                                     If the Participant’s Termination is by involuntary termination without Cause, resignation for Good Reason or Retirement (each as defined in the employment agreement between the Participant and the Company) prior to a Change in Control the Option shall vest and become exercisable on the date of such Termination with respect to the greater of:

 

(A)                               A percentage of the shares of Common Stock subject to the Option that are unvested on the date of Termination equal to a fraction, the numerator of which is the number of complete years the Participant remained continuously and actively employed since the Grant Date, and the denominator of which is five; and

 

(B)                               The portion of the Option that would have vested if the Participant had remained continuously and actively employed until the date two years after the date of such Termination per the vesting schedule provided in Section 3(a).

 

Such vesting shall be in addition to any shares of Common Stock vested in accordance with Section 3(a).

 

(ii)                                  To the extent the Option is vested and exercisable on the date of the Participant’s Termination as described in Sections 3(b)(i) or 3(c)(iii), the Option may be exercised by the Participant at any time within a period beginning on the date of such Termination and ending on the earlier of (A) two

 

 

years after the date of such Termination, and (B) the Expiration Date. To the extent that any portion of the Option vests and becomes exercisable following the date of the Participant’s Termination pursuant to Section 3(c)(iii), such portion of the Option may be exercised by the Participant at any time within a period beginning on the date of the applicable Change in Control and ending on the earlier of (A) two years after the date of such Change in Control, and (B) the Expiration Date.

 

2.                                      Section 3(d) of the Agreement shall be deleted in its entirety and replaced with the following:

 

(d)                                 Unvested Options.  Any portion of the Option that is not vested as of the date of the Participant’s Termination for any reason (or, if a Change in Control occurs within 60 days following the date of the Participant’s Termination, the date of a Change in Control) shall terminate and expire on the 60th day following the date of Termination.

 

3.                                      Section 6 of the Agreement shall be deleted in its entirety and replaced with the following:

 

6.                                      Termination and Change in Control.  Except as set forth in Sections 3(b), 3(c) and 3(d), the provisions in the Plan regarding Termination and Change in Control shall apply to the Option.

 

4.                                      Except as expressly modified by this Amendment, the Agreements shall continue to be and remain in full force and effect in accordance with its terms.

 

5.                                      Capitalized terms used but not defined herein have the meaning ascribed to them in the applicable Agreement.

 

 

	
 
    	
SMART &   FINAL STORES, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Richard N. Phegley
    
	
 
    	
Name:
    	
Richard   N. Phegley
    
	
 
    	
Title:
    	
Senior   Vice President and Chief Financial Officer
    

 

2Exhibit 10.4

 

Amendment to Award Number: 2015-16-0121

 

SMART & FINAL STORES, INC.

 

AMENDMENT TO

 

NON-QUALIFIED STOCK OPTION AGREEMENT
 PURSUANT TO THE
 SMART & FINAL STORES, INC.
  2014 STOCK INCENTIVE PLAN

 

Preliminary Statement

 

The terms of the Non-Qualified Stock Option Agreement (designated as Award Number 2015-16-0121), dated as of May 6, 2016, evidencing an option (the “Option”) granted to David G. Hirz (“Participant”) to purchase 199,680 shares of Common Stock of Smart & Final Stores, Inc. (the “Company”), at a price per share of $15.65 (the “Agreement”), is hereby amended by this amendment (“Amendment”) effective July 20, 2016.

 

1.                                      Section 6(b) of the Agreement shall be deleted in its entirety and replaced with the following:

 

(b)                                 Involuntary Termination Without Cause, For Good Reason or Certain Voluntary Terminations.

 

(i)                                     If the Participant’s Termination is by involuntary termination without Cause or resignation for Good Reason (as defined in the employment agreement between the Participant and the Company), any unvested portion of the Option shall, as of the date of such Termination, immediately vest with respect to the portion of the Option that would have vested if the Participant had remained continuously and actively employed until the date two years after the date of such Termination per the vesting schedule provided in Section 3. Upon a Termination described in this subsection (b)(i), the portion of the Option that is vested and exercisable on the date of such Termination, including the portion that immediately vests upon the Termination as described in the previous sentence, may be exercised by the Participant at any time within the period beginning on the date of Termination and ending on the earlier of (A) two years after the date of such Termination and (B) the Expiration Date. Any unvested portion of the Option that does not vest immediately upon the Termination as described above shall terminate and expire on the date of Termination.

 

(ii)                                  If the Participant’s Termination is voluntary (other than a resignation for Good Reason described in subsection (b)(i) above, a voluntary Termination described in subsection (c)(ii) below or a Retirement described in subsection (d) below), the portion of the Option that is vested and exercisable on the date of such Termination may be exercised by the Participant at any time within the period beginning on the date of Termination and ending on the earlier of (i) 90 days after the date of such Termination and (ii) the Expiration Date.

 

 

Any unvested portion of the Option shall terminate and expire on the date of Termination.

 

2.                                      Section 6(d) of the Agreement shall be deleted in its entirety and replaced with the following:

 

(d)                                 Retirement.  If the Participant’s Termination is due to Retirement (other than a Retirement described in subsection (c)(ii) above), any unvested portion of the Option shall, as of the date of such Termination, immediately vest with respect to the portion of the Option that would have vested if the Participant had remained continuously and actively employed until the date two years after the date of such Termination per the vesting schedule provided in Section 3. Upon a Termination described in this Section 6(d), the portion of the Option that is vested and exercisable on the date of such Termination, including the portion that immediately vests upon the Termination as described in the previous sentence, may be exercised by the Participant at any time within the period beginning on the date of Termination and ending on the earlier of (i) two years after the date of such Termination and (ii) the Expiration Date. Any unvested portion of the Option that does not vest immediately upon the Termination as described above shall terminate and expire on the date of Termination. For purposes of this Agreement, “Retirement” means as defined in the employment agreement between the Participant and the Company.

 

3.                                      Except as expressly modified by this Amendment, the Agreements shall continue to be and remain in full force and effect in accordance with its terms.

 

4.                                      Capitalized terms used but not defined herein have the meaning ascribed to them in the applicable Agreement.

 

 

	
 
    	
SMART &   FINAL STORES, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Richard N. Phegley
    
	
 
    	
Name:
    	
Richard   N. Phegley
    
	
 
    	
Title:
    	
Senior   Vice President and Chief Financial Officer
    

 

2

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