Document:

Waiver and Amendment No. 1 to Fourth Amended and Restated Credit Agreement

 Exhibit 10.19 
 WAIVER AND AMENDMENT NO. 1 TO 
 FOURTH AMENDED AND RESTATED CREDIT
AGREEMENT 
 This WAIVER AND AMENDMENT NO. 1 TO FOURTH AMENDED AND RESTATED CREDIT AGREEMENT dated as of December 10,
2012 (this “Amendment”), is entered into by and among STATER BROS. MARKETS, a California corporation (“Borrower”), STATER BROS. HOLDINGS INC., a Delaware corporation (“Holdings”), and BANK OF AMERICA, N.A., as
administrative agent under the Credit Agreement referred to below (“Administrative Agent”), acting with the consent of the Required Lenders pursuant to Section 11.01 of the Credit Agreement referred to below, with reference to the
following facts: 
 RECITALS 
 A. Borrower, Holdings, the Lenders, the L/C Issuer and Administrative Agent are parties to that certain Fourth Amended and Restated Credit Agreement dated as of November 29, 2010 (the “Credit
Agreement”), pursuant to which the Lenders are providing Borrower with certain credit facilities. Capitalized terms used but not defined in this Amendment are used with the meanings set forth in the Credit Agreement. 

B. Borrower has informed Administrative Agent and the Lenders that the Unfunded Pension Liability among all Pension Plans was
approximately $46,342,000 as of September 30, 2012, which amount is in excess of the amount permitted under Section 9.01(i) of the Credit Agreement (the “Existing Event of Default”). 

C. Borrower has requested a waiver of the Existing Event of Default and an increase to the maximum amount of the Unfunded Pension
Liability permitted under the Credit Agreement. 
 AGREEMENT 

NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto hereby
agree as follows: 
 1. Waiver of Existing Event of Default. In reliance upon the representations, warranties and
covenants set forth in this Amendment and subject to the satisfaction of the conditions precedent set forth in this Amendment, the Existing Event of Default is hereby waived. The waiver set forth in this Section 1 of the Existing Event of
Default shall not constitute a waiver of any other or future Defaults or Events of Default, whether or not similar to the Existing Event of Default. 
 2. Section 5.11(c)(ii) – ERISA Compliance. Clause (ii) of Section 5.11(c) of the Credit Agreement is hereby amended and restated in its entirety to read as follows: 

(ii) the aggregate amount of Unfunded Pension Liability among all Pension Plans does not exceed $70,000,000; 

  
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 3. Section 9.01 – Events of Default. Clause (ii) of
Section 9.01(i) of the Credit Agreement is hereby amended and restated in its entirety to read as follows: 
 (ii) the
aggregate amount of Unfunded Pension Liability among all Pension Plans at any time exceeds $70,000,000; 
 4. Representations
and Warranties. Borrower and Holdings represent and warrant to Administrative Agent, the L/C Issuer and the Lenders that: 
 (a) giving effect to the execution and delivery of this Amendment, no Default or Event of Default has occurred and remains continuing; and 

(b) each of the representations and warranties set forth in Article V of the Credit Agreement or any other Loan
Document, or which are contained in any document heretofore furnished to the Administrative Agent therewith, are true and correct as of the date of this Amendment, except to the extent that such representations and warranties specifically refer to
any earlier date (in which case such representations and warranties are true and correct as of such earlier date) and except that the representations and warranties contained in Sections 5.05(a) and (b) of the Credit Agreement
shall be deemed to refer to the most recent statements furnished pursuant to Section 6.01 of the Credit Agreement. 

5. Conditions; Effectiveness. The effectiveness of this Amendment shall be subject to the prior satisfaction of the following
conditions precedent: 
 (a) Administrative Agent shall have received this Amendment executed by Borrower and
Holdings; 
 (b) Administrative Agent shall have received counterparts of the Consent of Guarantors, in the form
attached hereto as Exhibit A, duly executed by each of the parties thereto; and 
 (c) Administrative
Agent shall have received Consents of Lender, in the form attached hereto as Exhibit B, from the Required Lenders. 
 6.
Effectiveness of the Credit Agreement. Except as hereby expressly amended, the Credit Agreement and the other Loan Documents remain in full force and effect and are hereby ratified and confirmed in all respects. 

7. No Waiver. Except as specifically provided in Section 1 of this Amendment with respect to the Existing Event of Default,
the execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the Administrative Agent, any Lender or the L/C Issuer under the Credit Agreement or any of the other Loan Documents.

 8. Counterparts; Facsimile Signatures. This Amendment may be executed in any number of counterparts and all of such
counterparts taken together shall be deemed to constitute one and the same instrument. Delivery of an executed counterpart of a signature page of this Amendment by telecopy or other electronic imaging means shall be effective as delivery of a
manually executed counterpart of this Amendment. 
 [Signature page to follow] 

  
 -2-

 IN WITNESS WHEREOF, the undersigned have caused this Amendment to be duly executed as of the
date first written above. 
  

			
	 STATER BROS. MARKETS

a California corporation

		
	By:	 	 /s/ David J. Harris

	Name:	 	David J. Harris
	Title:	 	Senior Vice President Finance and CFO
	
	 STATER BROS. HOLDINGS INC.,
 a Delaware corporation

		
	By:	 	 /s/ David J. Harris

	Name:	 	David J. Harris
	Title:	 	Senior Vice President Finance and CFO
	
	 BANK OF AMERICA, N.A.,
 as Administrative Agent

		
	By:	 	  

	Name:	 	  

	Title:	 	  

  
 Waiver and
Amendment No. 1 
 to Fourth AR Credit Agreement 

 IN WITNESS WHEREOF, the undersigned have caused this Amendment to be duly executed as of the
date first written above. 
  

			
	 STATER BROS. MARKETS,
 a California corporation

		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	 STATER BROS. HOLDINGS INC.,
 a Delaware corporation

		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	 BANK OF AMERICA, N.A.,
 as Administrative Agent

		
	By:	 	 /s/ Brenda Schriner

	Name:	 	 Brenda Schriner

	Title:	 	 Vice President

  
 Waiver and
Amendment No. 1 
 to Fourth AR Credit Agreement 

 Exhibit A to Amendment 

CONSENT OF GUARANTORS 
 This Consent of Guarantors dated as of December 7, 2012 (this “Consent”), is delivered with reference to the Fourth Amended and Restated Credit Agreement dated as of November 29, 2010
(as amended, restated, extended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among Stater Bros. Markets, a California corporation (“Borrower”), Stater Bros. Holdings Inc., a Delaware corporation
(“Holdings”), the lenders from time to time party thereto (each a “Lender” and collectively, the “Lenders”) and Bank of America, N.A., as Administrative Agent and L/C Issuer. Capitalized terms used and not defined in
this Consent are used with the meanings set forth for those terms in the Credit Agreement. 
 Reference is hereby made to the
Second Amended and Restated Guaranty dated as of November 29, 2010 (as amended, restated, extended, supplemented or otherwise modified from time to time, the “Guaranty”), originally executed by Holdings, Stater Bros. Development,
Inc., a California corporation, SuperRx, Inc., a California corporation, and SBM Dairies, Inc., a California corporation, in favor of Administrative Agent. Each of the undersigned (i) consents to and approves the execution and delivery of the
attached Waiver and Amendment No. 1 to Fourth Amended and Restated Credit Agreement (the “Amendment”) by Borrower and Holdings, (ii) agrees that the Amendment does not and shall not limit or diminish in any manner the obligations
of the undersigned under the Guaranty or any other Loan Document to which it is a party and that such obligations would not be limited or diminished in any manner even if the undersigned had not executed this Consent, (iii) reaffirms the
Guaranty and each other Loan Document to which the undersigned is a party and represents and warrants that it has no defense, counterclaim or offset right whatsoever with respect to its obligations under the Guaranty or any other Loan Document to
which it is a party as a result of the Amendment, and (iv) agrees that the Guaranty and the other Loan Documents to which the undersigned is a party remain in full force and effect and are hereby ratified and confirmed. 

This Consent may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute one
and the same instrument. Delivery of an executed counterpart of a signature page of this Consent by telecopy or other electronic imaging means shall be effective as delivery of a manually executed counterpart of this Consent. 

[Signature page to follow] 

  
 Consent of
Guarantors 

 IN WITNESS WHEREOF, the undersigned have caused this Consent to be duly executed as of the
date first written above. 
  

			
	 STATER BROS. HOLDINGS INC.,
 a Delaware corporation

		
	By:	 	 /s/ David J. Harris

	Name:	 	David J. Harris
	Title:	 	Senior Vice President Finance and CFO
	
	 STATER BROS. DEVELOPMENT, INC.,
 a California corporation

		
	By:	 	 /s/ David J. Harris

	Name:	 	David J. Harris
	Title:	 	Senior Vice President Finance and CFO
	
	 SUPER RX, INC.,
 a
California corporation

		
	By:	 	 /s/ David J. Harris

	Name:	 	David J. Harris
	Title:	 	Senior Vice President Finance and CFO
	
	 SBM DAIRIES, INC.,

a California corporation

		
	By:	 	 /s/ David J. Harris

	Name:	 	David J. Harris
	Title:	 	Senior Vice President Finance and CFO

  
 Consent of
Guarantors 

 Exhibit B to Amendment 

CONSENT OF LENDER 
 This Consent of Lender dated as of December 7, 2012 (this “Consent”) is delivered with reference to the Fourth Amended and Restated Credit Agreement dated as of November 29, 2010 (as
amended, restated, extended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among Stater Bros. Markets, a California corporation (“Borrower”), Stater Bros. Holdings Inc., a Delaware corporation
(“Holdings”), the lenders from time to time party thereto (each a “Lender” and collectively, the “Lenders”) and Bank of America, N.A., as Administrative Agent and L/C Issuer. Capitalized terms used and not defined in
this Consent are used with the meanings set forth for those terms in the Credit Agreement. 
 The undersigned Lender hereby
consents to the execution, delivery and performance of the proposed Waiver and Amendment No. 1 to Fourth Amended and Restated Credit Agreement, substantially in the form of the most recent draft thereof presented to the undersigned Lender.

 Delivery of an executed signature page of this Consent by telecopy or other electronic imaging means shall be effective as
delivery of a manually executed counterpart of this Consent. 
  

			
	  

	Bank of America, NA
		
	By:	 	 /s/ Adam Feit

	Name:	 	 Adam Feit

	Title:	 	 Senior Vice President

 Please submit this Consent of Lender by email or fax to: 

Eugene C. Kim 
 Sheppard Mullin
Richter & Hampton LLP 
 333 South Hope Street, 43rd Floor 
 Los Angeles, CA 90071 
 213.617.5404 | direct telephone 

213.443.2777 | direct fax 

ekim@sheppardmullin.com 
 Receipt of
email submissions will be confirmed. 
 No original signatures are required to be submitted. 

  
 Consent of
Lender 

 Exhibit B to Amendment 

CONSENT OF LENDER 
 This Consent of Lender dated as of December 7, 2012 (this “Consent”) is delivered with reference to the Fourth Amended and Restated Credit Agreement dated as of November 29, 2010 (as
amended, restated, extended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among Stater Bros. Markets, a California corporation (“Borrower”), Stater Bros. Holdings Inc., a Delaware corporation
(“Holdings”), the lenders from time to time party thereto (each a “Lender” and collectively, the “Lenders”) and Bank of America, N.A., as Administrative Agent and L/C Issuer. Capitalized terms used and not defined in
this Consent are used with the meanings set forth for those terms in the Credit Agreement. 
 The undersigned Lender hereby
consents to the execution, delivery and performance of the proposed Waiver and Amendment No. 1 to Fourth Amended and Restated Credit Agreement, substantially in the form of the most recent draft thereof presented to the undersigned Lender.

 Delivery of an executed signature page of this Consent by telecopy or other electronic imaging means shall be effective as
delivery of a manually executed counterpart of this Consent. 
  

			
	 SUNTRUST BANK

		
	By:	 	 /s/ Kelly Gunter

	Name:	 	 Kelly Gunter

	Title:	 	 Vice President

 Please submit this Consent of Lender by email or fax to: 

Eugene C. Kim 
 Sheppard Mullin
Richter & Hampton LLP 
 333 South Hope Street, 43rd Floor 
 Los Angeles, CA 90071 
 213.617.5404 | direct telephone 

213.443.2777 | direct fax 

ekim@sheppardmullin.com 
 Receipt of
email submissions will be confirmed. 
 No original signatures are required to be submitted. 

  
 Consent of
Lender 

 Exhibit B to Amendment 

CONSENT OF LENDER 
 This Consent of Lender dated as of December 7, 2012 (this “Consent”) is delivered with reference to the Fourth Amended and Restated Credit Agreement dated as of November 29, 2010 (as
amended, restated, extended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among Stater Bros. Markets, a California corporation (“Borrower”), Stater Bros. Holdings Inc., a Delaware corporation
(“Holdings”), the lenders from time to time party thereto (each a “Lender” and collectively, the “Lenders”) and Bank of America, N.A., as Administrative Agent and L/C Issuer. Capitalized terms used and not defined in
this Consent are used with the meanings set forth for those terms in the Credit Agreement. 
 The undersigned Lender hereby
consents to the execution, delivery and performance of the proposed Waiver and Amendment No. 1 to Fourth Amended and Restated Credit Agreement, substantially in the form of the most recent draft thereof presented to the undersigned Lender.

 Delivery of an executed signature page of this Consent by telecopy or other electronic imaging means shall be effective as
delivery of a manually executed counterpart of this Consent. 
  

			
	COÖPERATIEVE CENTRALE RAIFFEISEN- BOERENLEENBANK B.A., “RABOBANK NEDERLAND”, NEW YORK BRANCH
		
	By:	 	 /s/ Gillian Dickson

	Name:	 	 Gillian Dickson

	Title:	 	 Executive Director

		
	By:	 	 /s/ Deborah R. Dias

	Name:	 	 Deborah R. Dias

	Title:	 	 Executive Director

 Please submit this Consent of Lender by email or fax to: 

Eugene C. Kim 
 Sheppard Mullin
Richter & Hampton LLP 
 333 South Hope Street, 43rd Floor 
 Los Angeles, CA 90071 
 213.617.5404 | direct telephone 

213.443.2777 | direct fax 

ekim@sheppardmullin.com 
 Receipt of
email submissions will be confirmed. 
 No original signatures are required to be submitted. 

  
 Consent of
Lender 

 Exhibit B to Amendment 

CONSENT OF LENDER 
 This Consent of Lender dated as of December 7, 2012 (this “Consent”) is delivered with reference to the Fourth Amended and Restated Credit Agreement dated as of November 29, 2010 (as
amended, restated, extended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among Stater Bros. Markets, a California corporation (“Borrower”), Stater Bros. Holdings Inc., a Delaware corporation
(“Holdings”), the lenders from time to time party thereto (each a “Lender” and collectively, the "Lenders") and Bank of America, N.A., as Administrative Agent and L/C Issuer. Capitalized terms used and not defined in this Consent
are used with the meanings set forth for those terms in the Credit Agreement. 
 The undersigned Lender hereby consents to the
execution, delivery and performance of the proposed Waiver and Amendment No. 1 to Fourth Amended and Restated Credit Agreement, substantially in the form of the most recent draft thereof presented to the undersigned Lender. 

Delivery of an executed signature page of this Consent by telecopy or other electronic imaging means shall be effective as delivery of a
manually executed counterpart of this Consent. 
  

			
	Union Bank, N.A.
		
	By:	 	 /s/ Stephen W. Dunne

	Name:	 	Stephen W. Dunne
	Title:	 	Vice President

 Please submit this Consent of Lender by email or fax to: 

Eugene C. Kim 
 Sheppard Mullin
Richter & Hampton LLP 
 333 South Hope Street, 43rd Floor 
 Los Angeles, CA 90071 
 213.617.5404 | direct telephone 

213.443.2777 | direct fax 

ekim@sheppardmullin.com 
 Receipt of
email submissions will be confirmed. 
 No original signatures are required to be submitted. 

  
 Consent of
Lender 

 Exhibit B to Amendment 

CONSENT OF LENDER 
 This Consent of Lender dated as of December 7, 2012 (this “Consent”) is delivered with reference to the Fourth Amended and Restated Credit Agreement dated as of November 29, 2010 (as
amended, restated, extended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among Stater Bros. Markets, a California corporation (“Borrower”), Stater Bros. Holdings Inc., a Delaware corporation
(“Holdings”), the lenders from time to time party thereto (each a “Lender” and collectively, the “Lenders”) and Bank of America, N.A., as Administrative Agent and L/C Issuer. Capitalized terms used and not defined in
this Consent are used with the meanings set forth for those terms in the Credit Agreement. 
 The undersigned Lender hereby
consents to the execution, delivery and performance of the proposed Waiver and Amendment No. 1 to Fourth Amended and Restated Credit Agreement, substantially in the form of the most recent draft thereof presented to the undersigned Lender.

 Delivery of an executed signature page of this Consent by telecopy or other electronic imaging means shall be effective as
delivery of a manually executed counterpart of this Consent. 
  

			
	 Bank of the West

	[Insert Name of Lender]
		
	By:	 	 /s/ Benson W. Fong

	Name:	 	 Benson W. Fong

	Title:	 	 Vice President

 Please submit this Consent of Lender by email or fax to: 

Eugene C. Kim 
 Sheppard Mullin
Richter & Hampton LLP 
 333 South Hope Street, 43rd Floor 
 Los Angeles, CA 90071 
 213.617.5404 | direct telephone 

213.443.2777 | direct fax 

ekim@sheppardmullin.com 
 Receipt of
email submissions will be confirmed. 
 No original signatures are required to be submitted. 

  
 Consent of
Lender 

 Exhibit B to Amendment 

CONSENT OF LENDER 
 This Consent of Lender dated as of December 7, 2012 (this “Consent”) is delivered with reference to the Fourth Amended and Restated Credit Agreement dated as of November 29, 2010 (as
amended, restated, extended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among Stater Bros. Markets, a California corporation (“Borrower”), Stater Bros. Holdings Inc., a Delaware corporation
(“Holdings”), the lenders from time to time party thereto (each a “Lender” and collectively, the “Lenders”) and Bank of America, N.A., as Administrative Agent and L/C Issuer. Capitalized terms used and not defined in
this Consent are used with the meanings set forth for those terms in the Credit Agreement. 
 The undersigned Lender hereby
consents to the execution, delivery and performance of the proposed Waiver and Amendment No. 1 to Fourth Amended and Restated Credit Agreement, substantially in the form of the most recent draft thereof presented to the undersigned Lender.

 Delivery of an executed signature page of this Consent by telecopy or other electronic imaging means shall be effective as
delivery of a manually executed counterpart of this Consent. 
  

			
	Manufacturers Bank
		
	By:	 	 /s/ Sandy Lee

	Name:	 	Sandy Lee
	Title:	 	Vice President

 Please submit this Consent of Lender by email or fax to: 

Eugene C. Kim 
 Sheppard Mullin
Richter & Hampton LLP 
 333 South Hope Street, 43rd Floor 
 Los Angeles, CA 90071 
 213.617.5404 | direct telephone 

213.443.2777 | direct fax 

ekim@sheppardmullin.com 
 Receipt of
email submissions will be confirmed. 
 No original signatures are required to be submitted. 

  
 Consent of
Lender 

 Exhibit B to Amendment 

CONSENT OF LENDER 
 This Consent of Lender dated as of December 7, 2012 (this “Consent”) is delivered with reference to the Fourth Amended and Restated Credit Agreement dated as of November 29, 2010 (as
amended, restated, extended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among Stater Bros. Markets, a California corporation (“Borrower”), Stater Bros. Holdings Inc., a Delaware corporation
(“Holdings”), the lenders from time to time party thereto (each a “Lender” and collectively, the “Lenders”) and Bank of America, N.A., as Administrative Agent and L/C Issuer. Capitalized terms used and not defined in
this Consent are used with the meanings set forth for those terms in the Credit Agreement. 
 The undersigned Lender hereby
consents to the execution, delivery and performance of the proposed Waiver and Amendment No. 1 to Fourth Amended and Restated Credit Agreement, substantially in the form of the most recent draft thereof presented to the undersigned Lender.

 Delivery of an executed signature page of this Consent by telecopy or other electronic imaging means shall be effective as
delivery of a manually executed counterpart of this Consent. 
  

			
	STATE BANK OF INDIA (CALIFORNIA)
		
	By:	 	 /s/ Rimjhim Chhabra

	Name:	 	RIMJHIM CHHABRA
	Title:	 	VICE-PRESIDENT & MANAGER

 Please submit this Consent of Lender by email or fax to: 

Eugene C. Kim 
 Sheppard Mullin
Richter & Hampton LLP 
 333 South Hope Street, 43rd Floor 
 Los Angeles, CA 90071 
 213.617.5404 | direct telephone 

213.443.2777 | direct fax 

ekim@sheppardmullin.com 
 Receipt of
email submissions will be confirmed. 
 No original signatures are required to be submitted. 

  
 Consent of
LenderEmployment contract

 Exhibit 10.21 
 EMPLOYMENT AGREEMENT 
 This Employment
Agreement (“Agreement”) is made effective December 14, 2012 by and between STATER BROS. MARKETS, a California corporation, hereinafter referred to as “Employer” and DAVID J. HARRIS, hereinafter referred to as
“Employee”. Employer and Employee are sometime herein referred to as “party” or collective as “parties”. 
 RECITALS 
 This Agreement is made with reference to the
following facts: 
 A. Employee has been employed by Employer since July 20, 2009 in various capacities for more than three
(3) years, and currently is serving as Senior Vice President – Finance and Chief Financial Officer (“CFO”). 

B. Employer desires to obtain the continued services of Employee as CFO. 

C. Employee is willing to continue serving as CFO of Employer upon the terms and conditions hereinafter set forth. 

NOW, THEREFORE, the parties hereby agree as follows: 

1. Employment. Employer hereby engages Employee and Employee hereby accepts employment with Employer as CFO. 

2. Term. The term of this Agreement shall commence on the effective date set forth above and shall continue for a period of three
(3) years unless earlier terminated by Jack H. Brown in his sole discretion in his capacity as Chairman and/or Chief Executive Officer of Employer, or as otherwise provided in Paragraph 8. 

3. Duties. Employee shall assume and perform such reasonable responsibilities and duties that are commensurate with those duties
and responsibilities normally associated with and appropriate for someone in the position of CFO. The precise nature of the work Employee does for the Employer as CFO may be adjusted from time to time. Employee will perform such other duties as may
be assigned by the Chairman and Chief Executive Officer of Employer and such duties shall be performed principally in Southern California. 
 3.1 Obligations to Employer. Employee agrees that he will not engage in any other employment, consulting, or other business activity, except as authorized by the Jack H. Brown in his capacity as
Chairman and/or Chief Executive Officer of Employer. The Employer has reviewed the activities that Employee has disclosed that Employee is conducting at the time of this Agreement and agrees that they, and any substitute activities that are similar
in nature and scope, will not significantly interfere with Employees performance of the responsibilities of Employee’s employment under this Agreement. In addition, while Employee renders services to the Employer, you will not assist any person
or entity in competing with the Employer, in 

  
 1 

 
preparing to compete with the Employer or in hiring any employees or consultants of the Employer. As an employee, Employee will also be expected to comply with the Employer’s policies and
procedures. 
 3.2 No Conflicting Obligations. Employee represents and warrants to the Employer that Employee is under no
obligations or commitments, whether contractual or otherwise, that are materially inconsistent with his obligations under this Agreement. In connection with Employee’s employment, Employee shall not use or disclose any trade secrets or other
proprietary information or intellectual property in which Employee or any other person has any right, title or interest and Employee’s employment will not infringe or violate the rights of any other person. Employee represents and warrants to
the Employer that he has returned all property and confidential information belonging to any prior employer, other than confidential information that has become generally known to the public or within the relevant trade industry. 

4. Compensation. 
 4.1 Salary. For services performed by Employee for the benefit of Employer pursuant to this Agreement during the term, Employer shall pay Employee a basic salary in an amount equal to that which
Employee is currently receiving from Employer, payable in accordance with the Employer’s regular payroll practices (but no less frequently than monthly). Employee’s basic salary may be increased on August 1 of each year during the
term of this Agreement in an amount, if any, determined by Employer’s Chief Executive Officer or the Board of Directors. 

4.2 Bonus. In addition to Employee’s basic salary, Employee shall be eligible to receive such incentive and performance
bonuses as may have been earned by Employee but not yet paid by Employer as of the date of this Agreement. In addition, Employee shall be entitled to receive from Employer such incentive and performance bonuses as may be consistent with
Employer’s bonus policy for senior officers as the same may exist from time to time, but not less than that which would have been earned under the terms of Employer’s bonus policy for senior officers existing as of the date of this
Agreement. 
 4.3 Additional Benefits. 
 4.3.1 Business Expenses. Employee shall be entitled to reimbursement for reasonable and necessary expenses incurred by Employee in the performance of his duties; provided, however, all such
expenses shall be substantiated with appropriate supporting documentation and in accordance with reasonable standards established from time to time by Employer’s Board of Directors. 

4.3.2 Company Car. Throughout the term of this Agreement, Employee shall be entitled to the exclusive use of a company car
of at least the same type and quality as that furnished to Employee as of the date of this Agreement. Employer shall replace such company car from time to time with new vehicles, such that the company car provided to Employee shall at no time be
older than two (2) years. All expenses of maintenance, operation and insurance shall be paid by Employer or reimbursed by Employer to Employee. The right to receive and use a company vehicle may be terminated at any time in the sole discretion
of Jack H. Brown 

  
 2 

 
in his capacity as Chairman and/or Chief Executive Officer. Upon such termination, Employee shall promptly return the company vehicle to Employer in a clean and fully operational condition,
normal wear and tear excepted. 
 4.3.3 Benefits Generally Offered. In addition to any other compensation or benefits to
be received by Employee pursuant to the terms of this Agreement, Employee shall be entitled to participate, to the extent allowable in accordance with his status, in all employee benefits offered from time to time by Employer to its senior officers,
including, without limitation, pension plans, profit sharing plans, group life insurance, group health insurance and group disability insurance. 
 5. Vacation and Sick Leave. Employee shall be entitled to a paid vacation of four (4) weeks annually. In addition, Employee shall be entitled to paid time off for personal illness in
accordance with Employer’s policy for such leave as the same may exist from time to time. 
 6.
Devotion of Time. Employee shall devote his full time, attention and energies to the business of Employer allowing time off for illness and vacation. Notwithstanding the foregoing, Employee may engage in other personal business so
long as the performance of such activities do not interfere with the efficient and timely performance of Employee’s duties hereunder. 
 7. Restrictive Covenants. 
 7.1 Non-Competition. During the term of
Employee’s employment under this Agreement, Employee shall not own or have any interest directly in, or act as an officer, director, agent, employee or consultant of, or assist in any way or in any capacity, any person, firm, association,
partnership, corporation, or entity which shall be competitive with the supermarket business then engaged in by Employer, in any area where Employer engages in business. The restrictions of this Paragraph prohibiting ownership in a competitive
business shall not apply to (i) any ownership or interest held by Employee at the time of execution of this Agreement, (ii) any ownership of publicly traded stock, or (iii) any investment in real property (whether made directly or
through the vehicle of a partnership, corporation, investment trust or other entity), notwithstanding the fact that a supermarket in competition with Employer might be a lessee of some or all of such real property. 

7.2 Enforcement. Employee agrees and warrants that the covenants contained herein are reasonable, that valid consideration has
been and will be received therefor and that the agreements set forth herein are the result of arms-length negotiations between the parties. Employee recognizes that the provisions of this Paragraph 7 are vitally important to the continuing welfare
of Employer and that money damages constitute a totally inadequate remedy for any violation thereof. Accordingly, in the event of any such violation by Employee, Employer, in addition to any other remedies it may have, shall have the right to
institute and maintain a proceeding to compel specific performance thereof or to issue an injunction restraining any action by Employee in violation of this Paragraph 7. 

  
 3 

 7.3 Delivery of Records. Upon termination of Employee’s employment with
Employer, Employee shall deliver to Employer all books, records, lists of suppliers and customers, samples, price lists, brochures and other property belonging to Employer or developed in connection with the business of Employer. 

7.4 Confidentiality. Except in the course of Employer’s business, Employee shall not at any time during or after his
employment with Employer, reveal, divulge or make known to any person, firm or corporation any confidential knowledge or information or any confidential facts concerning any suppliers, customers, methods, processes, developments, schedules, lists or
plans of or relating to the business of Employer and will retain all confidential knowledge and information which he has acquired or which he will acquire during his employment therewith relating to such suppliers, customers, methods, processes,
developments, schedules, lists or plans and the business of Employer for the sole benefit of Employer, its successors and assigns; provided, however, that this restriction shall not apply to any knowledge, information or fact held by or known to
Employee which is generally available from sources other than Employee or which was acquired by Employee other than in his capacity as Employee. 
 7.5 Reasonableness. In the event any court shall finally hold that the time or territory or any other provision of this Paragraph 7 constitutes an unreasonable restriction against Employee, the
provisions hereof shall not be rendered void but shall apply as to such time, territory and other provision to such extent as such court may judicially determine or indicate constitutes a reasonable restriction under the circumstances involved.

 7.6 Survival. The provisions of this Paragraph 7 shall survive the termination of the term of this Agreement and shall
run to and inure to the benefit of Employer, its successors and assigns. 
 8. Termination. 

8.1 Termination at Will. Employee’s employment under the terms of this Agreement is “at will” and may be terminated
at any time by either party upon ninety (90) days written notice to the other party. 
 8.2 Termination for Cause.

 8.2.1 Employee’s employment under the terms of this Agreement may be terminated immediately, at the option of Employer,
if Employee defaults in the performance of any material covenant, agreement, term or provision of this Agreement to be kept, observed or performed by him/her, and such default continues for a period of thirty (30) days after written notice from
Employer, which notice shall describe the default with particularity. 
 8.2.2 Employee’s employment under the terms of
this Agreement may be suspended without pay immediately, at the option of Employer, in the event that criminal charges involving a felony of moral turpitude should be filed against Employee. In the event Employee is convicted of such crime, such
suspension shall automatically become a termination 

  
 4 

 
for cause. In the event that Employee is acquitted of such crime, or in the event such charges should be dismissed, such suspension shall be terminated and Employee shall be reinstated
retroactively. 
 9. Payments upon Termination of Employment. 

9.1 Payments to Employee. In the event of the cessation of Employee’s employment prior to the expiration of the term of this
Agreement, Employer shall pay to Employee the amounts set forth in this Paragraph 9 biweekly throughout the balance of the term of this Agreement; provided, however, that Employer shall have no obligation to pay any amounts whatsoever under the
provisions of this Paragraph 9 if Employee: (a) is terminated by Jack H. Brown in his capacity as Chairman and/or Chief Executive Officer of Employer; (b) is terminated by Employer’s Board of Directors with the concurrence of Jack H.
Brown in his capacity as Chairman and/or Chief Executive Officer of Employer; (c) voluntarily terminated his employment during such time as Jack H. Brown may be Chairman and/or Chief Executive Officer of Employer; (d) is terminated for
cause, as that term is defined in Paragraph 8.2 hereof; or (e) if upon a Change of Control, Employee voluntarily terminates his employment. 
 9.1.1 Calculation of Payments. The first twenty-six (26) payments to be made pursuant to the terms of this Paragraph 9 shall be in an amount equal to 1/26th of the greater of (i) the
average of the annual total compensation (including, but not limited to, salary and bonus) paid by Employer, its affiliates and/or successors to Employee during the three (3) year period immediately preceding Employee’s termination of
employment hereunder, or (ii) the amount of Employee’s total compensation (including, but not limited to, salary and bonus) paid by Employer, its affiliates and/or successors to Employee during the twelve (12) month period immediately
preceding Employee’s termination of employment. Thereafter, the biweekly payments shall increase annually in accordance with Subparagraph 9.1.2. 
 9.1.2 Annual Increases. On each anniversary of Employee’s termination from employment, any remaining amounts to be paid during the next year pursuant to this Paragraph 9 shall be increased to
an amount equal to one hundred ten percent (110%) of the amounts required to be paid by Employer hereunder under the provisions of this Paragraph 9 during the preceding year. 

9.2 Payments Upon Death. In the event of the death of Employee, Employer shall nonetheless pay to the estate of Employee, or in
such other manner as Employee may designate in writing to Employer, all sums which would otherwise have been paid to Employee under this Paragraph 9 for the balance of the term of this Agreement. For purposes of funding this obligation to make
payments upon Employee’s death, Employer may purchase and hold such life insurance policies on the life of Employee as may be appropriate; provided, however, that if the total funds available to Employer under the terms of such life insurance
policies exceed the amount which would otherwise be payable to Employee by Employer under the terms of this Paragraph 9, Employer’s payment obligation under this Paragraph 9 shall be increased to the total amount received by Employer under such
insurance policies. 

  
 5 

 9.3 Termination of Payments. All payments due Employee under this Paragraph 9 shall
cease in the event Employee is employed to perform management services for compensation for any supermarket chain located in any area where Employer engages in the supermarket business. 

10. Change in Control. The automatic renewal of this Agreement and all obligations of Employer (or its successor) hereunder,
including without limitation, compensation due to Employee, shall be unaffected, unless otherwise terminated as provided in Paragraph 8, upon a Change in Control. “Change in Control” shall mean and include any of the following: 

 

	 	(a)	The purchase or other acquisition by any person, entity or group of persons, within the meaning of Section 13(d) or 14(d) of the Securities and Exchange Act of
1934 (“Act”), or any comparable successor provisions, of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Act) of fifty percent (50%) or more of either the outstanding shares of common stock of
Employer’s then outstanding voting securities entitled to vote generally; 

  

	 	(b)	The approval by the stockholders of Employer of a reorganization, merger, or consolidation, in each case, with respect to which persons who were stockholders of
Employer Immediately prior to such reorganization, merger or consolidation do not, immediately thereafter, own more than fifty percent (50%) of the combined voting power entitled to vote generally in the election of directors of the
reorganized, merged or consolidated Employer’s then outstanding securities; or 

  

	 	(c)	The sale of fifty percent (50%) or more of the assets of Employer. 

 11. Prior Agreements. All prior employment agreements between Employer and Employee are hereby superseded and any such agreement or agreements shall be of no further force or effect. 

12. Personal Nature. This Agreement is personal, and is entered into based upon the singular skill, qualifications and experience
of Employee. Employee shall not assign this Agreement or any rights hereunder without the express written consent of Employer. 

13. Notices. Any and all notice or other communications required or permitted by this Agreement or by law to be given by any of
the parties hereto shall be in writing and shall be deemed duly served and given when personally delivered to the party to whom such notice or communication is directed or, in lieu of such personal service, when deposited in the United States mail,
certified, return receipt requested, postage prepaid, addressed as follows: 
  

							
	  	 	 Employer
	 	 Employee
	 	 
		 	 Stater Bros. Markets
	 	 David J. Harris
	 	
		 	301 S. Tippecanoe Avenue	 	301 S. Tippecanoe Avenue	 	
		 	San Bernardino, CA 92408	 	San Bernardino, CA 92408	 	

  
 6 

 Each party may change the address for notice hereunder by giving written notice of such
change in the manner provided for in this Paragraph. 
 14. Good Faith. All approvals required to be given by each party
shall be given or denied in good faith and may not be unreasonably denied. Each party shall use due diligence in its attempt to accomplish any act required to be accomplished by that party. 

15. Attorneys’ Fees. In the event that it should become necessary for any party to bring an action, including arbitration,
either at law or in equity, to enforce or interpret the terms of this Agreement, the prevailing party in such action shall be entitled to recover its reasonable attorneys’ fees as a part of any judgment therein, in addition to any other award
which may be granted. 
 16. Applicable Law/Venue. This Agreement shall be construed and interpreted in accordance with
the internal laws of the State of California, with proper venue for any litigation or arbitration in San Bernardino County, California. 
 17. Integrated Agreement. This Agreement constitutes the entire agreement of the parties with respect to the subject matter of this Agreement. 

18. Heirs and Assigns. Subject to any restrictions on assignment contained herein, this Agreement shall be binding upon and shall
inure to the benefit of the respective party’s heirs and assigns. 
 19. Modifications and Waivers. No provision of
this Agreement shall be modified, waived or discharged unless the modification, waiver or discharge is agreed to in writing and signed by you and by an authorized officer of the Employer (other than the Employee). No waiver by either party of any
breach of, or of compliance with, any condition or provision of this Agreement by the other party shall be considered a waiver of any other condition or provision or of the same condition or provision at another time. 

20. Severability. Any provision in this Agreement which is illegal, invalid or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such illegality, invalidity or unenforceability without invalidating the remaining provisions hereof or affecting the legality, validity, or enforceability of such provision in any other jurisdiction.
The parties hereto agree to negotiate in good faith to replace any illegal, invalid or unenforceable provision of this Agreement with a legal, valid and enforceable provision that, to the extent possible, will preserve the economic bargain of this
Agreement, or otherwise to amend this Agreement, including the provision relating to choice of law, to achieve such result. 

21. Indemnity. Employer shall indemnify and hold Employee harmless from and against any and all loss, cost, liability and damage
(including attorneys’ fees) arising out of or connected with, or claimed to arise out of or to be connected with, any act performed or omitted to be performed under this Agreement, unless it be shown that the act or omission was not in good
faith, or in the event of criminal proceedings that Employee had reasonable cause to believe 

  
 7 

 
his conduct was unlawful. An adverse judgment or plea of nolo contendre shall not create a presumption that Employee did not act in good faith or that he had reasonable cause to believe
his conduct was unlawful. Expenses incurred in defending a civil or criminal action shall be paid by Employer upon receipt of an undertaking by or on behalf of the Employee to repay such expense if it is later determined that Employee was not
entitled to indemnification. 
 This Agreement is executed to be effective as of the date first above set forth. 

 

			
	EMPLOYER
	
	Stater Bros. Markets,
	a California corporation
		
	 By:
	 	   /s/ Jack H. Brown

		 	Jack H. Brown
		 	Chairman and Chief Executive Officer
	
	EMPLOYEE
	
	   /s/ David J. Harris

	David J. Harris

  
 8

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