Document:

Tax Indemnification Agreement

 Exhibit 10.5 
 EXECUTION COPY 
 TAX INDEMNIFICATION AGREEMENT dated as of
November 4, 2010 (this “Agreement”), between THE FRESH MARKET, INC. (the “Company”) and all of the shareholders identified on the signature pages of this Agreement. 

WHEREAS the Company has elected to be an S-corporation (the “S Election”) under the Internal Revenue Code of 1986 or the
Internal Revenue Code of 1954, as applicable, and in each case as amended (the “Code”); 
 WHEREAS The Fresh Market of
Massachusetts, Inc. (the “Subsidiary”) is a wholly owned subsidiary of the Company and has elected to be a qualified subchapter S subsidiary (the “QSub Election”) under the Code; 

WHEREAS the Company intends to conduct an initial public offering (the “IPO”) and, in connection with the IPO, the
Company’s S Election and the Subsidiary’s QSub Election will terminate, and each of the Company and the Subsidiary will each be treated as C-corporations under the Code; 

WHEREAS at all times the Company’s S Election was in effect, the Shareholders (defined below) paid Federal and certain state and
local income taxes on their allocable share of the Company’s Taxable Income (defined below) as determined under the Code and certain equivalent state or local statutes, and the Shareholders will continue to pay such taxes (as they become due)
for such periods as the Company’s S Election remains in effect; 
 WHEREAS the Company is obligated under its shareholder
agreement to make pro rata distributions to its Shareholders in amounts equal to the Shareholders’ estimated tax liability, calculated as if each Shareholder would be taxable on its allocable share of the Company’s Taxable Income at the
maximum Federal income tax rate and the maximum state and local income tax rates; and 
 WHEREAS the Company and the
Shareholders desire to set forth their agreement that the Company shall bear the risk of any additional tax liability, as well as any related losses, costs and expenses, resulting from (i) any statement or restatement of the Company’s
Taxable Income on any income tax return or (ii) any Determination (as defined below), in each case for any open taxable period beginning before the termination of the Company’s S Election; 

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the parties hereby agree as follows:

 ARTICLE I 
 Definitions 
 SECTION 1.01. General. The following terms shall have
the following meanings (such meanings to apply equally to the singular and plural forms of the terms 

 
defined). All section references are to this Agreement unless otherwise stated. All references to “includes” and “including” mean “includes without limitation” or
“including without limitation”, as the case may be. 
 SECTION 1.02. Definition of Terms. 

“Company’s Taxable Income” means the Company’s taxable income, combined with the Subsidiary’s taxable
income, as applicable. 
 “Determination” means the final resolution of liability for any tax for any taxable
period as a result of (i) a “determination” as defined in Treasury Regulation § 1.1377-2(c), (ii) a final determination made by a competent Taxing Authority or (iii) the payment of tax by the Shareholders if the
Shareholders and the Company agree that the payment should be made and no action should be taken to recoup that payment. 

“Proceeding” means any proceeding that will potentially give rise to a Determination. 

“Shareholder” means for any taxable period a person who was a shareholder of the Company during all or part of such
taxable period. 
 “taxes” means all Federal, state and local taxes, assessments, duties or similar charges of
any kind whatsoever, including any interest, additions to tax or penalties applicable thereto. 
 “Taxing
Authority” means any governmental body charged with the determination, collection or imposition of taxes. 
 ARTICLE II

 Payments and Indemnity 
 SECTION 2.01. Tax Returns. Upon filing any Federal, state or local income tax return (amended or otherwise) for any taxable period during which the Company had an S Election in effect, the Company
shall calculate each Shareholder’s estimated tax liability for such taxable period as if each such Shareholder would be taxable on its allocable share of the Company’s Taxable Income at the maximum Federal income tax rate and the maximum
state and local income tax rates applicable to each such Shareholder; provided, that in any case where another person or entity is directly taxed on a Shareholder’s income, such Shareholder’s estimated tax liability shall be
determined by reference to such other person or entity. The Company shall calculate for each Shareholder the excess of such Shareholder’s estimated tax liability over the amount previously distributed by the Company to such Shareholder in
respect of tax liabilities for the relevant taxable period (the “2.01 Excess”). The Company shall make a payment to each Shareholder in proportion to each Shareholder’s shareholdings during the relevant taxable period in an amount
sufficient so that the Shareholder with the highest 2.01 Excess receives a payment equal thereto. Payments made pursuant to this Section 2.01 shall be made at the time the relevant income tax return is filed. 

  
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 SECTION 2.02. Determinations. After any Determination, the Company shall calculate
each Shareholder’s estimated tax liability for the relevant taxable period as if each such Shareholder would be taxable on its allocable share of the Company’s Taxable Income at the maximum Federal income tax rate and the maximum state and
local income tax rates applicable to each such Shareholder; provided, that in any case where another person or entity is directly taxed on a Shareholder’s income, such Shareholder’s estimated tax liability shall be determined by
reference to such other person or entity. The Company shall calculate for each Shareholder the excess of such Shareholder’s estimated tax liability over the amount previously distributed by the Company to such Shareholder in respect of taxes
for such taxable period (the “2.02 Excess”). The Company shall make a payment to each Shareholder in proportion to each Shareholder’s shareholdings during the relevant taxable period in an amount sufficient so that the Shareholder
with the highest 2.02 Excess receives a payment equal thereto. Payments made pursuant to this Section 2.02 shall be made within 120 days of the relevant Determination. 
 SECTION 2.03. Indemnification. The Company shall indemnify and hold harmless the Shareholders from any losses, costs or expenses (including reasonable attorneys’ fees) arising out of any
claims made pursuant to Section 2.01 or Section 2.02. Payments made pursuant to this Section 2.03 shall be made at the same time as the payment made pursuant to Section 2.01 or Section 2.02, as applicable. 

ARTICLE III 

Notice, Proceedings and Inconsistent Reporting 
 SECTION 3.01. Notice and Proceedings. (a) Any Shareholder that believes it may be entitled to a payment under this Agreement as a result of a Proceeding shall use reasonable efforts to
promptly notify the Company of such Proceeding. 
 (b) The Company will have the option to represent itself in any Proceeding,
at its own expense and using advisors of the Company’s choice. 
 (c) Each Shareholder shall cooperate fully with the
Company in any Proceeding and shall have the right, but not the obligation, to participate in such Proceeding at its own expense. 
 (d) Breach by any Shareholder of any of the provisions of this Section 3.01 will terminate the Company’s obligation to make payments to such Shareholder under Article II, to the extent any
such breach materially prejudices the result of any Proceeding. 
 SECTION 3.02. Inconsistent Reporting. If a Shareholder
hereafter reports an item on such Shareholder’s income tax return in a manner materially inconsistent with the tax treatment reflected in the Schedule K-1 or other tax information provided to the Shareholder by the Company for a taxable period
during which the Company had an S Election in effect, such Shareholder shall notify the Company of such 

  
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treatment before filing such Shareholder’s income tax return. If such Shareholder fails to notify the Company of such inconsistent reporting, such Shareholder shall be liable to the Company
for any losses, costs or expenses (including reasonable attorneys’ fees) arising from such inconsistent reporting, including an audit. 
 ARTICLE IV 
 Miscellaneous 

SECTION 4.01. Confidentiality. Each of the parties agrees that any information furnished pursuant to this Agreement is
confidential and, except as and to the extent required by law or otherwise during the course of an audit or contest or other administrative or legal proceeding, shall not be disclosed to other persons. 

SECTION 4.02. Successors and Access to Information. This Agreement shall be binding upon and inure to the benefit of any successor
to any of the parties, by merger, acquisition of assets or stock in the Company or otherwise, to the same extent as if the successor had been an original party to this Agreement or the relevant Shareholder for the taxable period in question, and in
such event, all references herein to a party shall refer instead to the successor of such party; provided, however, that for purposes of calculating the estimated tax liability to which any payments under this Agreement would relate,
the original Shareholder’s estimated tax liability shall be taken into account, but any payments in connection therewith shall be made to the successor of such original Shareholder. 

SECTION 4.03. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New
York excluding (to the greatest extent permissible by law) any rule of law that would cause the application of the laws of any jurisdiction other than the State of New York. 
 SECTION 4.04. Headings. The headings in this Agreement are for convenience only and shall not be deemed for any purpose to constitute a part or to affect the interpretation of this Agreement.

 SECTION 4.05. Counterparts. This Agreement may be executed simultaneously in two or more counterparts, each of which
will be deemed an original, and it shall not be necessary in making proof of this Agreement to produce or account for more than one counterpart. 
 SECTION 4.06. Notices. Any notice or communication required or permitted to be given under this Agreement shall be in writing (including telecopy communication) and mailed, telecopied or delivered
to the parties at the addresses specified in Schedule A or at such other address as one party may specify by notice to the other party. All such notices and communications shall be effective when received. Any payment required to be made under
this Agreement shall be mailed or delivered to the parties at the addresses specified in Schedule A or at such other address or account as one party may specify by notice to the other party. 

  
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 SECTION 4.07. Severability. If any provision of this Agreement is held to be
unenforceable for any reason, it shall be adjusted rather than voided, if possible, in order to achieve the intent of the parties to the maximum extent practicable. In any event, all other provisions of this Agreement shall be deemed valid, binding,
and enforceable to their full extent. 
 SECTION 4.08. Survival. This Agreement shall remain in force and be binding so
long as the applicable period of assessments (including extensions) remains unexpired for any taxes contemplated by this Agreement. 
 SECTION 4.09. Successor Provisions. Any reference herein to any provisions of the Code or Treasury Regulations shall be deemed to include any amendments or successor provisions thereto as
appropriate. 
 SECTION 4.10. Integration; Amendments. Except as explicitly stated herein, this Agreement embodies the
entire understanding between the parties relating to its subject matter and supersedes and terminates all prior agreements and understandings among the parties with respect to such matters. No promises, covenants or representations of any kind,
other than those expressly stated herein, have been made to induce any party to enter into this Agreement. This Agreement shall not be modified or terminated except by a writing duly signed by each of the parties hereto, and no waiver of any
provisions of this Agreement shall be effective unless in a writing duly signed by the party sought to be bound. 
 SECTION
4.11. Waiver of Jury Trial. EACH PARTY HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY WITH RESPECT TO ANY DISPUTE ARISING OUT OF THIS AGREEMENT. EACH PARTY (A) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES
HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 4.11. 
 [Signature pages follow.] 

  
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 IN WITNESS WHEREOF, each of the parties of this Agreement has executed this Agreement, or
caused this Agreement to be executed by its duly authorized officer or trustee, as of the date first set forth above. 
  

			
	THE FRESH MARKET, INC.
		
		 	
		 	 by /s/ Craig Carlock

		 	    Name:
		 	    Title:
	
	J.P. MORGAN TRUST COMPANY OF DELAWARE, AS TRUSTEE OF THE JENNER TRUST
		
		 	 by /s/ Timothy Egan

		 	    Name: Timothy Egan
		 	    Title:    Vice President
	
	J.P. MORGAN TRUST COMPANY OF DELAWARE, AS TRUSTEE OF THE UNGER TRUST
		
		 	 by /s/ Timothy Egan

		 	    Name: Timothy Egan
		 	    Title:    Vice President
	
	J.P. MORGAN TRUST COMPANY OF DELAWARE, AS TRUSTEE OF THE FLOYD TRUST
		
		 	 by /s/ Timothy Egan

		 	    Name: Timothy Egan
		 	    Title:    Vice President
	
	J.P. MORGAN TRUST COMPANY OF DELAWARE, AS TRUSTEE OF THE KEIGAN TRUST
		
		 	 by /s/ Timothy Egan

		 	    Name: Timothy Egan
		 	    Title:    Vice President
		 	

  
 6 

 
			
	AMY B. BARRY, AS CO-TRUSTEE OF THE ROSSLER TRUST
		
		 	 by /s/ Amy B. Barry

		 	    Amy B. Barry
	
	BRETT M. BERRY, AS CO-TRUSTEE OF THE ROSSLER TRUST
		
		 	 by /s/ Brett M. Berry

		 	    Brett M. Berry
	
	J.P. MORGAN TRUST COMPANY OF DELAWARE, AS CO-TRUSTEE OF THE ROSSLER TRUST
		
		 	 by /s/ Timothy Egan

		 	    Name: Timothy Egan
		 	    Title:    Vice President
	
	WINSTON B. BERRY, AS CO-TRUSTEE OF THE TUTTLE TRUST
		
		 	 by /s/ Winston B. Berry

		 	    Winston B. Berry
	
	J.P. MORGAN TRUST COMPANY OF DELAWARE, AS CO-TRUSTEE OF THE TUTTLE TRUST
		
		 	 by /s/ Timothy Egan

		 	    Name: Timothy Egan
		 	    Title:    Vice President
	
	WINSTON B. BERRY, AS CO-TRUSTEE OF THE MILLARD TRUST
		
		 	 by /s/ Winston B. Berry

		 	    Winston B. Berry
		 	

  
 7 

 
			
	J.P. MORGAN TRUST COMPANY OF DELAWARE, AS CO-TRUSTEE OF THE MILLARD TRUST
		
		 	 by /s/ Timothy Egan

		 	    Name: Timothy Egan
		 	    Title: Vice President
	
	MICHAEL J. BARRY, AS CO-TRUSTEE OF THE LERRA TRUST
		
		 	 by /s/ Michael Barry

		 	    Michael J. Barry
	
	J.P. MORGAN TRUST COMPANY OF DELAWARE, AS CO-TRUSTEE OF THE LERRA TRUST
		
		 	 by /s/ Timothy Egan

		 	    Name: Timothy Egan
		 	    Title: Vice President
	
	MICHAEL J. BARRY, AS CO-TRUSTEE OF THE FARRA TRUST
		
		 	 by /s/ Michael Barry

		 	    Michael J. Barry
	
	J.P. MORGAN TRUST COMPANY OF DELAWARE, AS CO-TRUSTEE OF THE FARRA TRUST
		
		 	 by /s/ Timothy Egan

		 	    Name: Timothy Egan
		 	    Title: Vice President

  
 8 

 
			
	MICHAEL J. BARRY, AS CO-TRUSTEE OF THE CAITO TRUST
		
		 	 by /s/ Michael Barry

		 	    Michael J. Barry
	
	J.P. MORGAN TRUST COMPANY OF DELAWARE, AS CO-TRUSTEE OF THE CAITO TRUST
		
		 	 by /s/ Timothy Egan

		 	    Name: Timothy Egan
		 	    Title: Vice President
	
	BRETT M. BERRY, AS TRUSTEE OF THE GIBSON TRUST
		
		 	 by /s/ Brett Berry

		 	    Brett M. Berry
	
	RAY D. BERRY, AS TRUSTEE OF THE PAIKO TRUST
		
		 	 by /s/ Ray Berry

		 	    Ray D. Berry
	
	AMY B. BARRY, AS TRUSTEE OF THE ATMA TRUST
		
		 	 by /s/ Amy Barry

		 	    Amy B. Barry
	
	J.P. MORGAN TRUST COMPANY OF DELAWARE, AS TRUSTEE OF THE ELLER TRUST
		
		 	 by /s/ Timothy Egan

		 	    Name: Timothy Egan
		 	    Title: Vice President

  
 9 

 SCHEDULE A 
 Notices 
 To the Company: 
 The Fresh Market, Inc. 
 628 Green Valley Road, Suite 500 

Greensboro, North Carolina 27408 
 Facsimile:
(336) 272-1664 
 Attn: General Counsel 
 With a copy to: 
 Cravath, Swaine & Moore LLP 

Worldwide Plaza 
 825 Eighth Avenue 

New York, New York 10019 
 Facsimile No.:
(212) 474-3700 
 Attention: Craig F. Arcella 
 To the Shareholders: 
  

			
	 Jenner Trust;
 Unger
Trust;
 Floyd Trust;
 Eller Trust;
and
 Keigan Trust

c/o J.P. Morgan Trust Company of Delaware
 500 Stanton Christiana Road
 DE3-1680
 Newark, Delaware 19713-2107
 Facsimile: 302-634-4474

Attn: Timothy S. Egan
	  	 Rossler Trust
 c/o J.P.
Morgan Trust Company of Delaware
 500 Stanton Christiana Road
 DE3-1680
 Newark, Delaware 19713-2107
 Facsimile: 302-634-4474
 Attn: Timothy S. Egan

 
 With copies to:
 Amy B. Barry
 c/o The Fresh Market, Inc.
 628 Green Valley Road, Suite 500
 Greensboro, North Carolina 27408

Facsimile: (336) 272-1664
  
 and
  
 Brett M.
Berry
 c/o The Fresh Market, Inc.
 628
Green Valley Road, Suite 500
 Greensboro, North Carolina 27408
 Facsimile: (336) 272-1664

  
 10 

			
	 Tuttle Trust
 c/o J.P. Morgan
Trust Company of Delaware
 500 Stanton Christiana Road
 DE3-1680
 Newark, Delaware 19713-2107
 Facsimile: 302-634-4474
 Attn: Timothy S. Egan

 
 With a copy to:
 Winston B. Berry
 c/o The Fresh Market, Inc.

628 Green Valley Road, Suite 500
 Greensboro,
North Carolina 27408
 Facsimile: (336) 272-1664
	  	 Millard Trust
 c/o J.P. Morgan
Trust Company of Delaware
 500 Stanton Christiana Road
 DE3-1680
 Newark, Delaware 19713-2107
 Facsimile: 302-634-4474
 Attn: Timothy S. Egan

 
 With a copy to:
 Winston B. Berry
 c/o The Fresh Market, Inc.

628 Green Valley Road, Suite 500
 Greensboro,
North Carolina 27408
 Facsimile: (336) 272-1664

		
	 Lerra Trust
 c/o J.P. Morgan
Trust Company of Delaware
 500 Stanton Christiana Road
 DE3-1680
 Newark, Delaware 19713-2107
 Facsimile: 302-634-4474
 Attn: Timothy S. Egan

 
 With a copy to:
 Michael J. Barry
 c/o The Fresh Market, Inc.

628 Green Valley Road, Suite 500
 Greensboro,
North Carolina 27408
 Facsimile: (336) 272-1664
	  	 Farra Trust
 c/o J.P. Morgan
Trust Company of Delaware
 500 Stanton Christiana Road
 DE3-1680
 Newark, Delaware 19713-2107
 Facsimile: 302-634-4474
 Attn: Timothy S. Egan

 
 With a copy to:
 Michael J. Barry
 c/o The Fresh Market, Inc.

628 Green Valley Road, Suite 500
 Greensboro,
North Carolina 27408
 Facsimile: (336) 272-1664

		
	 Caito Trust
 c/o J.P. Morgan
Trust Company of Delaware
 500 Stanton Christiana Road
 DE3-1680
 Newark, Delaware 19713-2107
 Facsimile: 302-634-4474
 Attn: Timothy S. Egan

 
 With a copy to:
 Michael J. Barry
 c/o The Fresh Market, Inc.

628 Green Valley Road, Suite 500
 Greensboro,
North Carolina 27408
 Facsimile: (336) 272-1664
	  	 Gibson Trust
 c/o The Fresh
Market, Inc.
 628 Green Valley Road, Suite 500
 Greensboro, North Carolina 27408
 Facsimile: (336) 272-1664

Attention: Brett M. Berry

		
	Paiko Trust	  	Atma Trust

  
 11 

			
	 c/o The Fresh Market, Inc.
 628
Green Valley Road, Suite 500
 Greensboro, North Carolina 27408
 Facsimile: (336) 272-1664
 Attention: Ray D. Berry
	  	 c/o The Fresh Market, Inc.

628 Green Valley Road, Suite 500
 Greensboro,
North Carolina 27408
 Facsimile: (336) 272-1664
 Attention: Amy B. Barry

  
 12Form of Second Amended and Restated Shadow Equity Bonus Agreement

 Exhibit 10.7 
 THE FRESH MARKET, INC. 
 SECOND AMENDED AND RESTATED 

SHADOW EQUITY BONUS AGREEMENT 
 THIS SECOND AMENDED AND RESTATED SHADOW EQUITY BONUS AGREEMENT, is entered into as of the [date], by and between THE FRESH MARKET, INC., a North Carolina corporation (“TFM”) and
[employee name], a [state of residence] resident (the “Employee”). 
 W I T N E S S E T H:

 WHEREAS, the Employee is a valued employee of TFM whose services have contributed to the success and growth of the
business of TFM; and 
 WHEREAS, TFM and the Employee previously have entered into one or more agreements (the “Earlier
Agreement(s)”) pursuant to which TFM awarded the Employee one or more “Shadow Equity Bonus Awards” that are now outstanding and/or amended one or more such agreements; 

WHEREAS, the parties desire to supersede the Earlier Agreement(s) with this Agreement in order to clarify their intent; 

NOW THEREFORE, in consideration of the mutual representations, covenants and conditions hereinafter set forth, the parties do hereby
agree as follows: 
 1. Purpose. TFM wishes to provide a means by which a portion of the Employee’s compensation
will be determined by the future growth and profitability of TFM. 
 2. Grant of Shadow Equity Bonus Awards. Pursuant to
the Earlier Agreement(s), TFM heretofore awarded the Employee Shadow Equity Bonus Awards that are now outstanding as shown on Exhibit A attached hereto. In addition, at any time hereafter, TFM, in its sole discretion, by action of the Board of
Directors of TFM, may award additional Shadow Equity Bonus Awards to the Employee. For purposes of this Agreement, “Shadow Equity Bonus Award” shall mean each outstanding Shadow Equity Bonus Award that previously has been awarded Employee
as shown on such Exhibit A and any additional Shadow Equity Bonus Awards that may TFM may hereafter award Employee and the “Effective Date” of a Shadow Equity Bonus Award shall be January 1 of the year in which the Shadow Equity Bonus
Award was or is awarded. 
 3. Vesting of Shadow Equity Bonus Award. Each Shadow Equity Bonus Award of the Employee that
has not theretofore expired under Paragraph 5 of this Agreement shall vest upon the date of the earliest to occur of the following (the “Vesting Date”) with respect to such Shadow Equity Bonus Award: 

 

	 	(i)	TFM terminates its employment of the Employee because of the Employee’s Disability as defined in Paragraph 6 of this Agreement; or 

	 	(ii)	the Employee dies while employed by TFM; or 

  

	 	(iii)	except as otherwise provided in this Paragraph 3, the fifth Anniversary Date of the Shadow Equity Bonus Award, but only if the Employee remains employed by TFM from the
date of this Agreement up to and including such fifth Anniversary Date; or 

  

	 	(iv)	a Sale of TFM occurs but only if the Employee remains employed by TFM from the date of this Agreement up to the date on which such Sale of TFM occurs.

 If the Employee is age sixty (60) or older on the Effective Date of the Shadow Equity Bonus Award, the
following clause (iii) shall be substituted in lieu of clause (iii) above with respect to such award if (and only if) TFM has notified the Employee of such substitution at or prior to the time of the award: 

 

	 	“(iii)	the Employee’s sixty-fifth (65th) birthday, but only if the Employee remains employed by TFM from the date of this Agreement up to and including such
birthday; or” 

 For purposes of this Agreement, “Anniversary Date” means an anniversary of the
Effective Date of the Shadow Equity Bonus Award as defined in Paragraph 2 of this Agreement. 
 For purposes of this Agreement,
a “Sale of TFM” means the acquisition of all or substantially all of the assets of TFM or a transaction as a result of which the Berry Parties hold less than fifty percent (50%) of the equity interests in TFM, in each case, whether by
means of a sale, share offering, share exchange, merger, consolidation, or other transaction; provided, however, that a “Sale of TFM” shall not include any transaction if immediately after the transaction one or more Berry Parties directly
or indirectly control the acquirer of such assets or equity interests. For purposes of the foregoing, “Berry Parties” means Ray D. Berry, existing and future lineal descendants of Ray D. Berry, existing and future spouses of Ray D. Berry
or of such descendants, and existing and future trusts for the benefit in whole or in part of any one or more of the foregoing persons, and “control” means the ability to determine the persons who direct the management of the acquirer.

 4. Payment Upon Vesting. 
 (a) Amount. The amount payable to the Employee (or the Employee’s beneficiary designated pursuant to Paragraph 7 of this Agreement) upon vesting of a Shadow Equity Bonus Award under Paragraph
3 of this Agreement shall be the amount determined under the following formula: 
 Cash Base Amount plus (Cash Base Amount
multiplied by EBITDA Percentage Increase) 

  
 2 

 For purposes of this Agreement, the “Cash Base Amount” for a Shadow Equity Bonus
Award shall be the amount shown on Exhibit A for such award or in the case of a subsequent Shadow Equity Bonus Award not listed on Exhibit A the amount specified by TFM when making such award. 

For purposes of this Agreement, “EBITDA Percentage Increase” shall mean the fraction, expressed as a percentage rounded to the
nearest one percent, (A) the numerator of which is the amount obtained by subtracting (i) TFM’s average annual EBITDA for TFM’s three fiscal years ended immediately prior to the Effective Date of the Shadow Equity Bonus Award
from (ii) TFM’s average annual EBITDA for TFM’s three fiscal years ended immediately prior to the Vesting Date of the Shadow Bonus Equity Award, and (B) the denominator of which is TFM’s average annual EBITDA for TFM’s
three fiscal years ended immediately prior to the Effective Date of the Shadow Equity Bonus Award. If the amount of the numerator is zero or negative, then the EBITDA Percentage Increase shall be zero for purposes of applying the formula above.

 For purposes of this Agreement, the term “EBITDA” shall be defined as TFM’s earnings before interest expense,
tax expense and depreciation and amortization expenses for the applicable full fiscal year derived from the financial statements of TFM audited by TFM’s outside audit firm, excluding therefrom store closing expenses from years prior to the date
hereof, share-based compensation and related payroll expenses incurred in connection with the vesting of stock options granted by a stockholder of TFM prior to the initial public offering and any offering charges or expenses relating to any sale or
offering of the equity of TFM pursuant to the terms of a registration rights agreement between TFM and any selling stockholders; provided however, that the Board of Directors of TFM or the Compensation Committee of TFM may, in its discretion,
exclude from such determination any item it deems necessary or appropriate. Such determination (as adjusted by the Board of Directors of TFM or the Compensation Committee of TFM) shall be conclusive and binding for purposes of this Agreement in the
absence of actual fraud either in such determination or in the information on which such determination is based that in either case materially affects the amount of EBITDA. 
 (b) Payment. The amount payable to the Employee upon the vesting of a Shadow Equity Bonus Award determined as provided in Paragraph 4(a) shall be paid in one lump sum to the Employee, the
Employee’s estate, or the Employee’s beneficiary or beneficiaries, not later than the sixtieth (60th) day following the later to occur of (i) the Vesting Date, or (ii) the date on which TFM receives its audited financial
statements for its fiscal year ended immediately prior to the Vesting Date, provided that in no event shall payment be made later than the later of (A) the fifteenth (15th) day of the third month following the end of the Employee’s
taxable year in which the Vesting Date occurs or (B) the fifteenth (15th) day of the third month following the end of TFM’s taxable year in which the Vesting Date occurs. 

(c) Example. An example illustrating how a Shadow Equity Bonus Award is determined is set forth in Exhibit B attached hereto. Such
example is included for illustration purposes only and no representation or warranty or other implication shall be drawn from any of the assumed facts. 

  
 3 

 5. Expiration. Each Shadow Equity Bonus Award of the Employee that has not
theretofore vested under Paragraph 3 of this Agreement shall automatically expire upon the Employee ceasing to be employed by TFM for any or no reason whatsoever other than (i) TFM’s termination of employment because of the Employee’s
Disability as defined in Paragraph 6 of this Agreement, (ii) a cessation of employment occurring because Employee dies, or (iii) the Employee becomes employed by an acquirer of all or substantially all of the assets of TFM in a transaction
that does not constitute a Sale of TFM as defined in Paragraph 3 of this Agreement and such acquirer assumes TFM’s obligations in this Agreement. A Shadow Equity Bonus Award that expires under this Paragraph 5 may never thereafter vest, and the
Employee shall not be entitled to any payment under Paragraph 4 of this Agreement or any other compensation, right or benefit whatsoever with respect to an expired Shadow Equity Bonus Award. 

6. Disability. The Employee shall be deemed subject to “Disability” for purposes of this Agreement only upon a good
faith determination by the Board of Directors of TFM that the Employee is subject to a physical and/or mental impairment that prevents the Employee from performing the essential functions of the Employee’s employment with TFM with or without
reasonable accommodation. 
 7. Designation of Beneficiaries. The Employee may file with TFM a notice in writing
designating one or more beneficiaries to whom payments otherwise due to the Employee hereunder shall be made in the event of the Employee’s death. The Employee shall have the right to change the beneficiary or beneficiaries so designated from
time to time; provided, however, that no change shall become effective until received in writing by TFM. In the event that no such written designation is made by the Employee, the Employee shall be deemed to have designated the Employee’s
estate as such beneficiary. 
 8. Non-Alienation of Benefits. The benefits provided by this Agreement are granted by TFM
as a fringe benefit to the Employee. No right or benefit under this Agreement shall be subject to anticipation, alienation, sale, assignment, pledge, encumbrance, or charge, and any attempt to anticipate, alienate, sell, assign, pledge, encumber, or
charge any right or benefit under this Agreement shall be void. No right or benefit hereunder shall in any manner be liable for or subject to the debts, contracts, liabilities or torts of the person entitled to such benefits. If the Employee or
beneficiary hereunder shall become bankrupt, or attempt to anticipate, alienate, sell, assign, pledge, encumber, or charge any right or benefit hereunder, then such right or benefit shall, in the discretion of the Board of Directors of TFM, cease
and terminate, and in such event, TFM may hold or apply the same or any part thereof for the benefit of the Employee or the Employee’s beneficiary, spouse, children or other dependents, or any of them, in such manner and in such amounts and
proportions as the Board of Directors may deem proper. 
 9. No Trust Created. The obligations of TFM to make payments
hereunder shall constitute an unsecured liability of TFM to the Employee. Such payments shall be made from the general funds of TFM, and TFM shall not be required to establish or maintain any special or separate fund, or otherwise to segregate
assets to assure that such payment shall be made, and neither the Employee nor the Employee’s 

  
 4 

 
designated beneficiaries or estate shall have any interest in any particular asset of TFM by reason of its obligations hereunder. Nothing contained in this Agreement shall create or be construed
as creating a trust of any kind or any other fiduciary duty of TFM to the Employee or any other person. 
 10. No Additional
Rights. Nothing contained in this Agreement shall be construed to: 
  

	 	a.	Give the Employee any right to be awarded any incentive compensation other than as specifically provided for herein, except as may be awarded in the sole discretion of
the Board of Directors of TFM; 

  

	 	b.	Give the Employee any right whatsoever with respect to outstanding shares of common stock of TFM; 

 

	 	c.	Give the employee any right to vote as a shareholder or otherwise on matters respecting TFM; 

 

	 	d.	Give the Employee any right to inspect the books and records of TFM; 

  

	 	e.	Give the Employee any right to initiate legal proceedings on behalf of TFM; 

 

	 	f.	Give the Employee any proprietary interest in the business, income or assets of TFM; or, 

 

	 	g.	Give the Employee any statutory or other right inuring to corporate shareholders generally. 

11. Right to Terminate Employment. Nothing in this Agreement shall confer upon the Employee the right to continue in the
employment of TFM or affect the right of TFM to terminate the Employee’s employment at any time. 
 12. Rights of
Employee. The Shadow Equity Bonus Awards do not represent shares of capital stock of TFM or any interest therein. Neither the Employee nor any person claiming by, through, or under the Employee shall have any of the rights of a shareholder of
TFM with respect to such Shadow Equity Bonus Awards. 
 13. Incapacity. If the Board of Directors of TFM shall find any
person to whom any payment is payable under this Agreement is unable to care for such person’s affairs because of illness or accident or minority, any payment due (unless a prior claim therefor shall have been made by a duly appointed guardian,
committee, or other legal representative) may be paid to the spouse of such person, or in the case of a minor, to either natural parent of such minor. Any such payment in full of all amounts due or to become due under this Agreement shall be a
complete discharge of the liabilities of TFM under this Agreement. 

  
 5 

 14. Withholdings. Any payments made by TFM pursuant to this Agreement to the
Employee, the Employee’s estate, any beneficiary designated by the Employee, or any other person or entity, shall be subject to any and all withholdings or deductions for credit to the benefit of the Employee or the other recipient thereof, of
income, payroll or other taxes or other items (including any claims or offsets due to TFM) determined in good faith in the discretion of the Board of Directors of TFM as appropriate or necessary for such withholding or deduction. 

15. Benefits for Limited Number of Key Employees. It is understood and acknowledged between the parties hereto that the benefits
provided by the Agreement represent a fringe benefit to the Employee as a key employee of TFM, and are offered to the Employee as part of a “top hat” program of fringe benefits being offered to the Employee; provided that neither the
Employee, nor any other employee of TFM, shall have any rights to any future offering of deferred compensation or other fringe benefits by reason of this Agreement or by reason of the fringe benefits offered to any other employee. 

16. Binding Effect. This Agreement shall be binding upon and inure to the benefit of TFM, its successors and assigns, and the
Employee, the heirs, successors, representatives and assigns of the Employee, and the beneficiary or beneficiaries of the Employee designated pursuant to Paragraph 7 of this Agreement. 

17. Construction; Arbitration. This Agreement shall be governed by and construed in accordance with the laws of the State of North
Carolina. All controversies relating to this Agreement, including but not limited to whether such controversy is subject to arbitration, shall be resolved by binding arbitration conducted in Greensboro, North Carolina under the North Carolina
Revised Uniform Arbitration Act and, to the extent permitted by such Act, the Employment Arbitration Rules and Mediation Procedures of the American Arbitration Association in effect at the time a demand for arbitration is made. The arbitrator may
award attorney’s fees and expenses. The arbitrator’s decision and award shall be exclusive, final, and binding on the parties, and their respective heirs, executors, administrators, successors, and assigns. 

18. Code Section 409A. Notwithstanding anything to the contrary in this Agreement, (i) this Agreement may be amended
from time to time as TFM may determine to be necessary or appropriate in order to avoid this Agreement from resulting in the inclusion of any compensation in the gross income of the Employee under Section 409A of the Internal Revenue Code of
1986 as amended from time to time, and (ii) if any provision of this Agreement would otherwise result in the inclusion of any compensation in the gross income of the Employee under Code Section 409A as amended from time to time, then such
provision shall not apply and TFM, in its discretion, may apply in lieu thereof another provision that (in the judgment of TFM) accomplishes the intent of this Agreement without resulting in such inclusion. 

19. Miscellaneous. This Agreement contains the entire understanding of the parties with respect to the subject matter hereof and
supersedes the Earlier Agreement(s) which are(is) hereby terminated, and this Agreement may not be varied, 

  
 6 

 
modified or amended except pursuant to a written instrument duly executed by both parties hereto or as provided in Paragraph 18 of this Agreement. It is expressly understood and agreed, however,
that this Agreement shall be supplemental to, and shall not in any way modify, restrict or otherwise affect, any qualified pension or retirement plan of TFM, disability plan, life insurance plan, or split-dollar insurance plan providing benefits to
the Employee or the Employee’s beneficiaries. Waiver of any default or breach under this Agreement or of any of the agreements executed pursuant hereto shall not constitute a waiver of any prior or subsequent default or breach under this
Agreement or any of the agreements executed pursuant hereto. In the event any provision of this Agreement or of any of the agreements executed pursuant hereto shall be determined to be invalid or unenforceable, the remaining provisions of such
agreements shall continue in full force and effect. 
 IN WITNESS WHEREOF, the parties have hereunto set their hands and affixed
their seals as of the day and year first-above written. 
  

			
	THE FRESH MARKET, INC.
		
	By:	 	   /s/

		 	                    , Its
         Vice-President

  

	
	ATTEST:
	
	   /s/

	                    , Its
         Secretary

  

			
	   /s/
	 	(Seal)
	Employee Name:	 	

  
 7 

 EXHIBIT A 
  

					
	Number of Shadow Bonus Equity Awards	  	 Year in Which Awarded
	  	 Cash Base Amount

			
		  		  	
		  		  	
		  		  	
		  		  	
		  		  	
		  		  	
		  		  	
		  		  	
		  		  	

  
 8 

 EXHIBIT B 
 EXAMPLE 
 Assume that pursuant to a Shadow Equity Bonus Agreement dated
April 30, 2004 the Employee is granted one (1) Shadow Equity Bonus Award with an Effective Date of January 1, 2004 and a Cash Base Amount of $10,000.00, that TFM’s average EBITDA for TFM’s fiscal years ended
December 31, 2001, December 31, 2002 and December 31, 2003 is $19,000,000.00, that TFM’s average EBITDA for TFM’s fiscal years ended December 31, 2006, December 31, 2007 and December 31, 2008 is
$58,000,000.00, and that the Employee remains employed by TFM through and including January 1, 2009. 
 Under Paragraph 3,
the Employee’s Shadow Equity Bonus Award vests on January 1, 2009 because the Employee has remained employed by TFM from the date of the Shadow Equity Bonus Agreement up to and including the fifth Anniversary Date of the Shadow Equity
Bonus Award, which is January 1, 2009. 
 Under Paragraph 4(a), the amount payable to the Employee with respect to the
vested Shadow Equity Bonus Award would be determined under the following formula: 
 Cash Base Amount + (Cash Base Amount x
EBITDA Percentage Increase) 
 Under Paragraph 4(a) the EBITDA Percentage Increase would be calculated as follows: 

Average annual EBITDA for three fiscal years ended immediately prior to Effective Date of Shadow Bonus Equity Award: $19,000,000.00

 Average annual EBITDA for three fiscal years ended immediately prior to Vesting Date of Shadow Bonus Equity Award:
$58,000,000.00 
  

			
	($58,000,000.00-$19,000,000.00) / $19,000.00	 	= $39,000,000.00/$19,000,000.00
		
		 	=$39,000,000/$19,000,000
		
		 	= 205%

 The amount payable to the
Employee would be calculated as follows: 
 $10,000.00 + ($10,000.00 x 2.05) = $30,500.00 

This amount would be payable to the Employee as provided in Paragraph 4(b). 

  
 9

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