Document:

Form of Change of Control Severance Agreements

 Exhibit 10.17 
 CHANGE OF CONTROL SEVERANCE AGREEMENT, AS AMENDED 
 [TIERS I, II & III] 
 This Agreement (“Agreement”) is dated as of
                    , 200  , by and between SUPERVALU INC., a Delaware corporation (the “Company”), and
                     (the “Executive”). 
 WHEREAS, the Company’s Board of Directors (the “Board”) considers the continued services of key executives of the Company to be in the best interests of the Company and its stockholders; and 

WHEREAS, the Board desires to assure, and has determined that it is appropriate and in the best interests of the Company and its stockholders to
reinforce and encourage the continued attention and dedication of key executives of the Company to their duties of employment without personal distraction or conflict of interest in circumstances arising from the possibility or occurrence of a
change of control of the Company; and 
 WHEREAS, the Board has authorized the Company to enter into continuity agreements with those key
executives of the Company who are designated by the Executive Personnel and Compensation Committee of the Board of Directors (the “Committee”), such agreements to set forth the severance compensation which the Company agrees under certain
circumstances to pay such executives; and 
 WHEREAS, the Executive is a key executive of the Company and has been designated by the
Committee as an executive to be offered such a continuity compensation agreement with the Company. 
 NOW, THEREFORE, in consideration of the
promises and the mutual covenants and agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Company and the Executive agree as follows: 
 1. General Principles. This Agreement is effective on the date that it is signed by the Company and the Executive. For the purpose of this
Agreement, the date on which a Change of Control occurs is the “COC Date.” If Executive ceases to be employed prior to a Change of Control by reason of an Anticipatory Separation (as defined in Section 3(c)), then Executive shall
receive the severance benefits provided herein as if the COC Date for the Executive were the date immediately preceding the occurrence of that Anticipatory Separation. If Executive ceases to be employed prior to 
  

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 a Change of Control for any reason other than an Anticipatory Separation, this Agreement shall terminate and have no
effect and Executive shall receive such severance payments, if any, as are provided in any existing agreement between the Executive and the Company. 
 If a
Change of Control occurs, the Executive’s employment shall be continued hereunder for the period (the “Employment Period”) commencing on the COC Date and ending on the second anniversary of the COC Date, subject to the
Executive’s Separation from Service as described hereinafter. Any existing employment agreement between the Executive and the Company shall continue to be effective following the Change of Control, but severance amounts under this Agreement
shall be reduced by amounts payable under any such employment agreement. 
 For purposes of this Agreement, a “Change
of Control” shall be deemed to have occurred upon any of the following events: 
 (i) the acquisition by any individual,
entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act)
of 20% or more of either (A) the then outstanding shares of common stock of the Company or (B) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors;
provided, however, that for purposes of this subsection (i), the following acquisitions shall not constitute a Change of Control: (A) any acquisition directly from the Company or (B) any acquisition by any employee benefit plan (or related
trust) sponsored or maintained by the Company or any corporation controlled by the Company; or 
 (ii) the consummation of any
merger or other business combination of the Company, sale or lease of all or substantially all of the Company’s assets or combination of the foregoing transactions (the “Transactions”) other than a Transaction immediately following
which the shareholders of the Company and any trustee or fiduciary of any Company employee benefit plan immediately prior to the Transaction own at least 60% of the voting power, directly or indirectly, of (A) the surviving corporation in any
such merger or other business combination; (B) the purchaser or lessee of the Company’s assets; or (C) both the surviving corporation and the purchaser or lessee in the event of any combination of Transactions; or 
 (iii) within any 24-month period, the persons who were directors immediately before the beginning of such period (the “Incumbent
Directors”) shall cease (for any reason other than death) to constitute at least a majority of the Board or the board of directors of a successor to the Company. For this 
  

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 purpose, any director who was not a director at the beginning of such period shall be deemed to be an
Incumbent Director if such director was elected to the Board by, or on the recommendation of or with the approval of, at least three-fourths of the directors who then qualified as Incumbent Directors (so long as such director was not nominated by a
person who has expressed an intent to effect a Change of Control or engage in a proxy or other control contest); or 
 (iv)
such other event or transaction as the Board shall determine constitutes a Change of Control. 
 2. Employment following Change of Control. Executive
shall have at least the same titles and responsibilities as those in effect immediately prior to the Change of Control. Executive shall receive an annual base salary which is not less than the highest base salary in effect for Executive at any time
in the 12 months preceding the Change of Control, and the Company shall review the salary annually with a view to increasing it; provided any such increase shall be in the sole discretion of the Board. Once increased, base salary cannot be
decreased. If Executive has not been terminated, for the year of the Change of Control and for each year thereafter during which Executive is employed, the Executive shall be paid an annual bonus which shall be no less than the higher of
(i) the bonus which the Executive would have received under the Company’s bonus plans as they were in effect prior to the Change of Control (based upon actual performance in the year up to the Change of Control), (ii) the average of
the annual bonuses paid or payable in respect of the three years prior to the Change of Control, or (iii) the Executive’s target bonus immediately prior to the Change of Control (the highest of (i), (ii) and (iii) being the
“Bonus”). In addition, the Executive shall be provided with incentive compensation, pension, general insurance, vacation, fringe benefits, perquisites (including an automobile allowance, if any), the use of an office and support staff that
are commensurate with the benefits, vacation, expense reimbursement, fringe benefits, perquisites, office and support staff provided to Executive immediately prior to the Change of Control or, if more favorable to Executive, at the level made
available to other similarly situated executive officers of the Company after the Change of Control. In addition, the Executive’s place of employment following a Change of Control shall be no farther than 45 miles from the Executive’s
place of employment prior to the Change of Control. 
 3. Separation from Service Following Change of Control. 
 (a) The Executive shall be entitled to the severance benefits provided in Section 4 hereof if the Executive’s Separation from Service occurs
(A) within two years following a Change of Control (i) by the Company without Cause, or (ii) by Executive for Good Reason, or (B) prior to a Change of Control, as a result of an Anticipatory Separation. 
  

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 Notwithstanding the foregoing, Executive shall not be entitled to severance benefits under this Agreement if
Executive’s Separation from Service is on account of Executive’s death or Disability. Executive’s death or Disability subsequent to a Separation from Service which would otherwise give rise to severance benefits under this Agreement
will not disqualify Executive from receiving the severance benefits. For purposes of this Agreement: 
 (i)
“Disability” shall have the same meaning as in the Company’s long-term disability plan. 
 (ii)
“Retirement” shall mean a termination of employment by Executive pursuant to late, normal or early retirement under a pension plan sponsored by the Company, as defined in such plan. 
 (ii) “Separation from Service” shall mean a severance of the Executive’s employment under circumstances that would qualify
as a separation from service as that term is used and defined under Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”). 
 (b) Cause. For purposes of this Agreement, “Cause” shall mean: 
 (i) the
willful and continued failure of Executive to perform substantially Executive’s duties with the Company (other than any such failure resulting from incapacity due to physical or mental illness), after a written demand for substantial
performance is delivered to Executive by the Board or an officer of the Company which specifically identifies the manner in which the Board or the officer believes that Executive has not substantially performed Executive’s duties; 

(ii) (A) the conviction of, or plea of guilty or nolo contendere to, a felony or (B) the willful engaging by Executive in
gross misconduct which is materially and demonstrably injurious to the Company; or 
 (iii) Executive’s commission of an
act or acts of personal dishonesty intended to result in substantial personal enrichment of the Executive at the expense of the Company; 
 provided,
however, that in no event shall Cause exist by virtue of any action taken by the Executive (A) in compliance with express written directions of the Board, [the Company’s Chief Executive Officer or the officer to whom the
Executive reports,]1 
  

	1	Not to be included in CEO's Agreement, and, for those Executives reporting directly to the CEO, "the officer to whom the Executive reports" shall not be included.

  

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 or (B) in reliance upon the express written consent of the Company’s counsel. In each case above, for a
Separation from Service to be for Cause: (a) the Executive must be provided with a Notice of Termination (as described in Section 3(d)) within six (6) months after the Company has actual knowledge of the act or omission constituting
Cause; (b) the Executive must be provided with an opportunity to be heard by the Board no earlier than 30 days following the Notice of Termination (during which notice period Executive has failed to cure or resolve the behavior in question);
and (c) there must be a good faith determination of Cause by at least 2/3rds of the non-employee outside directors of the Company. 
 (c)
Good Reason and Anticipatory Separation. For purposes of this Agreement, “Good Reason” shall mean: 
 (i)
Executive’s annual base salary is reduced below the higher of (A) the amount in effect on the COC Date, or (B) the highest amount in effect at any time thereafter; 
 (ii) Executive’s annual bonus is reduced below the Bonus; 
 (iii) Executive’s duties and responsibilities or the program of incentive compensation (including, without limitation, long term
incentive plans and equity incentive programs), vacation, fringe benefits, perquisites, retirement and general insurance benefits offered to Executive are materially and adversely diminished in comparison to the duties and responsibilities or the
program of such benefits enjoyed by Executive on the COC Date; 
 (iv) Executive is required to be based at a location more
than 45 miles from the location where Executive was based and performed services on the COC Date or Executive’s business travel obligations are significantly increased over those in effect immediately prior to the COC Date;
[or]2 
 (v) failure to provide for the assumption of this Agreement by any successor entity; [or 
 (vi) Executive’s termination of employment for any reason during the seventh month following the Change of Control;]3 
 provided, however, that any diminution of duties or responsibilities that occurs solely as a result of the fact that the Company ceases to be a public company
shall not, in and of itself, constitute Good Reason. 
  

	2	Not to be included in CEO’s agreement. 

	3	For CEO only. 

  

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 Any event or condition described in clauses (i) through (iv) or a Separation from Service without Cause, either
of which occurs prior to a Change of Control but which Executive reasonably demonstrates (A) was at the request of a third party who has indicated an intention or taken steps reasonably calculated to effect a Change of Control (a “Third
Party”), or (B) otherwise arose in connection with, or in anticipation of a Change of Control, shall constitute Good Reason for purposes of this Agreement, notwithstanding that it occurred prior to a Change of Control (“Anticipatory
Separation”). 
 Executive shall give the Company written notice of any event which Executive claims is the basis for Good Reason [(other than a
Separation from Service pursuant to Section 3(c)(vi))]4, within 6 months of such event, and the Company
shall have 30 days from its receipt of such notice within which to cure or resolve the behavior in question before Executive can terminate for Good Reason. 
 (d) Notice of Termination. Any purported termination of the Executive’s employment with the Company [(other than a Separation from Service pursuant to Section 3(c)(vi))]5 shall be communicated by a Notice of Termination to the Executive, if such termination is by the Company, or to the Company, if
such termination is by the Executive. For purposes of this Agreement, “Notice of Termination” shall mean a written notice which shall indicate the specific provision in this Agreement relied upon and shall set forth in reasonable detail
the facts and circumstances claimed to provide a basis for termination of the Executive’s employment under the provisions so indicated. For purposes of this Agreement, no purported termination of Executive’s employment with the Company
shall be effective without such a Notice of Termination having been given. 
 (e) Dispute Resolution. Disputes arising from the
operation of this Agreement, including, but not necessarily being limited to, the manner of giving the Notice of Termination, the reasons or cause for the Executive’s termination or the amount of severance compensation due to the Executive
subsequent to the Executive’s termination, shall be resolved by arbitration; provided, however, that disputes arising under Section 11 of this Agreement shall not be resolved under this Section 3(e). In the event that any
dispute which shall be resolved by arbitration is not able to be resolved by mutual agreement of the parties within sixty calendar (60) days of the giving of such notice, the Executive and the Company hereby agree to promptly submit such a
dispute to binding arbitration in Minnesota in accordance with Delaware law and the rules and procedures of the American Arbitration Association. During any period in which a dispute is pending, the Executive shall continue to receive
Executive’s salary (including any Bonus) and benefits as if Executive’s employment with the Company had continued through the date of the arbiters’ determination, and any such payments or benefits shall not be offset against any
severance, either under this Agreement or otherwise, to which Executive may be entitled. 
  

	4	For CEO only. 

	5	For CEO only. 

  

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 4. Compensation Upon Separation from Service After a Change of Control. 
 If within two (2) years after the COC Date, the Executive has a Separation from Service, the Executive shall be entitled to the following payments
and benefits: 
 (a) Severance. On the 10th business day following such Separation from Service (or at such later time as may be provided under Section 4(g)), the Company shall pay or cause to be paid to the Executive a lump sum cash
amount equal to [three (3) times][two (2) times]6 the sum of (i) the Executive’s annual base salary on the COC Date (the “Base
Salary”), (ii) the Bonus, and (iii) the value of the perquisites (e.g., car allowance, club dues, etc., including any ordinary tax gross-ups for perquisites) provided to Executive in respect of the year prior to the Change of Control.
In addition, at the time of the above payment, the Executive shall be entitled to an additional lump sum cash payment equal to the sum of (A) Executive’s earned but unpaid salary through the date of Separation from Service, (B) a pro
rata portion of the Bonus (calculated through the date of Separation from Service), and (C) an amount, if any, of accrued vacation pay, in each case, in full satisfaction of Executive’s rights thereto. 
 Except as specifically provided in this Agreement, nothing in this Agreement shall be interpreted or relied upon as a basis to amend, modify, accelerate or defer, or
otherwise change any contributions to or payments that may be due from any other deferred compensation plan subject to Section 409A of the Code. 
 (b) Welfare Benefits. The Executive shall be entitled to continued medical, dental and life insurance coverage for the Executive and the Executive’s eligible dependents on the same basis as in effect prior
to the Change of Control or the Executive’s Separation from Service, whichever is deemed to provide for more substantial benefits, until the earlier of (A) [thirty-six (36)][twenty-four (24)][twelve (12)]7 months (the “Separation Period”) after the Executive’s Separation from Service or (B) the commencement of
comparable coverage with a subsequent employer; provided, however, that such continued coverage shall not count against any continued coverage required by law; provided, further, that if the Company is not able to provide the coverage
required above under the general terms and provisions of the Company’s plans, then the Company shall reimburse Executive for the cost of obtaining substantially similar benefits (the “Benefit Payment”) and shall pay Executive an
additional amount, such that after payment of all applicable federal, state and local income and payroll taxes imposed upon Executive as a result of the Benefit Payment, the Executive retains an amount equal to the amount of the Benefit Payment.

  

	6	Three times for Tier I (CEO & EVPs); Two times for Tier II (SVPs); and one time for Tier III (remaining participants). 

	7	Thirty-six months for Tier I; twenty-four months for Tier II; twelve months for Tier III. 

  

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 (c) Pension Benefits. The Executive shall also receive additional credit for service and age
(including, benefit accrual and vesting credit) for the Separation Period under any Company pension plan in which Executive participates based on the Executive’s Base Salary and Bonus in effect at the of termination of employment; provided,
however, that in the case of a qualified pension plan, the Executive shall be paid on the 30th day after
Executive’s last day of employment (or at such later time as may be provided under Section 4(g)) a cash lump sum equal to the present value of the additional benefits Executive would have accrued if Executive had been credited for all
purposes with the additional years of service and age under such plan. In addition, at the time of the above payment, the Executive shall receive an additional payment (the “401(k) Payment”) equal to the product of (i) [three (3)]
[two (2)][one (1)]8, (ii) 0.0225, and
(iii) the sum of the Base Salary and the Bonus. 
 (d) Outplacement. If so requested by the Executive, outplacement
services shall be provided by a professional outplacement provider at a cost to the Company of not more than 10% of the Executive’s Base Salary. Such services may be provided either by direct payment to the outplacement provider or by
reimbursement to Executive. However, services shall be paid or reimbursed only if the services are provided during the period beginning with the Separation from Service and ending on the December 31 of the second calendar year following the
calendar year in which the Separation from Service occurred. 
 (e) Indemnification; Liability Insurance. The Company shall maintain,
for a period not less than 6 years following Executive’s termination of employment, indemnification policies and liability insurance coverage for Executive’s benefit comparable to those indemnification policies and liability insurance
coverage provided by the Company for Executive’s benefit prior to the Change of Control. 
 (f) Withholding. Payments and
benefits provided pursuant to this Section 4 or any other provision of this Agreement shall be subject to any applicable payroll and other taxes required to be withheld. 
 (g) Limitations on Payment of Deferred Compensation. To the extent that any payments or benefits to be provided to the Executive under this
Agreement would be considered deferred compensation under Section 409A of the Code and the Executive is a “Key Employee” as defined in Section 416(i) of the Code, then any such payments that would otherwise be due and payable
during the first six months following and on account of a Separation from Service shall instead be paid to the Executive 
  

	8	Three for Tier I; two for Tier II; and one for Tier III. 

  

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 upon the earlier of (i) six months and one day after the date the Executive’s Separation from Service or
(ii) any other date permitted under Section 409A(a)(2) and Section 409A(a)(3). To the extent that any payments or benefits to be provided to the Executive under this Agreement would be considered deferred compensation under
Section 409A of the Code, the provisions of this Agreement pertaining thereto shall be construed and administered to comply with Section 409A. Neither the Company nor any of its officers, directors, agents or affiliates shall be obligated,
directly or indirectly, to any Participant or any other person for any taxes, penalties, interest or like amounts that may be imposed on the Participant or other person on account of any amounts paid or payable under this Plan or on account of any
failure to comply with Section 409A. 
 5. Certain Additional Payments by the Company: 
 (a) Anything in this Agreement to the contrary notwithstanding, if it is determined (as hereafter provided) that any payment or distribution by the
Company to or for the benefit of the Executive, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise pursuant to or by reason of any other agreement, policy, plan, program or arrangement,
including without limitation any stock option, stock appreciation right or similar right, or the lapse or termination of any restriction on or the vesting or exercisability of any of the foregoing (a “Payment”), would be subject to the
excise tax imposed by Section 4999 of the Code (or any successor provision thereto) by reason of being “contingent on a change in ownership or control” of the Company, within the meaning of Section 280G of the Code (or any
successor provision thereto) or to any similar tax imposed by state or local law, or any interest or penalties with respect to such excise tax (such tax or taxes, together with any such interest and penalties, are hereafter collectively referred to
as the “Excise Tax”), then the Executive shall be entitled to receive an additional payment or payments (a “Gross-Up Payment”) in an amount such that, after payment by the Executive of all taxes (including any interest or
penalties imposed with respect to such taxes), including any Excise Tax, imposed upon the Gross-Up Payment, the Executive retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Payments. 
 (b) Subject to the provisions of Section 5(f) hereof, all determinations required to be made under this Section 5, including whether an Excise
Tax is payable by the Executive and the amount of such Excise Tax and whether a Gross-Up Payment is required and the amount of such Gross-Up Payment, shall be made by the nationally recognized firm of certified public accountants (the
“Accounting Firm”) used by the Company prior to the Change of Control (or, if such Accounting Firm declines to serve, the Accounting Firm shall be a nationally recognized firm of certified public accountants selected by the Executive). The
Accounting Firm shall be directed by the Company or the Executive to submit its determination and detailed supporting calculations to both 
  

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 the Company and the Executive within 15 calendar days after the Separation from Service, if applicable, and any other
such time or times as may be requested by the Company or the Executive. If the Accounting Firm determines that any Excise Tax is payable by the Executive, the Company shall pay the required Gross-Up Payment to the Executive on the fifth business day
after receipt of such determination and calculations. If the Accounting Firm determines that no Excise Tax is payable by the Executive, it shall, at the same time as it makes such determination, furnish the Executive with an opinion that Executive
has substantial authority not to report any Excise Tax on Executive’s federal, state, local income or other tax return. Any determination by the Accounting Firm as to the amount of the Gross-Up Payment shall be binding upon the Company and the
Executive. As a result of the uncertainty in the application of Section 4999 of the Code (or any successor provision thereto) and the possibility of similar uncertainty regarding applicable state or local tax law at the time of any
determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments that will not have been made by the Company should have been made (an “Underpayment”), consistent with the calculations required to be made hereunder. In
the event that the Company exhausts or fails to pursue its remedies pursuant to Section 5(f) hereof and the Executive thereafter is required to make a payment of any Excise Tax, the Executive shall direct the Accounting Firm to determine the
amount of the Underpayment that has occurred and to submit its determination and detailed supporting calculations to both the Company and the Executive as promptly as possible. Any such Underpayment shall be promptly paid by the Company to, or for
the benefit of, the Executive on the fifth business day after receipt of such determination and calculations. 
 (c) The Company and the
Executive shall each provide the Accounting Firm access to and copies of any books, records and documents in the possession of the Company or the Executive, as the case may be, reasonably requested by the Accounting Firm, and otherwise cooperate
with the Accounting Firm in connection with the preparation and issuance of the determination contemplated by Section 5(b) hereof. 
 (d) The federal, state and local income or other tax returns filed by the Executive and the Company (or any filing made by a consolidated tax group which includes the Company) shall be prepared and filed on a consistent basis with the
determination of the Accounting Firm with respect to the Excise Tax payable by the Executive. The Executive shall make proper payment of the amount of any Excise Tax, and at the request of the Company, provide to the Company true and correct copies
(with any amendments) of Executive’s federal income tax return as filed with the Internal Revenue Service and corresponding state and local tax returns, if relevant, as filed with the applicable taxing authority, and such other documents
reasonably requested by the Company, evidencing such payment. If prior to the filing of the Executive’s federal income tax return, or corresponding state or local tax return, if relevant, the Accounting Firm determines that the amount of the
Gross-Up Payment should be reduced, the Executive shall within five business days pay to the Company the amount of such reduction. 
  

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 (e) The fees and expenses of the Accounting Firm for its services in connection with the determinations
and calculations contemplated by Sections 5(b) and (d) hereof shall be borne by the Company. If such fees and expenses are initially advanced by the Executive, the Company shall reimburse the Executive the full amount of such fees and expenses
on the fifth business day after receipt from the Executive of a statement therefore and reasonable evidence of Executive’s payment thereof. 
 (f) The Executive shall notify the Company in writing of any claim by the Internal Revenue Service that, if successful, would require the payment by the Company of a Gross-Up Payment. Such notification shall be given as promptly as
practicable but no later than 10 business days after the Executive actually receives notice of such claim and the Executive shall further apprise the Company of the nature of such claim and the date on which such claim is requested to be paid (in
each case, to the extent known by the Executive). The Executive shall not pay such claim prior to the earlier of (a) the expiration of the 30-calendar-day period following the date on which Executive gives such notice to the Company and
(b) the date that any payment of amount with respect to such claim is due. If the Company notifies the Executive in writing prior to the expiration of such period that it desires to contest such claim, the Executive shall: 
 (i) provide the Company with any written records or documents in Executive’s possession relating to such claim reasonably requested
by the Company; 
 (ii) take such action in connection with contesting such claim as the Company shall reasonably request in
writing from time to time, including without limitation accepting legal representation with respect to such claim by an attorney competent in respect of the subject matter and reasonably selected by the Company; 
 (iii) cooperate with the Company in good faith in order to effectively contest such claim; and 
 (iv) permit the Company to participate in any proceedings relating to such claim; 
 provided, however, that the Company shall bear and pay directly all costs and expenses (including interest and penalties) incurred in connection with such contest
and shall indemnify and hold harmless the Executive, on an after-tax basis, for and against any Excise Tax or income tax, including interest and penalties with respect 
  

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 thereto, imposed as a result of such representation and payment of costs and expenses. Without limiting the foregoing
provisions of this Section 5(f), the Company shall control all proceedings taken in connection with the contest of any claim contemplated by this Section 5(f) and, at its sole option, may pursue or forego any and all administrative
appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim (provided, however, that the Executive may participate therein at Executive’s own cost and expense) and may, at its option, either direct
the Executive to pay the tax claimed and sue for a refund or contest the claim in any permissible manner, and the Executive agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction
and in one or more appellate courts, as the Company shall determine; provided, however, that if the Company directs the Executive to pay the tax claimed and sue for a refund, the Company shall indemnify and hold the Executive harmless, on an
after-tax basis, from any Excise Tax or income tax, including interest or penalties with respect thereto, imposed with respect thereto; and provided further, however, that any extension of the statute of limitations relating to payment of
taxes for the taxable year of the Executive with respect to which the contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the Company’s control of any such contested claim shall be limited to issues
with respect to which a Gross-Up Payment would be payable hereunder and the Executive shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority. 
 (g) If the Executive receives any refund with respect to such claim, the Executive shall be entitled to retain same (together with any interest paid or
credited thereon after any taxes applicable thereto). 
 6. Obligations Absolute; No Mitigation; No Effect On Other Rights.

 (a) The obligations of the Company to make the payment to the Executive, and to make the arrangements, provided for herein are absolute and
unconditional and may not be reduced by any circumstances, including without limitation any set-off, counterclaim, recoupment, defense or other right which the Company may have against the Executive or any third party at any time. 
 (b) The Executive shall not be required to mitigate the amount of any payment provided for in this Agreement by seeking other employment or otherwise,
and no such payment shall be offset or reduced by the amount of any compensation or benefits provided to the Executive in any subsequent employment. 
 (c) The provisions of this Agreement, and any payment provided for herein, shall not supersede or in any way limit the rights, benefits, duties or obligations which the Executive may now or in the future have under
any benefit, incentive or other plan or arrangement of the Company or any other agreement with the Company. 
  

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 7. Not an Employment Agreement. Subject to the terms of this or any other agreement or arrangement
between the Company and the Executive that may then be in effect, nothing herein shall prevent the Company from terminating the Executive’s employment. 
 8. Successors; Binding Agreement, Assignment. 
 (a) The Company shall require any successor (whether
direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business of the Company, by agreement to expressly, absolutely and unconditionally assume and agree to perform this Agreement in the same manner
and to the same extent that the Company would be required to perform it if no such succession had taken place. Failure of the Company to obtain such agreement prior to the effectiveness of any such succession shall be a material breach of this
Agreement and shall entitle the Executive to terminate the Executive’s employment with the Company or such successor for Good Reason immediately prior to or at any time after such succession. As used in this Agreement, “Company” shall
mean (i) the Company as hereinbefore defined, and (ii) any successor to all or substantially all of the Company’s business or assets which executes and delivers an agreement provided for in this Section 8(a) or which otherwise
becomes bound by all the terms and provisions of this Agreement by operation of law, including any parent or subsidiary of such a successor. 
 (b) This Agreement shall inure to the benefit of and be enforceable by the Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. If the Executive should die
while any amount would be payable to the Executive hereunder if the Executive had continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to the Executive’s estate or
designated beneficiary. Neither this Agreement nor any right arising hereunder may be assigned or pledged by the Executive. 
 9.
Notice. For purpose of this Agreement, notices and all other communications provided for in this Agreement or contemplated hereby shall be in writing and shall be deemed to have been duly given when personally delivered or when mailed United
States certified or registered mail, return receipt requested, postage prepaid, and addressed, in the case of the Company, to the Company at: 
 P.O. Box 990 
 Minneapolis, MN 55440 
 Attention: Corporate Secretary 
  

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 and in the case of the Executive, to the Executive at the most current address shown on the Executive’s employment
records. Either party may designate a different address by giving notice of change of address in the manner provided above, except that notices of change of address shall be effective only upon receipt. 
 10. Expenses. In addition to all other amounts payable to the Executive under this Agreement, the Company shall pay or reimburse the Executive for
legal fees (including without limitation, any and all court costs and attorneys’ fees and expenses), incurred by the Executive in connection with or as a result of any claim, action or proceeding brought by the Company or the Executive with
respect to or arising out of this Agreement or any provision hereof; unless, (i) in the case of an action brought by the Executive, it is determined by an arbitrator or by a court of competent jurisdiction that such action was frivolous and was
not brought in good faith, or (ii) in the case of a claim arising under section 11 hereof, the Company prevails on the merits of such claim. 
 11. Nondisclosure of Confidential Information; Non-Competition. 
 (a) Executive shall not, without the prior written consent
of the Company, use, divulge, disclose or make accessible to any other person, firm, partnership, corporation or other entity any Confidential Information pertaining to the business of the Company or any of its affiliates, except (i) while
employed by the Company, in the business of and for the benefit of the Company, or (ii) when required to do so by a court of competent jurisdiction, by any governmental agency having supervisory authority over the business of the Company, or by
any administrative body or legislative body (including a committee thereof) with jurisdiction to order Executive to divulge, disclose or make accessible such information. For purposes of this Section 11(a), “Confidential Information”
shall mean non-public information concerning the financial data, strategic business plans, product development (or other proprietary product data), customer lists, marketing plans and other non-public, proprietary and confidential information of the
Company or its affiliates (the “Restricted Group”) or customers, that, in any case, is not otherwise available to the public (other than by Executive’s breach of the terms hereof). 
 [Note: Sections 11(b-d) below shall apply only to those Executives in Tier I (the CEO, President or any Executive Vice President of the Company ); or Tier II (Senior
Vice Presidents of the Company) who have executed this Agreement in the form hereof.] 
 (b) During the period of Executive’s
employment hereunder and for one (1) year thereafter, Executive agrees that, without the prior written consent of the 
  

 14 

 Company, (A) Executive will not, directly or indirectly, either as principal, manager, agent, consultant, officer,
stockholder, partner, investor, lender or employee or in any other capacity, carry on, be engaged in or have any financial interest in, any business which is in competition with the business of the Restricted Group and (B) Executive shall not,
on Executive’s own behalf or on behalf of any person, firm or company, directly or indirectly, solicit or offer employment to any person who has been employed by the Restricted Group at any time during the 12 months immediately preceding such
solicitation. 
 (c) For purposes of this Section 11, a business shall be deemed to be in competition with the Restricted Group if it or
any of its material affiliates is in the business of selling food (fresh, packaged and/or frozen), retail or wholesale, within the continental United States. Nothing in this Section 11 shall be construed so as to preclude Executive from
investing in any publicly or privately held company, provided Executive’s beneficial ownership of any class of such company’s securities does not exceed 1% of the outstanding securities of such class. Executive shall retain the right to
seek the written approval of the Company’s [successor]9 Chief Executive Officer waiving the requirements of Section 11(b) with respect to any particular activity in which Executive seeks to engage. 
 (d) Executive and the Company agree that this covenant not to compete is a reasonable covenant under the circumstances, and further agree that if in the opinion of any court of competent jurisdiction such restraint is
not reasonable in any respect, such court shall have the right, power and authority to excise or modify such provision or provisions of this covenant as to the court shall appear not reasonable and to enforce the remainder of the covenant as so
amended. 
 (e) Executive agrees that any breach of the covenants contained in this Section 11 would irreparably injure the Company.
Accordingly, Executive agrees that the Company may, in addition to pursuing any other remedies it may have in law or in equity, cease making any payments otherwise required by this Agreement and obtain an injunction against Executive from any court
having jurisdiction over the matter restraining any further violation of this Agreement by Executive; provided, however, that the Company may not cease making any payments required by this Agreement until a court or arbitrator(s) having
jurisdiction over the matter has made a final non-appealable determination on the merits of such action in the Company’s favor. 
 12.
Miscellaneous. No provision of this Agreement may be amended, altered, modified, waived or discharged unless such amendment, alteration, modification, waiver or discharge is agreed to in writing signed by the Executive and such officer of the
Company as shall be specifically designated by the Committee or by the Board. No waiver by either party, at any time, of any breach by the other party of, or of compliance by the other party with, any condition or provision of this Agreement to be
performed or complied with by such other party shall be deemed a waiver of any 
  

	9	For CEO only. 

  

 15 

 similar or dissimilar provision or condition of this Agreement or any other breach of or failure to comply with the same
condition or provision at the same time or at any prior or subsequent time. No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not expressly set
forth in this Agreement. The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of Delaware without giving effect to its conflict of laws rules. Any action brought by the Executive or
the Company shall be brought and maintained in a court of competent jurisdiction in the State of Minnesota. 
 13. Severability. If
any one or more of the provisions of this Agreement shall be held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions of this Agreement shall not be affected thereby. To the extent permitted
by applicable law, each party hereto waives any provision of law which renders any provision of this Agreement invalid, illegal or unenforceable in any respect. 
 14. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be an original and all of which shall be deemed to constitute one and the same instrument. 
 15. Entire Agreement. This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof, and
supersedes all prior oral or written agreements, commitments or understanding with respect to the matters provided for herein (except that any other non-disclosure, non-competition or non-solicitation agreements or provisions the parties hereto have
entered into shall continue to be in effect). 
 16. Grantor Trust. Immediately prior to a Change of Control, the Company shall
contribute to a grantor trust an amount equal to 125% of the payments Executive would receive from the Company, pursuant to Section 4 hereof, if Executive were terminated without Cause by the Company or if Executive were to terminate
Executive’s employment for Good Reason, in either case, immediately following the Change of Control. 
  

 16 

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

  

							
		 		 	SUPERVALU INC.
			
		 		 	  

	  
 Witnesses:
	 		 	
			
	  
	 		 	  

				
		 		 	Name:	 	  

				
		 		 	Title:	 	  

			
	  
	 		 	  

		 		 	Executive

  

 17Form of SUPERVALU INC. 2002 Stock Plan Stock Option Agreement

 Exhibit 10.31 
 SUPERVALU INC. 
 2002 STOCK PLAN 
 STOCK OPTION AGREEMENT 
 This agreement is made and entered into as of the Grant Date indicated
below, by and between SUPERVALU INC. and the individual whose name and signature appears below (“Optionee”). 
 The Company has established the
2002 Stock Plan (the “Plan”), under which key employees of the Company and its Affiliates may be granted options to purchase shares of the Company’s common stock. Optionee has been selected by the Company to receive an Option subject
to the provisions of this agreement. Capitalized terms that are used in this agreement, that are not defined, shall have the meanings ascribed to them in the Plan. 
 The Company and Optionee hereby agree as follows: 
  

	1.	Option Grant. The Company hereby grants to Optionee, subject to Optionee’s acceptance hereof, the right and option to purchase the number of Shares indicated below at
the exercise price per Share indicated below. The Option has been designated as a Non-Qualified Stock Option (“NQ”) or Incentive Stock Option (“ISO”) for tax purposes, the consequences of which are set forth in the prospectus
that describes the Plan. 

  

	2.	Acceptance of Option and Stock Option Terms and Conditions. The Option is subject to and governed by the Stock Option Terms and Conditions attached hereto as Exhibit A, and
the Plan. To accept the Option, Optionee must sign and return a copy of this agreement to the Company within ninety (90) days after the Grant Date. By so doing, Optionee agrees to be bound by the Stock Option Terms and Conditions and the
provisions of the Plan. 

  

	3.	Vesting, Exercise Rights and Expiration. Twenty percent (20%) of the Option shall vest on the Grant Date and the remaining portion shall vest in four (4) equal
annual installments commencing on each anniversary of the Grant Date. The vested portion of the Option may be exercised in whole or part, subject to the Stock Option Terms and Conditions. Except as otherwise provided in the Stock Option Terms and
Conditions, the Option will expire on the Expiration Date indicated below. 

  

											
	 Grant Number
	  	 Grant Date
	  	 Number of Shares
	  	 Type of Option
 NQ or ISO
	  	 Exercise Price
	  	 Expiration Date

		  		  		  		  		  	

  

									
	SUPERVALU INC.	 		 		 	OPTIONEE
					
	By:	 	  	 		 		 	  
		 		 		 		 	[Insert Name]
		 		 		 		 	SS# [Insert SSN]

  

 1 

 SUPERVALU INC. 
 2002 STOCK PLAN 
 STOCK OPTION TERMS AND CONDITIONS 
 (KEY EXECUTIVES), as amended 
 These Stock Option Terms
and Conditions (“Terms and Conditions”) apply to the Option granted to you under the 2002 Stock Plan, pursuant to the Stock Option Agreement to which this document is attached. Capitalized terms that are used in this document, but are not
defined, shall have the meanings ascribed to them in the Plan or the Stock Option Agreement. 
 1. Vesting and Exercisability. The Option shall vest
in cumulative installments as follows: 
  

	 	a)	As of the Grant Date, twenty percent (20%) of the Option shall immediately vest and twenty percent (20%) of the Shares subject to the Option shall then be available for
purchase, provided you have signed and returned your Stock Option Agreement within the time period specified. 

  

	 	b)	On each anniversary of the Grant Date, an additional twenty percent (20%) of the Option shall vest and an additional twenty percent (20%) of the Shares subject to the
Option shall then be available for purchase. 

 The vested portion of the Option may be exercised at any time, or from time to time, to
purchase Shares. If in any year the full amount of Shares that may be purchased pursuant to the vested portion of the Option is not purchased, the remaining amount of such Shares shall be available for purchase during the remainder of the term of
the Option. 
 2. Manner of Exercise. Except as provided in Section 8 below, you cannot exercise the Option unless at the time of exercise you
are an employee of the Company or an Affiliate. Prior to your death, only you may exercise the Option. You may exercise the Option as follows: 
  

	 	a)	By delivering a “Notice of Exercise of Stock Option” to the Company at its principal office, attention: Corporate Secretary, stating the number of Shares being purchased
and accompanied by payment of the full purchase price for such Shares (determined by multiplying the Exercise Price by the number of Shares to be purchased). [Note: In the event the Option is exercised by any person other than you pursuant to any of
the provisions of Section 8 below, the Notice must be accompanied by appropriate proof of such person’s right to exercise the Option.]; or 

  

	 	b)	By entering an order to exercise the Option using E*TRADE’s OptionsLink website. 

 3. Method of Payment. The full purchase price for the Shares to be purchased upon exercise of the Option must be paid as follows: 
  

	 	a)	By delivering directly to the Company, cash or its equivalent payable to the Company; 

  

	 	b)	By delivering indirectly to the Company, cash or its equivalent payable to the Company through E*TRADE’s OptionsLink website; or 

  

	 	c)	By delivering Shares having a Fair Market Value as of the Exercise Date equal to the purchase price (commonly known as a “Stock Swap”); or 

  

	 	d)	By delivering the full purchase price in a combination of cash and shares. 

 4. Delivery of Shares. You shall not have any of the rights of a stockholder with respect to any Shares subject to the Option until such Shares are purchased by you upon exercise of the Option. Such Shares shall then be issued
and delivered to you by the Company as follows: 
  

	 	a)	In the form of a stock certificate registered in your name or your name and the name of another adult person (21 years of age or older) as joint tenants, and mailed to your address;
or 

  

 2 

	 	b)	In “book entry” form, i.e. registered with the Company’s stock transfer agent, in your name or your name and the name of another adult person (21 years of age or
older) as joint tenants, and sent by electronic delivery to your brokerage account. 

 5. Withholding Taxes. You are responsible for the
payment of any federal, state, local or other taxes that are required to be withheld by the Company upon exercise of the Option and you must promptly remit such taxes to the Company. You may elect to remit these taxes by: 
  

	 	a)	Delivering directly to the Company, cash or its equivalent payable to the Company; 

  

	 	b)	Delivering indirectly to the Company, cash or its equivalent payable to the Company through E*TRADE’s OptionsLink website; 

  

	 	c)	Having the Company withhold a portion of the Shares to be issued upon exercise of the Option having a Fair Market Value equal to the amount of federal and state income tax required
to be withheld upon such exercise (commonly referred to as a “Tax Swap” or “Stock for Tax”); or 

  

	 	d)	Delivering Shares to the Company, other than the Shares issuable upon exercise of the Option, having a Fair Market Value equal to such taxes. [Note: In addition to delivering Shares
to satisfy required tax withholding obligations, you may also elect to deliver additional Shares to the Company, other than the Shares issuable upon exercise of the Option, having a Fair Market Value equal to the amount of any additional federal or
state income taxes imposed on you in connection with the exercise of the Option, provided such Shares have been held by you for a minimum of six (6) months.] 

 6. Change of Control. In the event of the occurrence of a Change of Control of the Company, the unvested portion of the Option shall immediately vest and the Option shall become immediately exercisable in full.
The term “Change of Control”, means any of the following events: 
  

	 	a)	The acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of twenty percent (20%) or more of either (A) the then outstanding shares of common stock of the Company or (B) the combined
voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors; provided, however, that for purposes of this subsection (a), the following share acquisitions shall not constitute a
Change of Control; (A) any acquisition directly from the Company or (B) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company; or

  

	 	b)	The consummation of any merger or other business combination of the Company, the sale or lease of all or substantially all the Company’s assets or any combination of the
foregoing transactions (each a “Transaction”) other than a Transaction immediately following which the stockholders of the Company and any trustee or fiduciary of any Company employee benefit plan immediately prior to the Transaction own
at least sixty percent (60%) of the voting power, directly or indirectly, of (A) the surviving corporation in any such merger or other business combination; (B) the purchaser or lessee of the Company’s assets; or (C) both
the surviving corporation and the purchaser or lessee in the event of any combination of Transactions; or 

  

	 	c)	 Within any 24-month period, the persons who were directors immediately before the beginning of such period (the “Incumbent Directors”) shall cease (for
any reason other than death) to constitute at least a majority of the Board of Directors of the Company or the board of directors of a successor to the Company. 

  

 3 

	 	 
For this purpose, any director who was not a director at the beginning of such period shall be deemed to be an Incumbent Director if such director was
elected to the Board of Directors of the Company by, or on the recommendation of or with the approval of, at least three-fourths of the directors who then qualified as Incumbent Directors (so long as such director was not nominated by a person who
has expressed an intent to effect a Change of Control or engage in a proxy or other control contest); or. 

  

	 	d)	Such other event or transaction as the Board of Directors of the Company shall determine constitutes a Change of Control. 

 You acknowledge that as a result of the foregoing acceleration of vesting and exercisability, to the extent that the aggregate Fair Market Value of all Shares subject to
stock options that are Incentive Stock Options which are exercisable for the first time by you during any calendar year (under all plans of the Company and its subsidiaries, if any) exceeds $100,000, all or any portion of the Option, as well as any
other stock option held by you, may become a stock option which is not an Incentive Stock Option. 
 7. Transferability. Unless otherwise determined
by the Committee, the Option shall not be transferable other than by will or the laws of descent and distribution. More particularly, the Option may not be assigned, transferred, pledged or hypothecated in any way (whether by operation of law or
otherwise) and shall not be subject to execution, attachment or similar process. Any attempted assignment, transfer, pledge, hypothecation or other disposition of the Option contrary to these provisions, or the levy of an execution, attachment or
similar process upon the Option, shall be void. 
 You may designate a beneficiary or beneficiaries to exercise your rights with respect to the Option upon
your death. In the absence of any such designation, benefits remaining unpaid at your death shall be paid to your estate. 
 8. Effect of Termination of
Employment. Following the termination of your employment with the Company or an Affiliate for any of the reasons set forth below, your right to exercise the Option, as well as that of your beneficiary or beneficiaries, shall be as follows: 

  

	 	a)	Voluntary or Involuntary. In the event your employment is terminated voluntarily or involuntarily for any reason other than retirement, death or permanent disability, you may
exercise the Option prior to its Expiration Date, at any time within a period of up to two (2) years after such termination of employment, to the full extent of the number of Shares you were entitled to purchase under that portion of the
Option which was vested as of the date of termination of your employment. However, the Committee may, in its sole and absolute discretion, except in the case of the termination of your employment following the occurrence of a Change of Control,
during a period of seventy-five (75) days after such termination of employment and following ten (10) days’ written notice to you, reduce the period of time during which the Option may be exercised to any period of time designated by
the Committee, provided such period is not less than ninety (90) days following termination of your employment. 

  

	 	b)	Retirement. You shall be deemed to have retired, solely for purposes of this Agreement, in the event that your employment terminates for any reason other than death or
disability and you are at least 55 years of age. 

  

	 	(i)	In the event you retire and you have completed ten (10) or more years of service with the Company or an Affiliate, the unvested portion of the Option shall immediately vest in
full. Thereafter, you may exercise the Option at any time prior to its Expiration Date, to the full extent of the Shares covered by the Option that were not previously purchased. 

  

	 	(ii)	In the event you retire and you have completed less than ten (10) years of service with the Company or an Affiliate, you may exercise the Option prior to its Expiration Date,
at any time within a period of up to two (2) years after the date of your retirement, to the full extent of the number of Shares you were entitled to purchase under that portion of the Option which was vested as of the date of your
retirement. 

  

 4 

	 	c)	Death Prior to Age 55. In the event your death occurs before you attain the age of fifty-five (55), while you are employed by the Company or an Affiliate, or within three
(3) months after the termination of your employment, the unvested portion of the Option shall immediately vest in full. Thereafter, the Option may be exercised prior to its Expiration Date, by your beneficiary(ies), or a legatee(s) under your
last will, or your personal representative(s) or the distributee(s) of your estate, to the full extent of the Shares covered by the Option that were not previously purchased: 

  

	 	(i)	At any time within a period of up to two (2) years after your death if such occurs while you are employed, or 

  

	 	(ii)	At any time within a period of up to two (2) years following the termination of your employment if your death occurs within three (3) months thereafter.

  

	 	d)	Death After Age 55. In the event your death occurs after you attain the age of fifty-five (55), while you are employed by the Company or an Affiliate, or within three
(3) months after the termination of your employment, the unvested portion of the Option shall immediately vest in full. Thereafter, the Option may be exercised prior to its Expiration Date, by your beneficiary(ies), or a legatee(s) under your
last will, or your personal representative(s) or the distributee(s) of your estate, to the full extent of the Shares covered by the Option that were not previously purchased: 

  

	 	(i)	At any time, if you have completed ten (10) or more years of service with the Company or an Affiliate; or 

  

	 	(ii)	If you have completed less than ten (10) years of service with the Company or an Affiliate, then at any time within a period of up to two (2) years after the date
of your death if such occurs while you are employed, or within a period of up to two (2) years after the date of termination of your employment if your death occurs within three (3) months thereafter. 

  

	 	e)	Disability Prior to Age 55. In the event your employment terminates before you attain the age of fifty-five (55), as a result of a permanent disability, the unvested portion
of the Option shall immediately vest in full. Thereafter, the Option may be exercised prior to its Expiration Date, by you or by your personal representative(s), at any time within a period of up to two (2) years after your employment
terminates due to such permanent disability, to the full extent of the Shares covered by the Option that were not previously purchased. 

 You shall be considered permanently disabled if you suffer from a medically determinable physical or mental impairment that renders you incapable of performing any substantial gainful employment, and is evidenced by a
certification to such effect by a doctor of medicine approved by the Company. In lieu of such certification, the Company shall accept, as proof of permanent disability, your eligibility for long-term disability payments under the applicable
Long-Term Disability Plan of the Company. 
  

	 	f)	Disability After Age 55. In the event your employment terminates as a result of a permanent disability after you attain the age of fifty-five (55), the unvested portion of
the Option shall immediately vest in full. Thereafter, the Option may be exercised prior to its Expiration Date, by you or by your personal representative(s), to the full extent of the Shares covered by the Option that were not previously purchased:

  

	 	(i)	At any time, if you have completed ten (10) or more years of service with the Company or an Affiliate; or 

  

	 	(ii)	If you have completed less than ten (10) years of service with the Company or an Affiliate, then at any time within a period of two (2) years after your employment
terminates due to such permanent disability. 

 You shall be considered permanently disabled if you suffer from a medically
determinable physical or mental impairment that renders you incapable of performing any substantial gainful employment, and is evidenced by 

  

 5 

 
a certification to such effect by a doctor of medicine approved by the Company. In lieu of such certification, the Company shall accept, as proof of
permanent disability, your eligibility for long-term disability payments under the applicable Long-Term Disability Plan of the Company. 
  

	 	g)	Change in Duties/Leave of Absence. The Option shall not be affected by any change of your duties or position or by a temporary leave of absence approved by the Company, so
long as you continue to be an employee of the Company or of an Affiliate. 

 9. Repurchase Rights. If you exercise the Option within six
(6) months prior to or three (3) months after the date your employment with the Company or an Affiliate terminates for any reason, whether voluntary or involuntary, with or without cause (except as a result of death, permanent
disability or retirement pursuant to the Company’s retirement plans then in effect), the Company shall have the right and option to repurchase from you, that number of Shares which is equal to the number you purchased upon such exercise(s)
within such time periods, and you agree to sell such Shares to the Company. 
 The Company may exercise its repurchase rights by depositing in the United
States mail a written notice addressed to you at the latest mailing address for you on the records of the Company (i) within thirty (30) days following the termination of your employment for the repurchase of Shares purchased prior to such
termination, or (ii) within thirty (30) days after any exercise of the Option for the repurchase of Shares purchased after your termination of employment. Within thirty (30) days after the mailing of such notice, you shall deliver to
the Company the number of Shares the Company has elected to repurchase and the Company shall pay to you in cash, as the repurchase price for such Shares upon their delivery, an amount which shall be equal to the purchase price paid by you for the
Shares. If you have disposed of the Shares, then in lieu of delivering an equivalent number of Shares to the Company, you must pay to the Company the amount of gain realized by you from the disposition of the Shares exclusive of any taxes due and
payable or commissions or fees arising from such disposition. 
 The Company may exercise its repurchase rights described above only in the event you are
terminated for cause, or if you breach any of the covenants contained in Section 10 below. 
 If the Company exercises its repurchase option prior to
the actual issuance and delivery to you of any Shares pursuant to the exercise of the Option, no Shares need be issued or delivered. In lieu thereof, the Company shall return to you the purchase price you tendered upon the exercise of the Option to
the extent that it was actually received from you by the Company. 
 Following the occurrence of a Change of Control, the Company shall have no right to
exercise the repurchase rights set forth in this Section. 
 10. Employee Covenants. In consideration of benefits described elsewhere in these Terms
and Conditions and the Stock Option Agreement to which they apply, and in recognition of the fact that, as a result of your employment with the Company or any of its Affiliates, you have had or will have access to and gain knowledge of highly
confidential or proprietary information or trade secrets pertaining to the Company or its Affiliates, as well as the customers, suppliers, joint ventures, licensors, licensees, distributors, or other persons and entities with whom the Company or any
of its Affiliates does business (“Confidential Information”), which the Company or its Affiliates have expended time, resources, and money to obtain or develop and which have significant value to the Company and its Affiliates, you agree
for the benefit of the Company and its Affiliates, and as a material condition to your receipt of benefits described elsewhere in these Terms and Conditions and accompanying the Stock Option Agreement, as follows: 
  

	 	a)	 Non-Disclosure of Confidential Information. You acknowledge that you will receive access or have received access to Confidential Information about the
Company or its Affiliates, that this information was obtained or developed by the Company or its Affiliates at great expense and is zealously guarded by the Company and its Affiliates from unauthorized disclosure, and that your possession of this
special knowledge is due solely to your employment with the Company or one or more of its Affiliates. In recognition of the foregoing, you 

  

 6 

	 	 
will not at any time during employment or following termination of employment for any reason, disclose, use or otherwise make available to any third party,
any Confidential Information relating to the Company’s or any Affiliate’s business, products, services, customers, vendors, or suppliers; trade secrets, data, specifications, developments, inventions, and research activity; marketing and
sales strategies, information, and techniques; long and short term plans; existing and prospective client, vendor, supplier, and employee lists, contacts, and information; financial, personnel, and information system information and applications;
and any other information concerning the business of the Company or its Affiliates which is not disclosed to the general public or known in the industry, except for disclosure necessary in the course of your duties or with the express written
consent of the Company. All Confidential Information, including all copies, notes regarding, and replications of such Confidential Information will remain the sole property of the Company or its Affiliate, as applicable, and must be returned to the
Company or such Affiliate immediately upon termination of your employment. 

  

	 	b)	Return of Property. Upon termination of employment with the Company or any of its Affiliates, or at any other time at the request of the Company, you shall deliver to a
designated Company representative all records, documents, hardware, software, and all other property of the Company or its Affiliates and all copies of such property in your possession. You acknowledge and agree that all such materials are the sole
property of the Company or its Affiliates and that you will certify in writing to the Company at the time of delivery, whether upon termination or otherwise, that you have complied with this obligation. 

  

	 	c)	Non-Solicitation of Existing or Prospective Customers, Vendors, and Suppliers. You specifically acknowledge that the Confidential Information described in Section 10(a)
includes confidential data pertaining to existing and prospective customers, vendors, and suppliers of the Company or its Affiliates; that such data is a valuable and unique asset of the business of the Company or its Affiliates; and that the
success or failure of the their businesses depends upon the their ability to establish and maintain close and continuing personal contacts and working relationships with such existing and prospective customers, vendors, and suppliers and to develop
proposals which are specific to such existing and prospective customers, vendors, and suppliers. Therefore, during your employment with the Company or any of its Affiliates and for the twelve (12) months following termination of employment for
any reason, you agree that you will not, except on behalf of the Company or its Affiliates, or with the Company’s express written consent, solicit, approach, contact or attempt to solicit, approach, or contact, either directly or indirectly, on
your own behalf or on behalf of any other person or entity, any existing or prospective customers, vendors, or suppliers of the Company or its Affiliates with whom you had contact or about whom you gained Confidential Information during your
employment with the Company or its Affiliates for the purpose of obtaining business or engaging in any commercial relationship that would be competitive with the “Business of the Company” (as defined below in Section 10(e)(i)) or
cause such customer, supplier, or vendor to materially change or terminate its business or commercial relationship with the Company or its Affiliates. 

  

	 	d)	Non-Solicitation of Employees. You specifically acknowledge that the Confidential Information described in Section 10(a) also includes confidential data pertaining to
employees and agents of the Company or its Affiliates, and you further agree that during your employment with the Company or its Affiliates and for the twelve (12) months following termination of employment for any reason, you will not,
directly or indirectly, on your own behalf or on behalf of any other person or entity, solicit, contact, approach, encourage, induce or attempt to solicit, contact, approach, encourage, or induce any of the employees or agents of the Company or its
Affiliates to terminate their employment or agency with the Company or any of its Affiliates. 

  

	 	e)	Non-Competition. You covenant and agree that during your employment with the Company or any of its Affiliates and for the twelve (12) months following termination of
employment for any reason, you will not, in any geographic market in which you worked on behalf of the Company or any of its Affiliates, or for which you had any sales, marketing, operational, logistical, or other management or oversight
responsibility, engage in or carry on, directly or indirectly, as an owner, employee, agent, associate, consultant, partner, or in any other capacity, a business competitive with the Business of the Company. This Section 10(e) shall not apply
in the event of a Change in Control as described in Section 6 above. 

  

	 	i)	The “Business of the Company” shall mean any business or activity involved in grocery or general merchandise retailing and supply chain logistics, including but not
limited to grocery distribution, business-to-business portal, retail support services, and third-party logistics, of the type provided by the Company or its Affiliates, or presented in concept to you by the Company or its Affiliates at any time
during your employment with the Company or any of its Affiliates. 

  

 7 

	 	ii)	To “engage in or carry on” shall mean to have ownership in such business (excluding ownership of up to 1% of the outstanding shares of a publicly-traded company) or to
consult, work in, direct, or have responsibility for any area of such business, including but not limited to operations, logistics, sales, marketing, finance, recruiting, sourcing, purchasing, information technology, or customer service.

  

	 	f)	No Disparaging Statements. You agree that you will not make any disparaging statements about the Company, its Affiliates, directors, officers, agents, employees, products,
pricing policies or services. 

  

	 	g)	Remedies for Breach of These Covenants. Any breach of the covenants in this Section 10 likely will cause irreparable harm to the Company or its Affiliates for which
money damages could not reasonably or adequately compensate the Company or its Affiliates. Accordingly, the Company or any of its Affiliates shall be entitled to all forms of injunctive relief (whether temporary, emergency, preliminary, prospective,
or permanent) to enforce such covenants, in addition to damages and other available remedies, and you consent to the issuance of such an injunction without the necessity of the Company or any such Affiliate posting a bond or, if a court requires a
bond to be posted, with a bond of no greater than $500 in principal amount. In the event that injunctive relief or damages are awarded to Company or any of its Affiliates for any breach by you of this Section 10, you further agree that the
Company or such Affiliate shall be entitled to recover its costs and attorneys’ fees necessary to obtain such recovery. In addition, you agree that upon your breach of any covenant in this Section, the Option, and any other unexercised options
issued under the Plan or any other stock option plans of the Company will immediately terminate. 

  

	 	h)	Enforceability of These Covenants. It is further agreed and understood by you and the Company that if any part, term, or provision of these Terms and Conditions should be
held to be unenforceable, invalid, or illegal under any applicable law or rule, the offending term or provision shall be applied to the fullest extent enforceable, valid, or lawful under such law or rule, or, if that is not possible, the offending
term or provision shall be struck and the remaining provisions of these Terms and Conditions shall not be affected or impaired in any way. 

 11. Arbitration. You and the Company agree that any controversy, claim, or dispute arising out of or relating to the Stock Option Agreement or the breach of any of these Stock Option Terms and Conditions, or arising out of or
relating to your employment relationship with the Company or any of its Affiliates, or the termination of such relationship, shall be resolved by binding arbitration before a neutral arbitrator under rules set forth in the Federal Arbitration Act,
except for claims by the Company relating to your breach of any of the employee covenants set forth in Section 10 above. By way of example only, claims subject to this agreement to arbitrate include claims litigated under federal, state and
local statutory or common law, such as the Age Discrimination in Employment Act, Title VII of the Civil Rights Act of 1964, as amended, including the Civil Rights Act of 1994, the Americans with Disabilities Act, the law of contract and the law of
tort. You and the Company agree that such claims may be brought in an appropriate administrative forum, but at the point at which you or the Company seek a judicial forum to resolve the matter, this agreement for binding arbitration becomes
effective, and you and the Company hereby knowingly and voluntarily waive any right to have any such dispute tried and adjudicated by a judge or jury. The foregoing not to the contrary, the Company may seek to enforce the employee covenants set
forth in Section 10 above, in any court of competent jurisdiction. 
 This agreement to arbitrate shall continue in full force and effect despite the
expiration or termination of your Option or your employment relationship with the Company or any of its Affiliates. You and the Company agree that any award rendered by the arbitrator shall be final and binding and that judgment upon the final award
may be entered in any court having jurisdiction thereof. The arbitrator may grant any remedy or relief that the arbitrator deems just and equitable, including any remedy or relief that would have been available to you, the 

  

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Company or any of its Affiliates had the matter been heard in court. All expenses of the arbitration, including the required travel and other expenses of the
arbitrator and any witnesses, and the costs relating to any proof produced at the direction of the arbitrator, shall be borne equally by you and the Company unless otherwise mutually agreed or unless the arbitrator directs otherwise in the award.
The arbitrator’s compensation shall be borne equally by you and the Company unless otherwise mutually agreed or unless the law provides otherwise. 
 12. Severability. In the event that any portion of these Terms and Conditions shall be held to be invalid, the same shall not affect in any respect whatsoever the validity and enforceability of the remainder of these Terms and
Conditions. 
  

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