Document:

Exhibit

10.4

 

 

[Date]

 

[Executive’s

name]

[Executive’s

address]

 

Dear [Executive]:

 

You are presently the [title] of [name of subsidiary, if appropriate, a

subsidiary of] Nash Finch Company, a Delaware corporation.  The Company considers the establishment and

maintenance of a sound and vital management to be essential to protecting and

enhancing the best interests of the Company and its stockholders.  In this connection, the Company recognizes

that, as is the case with many publicly held corporations, the possibility of a

Change in Control may arise and that such possibility, and the uncertainty and

questions which it may raise among management, may result in the departure or

distraction of management personnel to the detriment of the Company and its

stockholders.

 

Accordingly, the Board has determined that appropriate steps should be

taken to minimize the risk that Company management will depart prior to a

Change in Control, thereby leaving the Company without adequate management

personnel during such a critical period, and that appropriate steps also be

taken to reinforce and encourage the continued attention and dedication of

members of the Company’s management to their assigned duties without

distraction in circumstances arising from the possibility of a Change in

Control.  In particular, the Board

believes it important, should Nash Finch Company or its stockholders receive a

proposal of transfer of control, that you be able to continue your management

responsibilities [and assess and advise the Board whether such proposal would be in the

best interests of Nash Finch Company 

and its stockholders and to take other action regarding such proposal as

the Board might determine to be appropriate], without being

influenced by the uncertainties of your own personal situation.

 

The Board recognizes that continuance of your position with the Company

involves a substantial commitment to the Company in terms of your personal life

and professional career and the possibility of foregoing present and future

career opportunities, for which the Company receives substantial benefits.  Therefore, to induce you to remain in the

employ of the Company, this letter agreement, which has been approved by the

Board, sets forth the benefits which the Company agrees will be provided to you

in the event your employment with the Company is terminated in connection with

a Change in Control under the circumstances described below.

 

 

 

                1.             Definitions.  The following terms will have the meaning

set forth below unless the context clearly requires otherwise.  Terms defined elsewhere in this Agreement

will have the same meaning throughout this Agreement.

 

                (a)           “Agreement” means this letter

agreement as amended, extended or renewed from time to time in accordance with

its terms.

 

                (b)           “Board” means the board of

directors of the Parent Corporation duly qualified and acting at the time in

question.

 

                (c)           “Cause” means:  (i) the willful and continued failure by you

to perform substantially your duties with the Company (other than any such

failure resulting from your Disability or incapacity due to bodily injury or

physical or mental illness) after a demand for substantial performance is

delivered to you by the chair of the Board which specifically identifies the

manner in which such executive believes that you have not substantially

performed your duties; or (ii) your conviction (including a plea of nolo

contendere) of willfully engaging in illegal conduct constituting a felony or

gross misdemeanor under federal or state law which is materially and demonstrably

injurious to the Company.  For purposes

of this definition, no act, or failure to act, on your part will be considered

“willful” unless done, or omitted to be done, by you in bad faith and without

reasonable belief that your action or omission was in, or not opposed to, the

best interests of the Company.  Any act,

or failure to act, based upon authority given pursuant to a resolution duly

adopted by the Board (or a committee hereof) or based upon the advice of

counsel for the Company will be conclusively presumed to be done, or omitted to

be done, by you in good faith and in the best interests of the Company.  It is also expressly understood that your

attention to matters not directly related to the business of the Company will

not provide a basis for termination for Cause so long as the Board does not

expressly disapprove in writing of your engagement on such activities either

before or within a reasonable period of time after the Board knew or could

reasonably have known that you engaged in those activities.  Notwithstanding the foregoing, you will not

be deemed to have been terminated for Cause unless and until there has been

delivered to you a copy of a resolution duly adopted by the affirmative vote of

not less than a majority of the entire membership of the Board at a meeting of

the Board called and held for the purpose (after reasonable notice to you and

an opportunity for you, together with your counsel, to be heard before the

Board), finding that in the good faith opinion of the Board you were guilty of

the conduct set forth above in clause (i) or (ii) of this definition and

specifying the particulars thereof in detail.

 

(d)           “Change

in Control” means:  (i) the sale,

lease, exchange, or other transfer of all or substantially all of the assets of

the Parent Corporation (in one transaction or in a series of related

transactions) to a corporation that is not controlled by the Parent

Corporation; (ii) the approval by the stockholders of the Parent Corporation of

any plan or proposal for the liquidation or dissolution of the Parent

Corporation; or (iii) a change in control of a nature that would be required to

be reported (assuming such event has not been “previously reported”) in

response to Item 1(a) of the Current Report on Form 8-K,

 

2

 

as in effect on the date hereof, pursuant to section 13 or 15(d) of the

Exchange Act, whether or not the Parent Corporation is then subject to such

reporting requirement; provided that, without limitation, such a Change in

Control will be deemed to have occurred at such time as:  (A) any Person is or becomes the “beneficial

owner” (as defined in Rule 13d-3 under the Exchange Act), directly or

indirectly, of thirty percent (30%) or more of the combined voting power of the

Parent Corporation’s outstanding securities 

ordinarily having the right to vote at elections of directors, or (B)

individuals who constitute the Board on the date of this Agreement (the

“Incumbent Board”) cease for any reason to constitute at least a majority

thereof, provided that any person becoming a director subsequent to the date of

this Agreement whose election, or nomination for election, by the Parent

Corporation’s stockholders, was approved by a vote of at least a majority of

the directors comprising the Incumbent Board (either by a specific vote or by

approval of the proxy statement of the Parent Corporation in which such person

is named as a nominee for director, without objection to such nomination) will,

for purposes of this clause (B), be deemed to be a member of the Incumbent

Board.

 

(e)           “Code”

means the Internal Revenue Code of 1986, as amended.

 

(f)            “Company”

means the Parent Corporation, any Subsidiary and any Successor.

 

(g)           “Confidential

Information” means information which is proprietary to the Company or

proprietary to others and entrusted to the Company, whether or not trade

secrets.  It includes information

relating to business plans and to business as conducted or anticipated to be

conducted, and to past or current or anticipated products or services.  It also includes, without limitation,

information concerning research, development, purchasing, accounting, marketing

and selling.  All information which you

have a reasonable basis to consider confidential is Confidential Information,

whether or not originated by you and without regard to the manner in which you

obtain access to that and any other proprietary information.

 

(h)           “Date

of Termination” following a Change in Control (or prior to a Change in

Control if your termination was either a condition of the Change in Control or

was at the request or insistence of any Person (other than the Company) related

to the Change in Control) means:  (i) if

your employment is to be terminated for Disability, thirty (30) calendar days

after Notice of Termination is given (provided that you have not returned to

the performance of your duties on a full-time basis during such thirty

(30)-calendar-day period); (ii) if your employment is to be terminated by the

Company for Cause or by you for Good Reason, the date specified in the Notice

of Termination; (iii) if your employment is to be terminated by the Company for

any reason other than Cause, Disability, death or Retirement, the date

specified in the Notice of Termination, which in no event may be a date earlier

than ninety (90) calendar days after the date on which a Notice of Termination

is given, unless an earlier date has been expressly agreed to by you in writing

either in advance of, or after, receiving such Notice of Termination; or (iv)

if your employment is terminated by reason of death or Retirement, the date of

death or 

 

3

 

Retirement, respectively.  In

the case of termination by the Company of your employment for Cause, if you

have not previously expressly agreed in writing to the termination, then within

thirty (30) calendar days after receipt by you of the Notice of Termination

with respect thereto, you may notify the Company that a dispute exists

concerning the termination, in which event the Date of Termination will be the

date set either by mutual written agreement of the parties or by the judge or

arbitrators in a proceeding as provided in Section 13 of this Agreement.  During the pendency of any such dispute, the

Company will continue to pay you your full compensation and benefits in effect

just prior to the time the Notice of Termination is given and until the dispute

is resolved in accordance with Section 13 of this Agreement.

 

(i)            “Disability”

means a disability as defined in the Company’s long-term disability plan as in

effect immediately prior to the Change in Control or, in the absence of such a

plan, means permanent and total disability as defined in section 22(e)(3) of

the Code.

 

(j)            “Exchange

Act” means the Securities Exchange Act of 1934, as amended.

 

(k)           “Good

Reason” means:

 

(i)            an adverse change in your status or

position(s) as an executive of the Company as in effect immediately prior to

the Change in Control, including, without limitation, any adverse change in

your status or position(s) as a result of a material diminution in your duties

or responsibilities (other than, if applicable, any such change directly

attributable to the fact that the Company is no longer publicly owned) or the

assignment to you of any duties or responsibilities which, in your reasonable

judgment, are inconsistent with such status or position(s), or any removal of

you from or any failure to reappoint or reelect you to such position(s) (except

in connection with the termination of your employment for Cause, Disability or

Retirement or as a result of your death or by you other than for Good Reason);

 

(ii)           a reduction by the Company in your

rate of total compensation (including, without limitation, salary and bonuses)

(or an adverse change in the form or timing of the payment thereof) as in

effect immediately prior to the Change in Control;

 

(iii)          the failure by the Company to continue

in effect any Plan in which you (and/or your family) are participating at any

time during the ninety (90)-calendar-day period immediately preceding the

Change in Control (or Plans providing you (and/or your family) with at least

substantially similar benefits) other than as a result of the normal expiration

of any such Plan in accordance with its terms as in effect immediately prior to

the ninety (90)-calendar-day period immediately preceding the time of the

Change in Control, or the taking of any action, or the failure to act, by the

Company which would adversely affect your

 

4

 

 

(and/or your family’s) continued participation in any

of such Plans on at least as favorable a basis to you (and/or your family) as

is the case on the date of the Change in Control or which would materially

reduce your (and/or your family’s) benefits in the future under any of such

Plans or deprive you (and/or your family) of any material benefit enjoyed by

you (and/or your family) at the time of the Change in Control;

 

(iv)          the Company’s requiring you to be

based anywhere other than where your office is located immediately prior to the

Change in Control, except for required travel on the Company’s business, and

then only to the extent substantially consistent with the business travel

obligations which you undertook on behalf of the Company during the ninety

(90)-calendar-day period immediately preceding the Change in Control (without

regard to travel related or in anticipation of the Change in Control);

 

(v)           the failure by the Company to obtain

from any Successor the assent to this Agreement contemplated by Section 6 of

this Agreement.

 

(vi)          any purported termination by the

Company of your employment which is not properly effected pursuant to a Notice

of Termination and pursuant to any other requirements of this Agreement, and

for purposes of this Agreement, no such purported termination will be

effective; or

 

(vii)         any refusal by the Company to continue

to allow you to attend to matters or engage in activities not directly related

to the business of the Company which, at any time prior to the Change in Control,

you were not expressly prohibited in writing by the Board from attending to or

engaging in.

 

Notwithstanding anything in the foregoing to the contrary, your

termination of employment with the Company for any reason other than death,

Disability or Retirement within six (6) calendar months following a Change in

Control will be conclusively deemed to be for Good Reason.

 

(l)            “Highest

Monthly Compensation” means one-twelfth (1/12) of the highest amount of

your compensation for any twelve (12) consecutive calendar-month period during

the thirty-six (36) consecutive calendar-month period prior to the month that

includes the Date of Termination.  For

purposes of this definition, “compensation” means the amount reportable by the

Company, for federal income tax purposes, as wages paid to you by the Company,

increased by the amount of contributions made by the Company with respect to

you under any qualified cash or deferred arrangement or cafeteria plan that is

not then includable in your income by reason of the operation of section

402(a)(8) or section 125 of the Code, and increased further by any other

compensation deferred for any reason, including, without limitation, amounts

deferred (whether vested or nonvested) pursuant to the Company’s Executive

Incentive Bonus and Deferred Compensation Plan.

 

5

 

 

(m)          “Notice

of Termination” means a written notice which indicates the specific

termination provision in this Agreement pursuant to which the notice is

given.  Any purported termination by the

Company or by you following a Change in Control (or prior to a Change in

Control if your termination was either a condition of the Change in Control or

was at the request or insistence of any Person (other than the Company) related

to the Change in Control) must be communicated by written Notice of

Termination.

 

(n)           “Parent

Corporation” means Nash Finch Company and any Successor.

 

(o)           “Person”

means and includes any individual, corporation, partnership, group, association

or other “person”, as such term is used in section 14(d) of the Exchange Act,

other than the Parent Corporation, a wholly-owned subsidiary of the Parent

Corporation or any employee benefit plan(s) sponsored by the Parent Corporation

or a wholly-owned subsidiary of the Parent Corporation.

 

(p)           “Plan”

means any compensation plan (such as a stock option, restricted stock plan or

other equity-based plan), or any employee benefit plan (such as a thrift,

pension, profit sharing, medical, dental, disability, accident, life insurance,

relocation, salary continuation, expense reimbursements, vacation, fringe

benefits, office and support staff plan or policy) or any other plan, program,

policy or agreement of the Company intended to benefit employees (and/or their

families) generally, management employees (and/or their families) as a group or

you (and/or your family) in particular (including, without limitation the

Company’s 2000 Stock Incentive Plan, Profit Sharing Plan, Income Deferral Plan

and Executive Incentive Bonus and Deferred Compensation Plan).

 

(q)           “Retirement”

means the day on which you attain the age of sixty-five (65).

 

(r)            “Subsidiary”

means any corporation at least a majority of whose securities having ordinary

voting power for the election of directors is at the time owned by the Company

and/or one (1) or more Subsidiaries.

 

(s)           “Successor”

means any Person that succeeds to, or has the practical ability to control

(either immediately or with the passage of time), the Parent Corporation’s

business directly, by merger, consolidation or other form of business

combination, or indirectly, by purchase of the Parent Corporation’s voting

securities, all or substantially all of its assets or otherwise.

 

2.             Term

of Agreement.  This Agreement is

effective immediately and will continue in effect until December 31, 2003;

provided, however, that commencing on January 1, 2003 and each January 1

thereafter, the term of this Agreement will automatically be extended for one

(1) additional year beyond the expiration date otherwise then in effect, unless

at least ninety (90) calendar days prior to any such January 1, the Company or

you has been given notice that this Agreement will not be extended; and,

provided, further, that this Agreement will continue in effect beyond the

 

6

 

termination date then in effect for a period of twenty-four (24)

calendar months following a Change in Control if a Change in Control has

occurred during such term.

 

3.             Benefits

upon a Change in Control Termination. 

If your employment by the Company is terminated for any reason other

than death, Cause, Disability or Retirement, or if you terminate your

employment by the Company for Good Reason either within:  (a) twenty-four (24) calendar months

following a Change in Control; or (b) prior to a Change in Control if your

termination was either a condition of the Change in Control or was at the

request or insistence of a Person (other than the Company) related to the

Change in Control, then:

 

(i)            Cash Payment.  Within five (5) business days following the

Date of Termination, the Company will make a lump-sum cash payment to you in an

amount equal to the product of (A) your Highest Monthly Compensation multiplied

by (B) the lesser of (I) the number of full or partial calendar months

remaining until your Retirement or (II) twenty-four (24).

 

(ii)           Welfare Plans.  The Company will maintain in full force and

effect, for the continued benefit of you and your dependents for a period

terminating on the earliest of (A) twenty-four (24) calendar months after the

Date of Termination or (B) your Retirement, all insured and self-insured

employee welfare benefit Plans (including, without limitation, health, life,

dental and disability plans) in which you were entitled to participate at any

time during the ninety (90)-calendar-day period immediately preceding the

Change in Control, provided that your continued participation is possible under

the general terms and provisions of such Plans and any applicable funding media

and without regard to any discretionary amendments to such Plans by the Company

following the Change in Control (or prior to the Change in Control if amended

as a condition or at the request or insistence of a Person (other than the

Company) related to the Change in Control) and provided that you continue to

pay an amount equal to your regular contribution under such Plans for such

participation (based upon your level of benefits and employment status most

favorable to you at any time during the ninety (90)-calendar-day period

immediately preceding the Change in Control). 

If the twenty-four (24)-month-period ends before you have reached

Retirement and you have not previously received or are not then receiving

equivalent benefits from a new employer (including coverage for any

pre-existing conditions), the Company will arrange, at its sole cost and

expense, to enable you to covert your and your dependents’ coverage under such

plans to individual policies or programs under the same terms as executives of

the Company may apply for such conversions. 

In the event that you or your dependents’ participation in any such Plan

is barred, the Company, at its sole cost and expense, will arrange to have

issued for the benefit of you and your dependents individual policies of insurance

providing benefits substantially similar (on a federal, state and local income

and employment after-tax basis) to those which you otherwise would have been

entitled to receive under such Plans pursuant to this clause (ii) or, if such

 

7

 

insurance is not available at a reasonable cost to the

Company, the Company will otherwise provide you and your dependents equivalent

benefits (on a federal, state and local income and employment after-tax basis).

You will not be required to pay any premiums or other charges in an amount

greater than that which you would have paid in order to participate in such

Plans.

 

(iii)          Limitation on Payments and Benefits.

Notwithstanding anything in this Agreement to the contrary, if any of the

payments or benefits to be made or provided in connection with this Agreement,

together with any other payments or benefits which you have the right to

receive from the Company or any corporation which is a member of an “affiliated

group” (as defined in section 1504(a) of the Code without regard to section

1504(b) of the Code) of which the Company is a member, constitute an “excess

parachute payment” (as defined in section 280G(b) of the Code), the payments or

benefits to be made or provided in connection with this Agreement will be

reduced to the extent necessary to prevent any portion of such payments or

benefits from becoming subject to the excise tax imposed under section 4999 of

the Code.  The determination as to

whether any such decrease in the payments or benefits to be made or provided in

connection with this Agreement is necessary must be made in good faith by legal

counsel or a certified public accountant selected by you and reasonably

acceptable to the Company, and such determination will be conclusive and

binding upon you and the Company.  In

the event that such a reduction is necessary, you will have the right to

designate the particular payments or benefits that are to be reduced or

eliminated so that no portion of the payments or benefits to be made or

provided to you in connection with this Agreement will be excess parachute

payments subject to the excise tax under Code section 4999.  The Company will pay or reimburse you on

demand for the reasonable fees, costs and expenses of the counsel or accountant

selected to make the determinations under the clause (iii).

 

4.             Indemnification.   Following a Change in Control, the Company

will indemnify and advance expenses to you to the full extent permitted by law

and the Company’s certificate of incorporation and bylaws for damages, costs

and expenses (including, without limitation, judgments, fines, penalties,

settlements and reasonable fees and expenses of your counsel) incurred in

connection with all matters, events and transactions relating to your service

to or status with the Company or any other corporation, employee benefit plan

or other entity with whom you served at the request of the Company.

 

5.             Confidentiality.   You will not use, other than in connection

with your employment with the Company, or disclose any Confidential Information

to any person not employed by the Company or not authorized by the Company to

receive such Confidential Information, without the prior written consent of the

Company; and you will use reasonable and prudent care to safeguard and protect

and prevent the unauthorized disclosure of Confidential Information.  Nothing in this Agreement will prevent you

from using, disclosing or authorizing the disclosure of any Confidential

Information:  (a) which

 

8

 

is or hereafter becomes part of the public domain or otherwise becomes

generally available to the public through no fault of yours; (b) to the extent

and upon the terms and conditions that the Company may have previously made the

Confidential Information available to certain persons; or (c) to the extent

that you are required to disclose such Confidential Information by law or

judicial or administrative process.

 

6.             Successors.  The Company will seek to have any Successor,

by agreement in form and substance satisfactory to you, assent to the

fulfillment by the Company of the Company’s obligations under this

Agreement.  Failure of the Company to

obtain such assent at least three (3) business days prior to the time a Person

becomes a Successor (or where the Company does not have at least three (3)

business days’ advance notice that a Person may become a Successor, within one

(1) business day after having notice that such Person may become or has become

a Successor) will constitute Good Reason for termination by you of your

employment.

 

7.             Fees

and Expenses.   The Company, upon

demand, will pay or reimburse you for all reasonable legal fees, court costs,

experts’ fees and related costs and expenses incurred by you in connection with

any actual, threatened or contemplated litigation or legal, administrative,

arbitration or other proceeding relating to this Agreement to which you are or

reasonably expect to become a party, whether or not initiated by you,

including, without limitation:  (a) all

such fees and expenses, if any, incurred in contesting or disputing any such

termination; or (b) your seeking to obtain or enforce any right or benefit

provided by this Agreement; provided, however, you will be required to repay

(without interest) any such amounts to the Company to the extent that a court

issues a final and non-appealable order setting forth the determination that

the position taken by you was frivolous or advanced by you in bad faith.

 

8.             Binding

Agreement.  This Agreement inures to

the benefit of, and is enforceable by, you, your personal and legal

representatives, executors, administrators, successors, heirs, distributees,

devisees and legatees.  If you die while

any amount would still be payable to you under this Agreement if you had

continued to live, all such amounts, unless otherwise provided in this

Agreement, will be paid in accordance with the terms of this Agreement to your

devisee, legatee or other designee or, if there be no such designee, to your

estate.

 

9.             No

Mitigation.  You will not be

required to mitigate the amount of any payments or benefits the Company becomes

obligated to make or provide to you in connection with this Agreement by

seeking other employment or otherwise. 

The payments or benefits to be made or provided to you in connection

with this Agreement may not be reduced, offset or subject to recovery by the

Company by any payments or benefits you may receive from other employment or

otherwise.

 

10.           No

Setoff.  The Company will have no

right to setoff payments or benefits owed to you under this Agreement against

amounts owed or claimed to be owed by you to the Company under this Agreement

or otherwise.

 

9

 

11.           Taxes.  All payments and benefits to be made or

provided to you in connection with this Agreement will be subject to required

withholding of federal, state and local income, excise and employment-related

taxes.

 

12.           Notices.  For the purposes of this Agreement, notices

and all other communications provided for in, or required under, this Agreement

must be in writing and will be deemed to have been duly given when personally

delivered or when mailed by United States registered or certified mail, return

receipt requested, postage prepaid and addressed to each party’s respective

address set forth on the first page of this Agreement (provided that all

notices to the Company must be directed to the attention of the chair of the

Board), or to such other address as either party may have furnished to the

other in writing in accordance with these provisions, except that notice of

change of address will be effective only upon receipt.

 

13.           Disputes.  Any dispute, controversy or claim for

damages rising under or in connection with this Agreement may, in your sole

discretion, be settled exclusively by such judicial remedies that you may seek

to pursue or by arbitration in Minneapolis, Minnesota by three (3) arbitrators

in accordance with the rules of the American Arbitration Association then in

effect.  Judgment may be entered on the

arbitrators’ award in any court having jurisdiction.  The Company will be entitled to seek an injunction or restraining

order in a court of competent jurisdiction (within or without the State of

Minnesota) to enforce the provisions of Section 5 of this Agreement.

 

14.           Jurisdiction.  Except as specifically provided otherwise

in  this Agreement, the parties agree

that any action or proceeding arising under or in connection with this

Agreement must be brought in a court of competent jurisdiction in the State of

Minnesota, and hereby consent to the exclusive jurisdiction of said courts for

this purpose and agree not to assert that such courts are an inconvenient

forum.

 

15.           Related

Agreements.  To the extent that any

provision of any other Plan or agreement between the Company and you shall

limit, qualify or be inconsistent with any provision of this Agreement, then

for purposes of this Agreement, while such other Plan or agreement remains in

force, the provision of this Agreement will control and such provision of such

other Plan or agreement will be deemed to have been superseded, and to be of no

force or effect, as if such other agreement had been formally amended to the

extent necessary to accomplish such purpose. 

Nothing in this Agreement prevents or limits your continuing or future

participation in any Plan provided by the Company and for which you may

qualify, and nothing in this Agreement limits or otherwise affects the rights

you may have under any Plans or other agreements with the Company.  Amounts which are vested benefits or which

you are otherwise entitled to receive under any Plan or other agreement with

the Company at or subsequent to the Date of Termination will be payable in

accordance with such Plan or other agreement.

 

10

 

16.           No

Employment or Service Contract. 

Nothing in this Agreement is intended to provide you with any right to

continue in the employ of the Company for any period of specific duration or

interfere with or otherwise restrict in any way your rights or the rights of

the Company, which rights are hereby expressly reserved by each, to terminate

your employment at any time for any reason or no reason whatsoever, with or

without cause.

 

17.           Change

of Subsidiary Status.   In the event

that, prior to a Change in Control:  (a)

a Subsidiary is sold, merged, transferred or in any other manner or for any

other reason ceases to be a Subsidiary; (b) your primary employment duties are

with the Subsidiary at the time of the occurrence of such event; and (c) you do

not, in conjunction therewith, transfer employment directly to the Company or

another Subsidiary, then this Agreement will become null and void.

 

18.           Survival.  The respective obligations of, and benefits

afforded to, the Company and you which by their express terms or clear intent

survive termination of your employment with the Company or termination of this

Agreement, as the case may be, including, without limitation, the provisions of

Sections 3, 4, 5, 6, 7, 10, 11, 12 and 13 of this Agreement, will survive

termination of your employment with the Company or termination of this

Agreement, as the case may be, and will remain in full force and effect

according to their terms.

 

19.           Miscellaneous.  No provision of this Agreement may be

modified, waived or discharged unless such modification, waiver or discharge is

agreed to in a writing signed by you and the chair of the Board.  No waiver by any party to this Agreement at

any time of any breach by another party to this Agreement of, or of compliance

with, any condition or provision of this Agreement to be performed by such

party will be deemed a waiver of similar or dissimilar provisions or conditions

at the same or at any prior or subsequent time.  No agreements or representations, oral or otherwise, express or

implied, with respect to the subject matter to this Agreement have been made by

any party which are not expressly set forth in this Agreement.

 

This Agreement and the legal relations among the parties as to all matters,

including, without limitation, matters of validity, interpretation,

construction, performance and remedies, will be governed by and construed

exclusively in accordance with the internal laws of the State of Minnesota

(without regard to the conflict of laws provisions of any jurisdiction), except

to the extent that the provisions of the corporate law of Delaware may apply to

the internal affairs of the Company. 

Headings are for purposes of convenience only and do not constitute a

part of this Agreement.  The parties to

this Agreement agree to perform, or cause to be performed, such further acts

and deeds and to execute and deliver, or cause to be executed and delivered,

such additional or supplemental documents or instruments as may be reasonably

required by the other party to carry into effect the intent and purpose of this

Agreement.  The invalidity or

unenforceability of all or any part of any provision of this Agreement will not

affect the validity or enforceability of the remainder of such provision or of

any other provision of

 

11

 

this Agreement, which will remain in full force and effect.  This Agreement may be executed in several

counterparts, each of which will be deemed to be an original, but all of which

together will constitute one and the same instrument.

 

If this letter correctly sets forth our agreement on the subject matter

discussed above, kindly sign and return to the Company the enclosed copy of

this letter which will then constitute our agreement on this subject.

 

	

  Sincerely,

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  NASH FINCH COMPANY

  	

   

  	

  [NAME OF SUBSIDIARY,

  	

   

  	

   

  
	

   

  	

   

  	

  IF APPLICABLE]

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  By: 

  	

   

  	

   

  	

  By:

  	

   

  	

   

  	

   

  
	

  Name:

  	

   

  	

   

  	

  Name:

  	

   

  	

   

  	

   

  
	

  Title:

  	

   

  	

   

  	

  Title:

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Agreed to this        day of

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

                                    , 20        .

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  [Executive’s Name]

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
												

 

12Exhibit

10.5

 

RESTRICTED

STOCK AWARD AGREEMENT

 

 

THIS AGREEMENT, effective as of February 19, 2002 (the “Date of

Grant”), is entered into by and between Nash-Finch Company, a Delaware corporation

(the “Company”), and Ron Marshall (the “Grantee”).

 

                A.  The Company has adopted the Nash Finch

Company 2000 Stock Incentive Plan (the “Plan”) authorizing the Board of

Directors of the Company, or a committee as provided for in the Plan (the Board

or such a committee to be referred to as the “Committee”), to grant certain

types of incentive awards to employees and non-employee directors, consultants

and independent contractors of the Company and its Subsidiaries (as defined in

the Plan).

 

                B.  The Company desires to provide the Grantee

with the opportunity to acquire or increase the Grantee’s proprietary interest

in the Company and an added incentive to advance the interests of the Company

by granting to the Grantee a Restricted Stock Award (as defined in the Plan).

 

                Accordingly, the

parties agree as follows:

 

1.             Grant of Restricted Stock Award.

 

                The Company hereby

grants to the Grantee a Restricted Stock Award of 50,000 shares (the

“Restricted Stock Award Shares”) of the Company’s common stock, $1.66-2/3 par

value (the “Common Stock”), according to the terms and subject to the

conditions hereinafter set forth and as set forth in the Plan.

 

2.             Share Restrictions.

 

                2.1           Restriction and Forfeiture.  The Grantee’s right to retain the Restricted

Stock Award Shares and any Dividend Proceeds (as defined below) related thereto

will be subject to the Grantee remaining in the continuous employ or service of

the Company through February 19, 2007.

 

                2.2           Vesting of Restricted Stock Award

Shares.  The forfeiture restrictions

provided for herein (the “Forfeiture Restrictions”) shall lapse, and the

Grantee shall become vested in the Restricted Stock Award Shares in five

respective installments on the anniversary of the Date of Grant in each of the

years 2003 through 2007, inclusive (each, the “Vesting Date”), as follows:

 

	

  Vesting Date

  	

   

  	

  Number of

  Shares

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  February 19,

  2003

  	

   

  	

  10,000

  	

   

  
	

  February 19,

  2004

  	

   

  	

  10,000

  	

   

  
	

  February 19,

  2005

  	

   

  	

  10,000

  	

   

  
	

  February 19,

  2006

  	

   

  	

  10,000

  	

   

  
	

  February 19,

  2007

  	

   

  	

  10,000

  	

   

  

 

 

 

                2.3           Vesting Date Cash Awards.  Within 30 days following each Vesting Date, the

Company shall pay a cash award to the Grantee in an amount equal to forty

percent (40%) of the Fair Market Value (as defined in the Plan), as of such

Vesting Date, of the Restricted Stock Award Shares as to which the Forfeiture

Restrictions lapse on the applicable Vesting Date (each, a “Cash Award”).

 

                2.4           Termination of Employment or Other

Service.

 

                                (a)           Termination Due to Death,

Disability or Retirement.

 

(i)            In the event the Grantee’s

employment or other service with the Company and all Subsidiaries is terminated

by reason of death or Disability (as defined in the Plan), all unvested

Restricted Stock Award Shares then held by the Grantee will become fully vested

and a Cash Award will be paid.

 

(ii)           In the event the Grantee’s employment

or other service with the Company and all Subsidiaries is terminated by reason

of Retirement (as defined in the Plan), all unvested Restricted Stock Award

Shares then held by the Grantee will continue to vest in the manner provided in

Section 2.2 hereof and Cash Awards will be paid in the manner proved in Section

2.3 hereof.

 

(b)           Termination for Reasons Other Than

Death, Disability or Retirement.  In

the event that the Grantee’s employment or other service with the Company and

all Subsidiaries is terminated prior to February 19, 2007 for any reason other

than death, Disability or Retirement, all rights of the Grantee under the Plan

and this Agreement will immediately terminate without notice of any kind, and

all Restricted Stock Award Shares then held by the Grantee that have not vested

will be terminated and forfeited and no further Cash Awards will be paid;

provided, however, that if such termination is due to any reason other than

voluntary termination by the Grantee or termination by the Company for “cause”

(as defined in the Plan), the Committee may, in its sole discretion and without

obligation to exercise such discretion, and in such manner as the Committee may

determine, cause Restricted Stock Award Shares to vest and/or continue to vest

or become free of transfer restrictions, as the case may be, following such

termination of employment or service.

 

2

 

                2.5           Change in Control.

 

(a)           Impact of Change in Control.  If a Change in Control (as defined in the

Plan) of the Company occurs, this Restricted Stock Award, if it has been

outstanding for more than six months, will become immediately fully vested and

non-forfeitable, regardless of whether the Grantee remains in the employ or

other service of the Company.

 

(b)           Limitation on Change in Control

Payments.  Notwithstanding anything

in this Section 2.5 to the contrary, if, with respect to the Grantee,

acceleration of the vesting of this Restricted Stock Award (which acceleration

could be deemed a “payment” within the meaning of Section 280G(b)(2) of the

Internal Revenue Code of 1986, as amended (the “Code”)), together with any

other payments which the Grantee has the right to receive from the Company or

any corporation which is a member of an “affiliated group” (as defined in Section

1504(b) of the Code) of which the Company is a member, would constitute a

“parachute payment” (as defined in Section 280G(b)(2) of the Code), the

payments to the Grantee as set forth herein will be reduced to the largest

amount as will result in no portion of such payments being subject to the

excise tax imposed by Section 4999 of the Code; provided, however, that if the

Grantee is subject to a separate agreement with the Company that expressly

addresses the potential application of Sections 280G or 4999 of the Code

(including, without limitation, that “payments” under such agreement or

otherwise will be reduced, that the Grantee will have the discretion to

determine which “payments will be reduced, that such “payments” will not be

reduced or that such “payments” will be “grossed up” for tax purposes), then

this Section 2.5(b) will not apply, and any “payments” to the Grantee pursuant

to Section 2.5(a) of this Agreement will be treated as “payments” arising under

such separate agreement.

 

3.             Issuance of Restricted Stock

Award Shares.

 

                3.1           Rights as a Stockholder;

Transferability.  The Grantee will,

as soon as practicable after the Date of Grant, be recorded on the books of the

Company as the owner of the Restricted Stock Award Shares, and the Company will

issue five duly issued and executed stock certificates evidencing the

Restricted Stock Award Shares.  The

Grantee will have all voting dividend, liquidation and other rights with

respect to the Restricted Stock Award Shares in accordance with their terms

upon becoming the holder of record of such Restricted Stock Award Shares;

provided, however, that prior to the termination of the Forfeiture

Restrictions, such Restricted Stock Award Shares will not be assignable or

transferable by the Grantee, either voluntarily or involuntarily, and may not

be subjected to any lien, directly or indirectly, by operation of law or

otherwise.  Any attempt to transfer,

assign or encumber the Restricted Stock Award Shares other than in accordance

with this Agreement and the Plan will be null and void, and all Restricted

Stock Award Shares will immediately be forfeited to the Company.

 

3

 

                3.2           Enforcement of Forfeiture

Restrictions.  To enforce the

Forfeiture Restrictions, the Committee may place a legend on the stock

certificates evidencing the Restricted Stock Award Shares that refers to the

Forfeiture Restrictions and may require the Grantee to keep such stock

certificates, together with stock powers executed in blank, in the custody of

the Company or its transfer agent until the Forfeiture Restrictions have

terminated.

 

                3.3           Dividend Proceeds.  Until the termination of the Forfeiture

Restrictions, any and all dividends or distributions paid with respect to the

Restricted Stock Award Shares, including stock dividends or distributions in

kind, the proceeds of any stock split or the proceeds resulting from any

changes or exchanges described in Section 4 of this Agreement, but excluding

ordinary cash dividends paid generally with respect to shares of Common Stock,

will be deemed to be “Dividend Proceeds” and will be subject to the Forfeiture

Restrictions and other obligations provided for herein to the same extent as

the Restricted Stock Award Shares to which such Dividend Proceeds relate.  The Committee may, however, in its sole

discretion elect to distribute such Dividend Proceeds to the Grantee as they

are made, retain and hold such Dividend Proceeds subject to the Forfeiture

Restrictions and other obligations provided for herein or cause such Dividend

Proceeds to be paid to the Company pursuant to Section 8 of this Agreement in

order to satisfy any federal, state or local withholding or other

employment-related tax requirements attributable to such Dividend Proceeds or

the Grantee’s acquisition of the Restricted Stock Award Shares or the

termination of the Forfeiture Restrictions applicable to the Restricted Stock

Award Shares.

 

4.             Adjustments.

 

                In the event of

any reorganization, merger, consolidation, recapitalization, liquidation,

reclassification, stock dividend, stock split, combination of shares, rights

offering or divestiture (including a spin-off) or any other change in the

corporate structure or shares of the Company, the Committee (or, if the Company

is not the surviving corporation in any such transaction, the board of

directors of the surviving corporation), in order to prevent dilution or

enlargement of the rights of the Grantee, will make appropriate adjustments

(which determination will be conclusive) as to the number and kind of

securities subject to this Agreement.

 

5.             Rights of Grantee.

 

5.1           Employment or Service.  Nothing in this Agreement will interfere

with or limit in any way the right of the Company or any Subsidiary to

terminate the employment or other service of the Grantee at any time, nor

confer upon the Grantee any right to continue in the employ or other service of

the Company or any Subsidiary at any particular position or rate of pay or for

any particular period of time.

5.2           Rights as a Shareholder.  The Grantee will have no rights as a

shareholder until the Grantee becomes the holder of record of the Restricted

Stock Award Shares.  No

4

 

adjustment will be

made for ordinary cash dividends, Dividend Proceeds or any other rights as to

which there is a record date preceding the date the Grantee becomes the holder

of record of the Restricted Stock Award Shares.

5.4           Breach of Confidentiality or

Non-Compete Agreements. 

Notwithstanding anything in this Agreement or the Plan to the contrary,

and in addition to the terms set forth in Section 6.3 of this Agreement, in the

event that the Grantee materially breaches the terms of any confidentiality or

non-compete agreement entered into with the Company or any Subsidiary,

including but not limited to those provided for in Section 6 of this Agreement,

whether such breach occurs before or after termination of the Grantee’s

employment or other service with the Company or any Subsidiary, the Committee

in its sole discretion may immediately terminate all rights of the Grantee

under the Plan and this Agreement without notice of any kind.

6.             Grantee

Covenants.

6.1           Competitive Activities.  Grantee agrees that in the event he

voluntarily terminates his employment or service to the Company prior to

February 19, 2008, he will not, without the prior written consent of the

Company:

(a)        alone or in any capacity (other than by way of holding

shares listed on a stock exchange in a number not exceeding five percent of the

outstanding class or series so listed) with any other person or entity,

directly or indirectly engage in competition with the Company or any

Subsidiary, in association with or as an officer, director, employee,

principal, agent or consultant of any of the peer group companies named, for

cumulative total stockholder return comparison purposes, in the Company’s proxy

statements issued in the years 2002 through 2007, inclusive, for a period

ending one year after the date of termination or on February 19, 2008,

whichever is earlier; or

(b)       directly or indirectly, solicit for employment, employ

or attempt to employ any employee of the Company or any Subsidiary for a period

of one year from the date of termination.

6.2           Remedies for Breach.  In the event of a breach of either of the

covenants set forth in Section 6.1 of this Agreement, then in either such

event, the Grantee shall forfeit all vested Restricted Stock Award Shares and

any Dividend Proceeds related thereto to the Company, and shall immediately

transfer and assign to the Company all such vested Restricted Stock Award

Shares and any Dividend Proceeds related thereto, or the equivalent number or

value thereof; and, in addition to any other legal remedies as may be available

to it, the Company shall be entitled to an immediate injunction from a court of

competent jurisdiction to prevent the continuation of the breach without

further having to show damage.

5

 

7.             Securities

Law and Other Restrictions.

Notwithstanding

any other provision of the Plan or this Agreement, the Company will not be

required to issue, and the Grantee may not sell, assign, transfer or otherwise

dispose of, any Restricted Stock Award Shares, unless (a) there is in effect

with respect to the Restricted Stock Award Shares a registration statement

under the Securities Act of 1933, as amended, and any applicable state or

foreign securities laws or an exemption from such registration, and (b) there

has been obtained any other consent, approval or permit from any other

regulatory body which the Committee, in its sole discretion, deems necessary or

advisable.  The Company may condition

such issuance, sale or transfer upon the receipt of any representations or

agreements from the parties involved, and the placement of any legends on

certificates representing Restricted Stock Award Shares, as may be deemed

necessary or advisable by the Company in order to comply with such securities

law or other restrictions.

8.             Withholding

Taxes.

The Company is

entitled to (a) withhold and deduct from future wages of the Grantee, or cause

to be paid to the Company out of Dividend Proceeds (or from other amounts that

may be due and owing to the Grantee from the Company), or make other

arrangements for the collection of, all legally required amounts necessary to

satisfy any federal, state or local withholding and employment-related tax

requirements attributable to the acquisition of the Restricted Stock Award

Shares, the receipt of dividends or distributions on the Restricted Stock Award

Shares or the termination of the Forfeiture Restrictions applicable to the

Restricted Stock Award Shares, or (b) require the Grantee promptly to remit the

amount of such withholding to the Company. 

In the event that the Company is unable to withhold such amounts, for

whatever reason, the Grantee agrees to pay to the Company an amount equal to

the amount the Company would otherwise be required to withhold under federal,

state or local law.

9. 

Subject to Plan.

The Restricted

Stock Award and the Restricted Stock Award Shares granted and issued pursuant

to this Agreement have been granted and issued under, and are subject to the

terms of, the Plan.  The terms of the

Plan are incorporated by reference in this Agreement in their entirety, and the

Grantee, by execution of this Agreement, acknowledges having received a copy of

the Plan.  The provisions of this

Agreement will be interpreted as to be consistent with the Plan, and any

ambiguities in this Agreement will be interpreted by reference to the

Plan.  In the event that any provision

of this Agreement is inconsistent with the terms of the Plan, the terms of the

Plan will prevail.

10. 

Miscellaneous.

10.1         Binding Effect.  This Agreement will be binding upon the

heirs, executors, administrators and successors of the parties to this

Agreement.

 

6

 

10.2         Governing Law.  This Agreement and all rights and

obligations under this Agreement will be construed in accordance with the Plan

and governed by the laws of the State of Minnesota, without regard to conflicts

of laws provisions.  Any legal

proceeding related to this Agreement will be brought in an appropriate

Minnesota court, and the parties to this Agreement consent to the exclusive

jurisdiction of the court for this purpose.

10.3         Entire Agreement.  This Agreement and the Plan set forth the

entire agreement and understanding of the parties to this Agreement with

respect to the grant and exercise of this Restricted Stock Award and the

administration of the Plan and supersede all prior agreements, arrangements,

plans and understandings relating to the grant and exercise of this Restricted

Stock Award and the administration of the Plan.

10.4         Amendment and Waiver.  Other than as provided in the Plan, this

Agreement may be amended, waived, modified or canceled only by a written

instrument executed by the parties to this Agreement or, in the case of a

waiver, by the party waiving compliance.

10.5         Severability.  Whenever possible, each provision of this

Agreement will be interpreted so that it is valid under the applicable

law.  If any provision of this Agreement

is to any extent invalid under the applicable law, that provision will still be

effective to the extent it remains valid. 

The remainder of this Agreement will also continue to be valid, and the

entire Agreement will continue to be valid in other jurisdictions.

The parties to

this Agreement have executed this Agreement effective the day and year first

above written.

 

	

   

  	

   

  	

  NASH FINCH COMPANY

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  ATTEST:

  	

   

  	

  By:

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  Its:

  	

  President and CEO

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  By execution of this Agreement,

  	

   

  	

  GRANTEE

  
	

  the Grantee acknowledges having

  	

   

  	

   

  	

   

  
	

  received a copy of the Plan.

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

  (Signature)

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

  (Name and Address)

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  

 

7

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