Document:

Spartan Stores Exhibit 10.12 to Form 10-K - 05/17/10

EXHIBIT 10.12

As Amended

Through

August 12, 2009

SPARTAN STORES, INC.

STOCK INCENTIVE PLAN OF 2005

SECTION 1

Establishment Of Plan; Purpose Of Plan

          1.1          Establishment of Plan. The Company hereby establishes the STOCK INCENTIVE PLAN of 2005 for its Directors and certain of its Associates. The Plan permits the grant and award of Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Stock Awards and other stock-based awards and stock-related awards.

          1.2          Purpose of Plan. The purpose of the Plan is to provide Participants with an increased incentive to contribute to the long-term performance and growth of the Company and its Subsidiaries, to join the interests of Participants with the interests of the Company's shareholders through the opportunity for increased stock ownership and to attract and retain Participants. The Plan is further intended to provide flexibility to the Company in structuring long-term incentive compensation to best promote the foregoing objectives. Within that context, it is intended that the Plan may provide performance-based compensation under Section 162(m) of the Code and the Plan shall be interpreted, administered and amended to achieve that purpose. 

SECTION 2

Definitions

          The following words have the following meanings unless a different meaning plainly is required by the context:

          2.1          "Act" means the Securities Exchange Act of 1934, as amended. 

          2.2          "Affiliate" means any organization controlling, controlled by or under common control with the Company.

          2.3          "Associate" means an employee of the Company or one of its Subsidiaries.

          2.4          "Board" means the Board of Directors of the Company. 

          2.5          "Business Unit" means any Subsidiary, department, division, profit center or other operational unit of the Company or any Subsidiary.

          2.6          "Cause" means, with respect to termination of employment, (1) willful continued failure to perform or willful poor performance of duties (other than due to Disability) after warning and reasonable opportunity to meet reasonable required performance standards; (2) gross negligence causing or putting the Company or any Affiliate at risk of significant damage or harm; (3) misappropriation of or intentional damage to the property of the Company or any Affiliate; (4) conviction of a felony (other than negligent vehicular homicide); (5) intentional act or omission that the Participant knows or should know is significantly detrimental to the interests of the Company or any Affiliate; or (6) violation of any provisions of any employment agreement between the Company (or any Affiliate) and the Participant concerning loyalty and confidentiality or concerning ownership of ideas, inventions and other intellectual property. With respect to the removal of a Director, "Cause" shall be as defined in the Company's Restated Articles of Incorporation.

          2.7          "Change in Control" has the meaning given to that term in the Spartan Stores, Inc. Supplemental Executive Retirement Plan, as it may be amended from time to time. 

          2.8          "Code" means the Internal Revenue Code of 1986, as amended. Each reference herein to a section or sections of the Code shall, unless otherwise noted, be deemed to include a reference to the rules and regulations issued under such section or sections of the Code.

          2.9          "Committee" means the Compensation Committee of the Board or such other committee as the Board may designate from time to time. The Committee shall consist of at least two Directors and all of its members shall be "non-employee directors" as defined in Rule 16b-3 issued under the Act and "outside directors" as defined in Section 162(m) of the Code.

          2.10          "Common Stock" means the Company's common stock, no par value.

          2.11          "Company" means Spartan Stores, Inc., a Michigan corporation, and its successors and assigns.

          2.12          To be in "Competition" with the Company means (1) to be in direct or indirect competition with the Company or any Affiliate; (2) to be employed by, perform services for, advise or assist, own any interest in or loan or otherwise provide funds to, any other business that is engaged (or seeking the Participant's services with a view to becoming engaged) in any Competitive Business; or (3) to solicit or suggest, or provide assistance to anyone else seeking to solicit or suggest, that any person having or contemplating a Covered Relationship with the Company or an Affiliate refrain from entering into or terminate the Covered Relationship, or enter into any similar relationship with anyone else instead of the Company or the Affiliate; provided, however, that owning not more than 2% of any class of securities of a publicly traded entity shall not be considered "Competition," provided that the Participant does not engage in other activity listed above.

          2.13          A "Competitive Business" means a business that (1) owns, (2) operates, or (3) sells or supplies products similar to or that substitute for products supplied by the Company of any Affiliate to, any Covered Operation that is located in any state of the United States in which

2

the Company or any Affiliate owns, operates, or sells or supplies products to, any Covered Operation.

          2.14          "Covered Employee" means any Associate who is or may become a "Covered Employee," as defined in Section 162(m) of the Code, and who is designated, either as an individual Associate or class of Associates, by the Committee within the shorter of (i) 90 days after the beginning of the Performance Period, or (ii) the period of time after the beginning of the Performance Period and before 25% of the Performance Period has elapsed, as a "Covered Employee" under this Plan for such applicable Performance Period.

          2.15          "Covered Operation" means any grocery store, grocery superstore, wholesale club, supermarket, limited assortment store, convenience store, drug store, pharmacy or any other store that offers grocery or food products separate or in combination with pharmaceutical products, general merchandise or other nonfood products or any grocery or convenience store product distribution facility.

          2.16          "Covered Relationship" means a customer relationship, a vendor relationship, an employment relationship, or any other contractual or independent contractor relationship.

          2.17          "Director" means a member of the Board.

          2.18          "Disability" means an inability of a Participant to perform his or her employment duties due to physical or mental disability for a continuous period of 180 days or longer and the Participant is eligible for benefits under the Company's long-term disability policy.

          2.19          "Incentive Award" means the award or grant of a Stock Option, a Stock Appreciation Right, Restricted Stock, a Restricted Stock Unit, a Stock Award, or another stock-based or stock-related award, to a Participant pursuant to the Plan.

          2.20          "Market Value" shall equal the closing price of Common Stock reported on Nasdaq on the date of grant, exercise or vesting, as applicable, or if Nasdaq is closed on that date, the last preceding date on which Nasdaq was open for trading and on which shares of Common Stock were traded. If the Common Stock is not listed on Nasdaq, the Market Value shall be determined by any means deemed fair and reasonable by the Committee, taking into account such factors as it considers advisable in a manner consistent with the valuation principles of Section 409A of the Code, except when the Committee expressly determines not to use Section 409A valuation principles, which determination shall be final and binding on all parties.  (Amended 8/12/08)

          2.21          "Mature Shares" means shares of Common Stock that a Participant has owned for at least six months and that meet any other holding requirements established by the Committee for the shares to be used for attestation. 

          2.22          "Nasdaq" means the NASDAQ Global Market, or if the Common Stock is not listed for trading on the NASDAQ Global Market on the date in question, then such other United

3

States-based quotation system or stock exchange on which the Common Stock may be traded on the date in question.

          2.23          "Participant" means a Director or Associate who is granted an Incentive Award under the Plan.

          2.24          "Performance" means the level of achievement of the performance goals established by the Committee pursuant to Section 10.1.

          2.25          "Performance Measures" means measures as described in Section 10 on which the performance goals are based.

          2.26          "Performance Period" means the period of time during which the performance goals must be met to determine the degree of payout, the vesting, or both, with respect to an Incentive Award that is intended to qualify as Performance-Based Compensation.

          2.27           "Performance-Based Compensation" means compensation under an Incentive Award that satisfies the requirements of Section 162(m) of the Code for certain "performance-based compensation" paid to Covered Employees. Notwithstanding the foregoing, nothing in this Plan shall be construed to mean that an Incentive Award which does not satisfy the requirements for performance-based compensation under Section 162(m) of the Code does not constitute performance-based compensation for other purposes, including Section 409A of the Code.

          2.28          "Plan" means the Spartan Stores, Inc. Stock Incentive Plan of 2005 as set forth herein, as it may be amended from time to time.

          2.29          "Restricted Period" means the period of time during which Restricted Stock, Restricted Stock Units or other stock-based or stock-related awards that are awarded under the Plan are subject to the risk of forfeiture, restrictions on transfer and other restrictions or conditions pursuant to Sections 7 or 8. The Restricted Period may differ among Participants and may have different expiration dates with respect to shares of Common Stock covered by the same Incentive Award. 

          2.30          "Restricted Stock" means Common Stock awarded to a Participant pursuant to Section 7 of the Plan while such Common Stock remains subject to the risk of forfeiture, restrictions on transfer and other restrictions or conditions pursuant to Section 7.

          2.31          "Restricted Stock Unit" means an award to a Participant pursuant to Section 7 of the Plan and described as a "Restricted Stock Unit" in Section 7.

          2.32          "Retirement" means the termination of employment as a result of retirement on or after one or more of the retirement dates specified in the Spartan Stores, Inc. Cash Balance Pension Plan, or as otherwise may be set forth in the Incentive Award agreement or other grant document with respect to a Participant and a particular Incentive Award.

4

          2.33          "Stock Appreciation Right" or "SAR" means a right awarded to a Participant pursuant to Section 6 of the Plan, which shall entitle the Participant to receive cash, Common Stock, other property or a combination thereof, as determined by the Committee, and having a value on the date the SAR is exercised equal to the excess of (a) the Market Value of a share of Common Stock at the time of exercise over (b) the base price of the right, as established by the Committee on the date the award is granted.

          2.34          "Stock Award" means an award of Common Stock awarded to a Participant pursuant to Section 8 of the Plan.

          2.35          "Stock Option" means the right to purchase Common Stock at a stated price for a specified period of time. For purposes of the Plan, a Stock Option may be either an incentive stock option within the meaning of Section 422(b) of the Code or a nonqualified stock option. 

          2.36          "Subsidiary" means any corporation or other entity of which 50% or more of the outstanding voting stock or voting ownership interest is directly or indirectly owned or controlled by the Company or by one or more Subsidiaries of the Company. The term "Subsidiary" includes present and future Subsidiaries of the Company.

SECTION 3

Administration

          3.1          Power and Authority. The Committee shall administer the Plan. The Committee may delegate any, some or all of its record keeping, calculation, payment and other ministerial or administrative authority and responsibility from time to time to and among one or more individuals, who may be members of the Committee or Associates of the Company or its Subsidiaries or Affiliates, but all actions taken pursuant to delegated authority and responsibility shall be subject to such review, change and approval by the Committee as the Committee considers appropriate. Except as limited in the Plan or as may be necessary to ensure, to the extent that the Committee so desires, that the Plan provides Performance-Based Compensation, the Committee shall have all of the express and implied powers and duties set forth in the Bylaws of the Company and the Plan, shall have full power and authority to interpret the provisions of the Plan and Incentive Awards granted under the Plan and shall have full power and authority to supervise the administration of the Plan and Incentive Awards granted under the Plan and to make all other determinations and do all things considered necessary or advisable for the administration of the Plan. All determinations, interpretations and selections made by the Committee regarding the Plan shall be final and conclusive. The Committee shall hold its meetings at such times and places as it considers advisable. Action may be taken by a written instrument signed by all of the members of the Committee and any action so taken shall be fully as effective as if it had been taken at a meeting duly called and held. The Committee shall make such rules and regulations for the conduct of its business as it considers advisable.

5

          3.2          Grants or Awards to Participants. In accordance with and subject to the provisions of the Plan, the Committee shall have the authority to determine all provisions of Incentive Awards as the Committee may consider necessary or desirable and as are consistent with the terms of the Plan, including, without limitation, the following: (a) the persons who shall be selected as Participants; (b) the nature and, subject to the limitations set forth in Sections 4.1 and 4.2 of the Plan, extent of the Incentive Awards to be made to each Participant (including the number of shares of Common Stock to be subject to each Incentive Award, any exercise or purchase price, the manner in which an Incentive Award will vest or become exercisable and the form of payment for the Incentive Award); (c) the time or times when Incentive Awards will be granted; (d) the duration of each Incentive Award; and (e) the restrictions and other conditions to which payment or vesting of Incentive Awards may be subject.

          3.3          Amendments or Modifications of Incentive Awards. Subject to Section 12, the Committee shall have the authority to amend or modify the terms of any outstanding Incentive Award in any manner, provided that the amended or modified terms are not prohibited by the Plan as then in effect and provided such actions do not cause an Incentive Award not already subject to Section 409A of the Code to become subject to Section 409A of the Code, including, without limitation, the authority to: (a) modify the number of shares or other terms and conditions of an Incentive Award; provided that any increase in the number of shares of an Incentive Award other than pursuant to Section 4.3 shall be considered to be a new grant with respect to such additional shares for purposes of Section 409A of the Code and such new grant shall be made at Market Value on the date of grant; (b) extend the term of an Incentive Award to a date that is no later than the earlier of the latest date upon which the Incentive Award could have expired by its terms under any circumstances or the 10th anniversary of the date of grant (for purposes of clarity, as permitted under Section 409A of the Code, if the term of a Stock Option is extended at a time when the Stock Option exercise price equals or exceeds the Market Value, it will not be an extension of the term of the Stock Option, but instead will be treated as a modification of the Stock Option and a new Stock Option will be treated as having been granted);  (c) accelerate the exercisability or vesting or otherwise terminate, waive or modify any restrictions relating to an Incentive Award; (d) accept the surrender of any outstanding Incentive Award; and (e) to the extent not previously exercised or vested, authorize the grant of new Incentive Awards in substitution for surrendered Incentive Awards; provided, however, that such grant of new Incentive Awards shall be considered to be a new grant for purposes of Section 409A of the Code and shall be made at Market Value on the date of grant and, provided further, that Incentive Awards issued under the Plan may not be repriced, replaced, regranted through cancellation or modified without shareholder approval if the effect of such repricing, replacement, regrant or modification would be to reduce the exercise price or base price of such Incentive Awards to the same Participants.  (Amended 8/12/08)

          3.4          Indemnification of Committee Members. Neither any member or former member of the Committee, nor any individual or group to whom authority or responsibility is or has been delegated, shall be personally responsible or liable for any act or omission in connection with the performance of powers or duties or the exercise of discretion or judgment in the administration and implementation of the Plan. Each person who is or shall have been a member of the Committee, and any other individual or group exercising delegated authority or

6

responsibility with respect to the Plan, shall be indemnified and held harmless by the Company from and against any cost, liability or expense imposed or incurred in connection with such person's or the Committee's taking or failing to take any action under the Plan or the exercise of discretion or judgment in the administration and implementation of the Plan. This Section 3.4 shall not be construed as limiting the Company's or any Subsidiary's ability to terminate or otherwise alter the terms and conditions of the employment of an individual or group exercising delegated authority or responsibility with respect to the Plan, or to discipline any such person. Each such person shall be justified in relying on information furnished in connection with the Plan's administration by any appropriate person or persons.

SECTION 4

Shares Subject to the Plan

          4.1          Number of Shares. Subject to adjustment as provided in Section 4.3 of the Plan, the total number of shares available for Incentive Awards under the Plan shall be 2,200,000 shares of Common Stock; plus shares subject to Incentive Awards that are canceled, surrendered, modified, exchanged for substitute Incentive Awards or that expire or terminate prior to the exercise or vesting of the Incentive Awards in full and shares that are surrendered to the Company in connection with the exercise or vesting of Incentive Awards, whether previously owned or otherwise subject to such Incentive Awards; provided, that not more than 75% of the shares authorized for issuance under the Plan pursuant to this Section 4.1 may be issued as Incentive Awards other than Stock Options or Stock Appreciation Rights. Such shares shall be authorized and may be unissued shares, shares issued and repurchased by the Company (including shares purchased on the open market), shares issued and otherwise reacquired by the Company and shares otherwise held by the Company. (Amended 8/12/09)

          4.2          Limitation Upon Incentive Awards. No Participant shall be granted, during any calendar year, Incentive Awards with respect to more than 25% of the total number of shares of Common Stock available for Incentive Awards under the Plan set forth in Section 4.1 of the Plan, subject to adjustment as provided in Section 4.3 of the Plan, but only to the extent that such adjustment will not affect the status of any Incentive Award theretofore issued or that may thereafter be issued as Performance-Based Compensation. The purpose of this Section 4.2 is to ensure that the Plan provides Performance-Based Compensation and this Section 4.2 shall be interpreted, administered and amended if necessary to achieve that purpose.

          4.3          Adjustments.

          (a)          Stock Dividends and Distributions. If the number of shares of Common Stock outstanding changes by reason of a stock dividend, stock split, recapitalization or other general distribution of Common Stock or other securities to holders of Common Stock, the number and kind of securities subject to Incentive Awards and available for issuance under the Plan, together with applicable exercise prices and base prices, shall be adjusted in such manner and at such time as shall be equitable under the circumstances.

7

No fractional shares shall be issued pursuant to the Plan and any fractional shares resulting from such adjustments shall be eliminated from the respective Incentive Awards. (Amended 8/12/08)

          (b)          Other Actions Affecting Common Stock. If there occurs, other than as described in Section 4.3(a), any merger, business combination, recapitalization, reclassification, subdivision or combination approved by the Board that would result in the persons who were shareholders of the Company immediately prior to the effective time of any such transaction owning or holding, in lieu of or in addition to shares of Common Stock, other securities, money and/or property (or the right to receive other securities, money and/or property) immediately after the effective time of such transaction, then the outstanding Incentive Awards (including exercise prices and base prices) and reserves for Incentive Awards under the Plan shall be adjusted in such manner and at such time as shall be equitable under the circumstances. It is intended that in the event of any such transaction, Incentive Awards under the Plan shall entitle the holder of each Incentive Award to receive (upon exercise in the case of Stock Options and SARs), in lieu of or in addition to shares of Common Stock, any other securities, money and/or property receivable upon consummation of any such transaction by holders of Common Stock with respect to each share of Common Stock outstanding immediately prior to the effective time of such transaction; upon any such adjustment, holders of Incentive Awards under the Plan shall have only the right to receive in lieu of or in addition to shares of Common Stock such other securities, money and/or other property as provided by the adjustment. (Amended 8/12/08)

SECTION 5

Stock Options

          5.1          Grant. A Participant may be granted one or more Stock Options under the Plan. No Participant shall have any rights as a shareholder with respect to any shares of stock subject to Stock Options granted hereunder until said shares have been issued. For purposes of determining the number of shares available under the Plan, each Stock Option shall count as the number of shares of Common Stock subject to the Stock Option. Stock Options shall be subject to such terms and conditions, consistent with the other provisions of the Plan, as may be determined by the Committee in its sole discretion. In addition, the Committee may vary, among Participants and among Stock Options granted to the same Participant, any and all of the terms and conditions of the Stock Options granted under the Plan. Subject to the limitation imposed by Section 4.2 of the Plan, the Committee shall have complete discretion in determining the number of Stock Options granted to each Participant. The Committee may designate whether or not a Stock Option is to be considered an incentive stock option as defined in Section 422(b) of the Code; provided, that the number of shares of Common Stock that may be designated as subject to incentive stock options for any given Participant shall be limited to that number of shares that become exercisable for the first time by the Participant during any calendar year (under all plans of the Company and its Subsidiaries) and have an aggregate Market Value less than or equal to

8

$100,000 (or such other amount as may be set forth in relevant sections of the Code) and all shares subject to an Incentive Award that have a Market Value in excess of such aggregate amount shall automatically be subject to Stock Options that are not incentive stock options. No Stock Option granted to a Director who is not an Associate shall be considered an incentive stock option under Section 422(b) of the Code. 

          5.2          Stock Option Agreements. Stock Options shall be evidenced by stock option agreements, certificates of award, or both, containing the terms and conditions applicable to such Stock Options. To the extent not covered by a stock option agreement or certificate of award, the terms and conditions of this Section 5 shall govern.

          5.3          Stock Option Exercise Price. The per share Stock Option exercise price shall be determined by the Committee, but shall be a price that is equal to or greater than 100% of the Market Value on the date of grant (or such higher amount as may be necessary under Section 5.5 below). The date of grant of a Stock Option shall be the date the Stock Option is authorized by the Committee or a future date specified by the Committee as the date for issuing the Stock Option.

          5.4          Medium and Time of Payment. The exercise price for each share purchased pursuant to a Stock Option granted under the Plan shall be payable in cash or, if the Committee consents or provides in the applicable stock option agreement or grant, in Mature Shares or other consideration substantially equivalent to cash. The time and terms of payment may be amended with the consent of a Participant before or after exercise of a Stock Option, provided that such amendment would not cause a Stock Option to become subject to Section 409A of the Code. Except as limited by the Act, the Sarbanes-Oxley Act of 2002 or other laws, rules or regulations, the Committee may from time to time authorize payment of all or a portion of the Stock Option exercise price in the form of a promissory note or other deferred payment installments according to such terms as the Committee may approve; provided, however, that such promissory note or other deferred payment installments shall be with full recourse and shall bear a market rate of interest. The Board may restrict or suspend the power of the Committee to permit such loans and may require that adequate security be provided. The Committee may implement a program for the broker-assisted cashless exercise of Stock Options. (Amended 8/12/08)

          5.5          Stock Options Granted to 10% Shareholders. No Stock Option granted to any Participant who at the time of such grant owns, together with stock attributed to such Participant under Section 424(d) of the Code, more than 10% of the total combined voting power of all classes of stock of the Company or any of its Subsidiaries may be designated as an incentive stock option, unless such Stock Option provides an exercise price equal to at least 110% of the Market Value on the date of grant and the exercise of the Stock Option after the expiration of five years from the date of grant of the Stock Option is prohibited by its terms.

          5.6          Limits on Exercisability. Except as set forth in Section 5.5, Stock Options shall be exercisable for such periods, not to exceed 10 years from the date of grant, as may be fixed by the Committee. At the time of exercise of a Stock Option, the holder of the Stock Option, if requested by the Committee, must represent to the Company that the shares are being acquired

9

for investment and not with a view to the distribution thereof. The Committee may in its discretion require a Participant to continue the Participant's service with the Company or its Subsidiaries for a certain length of time prior to a Stock Option becoming exercisable and may eliminate such delayed vesting provisions.

          5.7          Restrictions on Transferability.

          (a)          General. Unless the Committee otherwise consents or permits (before or after the stock option grant) or unless the stock option agreement or grant provides otherwise, Stock Options granted under the Plan may not be sold, exchanged, transferred, pledged, assigned or otherwise alienated or hypothecated except by will or the laws of descent and distribution, and, as a condition to any transfer permitted by the Committee or the terms of the stock option agreement or grant, the transferee must execute a written agreement permitting the Company to withhold from the shares subject to the Stock Option a number of shares having a Market Value at least equal to the amount of any federal, state or local withholding or other taxes associated with or resulting from the exercise of a Stock Option. All provisions of a Stock Option that are determined with reference to the Participant, including without limitation those that refer to the Participant's employment with the Company or its Subsidiaries, shall continue to be determined with reference to the Participant after any transfer of a Stock Option.

          (b)          Other Restrictions. The Committee may impose other restrictions on any shares of Common Stock acquired pursuant to the exercise of a Stock Option under the Plan as the Committee deems advisable, including, without limitation, holding periods or further transfer restrictions, forfeiture or "claw-back" provisions, and restrictions under applicable federal or state securities laws.

          5.8          Termination of Employment or Directorship Status. Unless the Committee otherwise consents or permits (before or after the stock option grant) or unless the stock option agreement or grant provides otherwise:

          (a)          General. If a Participant ceases to be a Director or an Associate for any reason other than the Participant's death, Disability, Retirement (in the case of Associates only) or termination for Cause, the Participant may exercise his or her Stock Options in accordance with their terms for a period of three months after such termination of employment or directorship status, but only to the extent the Participant was entitled to exercise the Stock Options on the date of termination. For purposes of the Plan, the following shall not be considered a termination of employment: (i) a transfer of an employee among the Company and its Subsidiaries; (ii) a leave of absence, duly authorized in writing by the Company, for military service or for any other purpose approved by the Company if the period of such leave does not exceed 90 days; (iii) a leave of absence in excess of 90 days, duly authorized in writing by the Company, provided that the employee's right to re-employment is guaranteed by statute, contract or written policy of the Company; or (iv) a termination of employment as an officer with continued service as an Associate. For purposes of the Plan, termination of employment

10

shall be considered to occur on the date on which the Associate is no longer obligated to perform services for the Company or any of its Subsidiaries and the Associate's right to re-employment is not guaranteed by statute, contract or written policy of the Company, regardless of whether the Associate continues to receive compensation from the Company or any of its Subsidiaries after such date.

          (b)          Death. If a Participant dies either while an Associate or Director or after the termination of employment or directorship other than for Cause but during the time when the Participant could have exercised a Stock Option, the Stock Option issued to such Participant shall be exercisable in accordance with its terms by the personal representative of such Participant or other successor to the interest of the Participant for one year after the Participant's death, but only to the extent that the Participant was entitled to exercise the Stock Option on the date of death or termination of employment or directorship, whichever first occurred, and not beyond the original terms of the Stock Option.

          (c)          Disability. If a Participant ceases to be an Associate or Director of the Company or one of its Subsidiaries due to the Participant's Disability, the Participant may exercise his or her Stock Options in accordance with their terms for one year following such termination of employment or directorship, but only to the extent that the Participant was entitled to exercise the Stock Options on the date of such event and not beyond the original terms of the Stock Options.

          (d)          Participant Retirement. If a Participant Retires as an Associate, Stock Options granted under the Plan to that Participant may be exercised in accordance with their terms during the remaining terms of the Stock Options. 

          (e)          Termination for Cause. If a Participant's employment is terminated for Cause or the Participant is removed as a Director for Cause, the Participant shall have no further right to exercise any Stock Options previously granted. The Committee or officers designated by the Committee shall have absolute discretion to determine whether a termination or removal is for Cause.

          (f)          Entering into Competition. Notwithstanding anything herein or set forth in the Participant's stock option agreement or certificate of award to the contrary, if a Participant enters into Competition with the Company, the Participant shall have no further right to exercise any Stock Options previously granted. For purposes of the Plan, the Committee or officers designated by the Committee shall have absolute discretion to determine whether a Participant has entered into Competition with the Company.

11

SECTION 6

Stock Appreciation Rights

          6.1          Grant. A Participant may be granted one or more Stock Appreciation Rights under the Plan and such SARs shall be subject to such terms and conditions, consistent with the other provisions of the Plan, as shall be determined by the Committee in its sole discretion. A SAR may relate to a particular Stock Option and may be granted simultaneously with or subsequent to the Stock Option to which it relates. Except to the extent otherwise modified in the grant, (i) SARs not related to a Stock Option shall be granted subject to the same terms and conditions applicable to Stock Options as set forth in Section 5, and (ii) all SARs related to Stock Options granted under the Plan shall be granted subject to the same restrictions and conditions and shall have the same vesting, exercisability, forfeiture and termination provisions as the Stock Options to which they relate. SARs may be subject to additional restrictions and conditions. The per-share base price for exercise or settlement of SARs shall be determined by the Committee, but shall be a price that is equal to or greater than the Market Value of such shares on the date of the grant. Other than as adjusted pursuant to Section 4.3, the base price of SARs may not be reduced without shareholder approval (including canceling previously awarded SARs and regranting them with a lower base price).

          6.2          Exercise; Payment. To the extent a SAR relates to a Stock Option, the SAR may be exercised only when the related Stock Option could be exercised and only when the Market Value of the shares subject to the Stock Option exceeds the exercise price of the Stock Option. When a Participant exercises such SARs, the Stock Options related to such SARs shall automatically be cancelled with respect to an equal number of underlying shares. Unless the Committee decides otherwise (in its sole discretion), SARs shall only be paid in cash or in shares of Common Stock. For purposes of determining the number of shares available under the Plan, each Stock Appreciation Right shall count as one share of Common Stock, without regard to the number of shares, if any, that are issued upon the exercise of the Stock Appreciation Right and upon such payment.

SECTION 7

Restricted Stock and Restricted Stock Units

          7.1          Grant. Subject to the limitations set forth in Sections 4.1 and 4.2 of the Plan, Restricted Stock and Restricted Stock Units may be granted to Participants under the Plan. Shares of Restricted Stock are shares of Common Stock the retention, vesting and/or transferability of which is subject, during specified periods of time, to such conditions (including continued employment and/or achievement of performance goals established by the Committee pursuant to Section 10) and terms as the Committee deems appropriate. Restricted Stock Units are Incentive Awards denominated in units of Common Stock under which the issuance of shares of Common Stock is subject to such conditions (including continued employment and/or achievement of performance goals established by the Committee pursuant to Section 10) and terms as the Committee deems appropriate. For purposes of determining the number of shares

12

available under the Plan, each Restricted Stock Unit shall count as the number of shares of Common Stock subject to the Restricted Stock Unit. Unless determined otherwise by the Committee, each Restricted Stock Unit shall be equal to one share of Common Stock and shall entitle a Participant to either shares of Common Stock or an amount of cash determined with reference to the value of shares of Common Stock. To the extent determined by the Committee, Restricted Stock and Restricted Stock Units may be satisfied or settled in cash, in shares of Common Stock or in a combination thereof. Restricted Stock Units shall be settled no later than the 15th day of the third month after the Restricted Stock Units vest. Restricted Stock and Restricted Stock Units granted pursuant to the Plan need not be identical but shall be consistent with the terms of the Plan. Subject to the requirements of applicable law, the Committee shall determine the price, if any, at which awards of Restricted Stock or Restricted Stock Units, or shares of Common Stock issuable pursuant to Restricted Stock Unit awards, shall be sold or awarded to a Participant, which may vary from time to time and among Participants. (Amended 8/12/08)

          7.2          Restricted Stock Agreements. Awards of Restricted Stock and Restricted Stock Units shall be evidenced by restricted stock or restricted stock unit agreements or certificates of award containing such terms and conditions, consistent with the provisions of the Plan, as the Committee shall from time to time determine. Unless the restricted stock or restricted stock unit agreement or certificate of award provides otherwise, awards of Restricted Stock and Restricted Stock Units shall be subject to the terms and conditions set forth in this Section 7.

          7.3          Vesting. The grant, issuance, retention, and vesting of shares of Restricted Stock and Restricted Stock Units and the settlement of Restricted Stock Units shall occur at such time and in such installments as determined by the Committee or under criteria established by the Committee. The Committee shall have the right to make the timing of the grant and/or issuance of, the ability to retain and the vesting and/or the settlement of Restricted Stock Units and shares of Restricted Stock subject to continued employment, passage of time and/or such performance criteria as deemed appropriate by the Committee. (Amended 8/12/08)

          7.4          Termination of Employment or Directorship Status. Unless the Committee otherwise consents or permits (before or after the grant of Restricted Stock or Restricted Stock Units) or unless the restricted stock or restricted stock unit agreement or grant provides otherwise:

          (a)          General. If a Participant ceases to be a Director or Associate during the Restricted Period for any reason other than death, Disability, Retirement (in the case of Associates only) or termination for Cause, each share of Restricted Stock and Restricted Stock Unit still subject in full or in part to restrictions at the date of such termination shall automatically be forfeited and returned to the Company. For purposes of the Plan, the following shall not be considered a termination of employment: (i) a transfer of an employee from the Company to any Subsidiary; (ii) a leave of absence, duly authorized in writing by the Company, for military service or for any other purpose approved by the Company if the period of such leave does not exceed 90 days; (iii) a leave of absence in excess of 90 days duly authorized in writing by the Company, provided that the

13

employee's right to re-employment is guaranteed by statute, contract or written policy of the Company; or (iv) a termination of employment as an officer with continued service as an Associate. For purposes of the Plan, termination of employment shall be considered to occur on the date on which the Associate is no longer obligated to perform services for the Company or any of its Subsidiaries and the Associate's right to re-employment is not guaranteed by statute, contract or written policy of the Company, regardless of whether the Associate continues to receive compensation from the Company or any of its Subsidiaries after such date.

          (b)          Death, Retirement or Disability. In the event a Participant terminates his or her employment or directorship with the Company because of death, Disability or (in the case of Associates only) Retirement during the Restricted Period, the restrictions remaining on any or all shares of Restricted Stock and Restricted Stock Units shall terminate automatically with respect to that respective number of such shares or Restricted Stock Units (rounded to the nearest whole number) equal to the respective total number of such shares or Restricted Stock Units granted to such Participant multiplied by the number of full months that have elapsed since the date of grant divided by the total number of full months in the respective Restricted Period. All remaining shares of Restricted Stock and Restricted Stock Units shall be forfeited and returned to the Company; provided, that the Committee may, in its sole discretion, waive the restrictions remaining on any or all such remaining shares of Restricted Stock and Restricted Stock Units either before or after the death, Disability or Retirement of the Participant.

          (c)          Termination for Cause. If a Participant's employment is terminated for Cause or the Participant is removed as a Director for Cause, the Participant shall have no further right to receive any Restricted Stock or Restricted Stock Units and all Restricted Stock and Restricted Stock Units still subject to restrictions at the date of such termination shall automatically be forfeited and returned to the Company. For purposes of the Plan, the Committee or officers designated by the Committee shall have absolute discretion to determine whether a termination or removal is for Cause. 

          (d)          Entering into Competition. Notwithstanding anything herein or set forth in the Participant's restricted stock or restricted stock unit agreement or certificate of award to the contrary, if a Participant enters into Competition with the Company, the Participant shall have no further right to receive any Restricted Stock or Restricted Stock Units and all Restricted Stock and Restricted Stock Units still subject to restrictions at the date of such termination shall automatically be forfeited and returned to the Company. For purposes of the Plan, the Committee or officers designated by the Committee shall have absolute discretion to determine whether a Participant has entered into Competition with the Company.

          7.5          Restrictions on Transferability.

          (a)          General. Unless the Committee otherwise consents or permits or unless

14

the terms of the restricted stock or restricted stock unit agreement or grant provide otherwise: (i) neither shares of Restricted Stock nor Restricted Stock Units may be sold, exchanged, transferred, pledged, assigned or otherwise alienated or hypothecated during the Restricted Period except by will or the laws of descent and distribution; and (ii) all rights with respect to Restricted Stock and Restricted Stock Units granted to a Participant under the Plan shall be exercisable during the Participant's lifetime only by such Participant or his or her guardian or legal representative.

          (b)          Other Restrictions. The Committee may impose other restrictions on any shares of Common Stock acquired pursuant to an award of Restricted Stock or issuable pursuant to Restricted Stock Unit awards under the Plan as the Committee considers advisable, including, without limitation, holding periods or further transfer restrictions, forfeiture or "claw-back" provisions, and restrictions under applicable federal or state securities laws.

          7.6          Legending of Restricted Stock. In addition to any other legend that may be set forth on a Participant's share certificate, such certificates, if any, evidencing shares of Restricted Stock awarded pursuant to the Plan shall bear the following legend:

The shares represented by this certificate were issued subject to certain restrictions under the Spartan Stores, Inc. Stock Incentive Plan of 2005 (the "Plan"). This certificate is held subject to the terms and conditions contained in a restricted stock agreement that includes a prohibition against the sale or transfer of the stock represented by this certificate except in compliance with that agreement and that provides for forfeiture upon certain events. Copies of the Plan and the restricted stock agreement are on file in the office of the Secretary of the Company. 

The Committee may require that certificates, if any, representing shares of Restricted Stock be retained and held in escrow by a designated employee or agent of the Company or any Subsidiary until any restrictions applicable to shares of Restricted Stock so retained have been satisfied or lapsed.

          7.7          Rights as a Shareholder. A Participant shall have all dividend, liquidation and other rights with respect to Restricted Stock held of record by such Participant as if the Participant held unrestricted Common Stock; provided, that the unvested portion of any award of Restricted Stock shall be subject to any restrictions on transferability or risks of forfeiture imposed pursuant to this Section 7 and the terms and conditions set forth in the Participant's restricted stock agreement. Unless the Committee otherwise determines or unless the terms of the applicable restricted stock unit agreement or grant provide otherwise, a Participant shall have all dividend and liquidation rights with respect to shares of Common Stock subject to awards of Restricted Stock Units held by such Participant as if the Participant held unrestricted Common Stock. Unless the Committee determines otherwise or unless the terms of the applicable restricted stock or restricted stock unit agreement or grant provide otherwise, any noncash dividends or distributions paid with respect to shares of unvested Restricted Stock and shares of

15

Common Stock subject to unvested Restricted Stock Units shall be subject to the same restrictions and vesting schedule as the shares to which such dividends or distributions relate. Any dividend payment with respect to Restricted Stock or Restricted Stock Units shall be made no later than the 15th day of the third month following the date the dividends are paid to shareholders. (Amended 8/12/08)

          7.8          Voting Rights. Unless otherwise determined by the Committee, Participants holding shares of Restricted Stock granted hereunder may exercise full voting rights with respect to those shares during the Restricted Period. Participants shall have no voting rights with respect to shares of Common Stock underlying Restricted Stock Units unless and until such shares are reflected as issued and outstanding shares on the Company's stock ledger. 

SECTION 8

Stock-Based Awards

          8.1          Grant. Subject to the limitations set forth in Sections 4.1 and 4.2 of the Plan, in addition to any Stock Options, Stock Appreciation Rights, Restricted Stock, or Restricted Stock Units that a Participant may be granted under the Plan, a Participant may be granted one or more other types of awards based on or related to shares of Common Stock (including the grant of Stock Awards). Such awards shall be subject to such terms and conditions, consistent with the other provisions of the Plan, as may be determined by the Committee in its sole discretion. Notwithstanding the previous sentence, Stock Awards shall be settled no later than the 15th day of the third month after the awards vest. Such awards shall be expressed in terms of shares of Common Stock or denominated in units of Common Stock. For purposes of determining the number of shares available under the Plan, each such unit shall count as the number of shares of Common Stock to which it relates. (Amended 8/12/08)

          8.2          Rights as a Shareholder. 

          (a)          Stock Awards. A Participant shall have all voting, dividend, liquidation and other rights with respect to shares of Common Stock issued to the Participant as a Stock Award under this Section 8 upon the Participant becoming the holder of record of the Common Stock granted pursuant to such Stock Award; provided, that the Committee may impose such restrictions on the assignment or transfer of Common Stock awarded pursuant to a Stock Award as it considers appropriate. Any dividend payment with respect to a Stock Award shall be made no later than the 15th day of the third month following the date the dividends are paid to shareholders. (Amended 8/12/08)

          (b)          General. With respect to shares of Common Stock subject to awards granted under the Plan other than Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units and Stock Awards, a Participant shall have such rights as determined by the Committee and set forth in the respective award agreements; and the Committee may impose such restrictions on the assignment or transfer of Common Stock

16

awarded pursuant to such awards as it considers appropriate.

SECTION 9

Change in Control

          9.1          Acceleration of Vesting. If a Change in Control of the Company shall occur, then, unless the Committee or the Board otherwise determines with respect to one or more Incentive Awards, without action by the Committee or the Board: (a) all outstanding Stock Options and Stock Appreciation Rights shall become immediately vested and exercisable in full and shall remain exercisable during the remaining terms thereof, regardless of whether the Participants to whom such Stock Options and Stock Appreciation Rights have been granted remain in the employ or service of the Company or any Subsidiary; and (b) all other outstanding Incentive Awards shall become immediately fully vested and exercisable and nonforfeitable.

          9.2          Cash Payment for Stock Options and Stock Appreciation Rights. If a Change in Control of the Company shall occur, then the Committee, in its sole discretion and without the consent of any Participant affected thereby, may determine that some or all Participants holding outstanding Stock Options and/or Stock Appreciation Rights shall receive, with respect to some or all of the shares of Common Stock subject to such Stock Options and/or Stock Appreciation Rights, as of the effective date of any such Change in Control of the Company, cash in an amount equal to the greater of the excess of (a) the highest sales price of the shares on Nasdaq on the date immediately prior to the effective date of such Change in Control of the Company or (b) the highest price per share actually paid in connection with any Change in Control of the Company, over the exercise price per share of such Stock Options and/or the base price per share of such Stock Appreciation Rights. Upon a Participant's receipt of such amount with respect to some or all of his or her Stock Options and/or Stock Appreciation Rights, the respective Stock Options and/or Stock Appreciation Rights shall be cancelled and may no longer be exercised by such Participant.

SECTION 10

Performance Measures

          10.1          Performance Measures. Unless and until the Committee proposes for shareholder vote and the shareholders approve a change in the general Performance Measures set forth in this Section 10, the performance goals upon which the payment or vesting of an Incentive Award to a Covered Employee that is intended to qualify as Performance-Based Compensation shall be limited to the following Performance Measures:

	
 
	
(a)
	
Net earnings;

	
 
	
(b)
	
Earnings before or after taxes, interest, depreciation, and/or amortization;

17

	
 
	
(c)
	
Earnings per share, reflecting dilution of the Common Stock as the Committee deems appropriate and, if the Committee so determines, net of or including dividends;

	
 
	
(d)
	
Net sales;

	
 
	
(e)
	
Net sales growth;

	
 
	
(f)
	
Return measures (including, but not limited to, return on assets, capital, equity, or sales);

	
 
	
(g)
	
Cash flow (including, but not limited to, operating cash flow and free cash flow);

	
 
	
(h)
	
Cash flow return on capital;

	
 
	
(i)
	
Gross or operating margins;

	
 
	
(j)
	
Productivity ratios;

	
 
	
(k)
	
Share price (including, but not limited to, growth measures and total shareholder return);

	
 
	
(l)
	
Expense or cost levels;

	
 
	
(m)
	
Margins;

	
 
	
(n)
	
Operating efficiency;

	
 
	
(o)
	
Customer satisfaction, satisfaction based on specified objective goals or a Company-sponsored customer survey;

	
 
	
(p)
	
Working capital targets; 

	
 
	
(q)
	
Economic value added measurements;

	
 
	
(r)
	
Market share or market penetration with respect to specific designated products or product groups and/or specific geographic areas; 

	
 
	
(s)
	
Aggregate product price and other product measures; 

	
 
	
(t)
	
Reduction of losses, loss ratios or expense ratios; 

	
 
	
(u)
	
Reduction in fixed costs; 

	
 
	
(v)
	
Inventory turnover; 

	
 
	
(w)
	
Debt reduction; 

	
 
	
(x)
	
Associate turnover; 

	
 
	
(y)
	
Specified objective social goals; and

	
 
	
(z)
	
Safety record.

One or more Performance Measures may be used to measure the performance of one or more of the Company, its Subsidiaries, its Affiliates, any Business Units of any of them or any combination of the foregoing, compared to pre-determined levels, as the Committee may deem appropriate, or compared to the performance of a pre-established peer group, or published or special index that the Committee, in its sole discretion, deems appropriate; or the Committee may select Performance Measure (k) above (with respect to the Company) as compared to various stock market indices. The Committee also has the authority to provide for accelerated vesting of any Incentive Award based on the achievement of performance goals pursuant to the Performance Measures specified in this Section 10. 

          10.2          Evaluation of Performance. The Committee may provide in any such Incentive Award that any evaluation of performance may include or exclude any of the following events or their effects that occurs during a Performance Period: (a) asset write-downs, (b) litigation or claim judgments or settlements, (c) changes in tax laws, accounting principles, or other laws or

18

provisions affecting reported results, (d) any reorganization and restructuring programs, (e) extraordinary nonrecurring items as described in Accounting Principles Board Opinion No. 30 and/or in management's discussion and analysis of financial condition and results of operations appearing in the Company's annual report to shareholders for the applicable fiscal year, (f) acquisitions, divestitures or accounting changes, (g) foreign exchange gains and losses, and (h) other special charges or extraordinary items. To the extent such inclusions or exclusions affect Incentive Awards to Covered Employees, they shall be prescribed in a form that meets the requirements of Section 162(m) of the Code for deductibility.

          10.3          Committee Discretion. In the event that applicable tax laws, securities laws, or both, change to permit Committee discretion to alter the governing Performance Measures without obtaining shareholder approval of such changes, the Committee shall have sole discretion to make such changes without obtaining shareholder approval. In addition, in the event that the Committee determines that it is advisable to grant Incentive Awards that shall not qualify as Performance-Based Compensation, the Committee may make such grants without satisfying the requirements of Section 162(m) of the Code and may base vesting on Performance Measures other than those set forth in Section 10.1.

          10.4          Adjustment of Performance-Based Compensation. Incentive Awards that are designed to qualify as Performance-Based Compensation, and that are held by Covered Employees, may not be increased or adjusted upward. The Committee shall retain the discretion to decrease or adjust such Incentive Awards downward, and such Incentive Awards may be forfeited in whole or in part. 

          10.5          Performance-Based Compensation Conditioned on Performance. Payment of Performance-Based Compensation to a Participant for a Performance Period under this Plan shall be entirely contingent upon achievement of the performance goals established by the Committee pursuant to this Section 10, the satisfaction of which must be substantially uncertain when established by the Committee for the Performance Period. 

          10.6          Time of Determination of Performance Goals by Committee. All performance goals to be made by the Committee for a Performance Period pursuant to this Section 10 shall be established in writing by the Committee during the first 90 days of such Performance Period and before 25% of the Performance Period has elapsed.

          10.7          Objective Standards. Performance-Based Compensation shall be based solely upon objective criteria, consistent with this Section 10, from which an independent third party with knowledge of the facts could determine whether the performance goal or range of goals is met and from that determination could calculate the Performance-Based Compensation to be paid. Although the Committee has authority to exercise reasonable discretion to interpret this Plan and the criteria it shall specify pursuant to this Section 10 of the Plan, it may not amend or waive such criteria after the 90th day of the respective Performance Period. The Committee shall have no authority or discretion to increase any Performance-Based Compensation or to construct, modify or apply the measurement of a Participant's Performance in a manner that will directly or indirectly increase the Performance-Based Compensation for the Participant for any

19

Performance Period above the amount determined by the applicable objective standards established within the time period set forth in Section 10.6.

SECTION 11

General Provisions

          11.1          No Rights to Incentive Awards. No Participant or other person shall have any claim to be granted any Incentive Award under the Plan and there is no obligation of uniformity of treatment of Participants or holders or beneficiaries of Incentive Awards under the Plan. The terms and conditions of Incentive Awards of the same type and the determination of the Committee to grant a waiver or modification of any Incentive Award and the terms and conditions thereof need not be the same with respect to each Participant.

          11.2          Withholding. The Company or a Subsidiary shall be entitled to: (a) withhold and deduct from future wages of a Participant (or from other amounts that may be due and owing to a Participant from the Company or a Subsidiary), or make other arrangements for the collection of, all legally required amounts necessary to satisfy any and all federal, state, local and foreign withholding and employment-related tax requirements attributable to an Incentive Award, including, without limitation, the grant, exercise or vesting of, or payment of dividends with respect to, an Incentive Award or a disqualifying disposition of Common Stock received upon exercise of an incentive stock option; or (b) require a Participant promptly to remit the amount of such withholding to the Company before taking any action with respect to an Incentive Award. Unless the Committee determines otherwise, withholding may be satisfied by withholding Common Stock to be received upon exercise or vesting of an Incentive Award or by delivery to the Company of previously owned Common Stock. The Company may establish such rules and procedures concerning timing of any withholding election as it deems appropriate.

          11.3          Compliance With Laws; Listing and Registration of Shares. All Incentive Awards granted under the Plan (and all issuances of Common Stock or other securities under the Plan) shall be subject to all applicable laws, rules and regulations, and to the requirement that if at any time the Committee shall determine, in its discretion, that the listing, registration or qualification of the shares covered thereby upon any securities exchange or under any state or federal law, or the consent or approval of any governmental regulatory body, is necessary or desirable as a condition of, or in connection with, the grant of such Incentive Award or the issuance or purchase of shares thereunder, such Incentive Award may not be exercised in whole or in part, or the restrictions on such Incentive Award shall not lapse, unless and until such listing, registration, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Committee.

          11.4          No Limit on Other Compensation Arrangements. Nothing contained in the Plan shall prevent the Company or any Subsidiary from adopting or continuing in effect other or additional compensation arrangements, including the grant of Stock Options and other stock-based and stock-related awards, and such arrangements may be either generally applicable or

20

applicable only in specific cases.

          11.5          No Right to Employment. The grant of an Incentive Award shall not be construed as giving a Participant the right to be retained in the employ of the Company or any Subsidiary. The Company or any Subsidiary may at any time dismiss a Participant from employment, free from any liability or any claim under the Plan, unless otherwise expressly provided in the Plan or in any written agreement with the Participant.

          11.6          No Liability of Company. The Company and any Subsidiary or Affiliate which is in existence or hereafter comes into existence shall not be liable to a Participant or any other person as to: (a) the non-issuance or non-sale of Common Stock as to which the Company has been unable to obtain from any regulatory body having jurisdiction the authority deemed by the Company's counsel to be necessary to the lawful issuance and sale of any shares hereunder; (b) any tax consequence to any Participant or other person due to the receipt, exercise or settlement of any Incentive Award granted hereunder; and (c) any provision of law or legal restriction that prohibits or restricts the transfer of shares of Common Stock issued pursuant to any Incentive Award.

          11.7          Suspension of Rights under Incentive Awards. The Company, by written notice to a Participant, may suspend a Participant's and any transferee's rights under any Incentive Award for a period not to exceed 60 days while the termination for Cause of that Participant's employment with the Company and its Subsidiaries is under consideration or while the removal for Cause of the Participant as a Director is under consideration. 

          11.8          Governing Law. The validity, construction and effect of the Plan and any rules and regulations relating to the Plan shall be determined in accordance with the laws of the State of Michigan and applicable federal law.

          11.9          Severability. In the event any provision of the Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining provisions of the Plan and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included, unless such construction would cause the Plan to fail in its essential purposes.

SECTION 12

Termination and Amendment

          12.1          Board and Committee Actions. The Board may terminate the Plan at any time or may from time to time amend or alter the Plan or any aspect of it as it considers proper and in the best interests of the Company; provided, that no such amendment may be made, without the approval of shareholders of the Company, that would (i) reduce the exercise price at which Stock Options, or the base price at which Stock Appreciation Rights, may be granted below the prices provided for in Sections 5.3 and 6.1, respectively (ii) reduce the exercise price of outstanding Stock Options or the base price of outstanding Stock Appreciation Rights, (iii) increase the

21

individual maximum limits in Section 4.2 or (iv) otherwise amend the Plan in any manner requiring shareholder approval by law or under Nasdaq listing requirements or other applicable Nasdaq rules. 

          12.2          No Impairment. Notwithstanding anything to the contrary in Section 12.1, no such amendment or alteration to the Plan or to any previously granted award agreement or Incentive Award shall be made which would impair the rights of the holder of the Incentive Award, without such holder's consent; provided, that no such consent shall be required if the Committee determines in its sole discretion and prior to the date of any Change of Control that such amendment or alteration is required or advisable in order for the Company, the Plan or the Incentive Award to satisfy any law or regulation or to meet the requirements of or avoid adverse financial accounting consequences under any accounting standard. 

SECTION 13

Effective Date and Duration of the Plan

          The Plan shall take effect May 11, 2005, subject to approval by the shareholders at the 2005 Annual Meeting of Shareholders or any adjournment thereof or at a Special Meeting of Shareholders. Unless earlier terminated by the Board of Directors, no Incentive Award shall be granted under the Plan after May 10, 2015.

22Spartan Stores Exhibit 10.15 to Form 10-K - 05/17/10

EXHIBIT 10.15

SPARTAN STORES, INC.

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

I N D E X

	
 
	
 
	
Page

	
 
	
 
	
 

	
Article 1
	
Establishment of the Plan
	
1

	
 
	
 
	
 

	
 
	
1.1     History of the Plan
	
1

	
 
	
1.2     Purpose
	
1

	
 
	
1.3     This Document
	
1

	
 
	
1.4     Status of Plan Under ERISA
	
1

	
 
	
1.5     Compliance with Section 409A
	
1

	
 
	
 
	
 

	
Article 2
	
Definitions
	
2

	
 
	
 
	
 

	
Article 3
	
Participation
	
5

	
 
	
 
	
 

	
 
	
3.1     Eligibility for Participation
	
5

	
 
	
3.2     Termination of Active Participation
	
5

	
 
	
 
	
 

	
Article 4
	
Benefits
	
6

	
 
	
 
	
 

	
 
	
4.1     Eligibility
	
6

	
 
	
4.2     Amount of Benefit
	
6

	
 
	
4.3     Payment
	
6

	
 
	
4.4     Tax Withholding
	
8

	
 
	
 
	
 

	
Article 5
	
Change in Control
	
8

	
 
	
 
	
 

	
 
	
5.1     Eligibility for Benefit
	
8

	
 
	
5.2     Amount of Benefits
	
10

	
 
	
5.3     Payment
	
10

	
 
	
5.4     Funding of Benefits
	
10

	
 
	
 
	
 

	
Article 6
	
Other Termination of Employment and Noncompetition
	
11

	
 
	
 
	
 

	
 
	
6.1     Other Termination of Employer
	
11

	
 
	
6.2     Termination of Employment for Cause
	
11

	
 
	
6.3     Noncompetition
	
12

	
 
	
 
	
 

	
Article 7
	
Administration
	
13

	
 
	
 
	
 

	
 
	
7.1     Plan Administrator
	
13

	
 
	
7.2     Appointment of Administrative Committee
	
13

	
 
	
7.3     Powers of Plan Administrator
	
13

	
 
	
7.4     Standard of Care
	
14

	
 
	
7.5     Claims Procedure
	
14

	
 
	
 
	
 

	
Article 8
	
Miscellaneous
	
15

	
 
	
 
	
 

	
 
	
8.1     Funding of Benefits
	
15

	
 
	
8.2     Spendthrift Provision
	
15

-i-

	
 
	
 
	
Page

	
 
	
 
	
 

	
 
	
8.3     Employment Rights
	
15

	
 
	
8.4     Amendment or Termination
	
15

	
 
	
8.5     Construction
	
16

	
 
	
8.6     Executive Severance Agreement
	
16

	
 
	
8.7     Governing Law
	
16

	
 
	
 
	
 

	
Signature
	
16

	
 
	
 

	
Appendix A
	
17

	
 
	
 

	
Appendix B
	
18

-ii-

SPARTAN STORES, INC.

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

____________________________________

Article 1

Establishment of the Plan

                    1.1          History of the Plan

                    Spartan Stores, Inc., a Michigan corporation, established a retirement benefit plan to be known as the Spartan Stores, Inc. Supplemental Executive Retirement Plan. The Plan was established effective as of April 1, 1990 and has been periodically amended.

                    1.2          Purpose

                    Employer desires to retain the services of a select group of executives who contribute to the profitability and success of Employer. Employer adopted the Plan to provide additional retirement income to the executives who participate in the Plan.

                    1.3          This Document

                    By this document, Employer is amending and restating the Plan as of January 1, 2009. The Plan shall be comprised of this Plan document and the Appendices.

                    1.4          Status of Plan Under ERISA

                    The Plan is intended to be "unfunded" and maintained "primarily for the purpose of providing deferred compensation for a select group of management or highly compensated employees" for purposes of ERISA. Accordingly, the Plan is not intended to be covered by Parts 2 through 4 of Subtitle B of Title I of ERISA.

                    1.5          Compliance with Section 409A

                    To the extent the Plan provides deferred compensation under Section 409A of the Code, the Plan is intended to comply with Section 409A. The Plan is intended to be interpreted consistent with the requirements of Section 409A of the Code.

Article 2

Definitions

                    The following terms shall have the meanings described in this Article unless the context clearly indicates another meaning. All references in the Plan to specific Articles or Sections shall refer to Articles or Sections of the Plan unless otherwise stated.

                    2.1          Accrued Benefit

                    "Accrued Benefit" has the same meaning as in the Pension Plan.

                    2.2          Actuarial Equivalent

                    "Actuarial Equivalent" means equality in value of the aggregate amount of benefits to be received under different forms of payment. Actuarially Equivalent benefits shall be determined using actuarial assumptions used for determining actuarially equivalent benefits in the Pension Plan.

                    2.3          Annuity Starting Date

                    "Annuity Starting Date" has the same meaning as in the Pension Plan.

                    2.4          Associate

                    "Associate" means any common-law employee of Employer. An individual who is treated by Employer as an independent contractor or self-employed individual for purposes of income tax withholding by Employer is not an Associate.

                    2.5          Beneficiary

                    "Beneficiary" has the same meaning as in the Pension Plan.

                    2.6          Calendar Year

                    "Calendar Year" means the period of January 1 through the following December 31.

                    2.7          Code

                    "Code"          means the Internal Revenue Code of 1986, as amended.

                    2.8          Death Benefit

                    "Death Benefit" has the same meaning as in the Pension Plan.

-2-

                    2.9          Deferred Vested Benefit

                    "Deferred Vested Benefit" has the same meaning as in the Pension Plan.

                    2.10          Determination Period

                    "Determination Period" means with respect to an Associate who has a Separation from Service from the Employer and any Related Employer between January 1 and March 31, the second Calendar Year preceding the Calendar Year during which the Separation from Service occurred. If the Associate has a Separation from Service between April 1 and December 31, the Determination Period is the preceding Calendar Year.

                    2.11          Disability Retirement Benefit

                    "Disability Retirement Benefit" has the same meaning as in the Pension Plan.

                    2.12          Early Retirement Benefit

                    "Early Retirement Benefit" has the same meaning as in the Pension Plan.

                    2.13          Employer

                    "Employer" means Spartan Stores, Inc.

                    2.14          ERISA

                    "ERISA" means the Employee Retirement Income Security Act of 1974, as amended.

                    2.15          Key Associate

                    "Key Associate" means any Associate who at any time during the Determination Period was:

                    (a)          An officer of the Employer or a Related Employer whose annual Compensation from the Employer and all Related Employers is more than $145,000 (as adjusted under Section 416(i)(1) of the Code for Calendar Years beginning after December 31, 2007);

                    (b)          A person having more than a 5% ownership interest in the Employer or any Related Employer; or

                    (c)          A person having more than a 1% ownership interest in the Employer or any Related Employer and whose annual Compensation from the Employer and all Related Employers is more than $150,000.

-3-

                    The determination of who is a Key Associate shall be made in accordance with Sections 409A and 416(i)(1) of the Code and the applicable regulations and guidance.

                    2.16          Normal Retirement Benefit

                    "Normal Retirement Benefit" has the same meaning as in the Pension Plan.

                    2.17          Participant

                    "Participant" means an Associate or former Associate of Employer who has met the requirements for participation under Article 3, and who is or may become eligible to receive a retirement benefit from the Plan.

                    2.18          Pension Plan

                    "Pension Plan" means the Spartan Stores, Inc. Cash Balance Pension Plan (formerly, the Spartan Stores, Inc. Pension Plan), as currently in effect and as it may be amended in the future.

                    2.19          Plan

                    "Plan" means the Spartan Stores, Inc. Supplemental Executive Retirement Plan.

                    2.20          Plan Administrator

                    "Plan Administrator" means the named fiduciary responsible for the operation and administration of the Plan as provided in Article 7.

                    2.21          Related Employer

                    "Related Employer" means (a) any member of a controlled group of corporations in which the Employer is a member, as defined in Section 414(b) of the Code; and (b) any other trade or business under common control of or with the Employer, as defined in Section 414(c) of the Code. An entity shall be a Related Employer with the Company only with regard to a time period in which the requirements of this Section are satisfied.

                    2.22          Separation from Service

                    "Separation from Service" means a "separation from service" under Section 409A of the Code. Generally, this occurs if the Associate is reasonably anticipated to have a substantial permanent reduction in the bona fide level of services provided to the Employer and all Related Employers (whether provided as an employee or an independent contractor). The reduction shall be "substantial" only if the reduced bona fide level of services is less than 50% of the average bona fide level of services provided by the Associate to the Employer and all Related Employers during the immediately preceding 36 months (or the Participant's entire period of service, if less than 36 months).

-4-

                    2.23          Single Life Annuity

                    "Single Life Annuity" has the same meaning as in the Pension Plan.

                    2.24          Spouse

                    "Spouse" has the same meaning as in the Pension Plan.

                    2.25          Statutory Limits

                    "Statutory Limits" mean any limits imposed by the Code on benefits under the Pension Plan. This includes, but is not limited to, the limits imposed by Sections 401(a)(17) and 415 of the Code.

Article 3

Participation

                    3.1          Eligibility for Participation

                    The Plan Administrator may periodically designate, in writing, Associates to participate in the Plan. It is intended that participation be limited to Associates who are participants in the Pension Plan and who will qualify as members of a "select group of management or other highly compensated employees" under Title I of ERISA. An Associate shall begin to participate in the Plan upon the date designated by the Plan Administrator.

                    Upon becoming eligible to participate, each Associate shall complete and submit to Employer the application for participation form attached to the Plan as Appendix A.

                    3.2          Termination of Active Participation

                    The Plan Administrator may remove an Associate from further active participation in the Plan. If this occurs, the Associate shall not earn any additional benefits under the Plan. The amount of the Associate's benefits, if any, under the Plan shall be determined as of the date he ceases active participation. The Associate's benefits shall be paid only if he satisfies the other requirements of the Plan.

-5-

Article 4

Benefits

                    4.1          Eligibility

                    A Participant shall be eligible for a benefit under the Plan if he incurs a Separation from Service with Employer and is eligible to receive one of the following types of benefits from the Pension Plan: Normal Retirement Benefit, Early Retirement Benefit, Disability Retirement Benefit or Deferred Vested Benefit. Similarly, the Spouse or Beneficiary of a Participant shall be eligible for a benefit under the Plan if the Participant dies before his Annuity Starting Date under the Pension Plan and his Spouse or Beneficiary is eligible for a Death Benefit under the Pension Plan.

                    4.2          Amount of Benefit

                    Except as otherwise provided in an Appendix, the benefits payable to an eligible Participant or Spouse or Beneficiary shall be equal to the amount, if any, by which (a) exceeds (b):

                    (a)          The Accrued Benefit that would have been payable to the Participant or Spouse or Beneficiary under the Pension Plan, but for the operation of the Statutory Limits.

                    (b)          The Accrued Benefit payable to the Participant or Spouse or Beneficiary from the Pension Plan.

For this purpose, the Participant's Accrued Benefit shall be calculated in accordance with the Pension Plan as in effect on the date the Participant incurs a Separation from Service.

                    The Participant's Accrued Benefit shall be converted to a lump sum amount for purposes of Section 4.3, in accordance with the Actuarial Equivalent principles set forth in the Pension Plan.

                    4.3          Payment

                    (a)          Benefit Payment to Participant A Participant may elect to receive his benefit in one of the following forms:

                    (1)          Single Lump Sum Payment A lump sum distribution of the Participant's benefit under the Plan.

                    (2)          Five Annual Installment Payments Five annual installment payments of the Participant's benefit under the Plan. If a Participant dies before receiving all of the installments, the remaining installments shall be paid to his Beneficiary. After the first annual installment, each subsequent

-6-

installment shall be increased annually for interest. For this purpose, the interest rate shall equal the yield on five-year Treasury notes on the date the first annual installment is paid.

                    (3)          Ten Annual Installment Payments Ten annual installment payments of the Participant's benefit under the Plan. If a Participant dies before receiving all of the installments, the remaining installments shall be paid to his Beneficiary. After the first annual installment, each subsequent installment shall be increased annually for interest. For this purpose, the interest rate shall equal the yield on ten-year Treasury notes on the date the first annual installment is paid.

                    Each Participant must make an irrevocable election regarding the form in which his benefit shall be paid. An irrevocable election must be made within 30 days of becoming a Participant. An irrevocable election must be made by completing an Employer-provided distribution election form and returning the form to Employer.

                    Benefits shall be paid to the Participant as of the first day of the month following the month during which the Participant has a Separation from Service with Employer. In no event, however, will any distribution be made to a Key Associate as a result of a Separation From Service earlier than the six-month anniversary of the date of the Participant's Separation from Service, unless the Participant dies prior to the end of the six-month period.

                    For purposes of paragraphs (2) and (3) above, the Participant's Beneficiary shall be designated in accordance with the rules in the Pension Plan and shall be the same individual the Participant has designated as his Beneficiary under the Pension Plan unless the Participant completes a separate Employer-provided Beneficiary designation form with respect to the distribution of this Plan's benefit and returns it to Employer. The Participant may change his Beneficiary designation at any time prior to death by completing a new Beneficiary designation form and filing it with Employer.

                    (b)          Benefit Payment to Spouse or Beneficiary If the Participant dies before his benefit begins to be paid under the Plan, his Spouse or Beneficiary may be eligible for a Death Benefit under this Plan. The Death Benefit under this Plan shall be paid in the form of a single lump sum payment (which shall be the Actuarial Equivalent of a Single Life Annuity) and shall be made as of the first day of the month following the month of the Participant's death. The Beneficiary of the Death Benefit shall be the same individual the Participant has designated as his Beneficiary under the Pension Plan unless the Participant completes a separate Employer-provided Beneficiary designation form with respect to the distribution of this Plan's Death Benefit and returns it to Employer. The Participant may change his Beneficiary designation at any time prior to death by completing a new Beneficiary designation form and filing it with Employer.

-7-

                    4.4          Tax Withholding

                    Benefit payments from the Plan shall be subject to all applicable tax withholdings.

Article 5

Change in Control

                    5.1          Eligibility for Benefit

                    A Participant shall have a nonforfeitable, fully vested right to the benefit the Participant shall have earned under the Plan from and after the date Employer has a change in control. For purposes of this Article, the term "change in control" means:

                    (a)          The acquisition by any individual, entity, or group (a "Person"), including any "person" 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 (i) the then outstanding shares of common stock of Employer (the "Outstanding Employer Common Stock") or (ii) the combined voting power of the then outstanding securities of Employer entitled to vote generally in the election of directors (the "Outstanding Employer Voting Securities"); provided, however, that the following acquisitions shall not constitute a change in control: (A) any acquisition by Employer, (B) any acquisition by an employee benefit plan (or related trust) sponsored or maintained by Employer or any corporation controlled by Employer, (C) any acquisition by any corporation pursuant to a reorganization, merger, or consolidation involving Employer, if, immediately after such reorganization, merger, or consolidation, each of the conditions described in (i), (ii), and (iii) of subsection (c) shall be satisfied, or (D) with respect to an individual Participant, any acquisition by the Participant or any group of persons including the Participant; and provided further that, for purposes of (A), if any Person (other than Employer or any employee benefit plan (or related trust) sponsored or maintained by Employer or any corporation controlled by Employer) shall become the beneficial owner of 20% or more of the Outstanding Employer Common Stock or 20% or more of the Outstanding Employer Voting Securities by reason of an acquisition by Employer and such Person shall, after such acquisition by Employer, become the beneficial owner of any additional shares of the Outstanding Employer Common Stock or any additional Outstanding Employer Voting Securities, such additional beneficial ownership shall constitute a change in control;

                    (b)          Individuals who, as of April 1, 1998, constitute the Board (the "Incumbent Board") cease for any reason to constitute at least a majority of such Board; provided, however, that any individual who becomes a director of Employer subsequent to April 1, 1998 whose election, or nomination for election by Employer's shareholders, was approved by the vote of at least two-thirds of the directors then comprising the Incumbent Board (either by a specific vote or by approval of the proxy statement of

-8-

Employer in which such person is named as a nominee for director, without objection to such nomination) shall be deemed to have been a member of the Incumbent Board; and provided further, that no individual who was initially elected as a director of Employer as a result of an actual or threatened election contest, as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act, or any other actual or threatened solicitation of proxies or consents by or on behalf of any Person other than the Board, shall be deemed to have been a member of the Incumbent Board;

                    (c)          The effective time and consummation of a reorganization, merger, or consolidation appointed by the shareholders of Employer unless, in any such case, immediately after such reorganization, merger, or consolidation, (i) more than 50% of the then outstanding shares of common stock of the corporation resulting from such reorganization, merger, or consolidation and more than 50% of the combined voting power of the then outstanding securities of such corporation entitled to vote generally in the election of directors is then beneficially owned, directly or indirectly, by all or substantially all of the individuals or entities who were the beneficial owners, respectively, of the Outstanding Employer Common Stock and the Outstanding Employer Voting Securities immediately prior to such reorganization, merger, or consolidation and in substantially the same proportions relative to each other as their ownership, immediately prior to such reorganization, merger, or consolidation, of the Outstanding Employer Common Stock and the Outstanding Employer Voting Securities, as the case may be, (ii) no Person (other than: (A) Employer, any employee benefit plan (or related trust) sponsored or maintained by Employer or the corporation resulting from such reorganization, merger, or consolidation (or any corporation controlled by Employer), or (B) any Person which beneficially owned, immediately prior to such reorganization, merger, or consolidation, directly or indirectly, 20% or more of the Outstanding Employer Common Stock or the Outstanding Employer Voting Securities, as the case may be) beneficially owns, directly or indirectly, 20% or more of the then outstanding shares of common stock of such corporation or 20% or more of the combined voting power of the then outstanding securities of such corporation entitled to vote generally in the election of directors, and (iii) at least a majority of the members of the board of directors of the corporation resulting from such reorganization, merger, or consolidation were members of the Incumbent Board at the time of the execution of the initial agreement or action of the Board providing for such reorganization, merger, or consolidation; or [Amended February 2010]

                    (d)          The effective time and consummation of (i) a plan of complete liquidation or dissolution of Employer, as approved by the shareholders of Employer or (ii) the sale or other disposition of all or substantially all of the assets of Employer as approved by the shareholders of Employer other than to a corporation with respect to which, immediately after such sale or other disposition, (A) more than 50% of the then outstanding shares of common stock thereof and more than 50% of the combined voting power of the then outstanding securities thereof entitled to vote generally in the election of directors is then beneficially owned, directly or indirectly, by all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Employer Common Stock and the Outstanding Employer Voting Securities

-9-

immediately prior to such sale or other disposition and in substantially the same proportions relative to each other as their ownership, immediately prior to such sale or other disposition, of the Outstanding Employer Common Stock and the Outstanding Employer Voting Securities, as the case may be, (B) no Person (other than Employer, any employee benefit plan (or related trust) sponsored or maintained by Employer or such corporation (or any corporation controlled by Employer), or any Person which beneficially owned, immediately prior to such sale or other disposition, directly or indirectly, 20% or more of the Outstanding Employer Common Stock or the Outstanding Employer Voting Securities as the case may be) beneficially owns, directly or indirectly, 20% or more of the then outstanding shares of Common stock thereof or 20% or more of the combined voting power of the then outstanding securities thereof entitled to vote generally in the election of directors and (C) at least a majority of the members of the board of directors thereof were members of the Incumbent Board at the time of the execution of the initial agreement or action of the Board providing for such sale or other disposition. [Amended February 2010]

                    5.2          Amount of Benefits

                    A Participant's benefit shall be the amount determined under Section 4.2, subject to Section 5.1, as of the date of the Participant's Severance from Service. In addition, if the Participant is not fully vested in his Accrued Benefit under the Pension Plan upon a change in control, the Participant's benefit under this Plan shall be determined as if the Participant vested in his Accrued Benefit under the Pension Plan and shall be increased by the amount of the Participant's unvested Accrued Benefit as of the date of the Participant's Severance from Service if the Participant's Severance from Service is within two years after the date of the change in control. This additional amount shall also be subject to Section 5.1.

                    5.3          Payment

                    Benefits shall be paid in accordance with Section 4.3.

                    5.4          Funding of Benefits

                    If a change in control occurs, Employer shall establish a grantor trust of the type referred to as a "rabbi trust" to fully fund all Participants' vested Plan benefits, the assets of which will be subject to the claims of creditors of Employer in the event of its insolvency. The benefits that become payable under the Plan to a Participant or his Beneficiary shall be paid from the assets of that trust to the extent they are not paid directly by Employer. The establishment and the funding of the rabbi trust shall also be subject to the terms and conditions of each Participant's executive severance agreement. [Amended February 2010]

-10-

Article 6

Other Termination of Employment and Noncompetition

                    6.1          Other Termination of Employment

                    Notwithstanding any other provisions of the Plan, no benefits shall be payable to the Participant or his Spouse or Beneficiary under the Plan in either of the following situations:

                    (a)          If the Participant has a Separation from Service before becoming entitled to benefits under the Plan; or

                    (b)          If the Participant's employment with Employer is terminated by Employer for cause, as defined in Section 6.2.

                    6.2          Termination of Employment for Cause

                    (a)          For purposes of Section 6.1, a Participant is terminated for "cause" if his employment is terminated for any of the reasons set forth in this Section.

                    (1)          General Definition of Cause Except after a change in control (see paragraph (2) below), a Participant is terminated for "cause" if his employment is terminated for any of the following reasons:

                    (A)          Gross negligence, fraud, dishonesty or willful violation of any law or significant Employer policy, committed in connection with his employment and resulting in a material adverse effect on Employer; or

                    (B)          Failure to substantially perform (for reasons other than disability) the duties reasonably assigned to him in a manner consistent with prior practice.

                    (2)          Definition of Cause After a Change in Control Notwithstanding paragraph (1) above, after a change in control, a Participant is terminated for "cause" if his employment is terminated for any of the following reasons:

                    (A)          The willful and continued failure by the Participant to substantially perform his duties with Employer (other than any such failure resulting from Participant's incapacity due to physical or mental injury or illness, or any such actual or anticipated failure resulting from Participant's termination for "good reason" (as that term is defined in the Participant's Executive Severance Agreement with Employer) after a demand for substantial performance is delivered to the Participant by the Board of Directors (which demand shall specifically identify the manner

-11-

in which the Board of Directors believes that the Participant has not substantially performed his duties); or

                    (B)          The willful engaging by the Participant in gross misconduct materially and demonstrably injurious to Employer.

                    For this purpose, no act or failure to act on the part of the Participant shall be considered "willful" unless done or omitted to be done by the Participant not in good faith and without reasonable belief that his action(s) or omission(s) was in the best interests of Employer. Notwithstanding the foregoing, the Participant shall not be deemed to have been terminated for cause unless and until Employer provides Participant with a copy of a resolution adopted by an affirmative vote of not less than two-thirds of the entire membership of the Board of Directors at a meeting of the Board of Directors called and held for the purpose (after reasonable notice to the Participant and an opportunity for the Participant, with counsel, to be heard before the Board of Directors), finding that in the good faith opinion of the Board of Directors the Participant has been guilty of conduct set forth in (1) or (2) above, setting forth the particulars in detail. A determination for cause by the Board of Directors shall not be binding upon or entitled to deference by any finder of fact in the event of a dispute, it being the intent of the parties that such finder of fact shall make an independent determination of whether the termination was for "cause" as defined in (1) or (2) above.

                    (b)          The definition of "cause" in this Section is relevant only for purposes of eligibility for benefits under this Plan, and is not intended to change the status of a Participant as an "at will" Employee of Employer.

                    (c)          If Employer determines that a Participant is ineligible for benefits because the Participant's employment was terminated for cause and the Participant disputes that determination, the Participant's sole remedy after exhausting the claims procedure of Section 7.5 shall be arbitration. The arbitration procedure is attached to the Plan as Appendix B.

                    6.3          Noncompetition

                    Any Participant who has a Separation from Service with Employer shall not engage in "competition" with Employer within three years after retirement. For this purpose, a Participant is engaged in "competition" if he accepts employment, is retained as a consultant or receives any consideration, financial or otherwise, by or from a competing business (as determined by Employer's Board of Directors).

                    If a Participant violates this noncompetition provision, his benefits under the Plan shall be reduced by the amount of "compensation" received from the competing business during the three-year noncompetition period described in the immediately preceding paragraph. For this purpose, "compensation" includes the total value of any monetary compensation and nonmonetary compensation, including any amounts deferred during the three-year

-12-

noncompetition period. If the Participant is self-employed, "compensation" means gross income before expenses.

                    Employer shall have the right to obtain sufficient information regarding compensation from a competing retail business to calculate the reduction in benefits described in this Section. If the Participant fails to provide timely or complete information, benefit payments shall cease until such information is provided.

                    However, after a change in control, as described in Section 5.1, this Section shall not apply.

Article 7

Administration

                    7.1          Plan Administrator

                    Employer shall have the sole responsibility for the administration of the Plan and is designated as named fiduciary and Plan Administrator.

                    7.2          Appointment of Administrative Committee

                    Employer may delegate all or a portion of its duties as Plan Administrator to an Administrative Committee. The members of the administrative committee shall be selected by Employer. If an administrative committee is appointed, it shall have the power and duties of the Plan Administrator which are described in this Article and which are delegated to the administrative committee.

                    7.3          Powers of Plan Administrator

                    The Plan Administrator shall have all discretionary powers necessary to administer, and satisfy its obligations under the Plan, including, but not limited to, the following:

                    (a)          Maintain records pertaining to the Plan.

                    (b)          Interpret the terms and provisions of the Plan.

                    (c)          Establish procedures by which Participants may apply for pension benefits under the Plan and appeal a denial of pension benefits.

                    (d)          Determine the rights under the Plan of any Participant applying for or receiving pension benefits.

-13-

                    (e)          Administer the claims procedure provided in this Article.

                    (f)          Perform all acts necessary to meet the reporting and disclosure obligations imposed by Sections 101 through 111 of ERISA.

                    (g)          Delegate specific responsibilities for the operation and administration of the Plan to such employees or agents as it deems advisable and necessary.

                    7.4          Standard of Care

                    The Plan Administrator shall administer the Plan solely in the interest of Participants and for the exclusive purposes of providing pension benefits to such Participants and their beneficiaries. The Plan Administrator shall administer the Plan with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person, acting in a like capacity and familiar with such matters, would use in the conduct of an enterprise of a like character and with like aims.

                    The Plan Administrator shall not be liable for any act or omission relating to its duties under the Plan, unless the act or omission violates the standard of care described in this Section.

                    7.5          Claims Procedure

                    Any Participant whose application for benefits under the Plan has been denied, in whole or in part, shall be given written notice of the denial of benefits by the Plan Administrator. The notice shall be in easily understood language and shall indicate the reasons for denial and the specific provisions of the Plan on which the denial is based. The notice shall explain that the Participant may request a review of the denial and the procedure for requesting review. The notice shall describe any additional information necessary to perfect the Participant's claim and explain why such information is necessary.

                    A Participant may make a written request to the Plan Administrator for a review of any denial of benefits under this Plan. The request for review must be in writing and must be made within 90 days after the mailing date of the notice of denial. The request shall refer to the provisions of the Plan on which it is based and shall set forth the facts relied upon as justifying a reversal or modification of the determination being appealed.

                    A Participant who requests a review of a denial of benefits in accordance with this claims procedure may examine pertinent documents and submit pertinent issues and comments in writing. A Participant may have a duly authorized representative act on his behalf in exercising his right to request a review and any other rights granted by this claims procedure. The Plan Administrator shall provide a review of the decision denying the claim for benefit within 60 days after receiving the written request for review.

-14-

                    However, after a change in control as described in Section 5.1, the dispute resolution procedure set forth in Schedule 11(c) of the Participant's Executive Severance Agreement with Employer shall be substituted for the claims procedure set forth in this Section and in Appendix B. Further, in the event of a dispute between the Participant and Employer and/or the Plan Administrator after a change in control as described in Section 5.1, the determinations of Employer and/or the Plan Administrator shall not be entitled to deference, it being the intent of the parties that there shall be independent determinations of any disputed fact or issue through the dispute resolution procedure.

Article 8

Miscellaneous

                    8.1          Funding of Benefits

                    The Plan shall be unfunded, except as provided in Section 5.4. Although Employer may make corporate investments to fund its potential liability under the Plan, all benefits shall be paid directly by Employer from its general assets to Participants who qualify for benefits. Employer's obligation to pay benefits under the Plan shall be unsecured.

                    8.2          Spendthrift Provision

                    No benefit or interest under the Plan is subject to assignment or alienation, whether voluntary or involuntary. Any assignment or alienation of benefits shall be void.

                    8.3          Employment Rights

                    The existence of the Plan shall not grant a Participant any legal right to continue as an Associate nor affect the right of Employer to discharge a Participant.

                    8.4          Amendment or Termination

                    Employer shall have the right to amend or terminate the Plan at any time by action of its Board of Directors. However, no amendment or termination shall reduce a Participant's benefits to an amount less than the benefit to which the Participant would be entitled under the Plan if he had a Separation from Service as of the date of the amendment or termination. The effect of Employer's amendment or termination of the Plan on a Participant's benefit, as set forth in the immediately preceding sentence, is subject to Section 5.1 (which requires a Participant's benefits to be nonforfeitable and fully vested upon a change in control) and the terms of any applicable employment agreement between Employer and a Participant.

                    In addition, the Employer may pay the Participant the full value of the Participant's benefit at any time after the Plan is terminated if the payment is permitted by Section 409A of the Code.

-15-

                    8.5          Construction

                    Words used in the masculine shall apply to the feminine where applicable; and wherever the context of the Plan dictates, the plural shall be read as the singular and the singular as the plural.

                    8.6          Executive Severance Agreement

                    Each Participant shall enter into an Executive Severance Agreement with Employer. It is intended that the terms of the Plan with respect to a Participant be interpreted in a manner consistent with that Participant's Executive Severance Agreement. Thus, with respect to a Participant, in the event of a conflict between the terms of the Plan and the terms of the Participant's Executive Severance Agreement, the terms of the Executive Severance Agreement shall control to the extent the terms of the Executive Severance Agreement are consistent with Code Section 409A.

                    8.7          Governing Law

                    To the extent that Michigan law is not preempted by ERISA, the provisions of the Plan shall be governed by the laws of the state of Michigan.

-16-

Appendix A

SPARTAN STORES, INC.

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

Application for Participation

                    I am a corporate officer of Spartan Stores, Inc. ("Spartan Stores"). I have been offered the opportunity to participate in the Spartan Stores, Inc. Supplemental Executive Retirement Plan (the "Plan").

                    By signing this application, I accept the opportunity to participate in the Plan and agree to the following:

                    1.          I agree that my benefits are governed by the terms and conditions of the Plan.

                    2.          If a grantor trust is used to fund my benefits under the Plan, I agree the existence of the grantor trust does not change my status as an unsecured creditor of Spartan Stores with regard to my benefits under the Plan. I waive any statutory or other right, if any, to have a priority claim to my benefits under the Plan.

                    3.          I understand that I will forfeit all benefits under the Plan if my employment is terminated for "cause." I understand that this provision only relates to my eligibility for benefits under the Plan and does not change my status as an "at will" associate of Spartan Stores. Also, if I dispute whether Spartan Stores terminated my employment for cause, I agree to resolve any such dispute by arbitration under the procedures described in Appendix B attached to the Plan.

	
Dated:____________________
	
 
	
 

	
 
	
 
	
Name of Participant

-17-

Appendix B

SPARTAN STORES, INC.

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

Arbitration Procedure

                    1.   Before taking recourse to arbitration, the Participant must exhaust the Claims Procedure in Section 7.5.

                    2.   Notice of intent to arbitrate a claim must be made, in writing, within 90 days after the mailing date of the Plan Administrator's decision under Section 6.4 denying the claim for benefit.

                    3.   The arbitrator will be selected by the mutual agreement of the Participant and the Plan Administrator. If the arbitrator is not selected by other means, then the arbitrator will be selected from a panel of experienced labor and employment arbitrators supplied by the American Arbitration Association (AAA), utilizing AAA procedures regarding selection of the arbitrator.

                    4.   The arbitrator will decide the time and place of a hearing, which will be conducted according to AAA Rules. At the arbitration hearing, the Participant will have the opportunity to rebut the evidence presented by the Plan Administrator and the Participant may present witnesses and evidence to support his case.

                    5.   The arbitrator will decide, in writing, whether the Participant was terminated for cause as provided in Section 6.2. The arbitrator shall have no authority to change, add to, or delete any of the provisions of the Plan.

                    6.   The Participant and the Plan Administrator shall each pay up to one-half of the arbitrator's fees and expenses, except that the Participant's total payment shall not exceed $250. If the arbitrator decides in favor of the Participant, the Participant's payment shall be waived.

                    7.   The Participant and the Plan Administrator will each be responsible for their own costs, including attorney's fees. If either party decides to be represented by an attorney, that party will notify the other at least 30 days before the arbitration hearing.

                    8.   This review procedure, including an appeal to arbitration and the decision of the arbitrator, is the Participant's exclusive remedy, is final and binding on all parties, and is fully enforceable in court.

-18-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00173-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00173-of-00352.parquet"}]]