Document:

EX-10.3

 Exhibit 10.3 

 
 

 
  

			
	Grantee: [All non-employee Directors]	 	Grant Date: May 15, 2012
		
	Number of Shares: 4,020	 	Vesting Day: May 1

 Dear [Director Name]: 
  

	 	Re:	Restricted Stock Award - Fiscal Year 2013 

 I am pleased to inform you that Spartan Stores, Inc., a Michigan corporation, (“Spartan”) has granted to you the number of restricted shares of Spartan’s Common Stock described above under
the Spartan Stores, Inc. Stock Incentive Plan of 2005 (the “Plan”). By accepting this grant, you agree that the restricted stock is subject to the terms and conditions of this letter and the Plan (which are incorporated into this
letter by reference). If there is any conflict between the terms of the Plan and this letter, the terms of the Plan will control. 
 Restricted Stock Grant. Spartan grants to you shares of Spartan Stores, Inc. Common Stock, no par value, all of which are subject to restrictions imposed under this letter and the Plan (the
“Restricted Stock”). This grant of Restricted Stock shall not confer any right to you to be granted Restricted Stock or other awards in the future under the Plan. 

Restrictions. The Restricted Stock is subject to the following transfer and forfeiture conditions
(“Restrictions”), which will lapse, if at all, as described in the “Lapse of Restrictions” section below. The period during which Restricted Stock is subject to the Restrictions imposed by the Plan and under this letter is
referred to in this letter as the “Restricted Period.” 
 (1) Until the Restrictions lapse as set forth in
paragraphs (1), (2), (3) or (4) under Lapse of Restrictions below, the Restricted Stock generally is not transferable by you except by will or according to the laws of descent and distribution. All rights with respect to the Restricted
Stock are exercisable during your lifetime only by you, your guardian, or your legal representative. 
 (2) Any shares of
Restricted Stock for which the Restrictions have not lapsed will automatically be forfeited without consideration upon the termination of your service as a director of Spartan for any reason, except as otherwise provided in this letter. 

 (3) If you enter into Competition (as defined in the Plan) with Spartan, all shares of
Restricted Stock still subject to Restrictions will automatically be forfeited without consideration. The Committee (as defined in the Plan) or officers designated by the Committee have absolute discretion to determine whether you have entered into
Competition with Spartan. 
 Lapse of Restrictions. 

(1) Except as otherwise provided in this letter, and so long as you continue as a director of Spartan, the Restrictions imposed on the
Restricted Stock shall lapse on May 1, 2013. 
 (2) Notwithstanding anything to the contrary in this letter, upon
termination of your service as a director of Spartan due to your death or disability, the Restrictions applicable to any shares of Restricted Stock will lapse automatically and the Restricted Stock will vest and no longer be subject to forfeiture.
For purposes of this letter you would be deemed to be “disabled” if, by reason of accident, physical illness or mental illness, you are unable to fulfill your normal responsibilities as a director of Spartan for a continuous period of 180
days. 
 (3) Notwithstanding anything to the contrary in this letter, the Restrictions imposed on the Restricted Stock will
lapse, and the Restricted Stock will vest and no longer be subject to forfeiture, if during the Restricted Period you shall have completed the term of the directorship for which you shall have been most recently elected, you have been a director for
at least ten years, and you no longer continue as a director with Spartan. 
 (4) Notwithstanding anything to the contrary in
this letter, in the event of a Change in Control (as defined in the Plan), the Restrictions imposed on the Restricted Stock will lapse, and the Restricted Stock will vest and no longer be subject to forfeiture in accordance with the terms of the
Plan. 
 Shareholder Rights. During the Restricted Period, you shall have all voting, dividend, liquidation, and
other rights with respect to the Restricted Stock held of record by you as if you held unrestricted Common Stock; provided, however, that the unvested portion of any Restricted Stock award shall be subject to any restrictions on
transferability or risks of forfeiture imposed pursuant to this letter or the Plan. Any non-cash dividends or distributions paid with respect to unvested Restricted Stock shall be subject to the same restrictions as those relating to the Restricted
Stock granted to you under this letter agreement. After the Restrictions applicable to the Restricted Stock lapse, you shall have all shareholder rights, including the right to transfer the shares, subject to such conditions as Spartan may
reasonably specify to ensure compliance with federal and state securities laws. 
 Uncertificated Shares. Your shares of
Restricted Stock are being issued without a paper certificate. The Restricted Stock will be registered in your name in Spartan’s books and records and reflected on the account statements issued to you by Morgan Stanley Smith Barney (or other
financial intermediary). Spartan Stores, Inc. is formed under the laws of the State of Michigan. Spartan Stores, Inc. will furnish to you upon request and without charge a full statement of the designation, relative rights, preferences, and
limitations of the shares of each 

  
 2 

 
class authorized to be issued, the designation, relative rights, preferences, and limitations of each series so far as the same have been prescribed, and the authority of the Spartan’s Board
of Directors to designate and prescribe the relative rights, preferences, and limitations of other series. If you have any questions, please contact the Company’s Director of Benefits.  

Certifications. You represent and warrant that you are acquiring the Restricted Stock for your own account and investment and
without any intent to resell or distribute the Restricted Stock. You shall not resell or distribute the Restricted Stock after any Restricted Period except in compliance with such conditions as Spartan may reasonably specify to ensure compliance
with federal and state securities laws. 
 Withholding. Because you are a non-employee director, Spartan will not make
any provision for the withholding of federal, state, or local taxes in connection with the grant or vesting of the Restricted Stock. Spartan will provide you with a completed IRS Form 1099 reporting non-employee compensation and certain other
payments made to you by Spartan for your service as a director, including payments in connection with the Restricted Stock. You are responsible for your tax obligations in connection with the grant and vesting of the Restricted Stock, and Spartan
recommends that you consult with your tax advisor. 
 Binding Effect; Amendment. This letter and the Plan shall be
binding upon, and shall inure to the benefit of, the parties hereto and their respective heirs, successors and permitted assigns. This letter agreement shall not be modified except in a writing executed by you and Spartan. 

Miscellaneous. 
 (1) This letter and your rights hereunder are subject to all the terms and conditions of the Plan, as the same may be amended from time to time, as well as to such rules and regulations as the Committee
may adopt for administration of the Plan. The Committee shall have the right to impose such restrictions on any shares acquired pursuant to this letter, as it may deem advisable, including, without limitation, restrictions under applicable federal
securities laws, under the requirements of any stock exchange or market upon which such shares are then listed and/or traded, and under any blue sky or state securities laws applicable to such shares. It is expressly understood that the Committee is
authorized to administer, construe, and make all determinations necessary or appropriate to the administration of the Plan and this letter, all of which shall be binding upon you. 

(2) The Board may terminate, amend, or modify the Plan in accordance with the terms of the Plan. 

(3) You agree to take all steps necessary to comply with all applicable provisions of federal and state securities laws in exercising
your rights under this letter. This letter shall be subject to all applicable laws, rules, and regulations, Nasdaq Marketplace Rules, and to such approvals by any governmental agencies, The Nasdaq Stock Market or any other national securities
exchanges as may be required. 

  
 3 

 (4) To the extent not preempted by federal law, this letter shall be governed by, and
construed in accordance with, the laws of the state of Michigan. 
  

	
	Very truly yours,
	
	Dennis Eidson
	President & Chief Executive Officer

  
 4EX-10.4

 Exhibit 10.4 

 
 

 
  

			
	Award Recipient: [Name]	 	Grant Date:            May 15, 2012

 Dear: 
  

	 	Re:	Long-Term Executive Cash Incentive Award - Fiscal Year 2013 

 I am pleased to inform you that Spartan Stores, Inc. (“Spartan”) has awarded to you the opportunity to earn multi-year cash incentive compensation under the Executive Cash Incentive Plan of 2010
(the “Plan”) as described in this letter. By accepting this award, you agree that the award is subject to the terms and conditions of this letter and the Plan (which are incorporated into this letter by reference). If there is any conflict
between the terms of the Plan and this letter, the terms of the Plan will control. Capitalized terms not defined in this letter have the meanings given to them in the Plan. 
 1. Target Award Amount. Your threshold, target, and maximum Long-Term Cash Incentive Award opportunity for the three-year period covering fiscal 2013, 2014 and 2015 will be communicated to you
separately. As discussed in more detail below, your Long-Term Cash Incentive Award, if any, will be paid if Spartan achieves at least the threshold levels of performance specified by the Compensation Committee for the applicable Performance
Period and you satisfy the vesting requirements discussed in this letter. 

 2. Performance Measurement and Performance Period. The amount of the Long-Term Cash
Incentive Award paid to you will be determined by Spartan’s performance with respect to two Performance Measurements: Earnings Per Share (“EPS”) and Return on Invested Capital (“ROIC”). Sixty percent (60%) of your
Long-Term Cash Incentive Award will be determined by Spartan’s EPS performance, and forty percent (40%) of your Long-Term Cash Incentive Award will be determined by Spartan’s ROIC performance, in each case during the Performance
Period set forth on the following page: 
  

									
	 Performance
 Measurement
	  	Percentage of Long-
Term Cash
Incentive Award	 	 	 Performance Period
	  	 Vesting Period

	 EPS*
	  	 	60	% 	 	 1 year (fiscal 2013)
	  	 2 years after completion of the Performance Period (paid after FYE 2015)

				
	 ROIC**
	  	 	40	% 	 	 2 years (fiscal 2013 and 2014)
	  	 1 year after completion of the Performance Period (paid after FYE 2015)

  

	*	For this measurement, EPS means Diluted Earnings per Share on a Consolidated Net Earnings basis measured at the end of FY2013. 

	**	For this measurement, ROIC means operating profit after tax, adjusted for asset impairment, exit costs and LIFO expense, divided by total invested capital (total assets
plus LIFO reserve less cash and non-interest bearing current liabilities) measured at the end of FY2014. 

 3.
Performance Goals and Payouts. Your Long-Term Cash Incentive Award will be determined according to the matrix presented below. The levels of performance for EPS and ROIC have been established by the Compensation Committee and will be
communicated to you separately. No Long-Term Cash Incentive Award will be paid unless Spartan achieves the threshold level of performance for at least one of the Performance Measurements. 
 Earnings Per Share 
  

									
	 Performance
	 	 	Payout
%
of
Target	 
	 Level
	  	% of
EPS
Goal	 	 
	 —  
	  	 	<80	% 	 	 	0.0	% 
	 Threshold
	  	 	80	% 	 	 	10.0	% 
	 —  
	  	 	85	% 	 	 	32.5	% 
	 —  
	  	 	90	% 	 	 	55.0	% 
	 —  
	  	 	95	% 	 	 	77.5	% 
	 Target
	  	 	100	% 	 	 	100.0	% 
	 —  
	  	 	104	% 	 	 	125.0	% 
	 —  
	  	 	108	% 	 	 	150.0	% 
	 —  
	  	 	112	% 	 	 	175.0	% 
	 Maximum
	  	3	116.3	% 	 	 	200.0	% 

 ROIC 
  

									
	 Performance
	 	 	Payout
%
of
Target	 
	 Level
	  	% of
ROIC
Goal	 	 
	 —  
	  	 	<97.3	% 	 	 	0.0	% 
	 Threshold
	  	 	97.3	% 	 	 	50.0	% 
	 —  
	  	 	98.0	% 	 	 	62.5	% 
	 —  
	  	 	98.7	% 	 	 	75.0	% 
	 —  
	  	 	99.3	% 	 	 	87.5	% 
	 Target
	  	 	100	% 	 	 	100.0	% 
	 —  
	  	 	100.9	% 	 	 	133.3	% 
	 —  
	  	 	101.9	% 	 	 	166.7	% 
	 Maximum
	  	3	102.7	% 	 	 	200.0	% 

 If Spartan’s actual performance achieved for either EPS or ROIC exceeds the threshold level and
falls between specified levels, then the percentage of the Target Award that will be paid will be determined by interpolation. The evaluation of EPS and ROIC performance will exclude the events or their effects set forth in Section 5.3
(a) through (h) of the Plan. 
 4. Vesting Period. Your Long-Term Cash Incentive Award is earned and vested
over a total period of three years. Each component of your Long-Term Cash Incentive Award earned according to the matrix above, if any, will be subject to an additional vesting period during which you must remain employed by Spartan or one of its
subsidiaries (unless the vesting period is terminated earlier in accordance with this letter and the Plan). For the EPS component, the vesting period is two (2) years following completion of the Performance Period, and for the ROIC component,
the vesting period is one (1) year following completion of the Performance Period. Except as provided by the Plan and the terms of this letter, your Long-Term Cash Incentive Award, even if earned, will be forfeited if your employment terminates
prior to the expiration of the vesting and the payment date. 

 5. Effect of Termination of Employment. Except as provided in this Section 5 and
Section 6 below, if your employment with Spartan is terminated for any reason, you will forfeit any: (a) unearned Long-Term Cash Incentive Award; (b) earned but unvested Long-Term Cash Incentive Award; and (c) earned and vested
but unpaid Long-Term Cash Incentive Award. If your employment with Spartan terminates for retirement, death or total disability your eligibility for a Long-Term Cash Incentive Award will be determined in accordance with the following table:

  

							
	 Reason for

Termination
	 	 Timing of Termination

	 	 More than 12 Months

Remaining in

Performance Period
	 	 12 Months or Less

Remaining in

Performance Period
	 	 After Performance

Period, during vesting
 period, or after vesting
 period but before

payment date

	Death or Total Disability	 	Your Target Award will be paid on a pro-rata basis based on the number of full weeks you were employed during the Performance Period. The Incentive Award will be paid no later than
the 15th day of the third month following the date of your
death or total disability.	 	Following the completion of the Performance Period, any earned Long-Term Cash Incentive Award will be paid based on actual performance results on a pro-rata basis based on the
number of full weeks you were employed during the Performance Period. The Incentive Award will be paid no later than the
15th day of the third month following the date of the end
of the Performance Period.	 	Any earned Long-Term Cash Incentive Award will be paid in full no later than the 15th day of the third month following the date of your death or total disability.
	Retirement	 	Your Long-Term Cash Incentive Award, if any, will be the amount you would have earned had you remained employed with Spartan for the Performance Period based on actual performance
results, paid on a pro-rated basis for the number of full weeks you were employed during the Performance Period. The Incentive Award will be paid no later than the 15th day of the third month following the date of the end of the Performance Period.	 	Your Long-Term Cash Incentive Award, if any, will be the amount you would have earned had you remained employed with Spartan for the Performance Period based on actual performance
results, paid on a pro-rated basis for the number of full weeks you were employed during the Performance Period. The Incentive Award will be paid no later than the 15th day of the third month following the date of the end of the Performance Period.	 	Any earned Long-Term Cash Incentive Award will be paid in full no later than the 15th day of the third month following the date of your retirement.

 6. Change in Control. 

(a) During Performance Period. Upon a Change in Control of Spartan Stores (as defined in the
Spartan Stores, Inc. Supplemental Executive Retirement Plan) during the Performance Period, you will earn an Incentive Award equal to the greater of the Target Award or the projected Incentive Award based on the Company’s performance as of the
date of the Change in Control, to be paid on a pro-rata basis for the number of full weeks completed of the Performance Period prior to the Change in Control. The Incentive Award will be paid no later than the 15th day of the third month following the Change in Control. 

(b) After Performance Period. Upon a Change in Control following the Performance Period, any
earned but unvested Incentive Award will be payable in full upon the earliest to occur of the termination of your employment for any reason, the applicable vesting date, or the date that is the 15th day of the third month following the Change in Control. 

7. Executive Severance Agreement. The Long-Term Cash Incentive Award opportunity described in this letter is not subject to the
provisions of your Executive Severance Agreement with the Company. In the event of a Change in Control, your right to receive any portion of the Long-Term Cash Incentive Award described in this letter will be governed exclusively by the terms and
conditions of this letter, and you will not receive any additional payment for the Long-Term Cash Incentive Award under your Executive Severance Agreement. 
 8. Annual Incentive Award. You will be separately notified of your eligibility to earn an annual incentive award for Fiscal 2013. 

9. Compensation Committee Authority and Discretion. The Plan is administered and interpreted by the Compensation Committee of the
Board of Directors. Although the Committee has authority to exercise reasonable discretion to interpret the Plan and the performance goals, it may not amend or waive any performance goal after the 90th day of the Performance Period. The Committee
has no authority or discretion to increase any Long-Term Cash Incentive Award. 
 10. Withholding. Spartan is entitled to
withhold and deduct from your future wages (or from other amounts that may be due and owing to you from Spartan), 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 a Long-Term Cash Incentive Award. 
 11.
Miscellaneous. 
 (a) This letter and your rights hereunder are subject to all the terms and conditions of the Plan, as
the same may be amended from time to time, as well as to such rules and regulations as the Committee may adopt for administration of the Plan. It is expressly 

 
understood that the Committee is authorized to administer, construe, and make all determinations necessary or appropriate to the administration of the Plan and this letter, all of which shall be
binding upon you. 
 (b) The Board may terminate, amend, or modify the Plan in accordance with the terms of the Plan.

 (c) This letter and the Plan shall be binding upon, and shall inure to the benefit of, the parties hereto and their
respective heirs, successors and permitted assigns. This letter agreement shall not be modified except in a writing executed by you and Spartan. 
 (d) This letter shall be governed by, and construed in accordance with, the laws of the state of Michigan. 

 

	
	Very truly yours,
	
	Dennis Eidson
	President and Chief Executive Officer

  

			
	Accepted and Agreed to:
	
	  

		
	  
	 	
	Date

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