Document:

exv10w56

 

EXHIBIT 10.56

The John B. Sanfilippo & Son, Inc.

Supplemental Retirement Plan

(effective as of August 25, 2005)

1.       Purpose. The purpose of the John B. Sanfilippo & Son, Inc. Supplemental Retirement Plan
(the “Plan”) is to provide unfunded, non-qualified deferred compensation benefits upon retirement,
disability and death to a select group of management and key employees of John B. Sanfilippo & Son,
Inc. and its subsidiaries (the “Company”). The Plan is effective as of August 25, 2005.

2.      Participation. Only those employees of the Company who are selected by the
Compensation, Nominating and Corporate Governance Committee of the Board of Directors (the “CNG
Committee”) of the Company in it sole discretion for participation herein (“Participants”) shall
participate in the Plan. Participants are neither required nor permitted to contribute to the
Plan.

3.       Eligibility for Plan Benefits. Participants with at least 5 years of employment shall
be eligible to receive monthly benefits under the Plan after separating from service with the
Company, provided that such Participant’s employment with the Company has not been terminated for
“cause” as determined by the Company in its sole discretion under the standards set forth herein.
Upon such a termination for cause, all benefit rights under the Plan will terminate and be
forfeited.

For purposes of the foregoing, the employment of a Participant shall be deemed to have been
terminated by the Company for “cause” if such Participant has:

	 	(a)	 	engaged in one or more acts constituting a felony, or involving fraud or serious moral
turpitude; or
	 
	 	(b)	 	willfully refused (except by reason of incapacity due to accident or illness) to perform
substantially his duties, provided that such refusal shall have resulted in demonstrable
material injury to the Company or its subsidiaries; or
	 
	 	(c)	 	willfully engaged in gross misconduct materially injurious to the Company.

4.       Benefit.

	 	(a)	 	Separation On or After Age 65. Subject to Sections 3 and 4(c),
benefits under the Plan shall commence as soon as administratively feasible after a
Participant’s separation from service with the Company on or after age 65. Subject to
the last paragraph of this Section 4(a), equal monthly installments (as determined
below) will be paid to the Participant for the Participant’s life only.

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	 	 	 	These equal monthly installments (“EMI”) will be determined according to the
following formula:

EMI = 1/12 x (X x Y)

	 	 	 	where “X” means 50% of the average of the Participant’s actual annual base earnings
and bonuses earned over any consecutive 5 calendar year period that falls within the
10 calendar years immediately preceding the date the Participant separates from
service with the Company and that maximizes the average of such base earnings plus
bonuses; and
	 
	 	 	 	where “Y” is the number of full years employed by the Company divided by the greater
of (i) 20, or (ii) the number of full years the Participant would have been employed
if he had been employed by the Company continuously from his hire date through his
attainment of age 65, provided such quotient may not exceed 1.
	 
	 	 	 	In the event that the Participant’s benefits commence after his attainment of age
65, his benefit shall be the Actuarial Equivalent of the benefit which would have
been payable at age 65, if that is greater than his benefit as otherwise computed
under the Plan.
	 
	 	 	 	For purposes of this Plan, “Actuarial Equivalent” means a benefit of equivalent
value, as certified by the Company’s actuary, computed on the basis of the actuarial
assumptions set forth in Section 417(e)(3) of the Internal Revenue Code of 1986, as
amended, including the interest rate for the month before the date of distribution.
	 
	 	 	 	If the Participant has a beneficiary as defined herein, the benefits shall be in the
form of a joint and 100% contingent annuitant benefit, which is the Actuarial
Equivalent, of the Participant’s life only benefit.
	 
	 	(b)	 	Separation Before Age 65. Subject to Sections 3 and 4(c), in the event
the Participant separates from service with the Company prior to age 65, the benefit
formula of Section 4(a) (subject to the reductions described in this Section 4(b)) will
apply and equal monthly installments of such reduced benefit will commence as soon as
administratively feasible on or after the Participant’s attainment of age 55 if the
Participant has been credited with, at least, 10 full years of employment at the time
of his separation from service. Subject to Sections 3 and 4(c), if such Participant is
already age 55 or older by the time of separation from service with the Company, such
reduced Section 4(a) benefits will commence as soon as administratively feasible if the
Participant has been credited with, at least, 10 full years of employment at the time
of his separation from service. In the event that a Participant separates from service
prior to age 65, and has not been credited with 10 full years of employment at the time
of his separation from service, his benefits may not commence until he has attained age
65, at which time his benefits will commence as soon as administratively feasible.
However, if the

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	 	 	 	Participant predeceases his or her beneficiary before benefit commencement as
described herein and has met the requirements of Section 3, the Participant’s
beneficiary will receive Plan benefits for such beneficiary’s life, commencing as
soon as administratively feasible after the Participant’s date of death (but no
earlier than the date the Participant would have attained age 55) and equal to the
benefit that would have been payable to the beneficiary, assuming the Participant
had lived to his or her benefits commencement date and died the day after.
	 
	 	 	 	In all cases, benefits under this Section 4(b) will be the Actuarial Equivalent of
the Age 65 benefit, and in the case of disability, any such benefit will be further
reduced by any benefits received under any of the Company’s long-term disability
benefit plans until the Participant ceases to receive disability benefits. For
purposes of the Plan, “disability” shall mean a Participant is unable to engage in
any substantial gainful activity by reason of any medically determinable physical or
mental impairment which can be expected to result in death or can be expected to
last for a continuous period of not less than 12 months. The determination of
whether this disability standard is met will be at the sole discretion of the
Company, as determined based upon evidence satisfactory to it.
	 
	 	(c)	 	Additional Benefit Restrictions. The determination/calculation of the
amounts of all benefits under the Plan will be final, irrevocable and not subject to
adjustment after the date benefits commence. Notwithstanding anything to the contrary,
in the event the present lump sum Actuarial Equivalent value of benefits under the Plan
on the benefit commencement date is less than or equal to $50,000.00, such benefits
will be paid to the Participant or the Participant’s beneficiary in a single lump sum
distribution. All applicable benefit payments under the Plan will be subject to the
distribution rules of the American Jobs Creation Act of 2004, including, but not
limited to, any distribution rules applicable to “key employees,” and, in the event
that benefit commencement must be deferred pursuant to those rules, retroactive
benefits shall be paid for such period at the time benefits commence.
	 
	 	 	 	If the Participant does not have a beneficiary on the date benefits commence,
benefits will cease upon the Participant’s death. Notwithstanding anything to the
contrary, if both the Participant and the Participant’s beneficiary die before
benefit commencement, all entitlement to benefits will terminate. For all purposes
of the Plan, “beneficiary” shall be determined on the date benefits commence and
shall be the Participant’s legally married spouse or the Participant’s domestic
partner. The term “domestic partner” shall mean either a same-sex or opposite-sex
individual that is not legally married, not dependent on anyone (other than the
Participant) for anything, at least 18 years old and with whom the Participant (i)
maintains a single, dedicated relationship that is intended to be permanent; (ii)
has shared the same principal residence for at least 1 year and intends to continue
to do so permanently; and (iii) is financially interdependent (e.g., joint ownership
of real property, joint bank accounts, each is the primary beneficiary of the other
on wills, trusts, and benefit plans). The

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	 	 	 	determination of whether a Participant has a domestic partner under the foregoing
standards will be at the sole discretion of the Company.

5.       Non-alienability. Neither the Participant nor the Participant’s beneficiary under this
Plan shall have any power or right to transfer, assign, anticipate, hypothecate, mortgage, commute,
modify, pledge or otherwise encumber any benefits payable hereunder. None of the benefits
hereunder shall be subject to seizure for the payment of any debts, judgments, alimony, or separate
maintenance owed by the Participant, the Participant’s beneficiary, or any of them, and such
benefits shall not be transferable by operation of law in the event of bankruptcy, insolvency, or
otherwise. In the event the Participant or the Participant’s beneficiary attempts an assignment,
commutation, hypothecation, transfer, or disposal of the benefits hereunder, the Company’s
liabilities shall forthwith automatically cease and terminate.

6.       Exclusive Benefit. Nothing contained in this Plan shall be construed to alter, abridge,
or in any manner affect the rights and privileges of the Participant to participate in and be
covered by any pension, profit-sharing, group insurance, bonus, or similar plans which the Company
may now or hereafter have for employees of the Company. Benefits that may be awarded under the
Plan shall not be considered in any way in determining the value or amount of any other
compensation or benefit that the Company may offer or provide to any Participants.

7.       Unfunded Status. The Company reserves the absolute right at its sole and exclusive
discretion either to fund the obligations of the Company undertaken by this Plan via a Rabbi trust
or to refrain from funding the same, and to determine the extent, nature, and method of such
funding. The Company reserves the absolute right, in its sole discretion, to terminate any funding
program, at any time, either in whole or in part, that it may establish. At no time shall the
Participant be deemed to have any right, title, or interest in any specified asset or assets of the
Company or any such Rabbi trust. This Plan shall not be construed as a giving the Participant or
the Participant’s beneficiary any greater rights than those of any other unsecured general creditor
of the Company.

8.      Amendment and Termination. Upon receiving the approval of the CNG Committee, the
Company shall have the right, in its sole discretion, to amend the Plan at any time, and from time
to time, in whole or in part, for any reason, including without limitation compliance with the
American Jobs Creation Act of 2004. Except as may be provided in Section 16, upon receiving the
approval of the CNG Committee, the Company may terminate the Plan at any time and for any reason.
In all cases, no such amendment or termination may deprive a Participant or Participant’s
beneficiary of any benefit which has been accrued as of the date of such amendment or termination.

9.      Administration. The Company shall be responsible, except for duties specifically vested
in the CNG Committee, for the administration of the provisions of the Plan. The Company shall have
the discretionary authority to interpret and construe the terms of the Plan and to resolve all
issues arising under the Plan consistent with the terms of the Plan. The discretionary authority
of the Company shall also include, but is not limited to, the authority to (a) determine the
amount, if any, of benefits to which any Participant or beneficiary is entitled; (b) determine the
timing of payment of benefits; (c) resolve all other issues arising under the Plan; and (d) engage
any investment advisors, actuaries, accountants, lawyers or other professionals to aid in the

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administration of the Plan. As such, benefits will only be paid if the Company determines that a
person is entitled to them.

10.      Claim Procedures.

	 	(a)	 	Initial Action. All claims for benefits under this Plan shall be made
by filing a written claim with the Company which shall set forth sufficient evidence of
entitlement to such benefits. The Company shall notify the claimant in writing as to
the amount of benefits to which he or she is entitled, the timing of payments of
benefits, and any other pertinent information. If a claim for benefits is denied, in
whole or in part, the Company shall provide adequate notice in writing to the claimant
whose claim has been denied within 90 days after receipt of the claim unless special
circumstances require an extension of time for processing the claim. Claimants shall
be notified in writing of any such extension of time. The notice of denial shall
provide specific reasons for the denial, shall make reference to any pertinent Plan
provisions on which the denial is based, and shall inform the claimant that any appeal
of the denial must be made by giving the Company, within 60 days after receipt of the
notice of the denial, written notice of such appeal which describes the pertinent
issues and the basis of the claim. In the event of any appeal, a claimant or his or
her duly authorized representative may review pertinent documents upon request or
submit any relevant materials to support his or her claim. If a claimant fails to
timely file an appeal, the Company’s adverse determination shall be final, binding and
conclusive.
	 
	 	(b)	 	Appeal. If the Company receives a timely notice of appeal of a denial,
such notice and all relevant materials shall be immediately submitted to the Company.
The Company may hold a hearing or otherwise ascertain such facts as it deems necessary
and shall render a decision on the appeal. The decision of the Company shall be made
within 60 days after the receipt by the Company of the notice of appeal unless special
circumstances require an extension of time for processing the appeal. Claimants shall
be notified in writing of any such extension of time. The Company’s decision shall be
in writing and shall provide specific reasons for the decision and shall make reference
to any pertinent Plan provisions on which the decision is based. The Company’s
determination on appeal shall be final, binding and conclusive.
	 
	 	(c)	 	Legal Action. No legal or equitable action shall be brought in any
court until after the claim procedure set forth in this Section 10 has been fully
exhausted.

11.      Governing Law. The laws of the state of Illinois shall govern the Plan, except to the
extent superseded by applicable federal law, including, but not limited to, the American Jobs
Creation Act of 2004.

12.      Severability. If any provision of this Plan shall for any reason be held to be invalid
or unenforceable, such invalidity or unenforceability shall not affect any other provision thereof,
but this Plan will be given effect in such a manner as will best carry out the purposes and
intentions of the parties.

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13.       No Contract of Employment. This Plan shall not be deemed to constitute a contract of
employment.

14.       Plan Year. The Plan shall be administered on a calendar year basis, except that in
2005 there shall be a “short” plan year ending December 31, 2005.

15.      Withholding from Payments. The Company shall withhold from any amounts payable under
the Plan all federal, state, city and local taxes as shall be legally required.

16.      Successors. The Plan shall not be terminated by a transfer or sale of substantially
all of the assets of the Company or by the merger or consolidation of the Company into or with any
other corporation or entity in which the Company is not the surviving entity. The Plan shall be
continued after such sale, merger, or consolidation and the transferee, purchaser, or successor
entity shall be required as part of such sale, merger or consolidation to agree to such
continuation.

17.      FICA Tax Obligation. Without limiting the provisions of Section 15 hereof, any
applicable FICA tax obligations are the responsibility of the Participant. In no event shall the
payment of FICA taxes by the Participant give him any rights other than those expressly provided
for in this Plan.

     IN WITNESS WHEREOF, the Company has caused this Plan to be duly executed on the date set forth
below.

	 	 	 	 	 
	 

	 	JOHN B. SANFILIPPO & SON, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Michael J. Valentine___
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Its:
	 	Executive Vice President Finance,
	 

	 	 	 	Chief Financial Officer and Secretary
	 
	 	 	 	 
	 

	 	Date:
	 	August 25, 2005

6exv10w57

 

EXHIBIT 10.57

GRANT AGREEMENT

pursuant to

THE JOHN B. SANFILIPPO & SON, INC.

1998 EQUITY INCENTIVE PLAN

as Amended October 26, 2000

between

and

JOHN B. SANFILIPPO & SON, INC.

 

Grant of Incentive Stock Option

for                     Shares at                    per Share

 

 

GRANT AGREEMENT

pursuant to

THE JOHN B. SANFILIPPO & SON, INC.

1998 EQUITY INCENTIVE PLAN

THIS GRANT AGREEMENT (the “Grant Agreement”) is made as of this ___(the “Grant Date”), by
___, an Employee of the Company (the “Optionee”) and John B. Sanfilippo & Son, Inc., a
Delaware corporation (the “Company”). By executing this Grant Agreement, the Optionee agrees to be
bound by the terms hereof and by the terms of The John B. Sanfilippo & Son, Inc. 1998 Equity
Incentive Plan (the “Plan”). Capitalized terms used but not otherwise defined herein shall have
the meaning ascribed thereto under the Plan.

INTRODUCTION

1.       The Company and its stockholders have adopted the Plan, a copy of which is attached hereto as
Exhibit A and made a part hereof, for the purpose of increasing ownership of Common Stock, $.01 par
value (“Common Stock”), of the Company by those key employees of the Company and its subsidiaries
(including officers and directors who are also officers) and Outside Directors (as defined in the
Plan) who contribute to the continued growth, development and financial success of the Company and
its subsidiaries, and to attract and retain key employees and reward them for the Company’s
profitable performance.

2.       The Company, pursuant to the terms of the Plan, has determined to grant, and the Optionee has
determined to accept, an option for the purchase of shares of Common Stock.

TERMS OF THE GRANT

      The Company and the Optionee hereby agree to the following terms and conditions governing the
grant of the option to purchase shares of Common Stock:

1.       Grant. The Company hereby grants to the Optionee an option (the “Option”) to purchase
___shares (the “Option Shares”) of Common Stock on the terms and conditions set forth herein
and in the Plan. The number of Option Shares shall be subject to adjustments as provided in
Section 4 below.

2.      Option Price. The price per share at which the Optionee may exercise the Option to
purchase the Option Shares is ___(the “Option Price”). The Option Price shall be subject to
adjustments as provided in Section 4 below.

 

 

3.      Exercise of Option and Option Period.

(a)      Subject to the conditions set forth herein and in the Plan (including without limitation the
terms and conditions set forth in Section 14 of the Plan), the Optionee may exercise the Option
granted herein from time to time, until the Option shall terminate or expire, in equal installments
of 25% of the total number of the Option Shares on each of the first, second, third and fourth
anniversaries of the Grant Date; provided, however, that the Optionee remains an Employee (as such
term is defined in the Plan) of the Company on each such anniversary. To the extent not exercised,
installments shall be cumulative and may be exercised in whole or in part.

(b)      The Option granted herein shall be exercised, in whole or in part, by delivery to the Company’s
treasurer of written notice of intent to purchase a specific whole number of Option Shares subject
to the Option. The Option Price for any Option Shares as to which the Option granted herein is
exercised shall be paid in full at the time of the exercise. Payment may, at the election of the
Optionee, be made in: (i) cash; (ii) shares of Common Stock valued at their Fair Market Value (as
defined under Subsection 1.15 of the Plan) on the Date of Exercise; (iii) surrender of an
exercisable Option granted under the Plan that covers shares of Common Stock with an aggregate Fair
Market Value as of the date of exercise in excess of the aggregate dollar amount of the Option
Prices (as defined under Subsection 1.23 the Plan) of such Shares under such Option equal to the
Option Price for the Shares as to which the Option hereunder granted is being exercised; (iv)
through delivery of irrevocable instructions to a broker to deliver promptly to the Company an
amount in cash equal to the Option Price for the Shares as to which the Option granted herein is
being exercised; or (v) any combination of the foregoing.

(c)      The Option granted herein may not be exercised later than five (5) years, in the case of an
Incentive Stock Option granted to a Ten Percent Owner (as defined in the Plan) from the Grant Date
and is subject to earlier termination as provided in the Plan.

4.      Adjustments. In the event of any change in the outstanding Common Stock of the Company
by reason of any stock dividend, stock split, reverse stock split, merger, recapitalization, share
combination, consolidation, reorganization, conversion, exchange of shares or the like, the number
of shares of Common Stock or securities subject to the Option granted herein and the Option Price,
as the case may be, shall be appropriately adjusted to equitably reflect such event. If, prior to
the exercise of any portion of the Option granted herein, the Company shall consolidate or merge
with another corporation or liquidate, Optionee shall thereafter receive upon exercise of the
Option the securities or property to which a holder of the number of shares of Common Stock
deliverable upon the exercise of the Option would have been entitled by reason of such
consolidation, merger or liquidation.

5.       Acknowledgment of Incentive Stock Option Designation. The parties hereby acknowledge
that the Option granted herein is intended to be an Incentive Stock Option (as defined in the Plan)
that, in addition to the other provisions of the Plan, shall be subject to the terms and conditions
of Subsection 6.4 of the Plan.

 

 

6.      Compliance with Securities Laws and Company Policy. The Optionee may not offer, sell or
otherwise dispose of any Option Shares in a way that would (i) require the Company to file any
registration statement with the Securities and Exchange Commission, any similar filing under state
law, or to amend or supplement any such filing, or (ii) violate or cause the Company to violate the
Securities Act of 1933, as amended, the rules and regulations promulgated thereunder or any other
state or federal law. The Optionee will observe any and all policies of the Company when offering,
selling or otherwise disposing of the Option Shares.

7.       Non-transferability. The Option granted herein is not assignable or transferable other
than by will or the laws of descent and distribution and may be exercised, during the Optionee’s
lifetime, only by the Optionee.

8.      Governing Law. This Grant Agreement shall be governed, construed and administered in
accordance with the laws of the State of Delaware, except its laws with respect to choice of law.

IN
WITNESS WHEREOF, the parties hereto have executed this Grant
Agreement as of this
                     day
of
                    ,                    .

	 	 	 	 	 	 	 
	JOHN B. SANFILIPPO & SON, INC.	 	 	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 

	 	Michael Valentine	 	 	 	 
	Its: Executive Vice President of Finance,	 	 	 	 
	 

	 	Chief Financial Officer, Secretary

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