Document:

Supervalu Inc. 2002 Stock Plan, as amended

 Exhibit 10.1 
  
 SUPERVALU INC. 
 2002 STOCK PLAN 
  
 Section 1.
Purpose. 
  
 The purpose of the Plan is to promote the
interests of the Company and its stockholders by aiding the Company in attracting and retaining key management personnel for the Company and its Affiliates as well as non-employee directors for the Company, capable of assuring the future success of
the Company and its Affiliates; to offer such individuals incentives to put forth maximum efforts for the success of the Company’s business; and, to afford such individuals an opportunity to acquire a proprietary interest in the Company.

  
 Section 2. Definitions. 
  
 As used in the Plan, the following terms shall have the meanings set forth
below: 
  
 (a) “Affiliate” shall mean (i) any entity
that, directly or indirectly through one or more intermediaries, is controlled by the Company and (ii) any entity in which the Company has a significant equity interest, in each case as determined by the Committee. 
  
 (b) “Award” shall mean any Option, Stock Appreciation Right,
Restricted Stock, Restricted Stock Unit, Performance Award, or Other Stock-Based Award granted under the Plan. 
  
 (c) “Award Agreement” shall mean any written agreement, contract or other instrument or document evidencing any Award granted under the Plan.
Each Award Agreement shall be subject to the applicable terms and conditions of the Plan and any other terms and conditions (not inconsistent with the Plan) determined by the Committee. 
  
 (d) “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, and any regulations
promulgated thereunder. 
  
 (e) “Committee” shall mean a
committee of the Board of Directors of the Company designated by such Board to administer the Plan. The Committee shall be comprised of not less than such number of directors as shall be required to permit Awards granted under the Plan to qualify
under Rule 16b-3, and each member of the Committee shall be a “Non-Employee Director” within the meaning of Rule 16b-3 and an “outside director” within the meaning of Section 162(m) of the Code. The Company expects to have the
Plan administered in accordance with the requirements for the award of “qualified performance-based compensation” within the meaning of Section 162(m) of the Code. 
  
 (f) “Company” shall mean SUPERVALU INC., a Delaware corporation, and any successor corporation. 
  
 (g) “Eligible Person” shall mean any employee, officer, consultant
or independent contractor providing services to the Company or any Affiliate, who the Committee determines to be an Eligible Person, or any director of the Company who is not an employee of the Company or an Affiliate. 
  
 (h) “Fair Market Value” shall mean, with respect to any property
(including, without limitation, any Shares or other securities), the fair market value of such property determined by such methods or procedures as shall be established from time to time by the Committee. Notwithstanding the foregoing, unless
otherwise determined by the Committee, the Fair Market Value of Shares on a given date for purposes of the Plan shall be the average of the opening and closing sale price of the Shares as reported on the New York Stock Exchange on such date or, if
such Exchange is not open for trading on such date, on the day closest to such date when such Exchange is open for trading. 
  
 (i) “Incentive Stock Option” shall mean an option to purchase Shares that is granted under Section 6(a) of the Plan and intended to meet the
requirements of Section 422 of the Code or any successor provision. 

 (j) “Non-Qualified Stock Option” shall mean an option to purchase Shares that is granted under
Section 6(a) of the Plan and is not intended to be an Incentive Stock Option. 
  
 (k) “Option” shall mean an option to purchase Shares that is granted under Section 6(a) of the Plan as an Incentive Stock Option or a Non-Qualified Stock Option, and shall include Restoration Options.

  
 (l) “Other Stock-Based Award” shall mean any right
granted under Section 6(e) of the Plan. 
  
 (m)
“Participant” shall mean an Eligible Person that is granted an Award under the Plan. 
  
 (n) “Performance Award” shall mean any right granted under Section 6(d) of the Plan. 
  
 (o) “Person” shall mean any individual, corporation, partnership, association or trust. 
  
 (p) “Plan” shall mean this SUPERVALU INC. 2002 Stock Plan, as
amended from time to time. 
  
 (q) “Restoration Option”
shall mean any Option granted under Section 6(a)(iv) of the Plan. 
  
 (r) “Restricted Stock” shall mean any Share granted under Section 6(c) of the Plan. 
  
 (s) “Restricted Stock Unit” shall mean any unit granted under Section 6(c) of the Plan evidencing the right to receive a Share (or a cash
payment equal to the Fair Market Value of a Share) at some future date. 
  
 (t) “Rule 16b-3” shall mean Rule 16b-3 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended, or any successor rule or regulation. 
  
 (u) “Share” shall mean a share of the common stock of the Company,
par value $1.00 per share, or such other security or property as may become subject to an Award pursuant to an adjustment made under Section 4(c) of the Plan. 
  

(v) “Stock Appreciation Right” shall mean any right granted under Section 6(b) of the Plan. 
  
 Section 3. Administration. 
  
 (a) Power and Authority of the Committee. The Plan shall be
administered by the Committee. Subject to the express provisions of the Plan and applicable law, the Committee shall have full power and authority to: (i) designate Eligible Persons and Participants; (ii) determine the type or types of Awards to be
granted to each Participant under the Plan; (iii) determine the number of Shares to be covered by (or with respect to which payments, rights or other matters are to be calculated in connection with) each Award; (iv) determine the terms and
conditions of any Award or Award Agreement; (v) amend the terms and conditions of any Award or Award Agreement and accelerate the vesting or exercisability of Options, or the lapse of restrictions relating to Restricted Stock, Restricted Stock Units
or other Awards; provided however, that no such amendment shall amend the exercise price of any Option or Stock Appreciation Rights previously granted, except for any adjustment made under Section 4(c) of the Plan, without the approval of the
Company’s stockholders; (vi) determine whether, to what extent and under what circumstances Awards may be exercised in cash, Shares, other securities, other Awards or other property, or canceled, forfeited or suspended; (vii) determine whether,
to what extent and under what circumstances cash, Shares, other securities, other Awards, other property and other amounts payable with respect to an Award under the Plan shall be deferred either automatically or at the election of the holder
thereof or the Committee; (viii) interpret and administer the Plan and any instrument or agreement, including an Award Agreement, relating to the Plan; (ix) establish, amend, suspend or waive such rules and regulations and appoint such agents as it
shall deem appropriate for the proper administration of the Plan; and (x) make any other determination and take any other action that the Committee deems necessary or desirable for the administration of the Plan. Unless otherwise expressly provided
in the Plan, all designations, determinations, interpretations and other decisions under or with respect to the Plan or any Award shall be within the sole discretion of the Committee, may be made at any time and shall be final, conclusive and
binding upon any Eligible Person or Participant, any holder or beneficiary of any Award and any employee of the Company or any Affiliate. 

 (b) Delegation. The Committee may delegate its powers and duties under the Plan to one or more
directors or officers of the Company, or to a committee of directors or officers, subject to such terms, conditions and limitations as the Committee may establish in its sole discretion; provided, however, that the Committee shall not delegate its
powers and duties under the Plan (i) with regard to officers or directors of the Company or any Affiliate who are subject to Section 16 of the Securities Exchange Act of 1934, (ii) in such a manner as would cause the Plan not to comply with the
requirements of Section 162(m) of the Code or (iii) in such a manner as would contravene Section 157 of the Delaware General Corporation Law. 
  
 (c) Power and Authority of the Board of Directors. Notwithstanding anything to the contrary contained herein, the Board of Directors may, at any
time and from time to time, without any further action of the Committee, exercise the powers and duties of the Committee under the Plan. 
  
 Section 4. Shares Available for Awards. 
  

(a) Shares Available. Subject to adjustment as provided in Section 4(c), the aggregate number of Shares that may be issued under all Awards
under the Plan shall be 13,000,000, of which 7,500,000 shares shall be reserved solely for the grant of Awards designated as stock options. Shares to be issued under the Plan may be either Shares reacquired and held in the treasury or authorized but
unissued Shares. If any Shares covered by an Award or to which an Award relates are not purchased or are forfeited, or if an Award otherwise terminates or is settled without delivery of any Shares, then the number of Shares counted against the
aggregate number of Shares available under the Plan with respect to such Award, to the extent of any such forfeiture, termination or settlement, shall again be available for granting Awards under the Plan. Any shares tendered in payment of the
exercise price of an Option granted under the Plan or an option granted under any other stock plan of the Company shall be credited to the number of Shares available for grant under the Plan; provided however, that with respect to any Option granted
under the Plan commencing June 15, 2005, and thereafter, any shares of the Company’s common stock that are tendered in payment of the exercise price of such Option shall no longer be credited to the number of Shares available for grant under
the Plan. 
  
 (b) Accounting for Awards. For purposes of
this Section 4, if an Award entitles the holder thereof to receive or purchase Shares, the number of Shares covered by such Award or to which such Award relates shall be counted on the date of grant of such Award against the aggregate number of
Shares available for granting Awards under the Plan. 
  
 (c)
Adjustments. In the event that the Committee shall determine that any dividend or other distribution (whether in the form of cash, Shares, other securities or other property), recapitalization, stock split, reverse stock split,
reorganization, merger, consolidation, split-up, spin-off, combination, repurchase or exchange of Shares or other securities of the Company, issuance of warrants or other rights to purchase Shares or other securities of the Company or other similar
corporate transaction or event affects the Shares such that an adjustment is determined by the Committee to be appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the
Plan, then the Committee shall, in such manner as it may deem equitable, adjust any or all of (i) the number and type of Shares (or other securities or other property) which thereafter may be made the subject of Awards, (ii) the number and type of
Shares (or other securities or other property) subject to outstanding Awards and (iii) the purchase or exercise price with respect to any Award; provided, however, that the number of Shares covered by any Award or to which such Award relates shall
always be a whole number. 
  
 (d) Award Limitations Under the
Plan. No Eligible Person, who is an employee of the Company at the time of grant, may be granted any Option, Stock Appreciation Right or Other Stock-Based Award (the value of which is based solely on an increase in the value of the Shares after
the date of grant) for more than 500,000 Shares (subject to adjustment as provided for in Section 4(c)), taking into account all such awards granted by the Company pursuant to any of its stock compensation plans, in any calendar year period
beginning with the period commencing January 1, 2002. The foregoing annual limitation specifically includes the grant of any Awards representing “qualified performance-based compensation” within the meaning of Section 162(m) of the Code.

 Section 5. Eligibility. 
  
 Any Eligible Person, including any Eligible Person who is an officer or
director of the Company or any Affiliate, shall be eligible to be designated a Participant. In determining which Eligible Persons shall receive an Award and the terms of any Award, the Committee may take into account the nature of the services
rendered by the respective Eligible Persons, their present and potential contributions to the success of the Company or such other factors as the Committee, in its discretion, shall deem relevant. Notwithstanding the foregoing, an Incentive Stock
Option may only be granted to full-time or part-time employees (which term as used herein includes, without limitation, officers and directors who are also employees) and an Incentive Stock Option shall not be granted to an employee of an Affiliate
unless such Affiliate is also a “subsidiary corporation” of the Company within the meaning of Section 424(f) of the Code or any successor provision. 
  

Section 6. Awards. 
  
 (a) Options. The Committee is hereby authorized to grant Options to Participants with the following terms and conditions and with such additional
terms and conditions not inconsistent with the provisions of the Plan as the Committee shall determine: 
  
 (i) Exercise Price. The purchase price per Share purchasable under an Option shall be determined by the Committee; provided, however, that such
purchase price shall not be less than 100% of the Fair Market Value of a Share on the date of grant of such Option and shall not be adjusted thereafter except as provided for in Section 4(c) of the Plan. 
  
 (ii) Option Term. The term of each Option shall be fixed by the
Committee, but shall not exceed seven years for Options granted after April 1, 2005, except for Restoration Options granted with respect to previously granted Options pursuant to clause (iv) below. 
  
 (iii) Time and Method of Exercise. The Committee shall determine the
time or times at which an Option may be exercised in whole or in part and the method or methods by which, and the form or forms (including, without limitation, cash, Shares, promissory notes, other securities, other Awards or other property, or any
combination thereof, having a Fair Market Value on the exercise date equal to the relevant exercise price) in which, payment of the exercise price with respect thereto may be made or deemed to have been made. 
  
 (iv) Restoration Options. The Committee may grant Restoration Options,
separately or together with another Option, pursuant to which, subject to the terms and conditions established by the Committee and any applicable requirements of law, the Participant would be granted a new Option when the payment of the exercise
price of the option to which such Restoration Option relates is made by the delivery of Shares pursuant to the relevant provisions of the plan or agreement relating to such option, which new Option would be an Option to purchase the number of Shares
not exceeding the sum of (A) the number of Shares so provided as consideration upon the exercise of the previously granted option to which such Restoration Option relates, (B) the number of Shares, if any, tendered or withheld as payment of the
amount required to be withheld under applicable tax laws in connection with the exercise of the option to which such Restoration Option relates, and (C) the number of previously owned Shares, if any, tendered as payment for additional tax
obligations of the Participant in connection with the exercise of the option to which such Restoration Option relates pursuant to the relevant provisions of the plan or agreement relating to such option. Restoration Options may be granted with
respect to options previously granted under the Plan or any other stock option plan of the Company, and may be granted in connection with any option granted under the Plan or any other stock option plan of the Company at the time of such grant. Such
Restoration Options shall have a per share exercise price equal to the Fair Market Value of one Share as of the date of grant of the new Option. Any Restoration Option shall be subject to availability of sufficient Shares for grant under the Plan.
Shares surrendered as part or all of the exercise price of the Option to which it relates that have been owned by the optionee less than six months will not be counted for purposes of determining the number of Shares that may be purchased pursuant
to a Restoration Option. Notwithstanding the foregoing, no Restoration Option shall be granted in connection with Options granted under the Plan or any other stock option plan of the Company after April 1, 2005. 
  
 (b) Stock Appreciation Rights. The Committee is hereby authorized to
grant Stock Appreciation Rights to Participants subject to the terms of the Plan and any applicable Award Agreement. A Stock Appreciation Right granted under the Plan shall confer on the holder thereof a right to receive 

 
upon exercise thereof the excess of (i) the Fair Market Value of one Share on the date of exercise (or, if the Committee shall so determine, at any time
during a specified period before or after the date of exercise) over (ii) the grant price of the Stock Appreciation Right as specified by the Committee, which price shall not be less than 100% of the Fair Market Value of one Share on the date of
grant of the Stock Appreciation Right. Subject to the terms of the Plan and any applicable Award Agreement, the grant price, term, methods of exercise, dates of exercise, methods of settlement and any other terms and conditions of any Stock
Appreciation Right shall be as determined by the Committee. The Committee may impose such conditions or restrictions on the exercise of any Stock Appreciation Right as it may deem appropriate. 
  
 (c) Restricted Stock and Restricted Stock Units. The Committee is
hereby authorized to grant Awards of Restricted Stock and Restricted Stock Units to Participants with the following terms and conditions and with such additional terms and conditions not inconsistent with the provisions of the Plan as the Committee
shall determine: 
  
 (i) Restrictions. Shares of
Restricted Stock and Restricted Stock Units shall be subject to such restrictions as the Committee may impose (including, without limitation, any limitation on the right to vote a Share of Restricted Stock or the right to receive any dividend or
other right or property with respect thereto), which restrictions may lapse separately or in combination at such time or times, in such installments or otherwise as the Committee may deem appropriate. 
  
 (ii) Stock Certificates. Any Restricted Stock granted under the Plan
shall, at the option of the Company, be evidenced by book entry Shares held in the Participant’s name on the records of the Company’s transfer agent or by issuance of a stock certificate or certificates, which certificate or certificates
shall be held by the Company. Such book entry Shares or certificate or certificates shall be registered in the name of the Participant and shall bear an appropriate legend referring to the terms, conditions and restrictions applicable to such
Restricted Stock. In the case of Restricted Stock Units, no Shares shall be issued at the time such Awards are granted. 
  
 (iii) Forfeiture; Delivery of Shares. Except as otherwise determined by the Committee, upon termination of employment (as determined under criteria
established by the Committee) during the applicable restriction period, all Shares of Restricted Stock and all Restricted Stock Units at such time subject to restriction shall be forfeited and reacquired by the Company; provided, however, that the
Committee may, when it finds that a waiver would be in the best interest of the Company, waive in whole or in part any or all remaining restrictions with respect to Shares of Restricted Stock or Restricted Stock Units. Any Share representing
Restricted Stock that is no longer subject to restrictions shall be delivered to the holder thereof promptly after the applicable restrictions lapse or are waived. Upon the lapse or waiver of restrictions and the restricted period relating to
Restricted Stock Units evidencing the right to receive Shares, such Shares shall be issued and delivered to the holders of the Restricted Stock Units. 
  
 (d) Performance Awards. The Committee is hereby authorized to grant Performance Awards to Participants subject to the terms of the Plan and any
applicable Award Agreement. A Performance Award granted under the Plan (i) may be denominated or payable in cash, Shares (including, without limitation, Restricted Stock), other securities, other Awards or other property and (ii) shall confer on the
holder thereof the right to receive payments, in whole or in part, upon the achievement of such performance goals during such performance periods as the Committee shall establish. Subject to the terms of the Plan and any applicable Award Agreement,
the performance goals to be achieved during any performance period, the length of any performance period, the amount of any Performance Award granted, the amount of any payment or transfer to be made pursuant to any Performance Award and any other
terms and conditions of any Performance Award shall be determined by the Committee. 
  
 (e) Other Stock-Based Awards. The Committee is hereby authorized to grant to Participants such other Awards that are denominated or payable in, valued in whole or in part by reference to, or otherwise based on
or related to, Shares (including, without limitation, securities convertible into Shares), as are deemed by the Committee to be consistent with the purpose of the Plan; provided, however, that such grants must comply with applicable law. Subject to
the terms of the Plan and any applicable Award Agreement, the Committee shall determine the terms and conditions of such Awards. Shares or other securities delivered pursuant to a purchase right granted under this Section 6(e) shall be purchased for
such consideration, which may be paid by such method or methods and in such form or forms (including without limitation, cash, Shares, promissory notes, other securities, other Awards 

 
or other property or any combination thereof) as the Committee shall determine, the value of which consideration, as established by the Committee, shall not
be less than 100% of the Fair Market Value of such Shares or other securities as of the date such purchase right is granted. 
  
 (f) General. 
  
 (i) Consideration for Awards. Awards may be granted for no cash consideration or for other consideration as may be determined by the Committee or
required by applicable law. 
  
 (ii) Awards May Be Granted
Separately or Together. Awards may, in the discretion of the Committee, be granted either alone or in addition to, in tandem with or in substitution for any other Award or any award granted under any plan of the Company or any Affiliate other
than the Plan. Awards granted in addition to or in tandem with other Awards or in addition to or in tandem with awards granted under any such other plan of the Company or any Affiliate may be granted either at the same time as or at a different time
from the grant of such other Awards or awards. 
  
 (iii) Forms
of Payment under Awards. Subject to the terms of the Plan and of any applicable Award Agreement, payments or transfers to be made by the Company or an Affiliate upon the grant, exercise or payment of an Award may be made in such form or forms as
the Committee shall determine (including, without limitation, cash, Shares, promissory notes, other securities, other Awards or other property or any combination thereof), and may be made in a single payment or transfer, in installments or on a
deferred basis, in each case in accordance with rules and procedures established by the Committee. Such rules and procedures may include, without limitation, provisions for the payment or crediting of reasonable interest on installment or deferred
payments. 
  
 (iv) Limits on Transfer of Awards. No Award
and no right under any such Award shall be transferable by a Participant other than by will or by the laws of descent and distribution; provided, however, that, if so determined by the Committee, a Participant may, in the manner established by the
Committee, transfer Non-Qualified Stock Options or designate a beneficiary or beneficiaries to exercise the rights of the Participant and receive any property distributable with respect to any Award upon the death of the Participant. Each Award or
right under any such Award shall be exercisable during the Participant’s lifetime only by the Participant (except as otherwise provided in an Award Agreement or amendment thereto relating to a Non-Qualified Stock Option pursuant to terms
determined by the Committee) or, if permissible under applicable law, by the Participant’s guardian or legal representative. No Award or right under any such Award may be pledged, alienated, attached or otherwise encumbered, and any purported
pledge, alienation, attachment or encumbrance thereof shall be void and unenforceable against the Company or any Affiliate. 
  
 (v) Term of Awards. Except as provided in Section 6(a)(ii), the term of each Award shall be for such period as may be determined by the
Committee. 
  
 (vi) Restrictions; Securities Exchange
Listing. All Shares or other securities delivered under the Plan pursuant to any Award or the exercise thereof shall be subject to such stop transfer orders or other restrictions as the Committee may deem advisable under the Plan or the rules,
regulations and other requirements of the Securities and Exchange Commission and any applicable federal or state securities laws, and the Committee may cause a legend or legends to be placed on the certificates for such shares or other securities to
reflect such restrictions. If the Shares or other securities are traded on a securities exchange, the Company shall not be required to deliver any Shares or other securities covered by an Award unless and until such Shares or other securities have
been admitted for trading on such securities exchange. 
  
 Section 7. Amendment and Termination; Adjustments. 
  
 (a) Amendments to the Plan. The Board of Directors of the Company may amend, alter, suspend, discontinue or terminate the Plan; provided, however, that, notwithstanding any other provision of the Plan or any Award Agreement, without
the approval of the stockholders of the Company, no such amendment, alteration, suspension, discontinuation or termination shall be made that, absent such approval: 
  
 (i) would violate the rules or regulations of the New York Stock Exchange, any other securities exchange or the National
Association of Securities Dealers, Inc. that are applicable to the Company; or 

 (ii) would cause the Company to be unable, under the Code, to grant Incentive Stock Options under the
Plan; or 
  
 (iii) would amend the exercise price of any Option or
Stock Appreciation Rights previously granted, except for any adjustment made under Section 4(c) of the Plan; or 
  
 (iv) would allow exercise price of any Option or the grant price of any Stock Appreciation Right to be less than 100% of the Fair Market Value of one
Share on the date such Option or Stock Appreciation Right is granted. 
  
 (b) Amendments to Awards. Subject to the provisions of the Plan, the Committee may waive any conditions of or rights of the Company under any outstanding Award, prospectively or retroactively. The Committee may not amend, alter,
suspend, discontinue or terminate any outstanding Award, prospectively or retroactively, in any manner that adversely affects any Award, without the consent of the Participant or holder or beneficiary thereof, except as otherwise herein provided or
in an Award Agreement. 
  
 (c) Correction of Defects, Omissions
and Inconsistencies. The Committee may correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Award in the manner and to the extent it shall deem desirable to carry the Plan into effect. 
  
 Section 8. Income Tax Withholding and Payment.

  
 In order to comply with all applicable federal or state
income tax laws or regulations, the Company may take such action as it deems appropriate to ensure that all applicable federal or state payroll, withholding, income or other taxes, which are the sole and absolute responsibility of a Participant, are
withheld or collected from such Participant. In order to assist a Participant in paying all or a portion of the federal and state taxes to be withheld or collected upon exercise or receipt of (or the lapse of restrictions relating to) an Award, the
Committee, in its discretion and subject to such additional terms and conditions as it may adopt, may permit the Participant to satisfy such tax obligation by (i) electing to have the Company withhold a portion of the Shares otherwise to be
delivered upon exercise or receipt of (or the lapse of restrictions relating to) such Award with a Fair Market Value equal to the amount of such taxes or (ii) delivering to the Company Shares other than Shares issuable upon exercise or receipt of
(or the lapse of restrictions relating to) such Award with a Fair Market Value equal to the amount of such taxes. In addition to the amounts required to be withheld to pay applicable taxes, subject to such terms and conditions as the Committee shall
determine in its sole and absolute discretion, the Committee may permit the Participant to elect to deliver to the Company Shares (other than Shares issuable upon exercise or receipt of (or the lapse of restrictions relating to) such Award) with a
Fair Market Value equal to the amount of such additional federal and/or state income taxes imposed on the Participant in connection with the exercise of the Award. All elections, if any, must be made on or before the date that the amount of tax to
be withheld is determined. 
  
 Section 9.
General Provisions. 
  
 (a) No Rights to Awards. No
Eligible Person, Participant or other Person shall have any claim to be granted any Award under the Plan, and there is no obligation for uniformity of treatment of Eligible Persons, Participants or holders or beneficiaries of Awards under the Plan.
The terms and conditions of Awards need not be the same with respect to any Participant or with respect to different Participants. 
  
 (b) Award Agreements. No Participant will have rights under an Award granted to such Participant unless and until an Award Agreement shall have
been duly executed on behalf of the Company and returned to the Company executed by the Participant. 
  
 (c) No Limit on Other Compensation Arrangements. Nothing contained in the Plan shall prevent the Company or any Affiliate from adopting or
continuing in effect other or additional compensation arrangements, and such arrangements may be either generally applicable or applicable only in specific cases. 
  
 (d) No Right to Employment. The grant of an Award shall not be construed as giving a Participant the right to be
retained in the employ of the Company or any Affiliate, nor will it affect in any 

 
way the right of the Company or an Affiliate to terminate such employment at any time, with or without cause. In addition, the Company or an Affiliate 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 Award Agreement. 
  
 (e) Governing Law. The validity, construction and effect of the Plan or any Award, and any rules and regulations
relating to the Plan or any Award, shall be determined in accordance with the laws of the State of Delaware. 
  
 (f) Severability. If any provision of the Plan or any Award is or becomes or is deemed to be invalid, illegal or unenforceable in any jurisdiction
or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to applicable laws, or if it cannot be so construed or deemed amended without, in the
determination of the Committee, materially altering the purpose or intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction or Award, and the remainder of the Plan or any such Award shall remain in full force and
effect. 
  
 (g) No Trust or Fund Created. Neither the Plan
nor any Award shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company or any Affiliate and a Participant or any other Person. To the extent that any Person acquires a right to
receive payments from the Company or any Affiliate pursuant to an Award, such right shall be no greater than the right of any unsecured general creditor of the Company or any Affiliate. 
  
 (h) No Fractional Shares. No fractional Shares shall be issued or delivered pursuant to the Plan or any Award, and
the Committee shall determine whether cash shall be paid in lieu of any fractional Shares or whether such fractional Shares or any rights thereto shall be canceled, terminated or otherwise eliminated. 
  
 (i) Headings. Headings are given to the Sections and subsections of
the Plan solely as a convenience to facilitate reference. Such headings shall not be deemed in any way material or relevant to the construction or interpretation of the Plan or any provision thereof. 
  
 Section 10. Effective Date of the Plan. 

 
 The Plan shall be effective as of April 10, 2002, subject to approval by
the stockholders of the Company within one year thereafter. 
  
 Section 11. Term of the Plan. 
  
 Unless the Plan shall have been discontinued or terminated as provided in Section 7(a), the Plan shall terminate on April 9, 2012. No Award shall be granted after the termination of the Plan. However, unless otherwise expressly provided in
the Plan or in an applicable Award Agreement, any Award theretofore granted may extend beyond the termination of the Plan, and the authority of the Committee provided for hereunder with respect to the Plan and any Awards, and the authority of the
Board of Directors of the Company to amend the Plan, shall extend beyond the termination of the Plan. 
  
 Amended 06/15/2005Employment Agreement between the Company and Mr. Gary White dated March 28, 2005

 EXHIBIT 10.35 
 [The Wet Seal, Inc. letterhead] 
  
 March 28, 2005 
  
 Mr. Gary White 
 22 Chandon 
 Newport Coast, CA 92657 
  

	 	Re:	 	Your Employment 

  
 Dear Gary: 
  
 This letter memorializes the agreement reached between you and The Wet Seal, Inc. (the “Company”) regarding your on-going employment as Senior
Vice President, Store Operations, Wet Seal Division. 
  
 Compensation and
Benefits 
  
 1.    Effective as of March
28, 2005, your base salary shall increase to Three Hundred and Seventy-Five Thousand Dollars per year. Such salary shall be payable to you in equal installments, on the Company’s regular paydays, minus customary payroll taxes, deductions and
withholding. 
  
 2.    Upon your signing this
letter agreement, you shall be granted, in the aggregate, 60,000 Company stock options, which options shall vest in three (3) equal installments of 20,000 options per year, on the first, second and third anniversary of this grant, provided that you
remain actively employed by the Company on each of these vesting dates. If your employment shall cease for any reason prior to any vesting date, any granted but not yet vested Stock Options shall be forfeited. 
  
 3.    Upon your signing this letter agreement, you shall
be awarded, in the aggregate, 200,000 shares of Restricted Stock in The Wet Seal, Inc, which award shall be subject to the conditions and restrictions set forth in The Wet Seal, Inc. 2005 Stock Incentive Plan (“The Plan”). Such Restricted
Stock shall be granted in two equal installments of 100,000 shares each (“Tranche 1” and “Tranche 2”) as follows: 
  
 (a)    Tranche 1 shall vest on the one year anniversary of this grant, provided that the weighted average closing
price of the Company’s Stock for any trailing 20 trading days (the “20-Day Average”) during the one-year period following this grant equals or exceeds $3.50 per share. 
  
 (b)    Upon the second year anniversary of this grant, Tranche 2 may vest in two equal
installments as follows: (i) 50,000 shares shall vest if the 20-Day Average at any time after the second year anniversary of the grant reaches or exceeds $4.00 per share, and (ii) 50,000 shares shall vest if the 20-Day Average at any time after the
second year anniversary of the grant reaches or exceeds $4.50 per share. 
  
 If
any of the shares of Restricted Stock awarded hereunder have not vested by the third anniversary of the date of this grant, such shares of Restricted Stock shall automatically be forfeited without the payment of any consideration to you. In any
event, all restricted shares are forfeited should the company no longer employ you. 
  
 4.    If you are actively employed on the date that annual bonuses are paid by the Company, you shall be eligible for consideration for a discretionary bonus of up to 50% of your base salary. The
amount of such bonus, if any, shall be in the sole and absolute discretion of the Company. 
  
 Severance 
  
 Subject to
the conditions set forth in below, in the event that your employment is involuntarily terminated without cause, within one year of the date on which you sign this letter agreement, you shall be eligible to receive a severance pay equivalent
to one years’ base salary. The payment of any severance pay hereunder is 

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expressly conditioned upon your signing and returning to the Company, and not revoking, a separation agreement and general release agreement, including all
standard terms for such agreements including a general release of any and all claims (whether known or unknown), which separation agreement and general release shall be in a form that is acceptable to the Company. In the event that your employment
is terminated with cause within two years of the date on which you sign this letter agreement, or is terminated with or without cause on or after the first anniversary of the date upon which you sign this letter agreement, or is
terminated as a result of your voluntary resignation, you shall not be eligible to receive any severance. 
  
 For purposes of this severance provision, “cause” shall exist for involuntarily terminating your employment if: (a) Your refuse to perform
services for the Company; (b) you fail or refuse to follow any lawful directive given to you by the Company; (c) you are convicted of (or plead nolo contendere or no contest to) a misdemeanor involving moral turpitude or a felony; (d) you
violate the Company’s Code of Conduct; or (e) you engage in other willful misconduct. Upon your involuntary termination for cause, you shall not be eligible for severance and your only entitlement shall be to receive any salary accrued, but not
yet paid, prior to the date of your involuntary termination for cause. 
  
 At-will Employment 
  
 You acknowledge understand
and agree that nothing in this letter agreement is intended to alter the “at-will” nature of your employment with the Company. This means that you have the right to resign at any time, for any reason, with or without notice, with or
without cause. Likewise, the Company (subject only to the severance provisions set forth above) has the right to terminate your employment at any time, for any reason, with or without notice, with or without cause. You further acknowledge,
understand and agree that no one other than the Company’s CEO is authorized to make any other representation on behalf of the Company regarding the duration or termination of your employment. This at-will employment relationship will remain in
full force and effect notwithstanding any changes that may occur in your position, title, pay or other terms or conditions of your employment. 
  
 Arbitration 
  
 This letter agreement shall be governed and construed in accordance with the laws of the State of California applicable to contracts entered into and
fully performed in California, without regard to principles of conflict of laws. Any controversy or claim arising out of or relating to this letter agreement, its enforcement or interpretation, or because of an alleged breach, default, or
misrepresentation in connection with any of its provisions, or arising out of or relating in any way to your employment with the Company or the termination thereof, shall be submitted to arbitration, to be held in Orange County, California, in
accordance with the Employment Rules and Procedures of the Judicial Arbitration and Mediation Service (“JAMS”) then in effect. If any arbitration or action at law or in equity, or any motion, is brought to enforce, interpret, or rescind
this letter agreement, the prevailing party shall be entitled to all of its costs in bringing and prosecuting said arbitration, action or motion, including its attorneys’ fees. 
  
 Complete Agreement 
  
 This letter agreement is an integrated document and it supersedes and replaces all prior or contemporaneous agreements (whether express or implied, oral
or written) concerning the subject matters hereto. The terms of this letter agreement may only be modified in a written agreement signed by you and the Company’s CEO. 

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 We are pleased that you have agreed to continue in your position with the Company. Please indicate your
acceptance of these terms, by signing and dating an original of this letter and returning it to me. 
  

	
	 Very truly yours,

	
	/s/    JOEL WALLER        
	 Joel Waller
 CEO, The Wet Seal Inc.

  
 ACCEPTED AND AGREED:

  

	
	 GARY WHITE

	
	 /s/    GARY WHITE

	 Signature

	
	 3.28.05

	 Date

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