Document:

Alliance GP, LLC Deferred Compensation Plan for Directors

 Exhibit 10.1 
 ALLIANCE GP, LLC 
 DIRECTORS ANNUAL RETAINER AND 
 DEFERRED COMPENSATION PLAN 

 Table of Contents 
  

					
	 	  	 	  	Page
	1.	  	DEFINITIONS	  	1
			
	2.	  	ADMINISTRATION	  	2
			
	3.	  	DIRECTORS	  	2
			
	4.	  	BENEFITS	  	2
			
	5.	  	GENERAL PROVISIONS	  	4

  

 - i - 

 ALLIANCE GP, LLC 
 DIRECTORS ANNUAL RETAINER AND 
 DEFERRED COMPENSATION PLAN 
 Preamble 
 WHEREAS, to help
attract and retain highly qualified individuals to serve as members of its Board of Directors, Alliance GP, LLC (the “Company”) desires to adopt a compensation plan for its non-employee directors, which provides for the payment of Annual
Retainers and permits them to electively defer all or part of their Annual Retainers in Phantom Units; 
 NOW, THEREFORE, the Company
does hereby adopt the Alliance GP, LLC Directors Annual Retainer and Deferred Compensation Plan (the “Plan”) as set forth herein, effective as of May 15, 2006. 
 1. DEFINITIONS 
 For
purposes of the Plan, the following terms shall have the meanings indicated: 
 “Account” means a ledger or notional account
established by the Company for a Director pursuant to Section 4.2. 
 “Annual Retainer” means, with respect to a year, the
cash amount of the annual retainer for Directors for such year as established by the Board. 
 “Beneficiary” means the person(s)
designated by a Director, on a form provided by and filed with the Company, to receive any benefits from the Plan payable in the event of his or her death. A Director may change his or her beneficiary designation at any time. If no Beneficiary is
designated by the Director or no designated Beneficiary survives the Director, the Beneficiary shall be the Director’s surviving spouse or, if none, his or her estate. 
 “Board” means the Board of Directors of the Company. 
 “Committee” means the Compensation Committee of the Board. 
 “Common Units” means the
Common Units of the Partnership. 
 “Director” means a member of the Board who is not also an employee of the Company or an
affiliate of the Company. 
 “Fair Market Value” means, as of any applicable date, the average closing sale price (or if
unavailable the last reported bid price) of a Common Unit for the ten trading days immediately preceding such date, as reported on the principal exchange or market on which the Common Units are traded as reported in The Wall Street Journal or such
other reporting service as approved by the Committee. 
 “Partnership” means Alliance Holdings GP, L.P. 
  

 1 

 “Phantom Unit” means a notional Common Unit. A Director shall not possess any rights of a
common unitholder of the Partnership with respect to a Phantom Unit. 
 “Termination” means a Director’s ceasing to be a
member of the Board for any reason. 
 2. ADMINISTRATION 
 2.1 Committee. The Plan shall be administered by the Committee. The Committee shall have the complete authority and power to interpret the Plan,
prescribe, amend and rescind rules relating to its administration, determine a Director’s (or Beneficiary’s) right to a payment, the amount of such payment, and to take all other actions necessary or desirable for the administration of the
Plan. All actions and decisions of the Committee shall be final and binding upon all Directors, Beneficiaries and other persons. 
 3. DIRECTORS 
 3.1 Directors. Each Director automatically shall be a participant in Section 4.1 of the Plan and may
elect to participate in the voluntary deferral program provided by Section 4.2 of the Plan. 
 4. BENEFITS

 4.1 Payment of Annual Retainer. Subject to a deferral election having been made by the Director pursuant to Section 4.2, on the
first business day of each calendar quarter beginning after the effective date of the Plan, the Company shall pay each person who is a Director on such date 25% of the Annual Retainer for such year. For the initial short calendar quarter beginning
May 15, 2006, such payment shall be equal to 12 1/2% of the Annual Retainer. If a person first becomes a
Director during a calendar quarter, such Director shall be paid a prorated amount (based on the number of days remaining in such calendar quarter) of the Annual Retainer otherwise payable for such full calendar quarter as soon as reasonably
practical following the date he or she first becomes a Director. 
 4.2 Elective Deferrals. Before each year that begins after
2006 (with respect to an individual who first becomes a Director during a year that begins after 2006, before the date on which he first becomes a Director), a Director may elect to have the payment of all or a designated portion of his or her
Annual Retainer for that year (or remaining part, as the case may be) deferred in Phantom Units until his or her Termination. The election shall be irrevocable for such year and shall be made on a form approved by the Committee. The deferrals shall
be taken ratably from each quarterly payment of his Annual Retainer made that year. 
 4.3 Accounts. The Company shall establish an
Account for each Director who has elected to defer payment of all or part of his or her Annual Retainer for a year for the purpose of reflecting the Company’s obligation to later pay the deferred Annual Retainer amount to him pursuant to the
Plan. 
 4.4 Crediting of Accounts. As of the first business day of each calendar quarter during a year (or, if later, the date the
individual first becomes a Director), the 
  

 2 

 Account of each Director who has made a deferral election with respect to his or her Annual Retainer for such year shall
be credited with a number of Phantom Units equal to the number of Common Units having a Fair Market Value on the beginning of such calendar quarter equal to the amount of Annual Retainer being deferred for such quarter. With respect to each Phantom
Unit credited to an Account, the Account shall be credited periodically with phantom (notional) distributions (e.g., minimum quarterly distributions made by the Partnership) equal in value to the distributions made by the Partnership with respect to
a Common Unit. Such phantom distributions shall be credited to the Account as additional Phantom Units on such applicable distribution dates based on the Fair Market Value per Common Unit on the applicable date. Fractional Phantom Units otherwise to
be credited to the Account shall be rounded up to a whole Phantom Unit. 
 4.5 Payment of Accounts. Upon a Director’s
Termination, the Company shall pay to such Director (or to his or her Beneficiary in case of the Director’s death) an amount of cash equal to the Fair Market Value (on such Termination date) of the Phantom Units credited to his or her Account.
Payment of Accounts shall be made on the first business day following the Director’s Termination, but not later than the end of the calendar year in which the Director’s Termination occurs or, if later, the 15th day of the third month
following such Termination. 
 4.6 Reorganization. Reclassification. Consolidation. Merger, or Sale. Any recapitalization,
reorganization, reclassification, split of Common Units, distribution or distribution of securities on Common Units, consolidation or merger of the Partnership, or sale of all or substantially all of the Partnership’s assets or other similar
transaction which is effected in such a way that holders of Common Units are entitled to receive (either directly or upon subsequent liquidation) cash, securities or assets with respect to or in exchange for Common Units is referred to herein as an
“Organic Change.” Upon the occurrence of an Organic Change, the Committee shall adjust the notional balance of Phantom Units in each Director’s Account to equitably credit the fair value of the change in the Common Units and/or the
distributions (of cash, securities or other assets) received or economic enhancement realized by the holders of the Common Units. 
 4.7
Unforeseeable Emergency. The Committee may accelerate the payment of all or part of a Director’s Account upon its determination that the Director has incurred an “unforeseeable emergency,” as defined in Section 409A of the
Internal Revenue Code, to the extent such accelerated payment would not result in the additional 20% tax being imposed on the Director by Section 409A. In addition, the Committee may, to the extent permitted by Section 409A, provide that
the Director’s deferral election shall automatically terminate upon any withdrawal due to an unforeseeable emergency. 
 4.8 Domestic
Relations Order. Payment of a Director’s Account may be made necessary to fulfill a domestic relations order (as defined in Section 414(p)(1)(B) of the Internal Revenue Code), to the extent such payment is permitted by
Section 409A and the regulations thereunder. 
  

 3 

 5. GENERAL PROVISIONS 
 5.1 Unfunded Obligation. The amounts to be paid to Directors pursuant to this Plan are unfunded obligations of the Company. The Company is not
required to segregate any monies from its general funds, to create any trusts, or to make any special deposits with respect to this obligation. Title to and beneficial ownership of any investments, including trust investments, which the Company may
make to fulfill this obligation shall at all times remain in the Company. Any investments and the creation or maintenance of any trust or notional accounts shall not create or constitute a trust or a fiduciary relationship between the Committee or
the Company (on one hand) and a Director (on the other hand), or otherwise create any vested or beneficial interest in any Director or his or her Beneficiary or his or her creditors in any assets of the Company whatsoever. The Directors (and
Beneficiaries) shall have no claim against the Company for any changes in the value of any Accounts and shall be general unsecured creditors of the Company with respect to any payment due under this Plan. 
 5.2 Incapacity of Director or Beneficiary. If the Committee finds that any Director or Beneficiary to whom a payment is payable under the Plan is
unable to care for his or her affairs because of illness or accident or is under a legal disability, any payment due (unless a prior claim therefore shall have been made by a duly appointed legal representative) at the discretion of the Committee,
may be paid to the spouse, child, parent or brother or sister of such Director or Beneficiary or to any person whom the Committee has determined has incurred expense for such Director or Beneficiary. Any such payment shall be a complete discharge of
the obligations of the Company under the provisions of the Plan. 
 5.3 Nonassignment. The right of a Director or Beneficiary to the
payment of any amounts under the Plan may not be assigned, transferred, pledged or encumbered in any manner nor shall such right or other interests be subject to attachment, garnishment, execution or other legal process. 
 5.4 Termination and Amendment. Subject to the following, the Board may from time to time amend, suspend or terminate the Plan, in whole or in
part, and if the Plan is suspended or terminated, the Board may reinstate any or all of its provisions. No amendment, suspension or termination of the Plan may impair the right of a Director or his or her Beneficiary to receive the benefit accrued
hereunder prior to the effective date of such amendment, suspension or termination. 
 Upon termination of the Plan, all Accounts shall be
paid subject to the following: (1) all arrangements of the Company and those entities that would be aggregated with the Company for purposes of Section 409A of the Code, if the same Director participated in all of the arrangements, are
terminated, (2) no payment other than payments that would be payable under the terms of the arrangements if the termination had not occurred are made within 12 months of the termination of the arrangements, (3) all payments are made within
24 months of the termination of the arrangements, and (4) the Company and such affiliates do not, within five years following the termination, adopt a new arrangement that would be aggregated within any of the terminated arrangements if the
same Director participated in both arrangements. 
  

 4 

 In addition to the above, all Accounts shall be paid, as determined by the Committee, upon the
termination of the Plan within the 30 days preceding or 12 months following a “change in control event” (as defined in regulations under Section 409A), provided that all substantially similar arrangements of the Company and such
affiliates are terminated and all participants under all substantially similar arrangements are required to receive all amounts of compensation deferred under the terminated arrangements within 12 months of the termination of the arrangements.

 Notwithstanding anything herein to the contrary, the Plan shall be construed and operated in such manner as necessary to comply with
Section 409A and the applicable regulations issued thereunder. 
 5.5 Applicable Law. Except to the extent preempted by
applicable federal law, the Plan shall be construed and governed in accordance with the laws of the State of Delaware. 
  

 5Amended and Restated 2004 Executive Severance Plan

 Exhibit 10.63 
 Smart & Final Inc. 
 Amended and Restated 
 2004 Executive Severance Plan 
 Amended and Restated 
 2004 Executive Severance Plan 

 CONTENTS 
  

					
	Article 1.	 	 Establishment, Term and Purpose
	  	3
			
	Article 2.	 	 Definitions
	  	4
			
	Article 3.	 	 Participation
	  	7
			
	Article 4.	 	 General Severance Benefits
	  	7
			
	Article 5.	 	 Change -in-Control Severance Benefits
	  	9
			
	Article 6.	 	 Excise Tax Equalization Payment
	  	12
			
	Article 7.	 	 Form and Timing of Severance Benefits
	  	13
			
	Article 8.	 	 Legal Remedies
	  	13
			
	Article 9.	 	 Outplacement Assistance
	  	13
			
	Article 10.	 	 Noncompetition
	  	14
			
	Article 11.	 	 Successors and Assignment
	  	14
			
	Article 12.	 	 Severability; Code Section 409A
	  	15
			
	Article 13.	 	 Miscellaneous
	  	15
		
	 Appendix
	  	18
		
	 Exhibit A
	  	19
		
	 Exhibit B
	  	20
		
	 Exhibit C
	  	23

  

 2 

 Smart & Final Inc. 
 Amended and Restated 
 2004 Executive Severance Plan 
 Introduction 
 The purpose of this Executive Severance
Pay Plan (the “Plan) is to enable Smart & Final Inc. and its affiliates (the “Company”) to offer a form of protection to the officers and other key employees of the Company in the event their employment with the Company
terminates. 
 Accordingly, the Company’s Board of Directors adopted the Plan effective January 1, 2004 and most recently amended
and restated it effective September 19, 2006 for selected officers and key employees of the Company and its affiliates in an effort to assist in replacing the loss of income caused by a termination of employment under the circumstances
described herein. 
 Except as specifically provided herein with respect to individual employment agreements and any agreements providing
payments in connection with a change of control of the Company, the Plan amends and supersedes any severance plans, policies and/or practices of the Company in effect for employees who participate in the Plan. 
 Article 1. Establishment, Term and Purpose 
 1.1.
Establishment of the Plan. The Company hereby establishes an executive severance plan to be known as the “Smart & Final Inc. Amended and Restated 2004 Executive Severance Plan” (the “Plan”). The Plan as amended and
restated shall become effective immediately upon [July 1, 2006] (the “Restated Effective Date”). 
 1.2. Term of the Plan.
The Plan as amended and restated will commence on the Restated Effective Date and terminate no later than December 31, 2007 by action of the Board; provided, however, if the Board does not earlier terminate the Plan, it will continue for
successive 12-month periods until terminated by action of the Board. 
 However, in the event a Change in Control occurs during the original
or any extended term, the Plan will remain in effect for the longer of: (i) twenty-four (24) months beyond the month in which such Change in Control occurred; (ii) until all obligations of the Company hereunder have been fulfilled,
and until all benefits required hereunder have been paid to Participants. 
 1.3. Purpose of the Plan. The purpose of the Plan is to
provide certain key employees of the Company employment protection and financial security in the event of an involuntary termination (“General Severance”). The Plan also is intended to provide certain key employees of the Company who have
a qualifying termination in connection with a change in control of the Company and who are otherwise eligible under the Plan with enhanced severance benefits (“Change-in-Control Severance”) in lieu of General Severance. 
  

 3 

 Article 2. Definitions 
 Whenever used in the Plan, the following terms shall have the meanings set forth below and, when the meaning is intended, the initial letter of the word is capitalized: 
 2.1. “Base Salary” means the salary of record paid to a Participant as annual salary, excluding amounts received under incentive or
other bonus plans, whether or not deferred. 
 2.2. “Beneficial Owner” shall have the meaning ascribed to such term in rule
13d-3 of the General Rules and Regulations under the Exchange Act. 
 2.3. “Beneficiary” means the persons or entities
designated or deemed designated by a Participant pursuant to Section 13.3 herein. 
 2.4. “Board” means Board of
Directors of the Company. 
 2.5. “Cause” shall be defined as conduct of a Participant which is adjudged to be knowingly
fraudulent, deliberately dishonest or willful misconduct and which results in material harm to the Company. The Committee shall make the determination of whether Cause exists, and after giving the Participant the opportunity to respond to the
allegation that Cause exists. 
 2.6. “Change in Control” of the Company shall be deemed to have occurred (as of a
particular day, as specified by the Board) upon the occurrence of any event described in this Section 2.6 as constituting a Change of Control. 
 A Change in Control will be deemed to have occurred as of the first day any one (1) or more of the following paragraphs shall have been satisfied: 
  

	 	(a)	With the exception of Group Casino, any person (other than a trustee or other fiduciary holding securities under an employee benefit plan of the Company, or a corporation owned
directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company), becomes the Beneficial Owner, directly or indirectly, of securities of the Company, representing more than
thirty percent (30%) of the combined voting power of the Company’s then outstanding securities; or 

  

	 	(b)	The stockholders of the Company approve: (i) a plan of complete liquidation of the Company; or (ii) an agreement for the sale or disposition of all or substantially all
the Company’s assets; or (iii) a merger, consolidation, or reorganization of the Company with or involving any other corporation, with the exception of Group Casino or other than a merger, consolidation, or reorganization that would result
in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) at least eighty percent (80%) of the
combined voting power of the voting securities of the Company (or such surviving entity) outstanding immediately after such merger, consolidation, or reorganization. 

  

 4 

 However, in no event shall a Change in Control be deemed to have occurred, with respect to a Participant,
if that Participant is part of a purchasing group which consummates the Change-in-Control transaction. The Participant shall be deemed “part of a purchasing group” for purposes of the preceding sentence if the Participant is an equity
participant or has agreed to become an equity participant in the purchasing company or group (except for (i) passive ownership of less than three percent (3%) of the voting equity securities of the purchasing company; or
(ii) ownership of equity participation in the purchasing company or group which is otherwise deemed not to be significant, as determined prior to the Change in Control by a majority of the continuing Nonemployee Directors). 
 2.7. “Change-in-Control Severance Benefits” mean the payment of change-in-control severance compensation as provided in Section 5.4
herein. 
 2.8. “Code” means the United States Internal Revenue Code of 1986, as amended. 
 2.9. “Committee” means the Compensation Committee of the Board, or any other committee appointed by the Board to perform the functions
of the Compensation Committee. 
 2.10. “Company” means Smart & Final Inc., a Delaware corporation (including any
and all subsidiaries), or any successor thereto. 
 2.11. “Disability” shall mean, for all purposes of the Plan, the
incapacity of a Participant, due to injury, illness, disease, or bodily or mental infirmity, to engage in the performance of substantially all of the usual duties of employment with the Company, such Disability to be determined by the Committee upon
receipt and in reliance on competent medical advice from one (1) or more individuals, selected by the Committee, who are qualified to give such professional medical advice. 
 2.12. “Effective Date of Termination” means the date on which a Qualifying Termination occurs which triggers the payment of Severance
Benefits hereunder. 
 2.13. “Exchange Act” means the United States Securities Exchange Act of 1934, as amended. 

2.14. “General Severance Benefits” means the payment of general severance compensation as provided in Section 4.3 herein.

 2.15. “General Severance Period” shall mean, for a particular Participant, the period commencing on the
Participant’s Effective Date of Termination and continuing for one month for every year of service with the Company, subject to a minimum General Severance Period of 12 months. The maximum benefit for Tier I executives shall be capped at 24
months and for Tier II executives at 18 months. 
 2.16. “Good Reason” shall mean, without the Participant’s express
written consent, the occurrence of any one or more of the following: 
  

	 	(a)	The assignment of the Participant to duties representing a material diminution in the Participant’s authorities, duties, responsibilities, and status (including offices,

  

 5 

 titles, and reporting requirements) as an employee of the Company, or a reduction or alteration in the
nature or status of the Participants authorities, duties, or responsibilities from those in effect during the immediately preceding fiscal year; 
  

	 	(b)	Without the Participant’s consent, the Company’s requiring the Participant to be based at a location which is at least fifty (50) miles further from the
Participant’s current primary residence than is such residence from the Company’s current headquarters, except for required travel on the Company’s business to an extent substantially consistent with the Participant’s business
obligations as of the Restated Effective Date; 

  

	 	(c)	A reduction by the Company in the Participant’s Base Salary or short-term incentive compensation target as in effect on the Restated Effective Date or as the same shall be
increased from time to time; 

  

	 	(d)	A material reduction in the Participant’s level of participation in any of the Company’s long-term incentive compensation plans, employee benefits or retirement plans,
policies, practices, or arrangements (collectively “plans”) in which the Participant participates as of the Restated Effective Date; provided, however, that reductions in the levels of participation in any such plans shall not be deemed to
be “Good Reason” if the Participant’s reduced level of participation in each such plan remains substantially consistent with the average level of participation of other executives who have positions commensurate with the
Participant’s position; or 

  

	 	(e)	The failure of the Company to obtain a satisfactory agreement from any successor to the Company to assume and agree to perform this Agreement, as contemplated in Article 11 herein;

  

	 	(f)	A successor company fails or refuses to assume the Company’s obligations under the Plan, as required by Article 11 herein; or 

  

	 	(g)	The Company or any successor company breaches any of the provisions of the Plan. 

 2.17. “Participant” means an officer of the Company who fulfills the eligibility and participation requirements, as provided in Article 3 herein. 
 2.18. “Person” shall have the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and
14(d) thereof, including a “group” as defined in Section 13(d). 
 2.19. “Plan” means this amended and
restated 2004 Executive Severance Plan. 
 2.20. “Qualifying Change-in-Control Termination” means any of the events
described in Section 5.3 herein, the occurrence of which triggers the payments of Change-in-Control Severance Benefits hereunder. 
  

 6 

 2.21. “Qualifying General Termination” means any of the events described in
Section 4.2 herein, the occurrence of which triggers the payments of General Severance Benefits hereunder. 
 2.22. “Qualifying
Termination” means either a Qualifying Change-in-Control Termination or a Qualifying General Termination. 
 2.23. “Restated
Effective Date” means the date the Plan set forth above. 
 2.24. “Retirement” shall have the meaning ascribed to
such term in the Company’s tax-qualified retirement plan. 
 2.25. “ Severance Benefits” means either General Severance
Benefits or Change-in-Control Severance Benefits. 
 2.26. “Tier I Executive” means an officer who has been selected to
participate in the Plan and designated as Tier I Executive pursuant to Section 3.2. 
 2.27. “Tier II Executive” means
an officer who has been selected to participate in the Plan and designated as a Tier II Executive pursuant to Section 3.2. 
 Article 3.
Participation 
 3.1. Eligible Employees. Individuals eligible to participate in the Plan shall include all officers of the
Company. 
 3.2. Participation. Subject to the Terms of the Plan, the Committee may, from time to time select from Eligible Employees
those who shall participate in the Plan upon his or her execution of a participation agreement in substantially the form set forth in Exhibit A. Officers selected to participate in the Plan shall be designated as either a Tier I Executive or a Tier
II Executive and identified in the attached Appendix to the Plan, as may be amended from time to time to reflect new officers participating in the Plan, promotions, or officers who have terminated Employment with the Company. 
 3.3. Release. As a condition of receiving benefits hereunder, the Participation shall be required to provide the Employer with a release of all
claims of any kind whatsoever against the Company and its Affiliates, their officers, directors and employees, known or unknown, as of the date of his or her termination of employment. The release shall be in such form as requested by the Company,
in substantially the form set forth in Exhibit C. 
 Article 4. General Severance Benefits 
 4.1. Right to General Severance Benefits. A Participant shall be entitled to receive from the Company General Severance Benefits, as described in
Section 4.3 herein, a Participant’s employment with the Company shall end for any reason specified in Section 4.2 herein. Participants shall not be entitled to receive General Severance Benefits if they are terminated for Cause, or if
their employment with the Company ends due to death, Disability, or Retirement. 
  

 7 

 4.2. Qualifying General Termination. The occurrence of any one or more of the following events
shall trigger payment of General Severance Benefits to a Participant under the Plan: 
  

	 	(a)	An involuntary termination of the Participant’s employment by the Company for reasons other than Cause, death, or Disability; or 

  

	 	(b)	A successor company fails or refuses to assume the Company’s obligations under the Plan, as required by Article 11 herein. 

 4.3. Description of General Severance Benefits. In the event that a Participant becomes entitled to receive General Severance Benefits, as
provided in Sections 4.1 and 4.2 herein, the Company shall pay to the Participant and provide him or her with the following: 
  

	 	(a)	Continued regular payments of the Participant’s Base Salary, at the highest annual rate in effect at any time up to an including the Effective Date of Termination, through the
end of the General Severance Period or, if required to avoid coverage under Code Section 409A, such continued regular payments shall be made until March 15 in the year immediately following the year in which the Effective Date of
Termination occurred, at which time a lump sum payment shall be made equal to the amount of continued regular payments then owed but not yet paid; 

  

	 	(b)	An amount equal to the Participant’s unpaid Base Salary and accrued vacation pay through the Effective Date of Termination. 

  

	 	(c)	An amount equal to the Participant’s unpaid targeted annual bonus, established for the plan year in which the Participant’s Effective Date of Termination occurs, adjusted
for actual performance through the Effective Date of Termination and multiplied by a fraction, the numerator of which is the number of days completed in the then-existing fiscal year through the Effective Date of Termination, and the denominator of
which is three hundred sixty-five (365); 

  

	 	(d)	A continuation of the welfare benefits of medical, dental and vision insurance, and group term life through the earlier of (1) the end of the General Severance Period or
(2) until the participant obtains eligibility of welfare benefits from a subsequent employer 

 Benefits provided under
this Section 4.3(d) shall be provided to Participants at the same premium cost, and at the same coverage level, as in effect as of the Participant’s Effective Date of Termination. 
 However, in the event the premium cost and/or level of coverage shall change for all employees of the Company, the cost and/or coverage level, likewise,
shall change for each Participant in a corresponding manner. 
  

	 	(e)	A lump-sum cash payment of the entire balance of the Participant’s compensation which has been deferred under the Company’s nonqualified deferred 

 

 8 

 compensation plan(s) together with all interest that has been credited with respect to such deferred
compensation balance. 
  

	 	(f)	For the purposes of SERP benefit calculations for eligible officers, the Target Bonus amount shall be used instead of the actual bonus amount earned for years 1996 through 1999.

 4.4. Termination for Disability. If a Participant’s employment is terminated due to Disability, the Participant
shall receive his or her Base Salary through the Effective Date of Termination, at which point in time the Participant’s benefits shall be determined in accordance with the Company’s disability, retirement, insurance, and other applicable
plans and programs then in effect. 
 4.5. Termination for Retirement or Death. If a Participant’s employment is terminated by
reason of his or her Retirement or death, the Participant’s benefits shall be determined in accordance with the Company’s retirement, survivor’s benefits, insurance, and other applicable programs of the Company then in effect.

 4.6. Termination for Cause. If a Participant’s employment is terminated either: (i) by the Company for Cause; or
(ii) by the Participant (other than for Retirement), the Company shall pay the Participant his or her full Base Salary and accrued vacation through the Effective Date of Termination, at the rate then in effect, plus all other amounts to which
the Participant is entitled under any compensation plans of the Company, at the time such payments are due, and the Company shall have no further obligations to the Participant under the Plan. 
 Article 5. Change -in-Control Severance Benefits 
 5.1. Right to Change-in-Control Severance Benefits. A Participant shall be entitled to receive from the Company Change-in-Control Severance Benefits, as described in Section 5.4 herein, in lieu of General Severance Benefits, as
described in Section 4.3 herein, if there has been a Change in Control of the Company and if, within the six (6) full calendar month period prior to the effective date of a Change in Control, or within twenty-four (24) calendar months
following the effective date of a Change in Control, the Participant’s employment with the Company shall end for any reason specified in Section 5.3 herein. 
 Participants shall not be entitled to receive Change-in-Control Severance Benefits if they are terminated for Cause, or if their employment with the Company ends due to death or Disability, or due to a voluntary
termination of employment by the Participant without Good Reason. 
 5.2. Services During Certain Events. In the event a Person begins
a tender or exchange offer, circulates a proxy to shareholders of the Company, or takes other steps seeking to effect a Change in Control, each Participant agrees that he or she will not participate in such activity or voluntarily leave the employ
of the Company and will render services until such Person has abandoned or terminated his or its efforts to effect a Change in Control, provided, however, if a participant elects to do so he or she waives any benefits under the Plan. 
  

 9 

 5.3. Qualifying Change-in-Control Termination. The occurrence of any one or more of the following
events within twenty-four (24) calendar months following the effective date of Change-in-Control of the Company shall trigger the payment of Change-in-Control Severance Benefits to a Participant under the Plan: 
  

	 	(a)	An involuntary termination of the Participant’s employment by the Company for reasons other than Cause, death, Disability, Retirement; or 

  

	 	(b)	A voluntary termination by the Participant for Good Reason. 

 5.4. Description of Change-in-Control Severance Benefits. In the event that a Participant becomes entitled to receive Change-in-Control Severance Benefits, as provided in Sections 5.1 and 5.3 herein, the Company shall pay to the
Participant and provide him or her with the following: 
  

	 	(a)	For Tier I Executives: An amount equal to two (2) times the highest rate of the Participant’s annualized Base Salary rate in effect at any time up to and including
the Effective Date of Termination; or 

 For Tier II Executives: An amount equal to the highest rate of the
Participant’s annualized Base Salary rate in effect at any time up to and including the Effective Date of Termination prorated monthly using one month for every year of service with the Company, subject to a minimum of 12 months and maximum of
18 months. 
  

	 	(b)	For Tier I Executives: An amount equal to two (2) times the Participant’s average annual bonus earned over three (3) full fiscal years prior to the Effective
Date of Termination; or 

 For Tier II Executives: An amount equal to the Participant’s average annual bonus earned
over three (3) full fiscal years prior to the Effective Date of Termination; 
  

	 	(c)	An amount equal to the Participant’s unpaid Base Salary and accrued vacation pay through the Effective Date of Termination: 

  

	 	(d)	An amount equal to the Participant’s unpaid targeted annual bonus, established for the plan year in which the Participant’s Effective Date of Termination occurs,
adjust to reflect actual performance through the Effective Date of Termination and multiplied by a fraction, the numerator of which is the number of days completed in the then-existing fiscal year through the Effective Date of Termination, and the
denominator of which is three hundred sixty-five (365); 

  

	 	(e)	For Tier I Executives: A continuation of the welfare benefits of medical insurance, dental insurance, and group term life through the earlier of (1) the end of the
General Severance Period or (2) until the participant obtains eligibility of welfare benefits from a subsequent employer. 

  

 10 

 For Tier II Executives: A continuation of the welfare benefits of medical insurance, dental
insurance, and group term life through the earlier of (1) the end of the General Severance Period or (2) until the participant obtains eligibility of welfare benefits from a subsequent employer. 
 Benefits provided under this section 5.4(e) shall be provided to Participants at the same premium cost, and at the same coverage level, as in effect as of
the Participant’s Effective Date of Termination. However, in the event the premium cost and/or level of coverage shall change for all employees of the Company, the cost and/or coverage level, likewise, shall change for each Participant in a
corresponding manner; 
  

	 	(f)	A continuation of the financial planning and tax services provided by the Company to the Participant through the end of the calendar year in which the Effective Date of Termination
occurs; and 

  

	 	(g)	A lump-sum cash payment of the entire balance of the Participant’s compensation which has been deferred under the Company’s nonqualified deferred compensation plan(s)
together with all interest that has been credited with respect to such deferred compensation balance. 

  

	 	(h)	For the purposes of SERP benefit calculations for eligible officers, the Target Bonus amount shall be used instead of the actual bonus amount earned for years 1996 through 1999.

 5.5. Termination for Disability. Following a Change in Control of the Company, if a Participant’s employment is
terminated due to Disability, the Participant shall receive his or her Base Salary through the Effective Date of Termination, at which point in time the Participant’s benefits shall be determined in accordance with the Company’s
disability, retirement, insurance, and other applicable plans and programs then in effect. 
 5.6. Termination for Retirement or
Death. Following a Change in Control of the Company, if a Participant’s employment is terminated by reason of his or her Retirement or death, the Participant’s benefits shall be determined in accordance with the Company’s
retirement, survivor’s benefits, insurance, and other applicable programs of the Company then in effect. 
 5.7. Termination for
Cause or by a Participant Other Than Good Reason or Retirement. Following a Change in Control of the Company, if a Participant’s employment is terminated either: (i) by the Company for Cause; or (ii) by the Participant (other than
for Retirement) and other than for Good Reason, the Company shall pay the Participant his or her full Base Salary and accrued vacation through the Effective Date of Termination, at the rate then in effect, plus all other amounts to which the
Participant is entitled under any compensation plans of the Company, at the time such payments are due, and the Company shall have no further obligations to the Participant under the Plan. 
  

 11 

 Article 6. Excise Tax Equalization Payment 
 6.1. Excise Tax Equalization Payment. In the event that a Participant becomes entitled to payments and/or benefits which would constitute
“parachute payments” within the meaning of Section 280G(b) of the Code, the provisions of Exhibit B will apply. 
 6.2. Tax
Computation. For purposes of determining whether any of the Total Payments will be subject to the Excise Tax and the amounts of such Excise Tax: 
  

	 	(a)	Any other payments or benefits received or to be received by the Participant in connection with a Change in Control of the Company or the Participant’s termination of
employment (whether pursuant to the terms of the Plan or any other plan, arrangement, or agreement with the Company, or with any Person whose actions result in a Change in Control of the Company or any Person affiliated with the Company or such
Persons) shall be treated as “parachute payments” within the meaning of Section 280G(b)(2) of the code, and all “excess parachute payments” within the meaning of Section 280G(b)(1) shall be treated as subject to the
Excise Tax, unless in the opinion of tax counsel as supported by the Company’s independent auditors and acceptable to the Participant, such other payments or benefits (in whole or in part) do not constitute parachute payments, or unless such
excess parachute payments (in whole or in part) represent reasonable compensation for services actually rendered within the meaning of Section 280G(b)(4) of the Code in excess of the base amount within meaning of Section 280G(b)(3) of the
Code, or are otherwise not subject to the Excise Tax; 

  

	 	(b)	The amount of the Total Payments which shall be treated as subject to the Excise Tax shall be equal to the lesser of: (i) the total amount of the Total Payments; or
(ii) the amount of excess parachute payments within the meaning of Section 280G(b)(1) (after applying clause (a) above); and 

  

	 	(c)	The value of any noncash benefits or any deferred payment or benefit shall be determined by the Company’s independent auditors in accordance with the principals of Sections
280G(d)(3) and (4) of the Code. 

 For purposes of determining the amount of the Gross-Up Payment, the
Participant shall be deemed to pay federal income taxes at the highest marginal rate of federal income taxation in the calendar year in which the Gross-Up Payment is to be made, and state and local income taxes at the highest marginal rate of
taxation in the state and locality of the Participant’s residence on the Effective Date of Termination, net of the maximum reduction in federal income taxes which could be obtained from deduction of such state and local taxes. 
 6.3. Subsequent Recalculation. In the event the Internal Revenue Service adjusts the computation of the Company under Section 6.2 herein so
that the Participant did not receive the greatest net benefit, the Company shall reimburse the Participant for the full amount necessary to make the Participant whole, plus a market rate of interest, as determined by the Committee. 
  

 12 

 Article 7. Form and Timing of Severance Benefits 
 7.1. Form and Timing of Severance Benefits. The Severance Benefits described in Sections 4.3(b), 4.3(c), 4.3(e), 5.4(a), 5.4(b), 5.4(c), 5.4(d),
and 5.4(g) herein shall be paid in cash to the Participant in a single lump sum as soon as practicable following the Effective Date of Termination, but in no event beyond thirty (30) days from such date. 
 7.2. Withholding of Taxes. The Company shall be entitled to withhold from any amounts payable under the Plan all taxes as legally shall be
required (including, without limitation, any United States federal taxes, and any other state, city, or local taxes). 
 7.3. Funding.
The Plan shall be funded out of the general assets of the Company as and when benefits are payable under the Plan. All Participants shall be solely general creditors of the Company. 
 Article 8. Legal Remedies 
 8.1. Payment of Legal Fees. To the extent permitted by law, the
Company shall pay all legal fees, costs of litigation, prejudgment interest, and other expenses incurred in good faith by the Participant as a result of the Company’s refusal to provide the Change-in-Control Severance Benefits to which the
Participant becomes entitled under the Plan, or as a result of the Company’s contesting the validity, enforceability, or interpretation of the Plan, or as a result of any conflict between the parties pertaining to the Plan; provided, however,
that the Company shall be reimbursed by the Participant for all such fees and expenses in the event the Participant fails to prevail with respect to any material issue of dispute in connection with such legal action. 
 8.2. Arbitration. Participants shall have the right and option to elect (in lieu of litigation) to have any dispute or controversy arising under
or in connection with the Plan settled by arbitration, conducted before a panel of three (3) arbitrators sifting in a location selected by the Participant within fifty (50) miles from the location of his job with the Company, in accordance
with the rules of the American Arbitration Association then in effect. 
 Judgment may be entered on the award of the arbitrator in any court
having proper jurisdiction. All expenses of such arbitration, including the fees and expenses of the counsel for the Participant, shall be borne by the Company; provided, however, that the Company shall be reimbursed by the Participant for all such
fees and expenses in the event the Participant fails to prevail with respect to any material issue of dispute in connection with such legal action. 
 Article 9. Outplacement Assistance 
 Following a Qualifying General Termination (as described in Section 4.2 herein) the
Company shall pay for the costs of all outplacement services obtained by the Participant within the two (2) year period after the Effective Date of Termination; provided, however, that the total cost shall be limited to an amount equal to
fifteen percent (15%) of the Participant’s Base Salary as of the Effective Date of Termination. 
  

 13 

 Article 10. Noncompetition 
 10.1. Prohibition on Competition. Without the prior written consent of the Company, during any period in which benefits are paid hereunder, Participants shall not, as an employee or an officer, engage directly
or indirectly in any business or enterprise which is “in competition” with the Company or its successors or assigns. For purposes of the Plan, a business or enterprise will be deemed to be “in competition” if it is engaged in any
significant business activity similar to that of the Company or its subsidiaries in any geographical area in which the Company does business. 
 However Participants shall be allowed to purchase and hold for investment less than three percent (3%) of the shares of any corporation whose shares are regularly traded on a national securities exchange or in the over-the-counter
market. 
 10.2. Disclosure of Information. Participants recognize that they have access to and knowledge of certain confidential and
proprietary information of the Company which is essential to the performance of their duties as employees of the Company. Participants will not, during or after the term of their employment by the Company, in whole or in part, disclose such
information to any person, firm, corporation, association, or other entity for any reason or purpose whatsoever, nor shall he make use of any such information for their own purposes. 
 10.3. Covenants Regarding Other Employees. During the term of the Plan, and for a period of twenty-four (24) months following the termination
of a Participant’s employment, each Participant agrees not to attempt to induce any employee of the Company to terminate his or her employment with the Company, accept employment with any competitor of the Company, or to interfere in a similar
manner with the business of the Company. 
 Article 11. Successors and Assignment 
 11.1. Successors to the Company. The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation, or
otherwise) of all or substantially all of the business and/or assets of the Company or of any division or subsidiary thereof to expressly assume and agree to perform the Company’s obligations under the Plan in the same manner and to the same
extent that the Company would be required to perform them if no such succession had taken place. Failure of the Company to obtain such assumption and agreement prior to the effective date of any such succession shall be a breach of the Plan and
shall entitle Participants to compensation from the Company in the same amount and on the same terms as they would be entitled to hereunder if they had terminated their employment with the Company voluntarily for Good Reason. Except for the purposes
of implementing the forgoing, the date on which any such succession becomes effective shall be deemed the Effective Date of Termination. 
 11.2. Assignment by the Participant. The Plan shall inure to the benefit of and be enforceable by each Participant’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees, and
legatees. If a Participant dies while any amount would still be payable to him or her hereunder had he or she continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of the Plan, to the
Participant’s Beneficiary. If the Participant has not named a Beneficiary, then such amounts 
  

 14 

 shall be paid to the Participant’s devisee, legatee, or other designee, or if there is no such designee, to the
Participant’s estate. 
 Article 12. Severability; Code Section 409A 
 Whenever possible, each provision of the Plan shall be interpreted in such manner as to be effective and valid under applicable law and in compliance with
the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (“Code Section 409A”), but if any provision of the Plan is held to be invalid, illegal or unenforceable in any respect under any applicable law or
rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision of the Plan or any action in any other jurisdiction and the Plan shall be reformed, construed and enforced in such jurisdiction as if such
invalid, illegal or unenforceable provision had never been contained herein. Upon a determination by either party that any provision of the Plan may subject a Participant to additional tax under Code Section 409A, notwithstanding the provisions
of Section 13.6 to the contrary, the Company shall modify the Plan to the extent it reasonably decides necessary to effectuate the Plan’s original intent as closely as possible to the end that the transactions contemplated hereby are
fulfilled to the fullest extent possible and such transactions either do not constitute nonqualified deferred compensation subject to the requirements of Code Section 409A or satisfy such requirements in all material respects. The foregoing
sentence includes, but is not limited to, the requirement set forth in Code Section 409A(a)(2)(B)(i) that payment of any nonqualified deferred compensation from the Plan to “specified employees” and subject to Code Section 409A
may not be made before the date which is six (6) months after the Participant’s Effective Date of Termination. 
 Article 13. Miscellaneous

 13.1. Notice of Termination. Any termination by the Company for Cause or by a Participant for Good reason shall be communicated
by Notice of Termination. For purposes of the Plan, a “Notice of Termination” shall mean a written notice which shall indicate the specific termination provision in the Plan relied upon, and shall set forth in reasonable detail the facts
and circumstances claimed to provide a basis for termination of the Participant’s employment under the provision so indicated. 
 13.2. Employment Status. Except as may be provided under any other agreement between a Participant and the Company, the employment of the Participant by the Company is “at will”, and, prior to the effective date of a Change
in Control, may be terminated by either the Participant or the Company at any time, subject to applicable law. Nothing contained herein shall constitute an employment contract or guarantee of employment or confer any other rights except as set forth
herein. 
 13.3. Beneficiaries. Each Participant may designate one or more persons or entities as the primary and/or contingent
Beneficiaries of any Severance Benefits owing to the Participant under the Plan. Such designation must be in the form of a signed writing acceptable to the Committee. Participants may make or change such designations at any time. 
 13.4. Gender and Number. Except where otherwise indicated by the context, any masculine term used herein also shall include the feminine; the
plural shall include the singular, and the singular shall include the plural. 
  

 15 

 13.6. Modification. No provision of the Plan may be modified, waived, or discharged unless such
modification, waiver, or discharge is agreed to in writing and signed by each affected Participant and by authorized member of the Committee, or by the respective parties’ legal representatives and successors. 
 13.7. Applicable Law. To the extent not preempted by the laws of the United States, the laws of the state of California, shall be the controlling
law in all matters relating to the Plan. 
 13.8. Liability. No member of the Committee and no officer, director or employee of the
Company or any Affiliate shall be liable for any inaction with respect to his or her functions under the Plan unless such action or inaction is adjudged to be due to gross negligence, willful misconduct or fraud. Further, no member of the Committee
shall be personally liable merely by virtue of any instrument executed by him or her or on his or her behalf as a member of the Committee. 
 13.9. Indemnification. Each Employer shall indemnify, to the full extent permitted by law and its Certificate of Incorporation and By-laws (but only to the extent not covered by insurance) its officers and directors (and any employee
involved in carrying out the functions of such Employer under the Plan) and each member of the Committee against any expenses, including amounts paid in settlement of a liability, which are reasonably incurred in connection with any legal action to
which such person is a party by reason of his or her duties or responsibilities with respect to the Plan, except with regard to matters as to which he or she shall be adjudged in such action to be liable for gross negligence, willful misconduct or
fraud in the performance of his or her duties. 
 13.10. Headings. The headings of the Plan are inserted for convenience of reference
only and shall have no effect upon the meaning of provisions hereof. 
 13.11. Incompetency. In the event that the Committee finds
that a Participant (or designated beneficiary) is unable to care for his or her affairs because of illness or accident, then benefits payable hereunder, unless claim has been made therefor by a duly appointed guardian, committee, or other legal
representative, may be paid in such manner as the Committee shall determine, and the application thereof shall be a complete discharge of all liability for any payments or benefits to which such participant (or designated beneficiary) was or would
have been otherwise entitled under the Plan. 
 13.12. Payments to a Minor. Any payments to a minor from the Plan may be paid by the
Committee in its sole and absolute discretion (a) directly to such minor; (b) to the legal or natural guardian of such minor; or (c) to any other person, whether or not appointed guardian of the minor, who shall have the care and
custody of such minor. The receipt by such individual shall be a complete discharge of all liability under the Plan therefor. 
  

 16 

 IN WITNESS WHEREOF, the Company has caused this instrument to be executed this 11th day of October, 2006. 
  

			
	SMART & FINAL INC.
		
	By:	 	 

	Its:	 	Senior Vice President, Human Resources

  

 17 

 Appendix 
 Participants 
 [As of October 11, 2006] 
 Tier I 
 Etienne Snollaerts

 Norah Morley 
 Tier II

 Donald G. Alvarado 
 Zeke Duge 
 Suzanne Mullins 
 Richard N. Phegley 
 Timothy M. Snee 
 Jeff D. Whynot 
 John M. Willis 
 Anthony V. Bernardini 
 James J. Burge 
 John J. Kosinski 
 Rich Link 
 Marie Robinson 
 Marty Trtek 
 Jan Berger 
  

 18 

 Exhibit A 
 SMART & FINAL INC. 
 AMENDED AND RESTATED 2004 EXECUTIVE SEVERANCE PLAN 
 PARTICIPATION AGREEMENT 
 IN
CONSIDERATION of the payments and benefits as expressly stated in the attached Smart & Final Inc. Amended and Restated 2004 Executive Severance Plan (the “Plan”), I, the eligible employee identified below, on behalf of myself,
my heirs, executors, administrators and assigns, hereby agree that I (or my duly authorized representative) have read the Plan and I further agree to be bound by the provisions therein. 
  

							
	 Date:                     
	 		 	  
	 	(Signature)
				
		 		 	  
	 	(Printed Name)
				
		 		 	  
	 	(Title)

 EMPLOYEE/WITNESS: 
  

			
	  
	 	 (Signature)

		
	  
	 	 (Printed Name)

  

 19 

 Exhibit B 
 Excise Tax Gross Up 
 (a) In the event that a Participant shall become entitled to payments and/or
benefits provided by the Plan or any other amounts in the “nature of compensation” (whether pursuant to the terms of the Plan or any other plan, arrangement or agreement with the Company, any person whose actions result in a change of
ownership or effective control covered by Section 280(b) (2) of the Code or any person affiliated with the Company or such person) as a result of such change in ownership or effective control(collectively the “Company Payments”),
and such Company Payments will be subject to the tax (the “Excise Tax”) imposed by Section 4999 of the Code (and any similar tax that may hereafter be imposed by any taxing authority) the Company shall pay to the Participant at the
time specified in subsection (d) below an additional amount (the “Gross-up Payment”) such that the net amount retained by the Participant, after deduction of any Excise Tax on the Company Payments and any U.S. federal, state, and for
local income or payroll tax upon the Gross-up Payment provided for by this paragraph (a), but before deduction for any U.S. federal, state, and local income or payroll tax on the Company Payments, shall be equal to the Company Payments. 

(b) For Purposes of determining whether any of the Company Payments and Gross-up Payments (collectively the “Total Payments”) will be
subject to the Excise Tax and the amount of such Excise Tax, (x) the Total Payments shall be treated as “parachute payments” within the meaning of Section 280G (b) (2) of the Code, and all “parachute payments”
in excess of the “base amount” (as defined under Code Section 280G (b) (3) of the Code) shall be treated as subject to the Excise Tax, unless and except to the extent that, in the opinion of the Company’s independent
certified public accountants appointed prior to any change in ownership (as defined under Code Section 280G (b) (2) or tax counsel selected by such accountants (the “Accountants”) such Total Payments (in whole or in part)
either do not constitute “parachute payments,” represent reasonable compensation for services actually rendered within the meaning of Section 280G (b) (4) of the Code in excess of the “base amount” or are otherwise
not subject to the Excise Tax, and (y) the value of any non-cash benefits or any deferred payment or benefit shall be determined by the Accountants in accordance with the principles of Section 280G of the Code. 
 (c) For purposes of determining the amount of the Gross-up Payment, the Participant shall be deemed to pay U.S. federal income taxes at the highest
marginal rate of U.S. federal income taxation in the calendar year in which the Gross-up Payment is to be made and state and local income taxes at the highest marginal rate of taxation in the state and locality of the Participant’s residence
for the calendar year in which the Company Payment is to be made, net of the maximum reduction in U.S. federal income taxes which could be obtained from deduction of such state and local taxes if paid in such year. In the event that the Excise Tax
is subsequently determined by the Accountants to be less than the amount taken into account hereunder at the time the Gross-up Payment is made, the Participant shall repay to the Company, at the time that the amount of such reduction in Excise Tax
is finally determined, the portion of the prior Gross-up Payment attributable to such reduction (plus the portion of the Gross-up Payment attributable to the Excise Tax and U.S. federal, state and local income tax imposed on the portion of the

  

 20 

 Gross-up Payment being repaid by the Participant if such repayment results in a reduction in Excise Tax or a U.S.
federal, state and local income tax deduction), plus interest on the amount of such repayment at the rate provided in Section 1274 (b) (B) of the Code. Notwithstanding the foregoing, in the event any portion of the Gross-up Payment to
be refunded to the Company has been paid to any U.S. federal, state and local tax authority , repayment thereof (and related amounts) shall not be required until actual refund or credit of such portion has been made to the Participant, and interest
payable to the Company shall not exceed the interest received or credited tot he Participant by such tax authority for the period it held such portion. The Participant and the Company shall mutually agree upon the course of action to be pursued (and
the method of allocating the expense thereof) if the Participant’s claim for refund or credit is denied. 
 In the event that the Excise Tax is later
determined by the Accountant or the Internal Revenue Service to exceed the amount taken into account hereunder at the time the Gross-up Payment is made (including by reason of any payment the existence or amount of which cannot be determined at the
time of the Gross-up Payment), the Company shall make an additional Gross-up Payment in respect of such excess )plus any interest or penalties payable with respect to such excess) at the time that the amount of such excess is finally determined.

 (d) The Gross-up Payment or portion thereof provided for in subsection (c) above shall be paid no later than the thirtieth
(30) day following an event occurring which subjects the Participant to the Excise Tax; provided, however, that if the amount of such Gross-up Payment or portion thereof cannot be finally determined on or before such day, the Company shall pay
to the Participant on such day an estimate, as determined in good faith by the Accountant, of the minimum amount of such payments and shall pay the remainder of such payments (together with interest at the rate provided in Section 1274
(b) 2) (B) of the Code), subject to further payments pursuant to subsection (c) hereof, as soon as the amount thereof can reasonably be determined, but in no event subjecting the Participant to the Excise Tax. In the event that the
amount of the estimated payments exceeds the amount subsequently determined to have due, such excess shall constitute a loan by the Company to the Participant, payable on the fifth day after demand by the Company(together with interest at the rate
provided in Section 1274 (b) (2) (B) of the Code). 
 (e) In the event of any controversy with the Internal Revenue
Service (or other authority) with regard to the Excise Tax, the Participant shall permit the Company to control issues related to the Excise Tax (at its expense), provided that such issues do not potentially materially adversely affect the
Participant, but the Participant shall control any other issues. In the event the issues are interrelated, the Participant and the Company shall in good faith cooperate so as not to jeopardize resolution of either issue, but if the parties cannot
agree the Participant shall make the final determination with regard to the issues. In the event of any conference with any taxing authority as to the Excise Tax or associated income taxes, the Participant shall permit the representative of the
Company to accompany the Participant, and the Participant and the Participant’s representative shall cooperate with the Company and its representative. 
 (f) The Company shall be responsible for all charges of the Accountant. 
  

 21 

 (g) The Company and the Participant shall promptly deliver to each other copies of any written
communication, and summaries of any verbal communications, with any taxing authority regarding the Excise Tax covered by this Exhibit B. 
  

 22 

 Exhibit C 
 Separation Agreement and Full Release of All Claims 
 This Separation Agreement and Full Release of
All Claims (“Agreement”) is made as of                     , 200   by and between
                     [Name of Executive] (“Executive”) and Smart & Final Inc., its subsidiary companies, affiliated
companies, and all other companies operated or controlled by them, together with their respective shareholders, directors, officers, employees agents, attorneys, insurers, successors and assigns (collectively “Smart & Final “or
the “Company”). 
 RECITALS 
 A. In exchange for the mutual promises and obligations contained herein, Executive and Smart & Final (the “parties”) have mutually and voluntarily agreed that [his or her] employment with the
Company shall be terminated as set forth hereafter. 
 B. Executive is a participant in the Smart & Final 2004 Executive Severance
Plan (“Plan”) which Plan is incorporated herein by this reference. Executive’s last day of service with Smart & Final shall be
                    , 200  , and will be treated as a Qualifying General Termination under the Plan. 
 C. As required by the Plan, and in consideration for receipt of the General Severance Benefits under the Plan and such other and further consideration as
set forth herein, Executive hereby knowingly and voluntarily executes this Agreement. 
 TERMS 
 1. Executive and Smart & Final agree that as a material inducement to enter into this Agreement, Executive’s separation from the Company
shall be deemed a voluntary resignation. Notwithstanding the forgoing, Executive shall be entitled to General Severance Benefits under the Plan. 
 2. Executive shall continue working until                     , 200  , (“the Separation Date”), or such
earlier date as the parties may subsequently, and in writing, mutually agree, at which time Executive shall cease being employed by the Company for any and all purposes. General Severance Benefits under the Plan shall commence upon the Separation
Date. 
 3. The parties shall cooperate on a mutually agreeable announcement with respect to Executive’s separation from the Company and
the reasons therefore; which announcement shall be made on or around                     , 200  ; provided, however, that the
Company shall retain the final and exclusive right to announce the separation, the reasons therefor and the timing thereof. 
 4.
Notwithstanding the provisions of Paragraph 3, the announcement shall indicate that Executive is voluntarily resigning and will continue in a consulting capacity until [his/her] Separation Date. This period between the announcement and the
Separation Date shall be the 
  

 23 

 “Transition Period”. During the Transition Period, Executive shall assist the Company in identifying any active
work in progress and transitioning such work to persons identified by the Company. During the Transition Period, Executive may take such time off as is reasonably required to pursue other employment activities. 
 5. Effective upon execution of this Agreement, and in consideration of the benefits provided herein, Executive hereby releases, discharges and forever
acquits Smart & Final and its predecessors and successors, subsidiaries affiliates, parent and/or sister companies, shareholders, directors, employees, agents, attorneys, legal successors and assigns of and from any and all claims, demands,
sums of money, actions, rights, debits and causes of action which Executive may have had or claims to have had, or now claims to have, or hereafter may have or assert to have, which arise out of or are in any manner whatsoever, directly or
indirectly, connected with or related to, or arising from [his or her] employment with Smart & Final, [his or her] termination of employment or any claims related to or arising from the Plan or any benefits payable thereunder. 

6. It is understood and agreed by Executive that this Agreement shall act as a full accord and satisfaction, and as a bar to all claims of every
nature and kind whatsoever, known or unknown, suspected or unsuspected directly or indirectly relating to or arising from Executive’s employment with Smart & Final, or directly or indirectly relating to or arising from the Plan. Except
as specifically provided in Section 2 of the Plan, this Agreement does not modify, compromise, or release any of the parties’ respective rights under the agreement, plans, and documents described in Section 2. In this regard,
Executive hereby, and for [his or her] legal representatives, successors and assigns, expressly waives and relinquishes all rights and benefits afforded by Section 1542 of the California Civil Code of California, and any other comparable state
or federal statute or law, and does so understanding and acknowledging the significance and consequences of such a specific waiver of Section 1542. Section 1542 of the Civil Code states as follows: 
 “A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release,
which if known by him must have materially affected his settlement with the debtor.” 
 7. Executive expressly waives and relinquishes
any and all rights and benefits which [he/she] may have under (or which may be conferred upon [him/her] by) the provisions of California Civil Code section 1542, as well as under any similar state or federal statute, to the fullest extent [he/she]
may lawfully waive such rights or benefits. In connection with this waiver, Executive acknowledges that [he/she] is aware that new, additional and/or different facts and/or claims may hereafter be discovered other than those now known or believed to
be true with respect to this release, but that it is [his/her] intention to hereby fully, finally and forever release and discharge Smart & Final, and thus this release shall remain in effect as a full and complete release notwithstanding
the later discovery or existence of any such new, additional and/or different facts or claims. 
 8. Executive agrees to cooperate with the
Company in the preparation, investigation, prosecution and defense of any legal matters and/or governmental investigations involving Smart 
  

 24 

 & Final provided, however, that the Company shall pay any and all directly related expenses reasonably incurred by
Executive due to such cooperation. 
 9. Upon the Separation Date, the Executive shall promptly return to the Company any and all property of
the Company, including any keys, Company vehicles, credit cards, passwords, software, hardware, manuals, equipment, furniture, or any other tangible or intangible property of the Company which [he/she] may have in [his/her] possession, custody or
control. Executive further agrees to fully and voluntarily cooperate with Company personnel in: (1) the transition of any duties, information or other business of the Company; (2) any communication to staff or subordinates; (3) the
disclosure of any material Company business currently underway; and (4) taking all steps necessary to safeguard and secure any Company equipment, programs, data, and access thereto and to refrain from any action that would jeopardize same.

 10. With the exception of necessary disclosure to [his/her] legal counsel (whom the Company has advised Executive to consult) or tax
advisors, the parties mutually agree not to disclose, publicize or allow or cause to be publicized or disclosed any of the terms and conditions of this Agreement, or the fact that this or any other settlement or agreement has been entered into or
executed. Executive shall not disparage or negatively criticize the Company, its management, its products, or any of its employees to any person in any manner whatsoever. The Company shall not disparage or negatively criticize Executive in any
manner whatsoever. 
 11. Executive acknowledges and agrees that [he/she] has had access to certain “Confidential Information” of
the Company. Confidential Information as used throughout this Agreement means any secret or proprietary information not generally available to the public relating directly to the Company’s business and that of the Company’s affiliated
companies and subsidiaries, including, but not limited to, sales, software, technical compilations, products, customer lists, pricing policies, employment records and policies, operational methods, marketing plans and strategies, product development
techniques or plans, business acquisition plans, personnel acquisition plans, methods of manufacture, technical processes, designs and design projects, inventions and research programs, trade “know-how,” trade secrets (as defined in
California Civil Code section 3426.1(d)), specific software, algorithms, computer processing systems, object and source codes, user manuals, systems documentation, and other business affairs of the Company and the Company’s affiliated companies
and subsidiaries. Executive agrees to keep strictly confidential all Confidential Information and will not disclose any Confidential Information to any Competitor, third person, firm, corporation, association, or entity for any purpose. Any breach
of the provisions of this confidentiality provision shall be deemed a material breach of this Agreement. 
 12. It is understood and agreed
that the promises and representations as to the confidentiality and non-disparagement provisions contained in paragraphs 9 and 10 of this Agreement constitute a material consideration of this Agreement, and any breach by either of the parties of
said confidentiality and/or non-disparagement provisions shall be deemed a material breach of this Agreement. Further, Executive agrees that in the event of any breach of these provisions, monetary damages are not adequate and the Company may seek
injunctive or other equitable relief to prevent any further breach in any court of competent jurisdiction. 
  

 25 

 13. Executive hereby warrants and represents that [he/she] has carefully read and fully understands all
the provisions of this Agreement, and the terms and conditions set forth herein. Moreover, Executive has consulted with advisors of [his/her] choosing and that [he/she] has voluntarily entered into this Agreement. 
 14. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, all of which shall constitute one and the same
instrument together. 
 15. No waiver by any party of any breach of any term or provision of this Agreement shall be construed to be, nor be
a waiver of any preceding, concurrent or succeeding breach of the same or of any other term or provision hereof. No waiver shall be binding on the part of, or on behalf of, any other party entering into this Agreement. 
 16. This Agreement contains all of the terms and conditions agreed upon by the parties hereto regarding the subject matter of this Agreement. Any prior
agreements, promises, negotiations, or representations, either oral or written, relating to the subject matter of this Agreement not expressly set forth in this Agreement are of no force or effect. This Agreement constitutes a single, integrated,
written contract and expresses the entire agreement of the parties hereto with respect to the subject matter of this Agreement. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing by all the
parities. 
 17. The terms hereof are severable, and the invalidity of any term hereof shall not affect the validity of any other term.

 18. The date of the last signature placed hereon shall hereinafter be known as the “date of execution” of this Agreement.

 19. This Agreement shall be construed and governed exclusively by the laws of the State of California. Any disputes arising under this
Agreement of any kind or character, including but not limited to those involving a breach of the Agreement, or the enforcement thereof shall be resolved by binding arbitration held in Los Angeles, California under the rules and auspices of the
Commercial Tribunal section of the American Arbitration Association. The prevailing party in any dispute shall be entitled to recover all reasonable attorney fees and costs incurred. 
 20. In the event that any warranty or assurance contained in this Agreement has been or subsequently is breached, the breaching party shall indemnify and
hold harmless each of the other parties to this Agreement for any loss or damage resulting from such breach. 
 21. It is agreed and
understood that the general rule that ambiguities are to be construed against the drafter shall not apply to this Agreement. In the event that any language of this Agreement is found to be ambiguous, each party shall have an opportunity to present
evidence as to the actual intent of the parties with respect to any such language. 
  

 26 

 IN WITNESS WHEREOF, the parties hereto have executed this Separation Agreement and Full Release of All
Claims. 
  

					
	Date:                     , 200  	 		 	  

	Date:                     , 200  	 		 	  

		 	Its:	 	  

		 	for	 	SMART & FINAL INC.

  

 27

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}]]