Document:

Exhibit 10.54

 

 

Amylin Pharmaceuticals, Inc.

 

2001 Deferred Compensation Plan

 

Effective April 1, 2001

 

Amended February 19, 2003

 

 

Table Of
Contents

 

	
  SECTION 1

  	
  DEFINITIONS

  
	
   

  	
   

  
	
  SECTION 2

  	
  ELIGIBILITY

  
	
   

  	
   

  
	
  2.1

  	
  Eligibility

  
	
   

  	
   

  
	
  SECTION 3

  	
  DEFERRED COMPENSATION

  
	
   

  	
   

  
	
  3.1

  	
  Deferred Compensation

  
	
   

  	
   

  
	
  3.2

  	
  Payment of Account Balances

  
	
   

  	
   

  
	
  3.3

  	
  Election to Defer
  Compensation

  
	
   

  	
   

  
	
  3.4

  	
  Distribution Election

  
	
   

  	
   

  
	
  3.5

  	
  Hardship

  
	
   

  	
   

  
	
  3.6

  	
  Service Provider’s Right Unsecured

  
	
   

  	
   

  
	
  3.7

  	
  Investment of Contribution

  
	
   

  	
   

  
	
  3.8

  	
  Distribution with Penalty

  
	
   

  	
   

  
	
  SECTION 4

  	
  DESIGNATION OF BENEFICIARY

  
	
   

  	
   

  
	
  4.1

  	
  Designation of Beneficiary

  
	
   

  	
   

  
	
  SECTION 5

  	
  TRUST PROVISIONS

  
	
   

  	
   

  
	
  5.1

  	
  Trust
  Agreement

  
	
   

  	
   

  
	
  SECTION 6

  	
  AMENDMENT, TERMINATION AND TRANSFERS BY
  COMMITTEE

  
	
   

  	
   

  
	
  6.1

  	
  Amendment

  
	
   

  	
   

  
	
  6.2

  	
  Termination

  
	
   

  	
   

  
	
  6.3

  	
  Transfers by Committee

  
	
   

  	
   

  
	
  SECTION 7

  	
  ADMINISTRATION

  
	
   

  	
   

  
	
  7.1

  	
  Administration

  
	
   

  	
   

  
	
  7.2

  	
  Liability of
  Committee; Indemnification

  
	
   

  	
   

  
	
  7.3

  	
  Expenses

  
	
   

  	
   

  
	
  SECTION 8

  	
  GENERAL AND MISCELLANEOUS

  
	
   

  	
   

  
	
  8.1

  	
  Rights against Employer

  
	
   

  	
   

  
	
  8.2

  	
  Assignment or Transfer

  
	
   

  	
   

  
	
  8.3

  	
  Severability

  
	
   

  	
   

  
	
  8.4

  	
  Construction.
  The article and
  section headings and numbers are included only for convenience of reference
  and are not to be taken as limiting or extending the meaning of any of the
  terms and provisions of this Plan

  

 

 

	
  8.5

  	
  Governing
  Law

  
	
   

  	
   

  
	
  8.6

  	
  Payment Due to Incompetence

  
	
   

  	
   

  
	
  8.7

  	
  Tax

  
	
   

  	
   

  
	
  8.8

  	
  Attorney’s
  Fees

  
	
   

  	
   

  
	
  8.9

  	
  Plan Binding on
  Successors/Assignees

  

 

ii

 

Amylin Pharmaceuticals, Inc.

2001 Deferred Compensation Plan

Effective April 1, 2001

Amended February 19, 2003

 

Amylin
Pharmaceuticals, Inc., a Delaware Corporation (referred to
hereafter as the “Employer”) established, effective April 1, 2001, the Amylin
Pharmaceuticals, Inc. 2001 Deferred Compensation Plan (the “Plan”), an unfunded
plan for the purpose of providing deferred compensation for a select group of
management and highly compensated executives and other persons as described
herein.

RECITALS

 

Whereas,
those persons identified by the Board of Directors of the Employer, the
Compensation Committee of the Board of Directors of the Employer or any other
committee designated by the Board of Directors of the Employer to administer
this Plan in accordance with Section 8 hereof (hereinafter referred to as the
“Committee”) as eligible to participate in this Plan (each of whom are referred
to hereafter as a “Service Provider” or collectively as the “Service
Providers”);

 

Whereas,
Employer desires to adopt an unfunded deferred compensation plan and the
Service Providers desire the Employer to pay certain deferred compensation
and/or related benefits to or for the benefit of Service Providers, or a
designated Beneficiary or both; and

 

Whereas,
Employer believes it is in the best interest of Service Providers and their
Beneficiaries to adopt the Plan;

 

Whereas,
Employer believes it is in its best interest to amend the Plan to allow Service
Providers who are Non-Employee Directors to invest his or her deferred
Compensation in Common Stock.

 

Now,
Therefore, the Employer hereby amends the Plan effective as
of February 19, 2003.

 

SECTION 1

 

Definitions

 

1.1          “Account”
shall mean the separate account(s) established under this Plan and the Trust
for each participating Service Provider.

 

1.2          “Base
Salary” shall mean, for a given semi-annual period, an Employee’s regular compensation
payable during the semi-annual period, excluding bonuses, commissions,
overtime, incentive payments, non-monetary awards, compensation deferred
pursuant to all Section 125 (cafeteria) or Section 401(k) (savings) plans of
the Employer and other special compensation, and reduced by the tax withholding
obligations imposed on the Employer and any other withholding requirements
imposed by law with respect to such amounts.

 

1

 

1.3          “Beneficiary”
or “Beneficiaries” shall mean a person or persons designated by the Service
Provider to receive such Service Provider’s deferred compensation benefits in
the event of his or her death.

 

1.4          “Cash
Bonus” shall mean amounts (if any) awarded under the bonus policies maintained
by the Employer and any commissions earned on sales.

 

1.5          “Change
in Control” shall mean the happening of any of the following:

 

(a)           any
“person,” as such term is used in Sections 13(d) and 14(d) of the Securities
and Exchange Act of 1934, as amended from time to time, and any successor
statute (the “Exchange Act”) (other than the Employer, a subsidiary, an
affiliate, or an Employer employee benefit plan, including any trustee of such
plan acting as trustee) is or becomes the “beneficial owner” (as defined in
Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of
the Employer representing 50% or more of the combined voting power of the
Employer’s then outstanding securities other than by virtue of a merger,
consolidation or similar transaction;

 

(b)           there
is consummated a sale or other disposition of all or substantially of assets of
the Employer (other than a sale to an entity where at least 50% of the combined
voting power of the voting securities of such entity are owned by the
stockholders of the Employer in substantially the same proportions as their
ownership of the Employer immediately prior to such sale);

 

(c)           there
is consummated a merger, consolidation or similar transaction involving the
Employer and, immediately after the consummation of such transaction, the
stockholders of Employer immediately prior to the consummation of such
transaction do not own, directly or indirectly, outstanding voting securities
representing more than 50% of the combined outstanding voting power of the
surviving entity in such transaction or more than 50% of the combined
outstanding voting power of the parent of the surviving entity in such
transaction.

 

1.6          “Code”
shall mean the Internal Revenue Code of 1986, as amended from time to time, and
the rules and regulations promulgated thereunder.

 

1.7          “Consultant”
shall mean a person who:  (i) is
providing consulting services to the Employer, (ii) was previously
employed by the Employer as an officer, vice-president, or equivalent title and
(iii) was identified by the Committee as eligible to participate in this
Plan while employed by the Employer.

 

1.8          “Consulting
Fees” shall mean, for a given semi-annual period, the consulting fees payable
to a Consultant by the Employer during the semi-annual period.

 

1.9          “Committee”
shall mean the Compensation Committee of the Board of Directors of the Employer
or any other committee designated by the Board of Directors of the Employer to
administer this Plan in accordance with Section 7 hereof.

 

1.10        “Common
Stock” shall mean the common stock of Amylin Pharmaceuticals, Inc.

 

2

 

1.11        “Compensation”
shall mean the Base Salary, Cash Bonuses, Consulting Fees and Director Fees as
defined herein.

 

1.12        “Directors
Fees” shall mean, for a given semi-annual period, the retainer, per meeting
fees, committee meeting fees, and consulting fees payable to a Non-Employee
Director by the Employer during the semi-annual period.

 

1.13        “Effective
Date” of the Plan shall mean April 1, 2001.

 

1.14        “Eligible
Compensation” shall mean projected annual compensation from the Employer
determined on an annual basis by the Employer at or before the beginning of the
Plan, which may consist of salary, bonus, and/or incentive payments, determined
before any deductions under any qualified plan of the Employer (including a
Section 401(k) plan or a Section 125 plan) and excluding any special or
non-recurring compensatory payments such as moving or relocation bonuses or
automobile allowances.

 

1.15        “Employee”
shall mean each employee of Employer.

 

1.16        “Employer”
shall mean Amylin Pharmaceuticals, Inc., a Delaware corporation, and any
successor organization thereto, and any Subsidiary of the Company.

 

1.17        “Employer
Contributions” shall mean the Employer’s discretionary contribution, if any,
pursuant to Section 3.1(b) of the Plan.

 

1.18        “Hardship”
shall have the meaning set forth in Section 3.5 of the Plan.

 

1.19        “Non-Employee
Director” shall mean a director of the Employer who is not otherwise an Employee
of the Employer.

 

1.20        “Plan
Year” shall mean the year beginning each January 1 and ending December 31;
notwithstanding the foregoing, the initial Plan Year shall mean the period
beginning with the Effective Date and ending on December 31, 2001.

 

1.21        “Plan”
shall mean the Amylin Pharmaceuticals, Inc. 2001 Deferred Compensation Plan,
including any amendments thereto.

 

1.22        “Permanent
Disability” shall mean that the Service Provider is unable to engage in any
substantial gainful activity by reason of any medically determinable physical
or mental impairment that can be expected to result in death or otherwise meets
the definition of “Permanent Disability” as set forth in the Employer’s Long
Term Disability Plan as in effect on the date of such determination.  A Service Provider will not be considered to
have a Permanent Disability unless he or she furnishes proof of such condition
sufficient to satisfy the Employer, in its sole discretion.

 

1.23        “Service”
shall mean employment as a common law employee, service as a Consultant or
service as a Non-Employee Director of the Employer, as applicable.  An Employee shall not be deemed to terminate
Service if the Employee converts from a Non-Employee

 

3

 

Director to a common law
employee from a common law employee to a Consultant or any combination thereof.

 

1.24        “Service
Provider” shall mean an Employee, Non-Employee Director and Consultant of the
Employer, and a Service Provider’s Beneficiary where the context so requires.

 

1.25        “Subsidiary”
shall mean any corporation (other than the Employer) in an unbroken chain of
corporations beginning with the Employer, if each of the corporations other
than the last corporation in the unbroken chain owns stock possessing fifty
(50) percent or more of the total combined voting power of all classes of stock
in one of the other corporations in such chain.

 

1.26        “Transferee
Plan” shall mean an unfunded, nonqualified deferred compensation plan described
in Section 201(2), 301(a)(3) and 401(a)(1) of the Employee Retirement Income
Security Act of 1974 (“ERISA”).

 

1.27        “Trust”
or “Trust Agreement” shall mean the Amylin Pharmaceuticals, Inc. 2001 Deferred
Compensation Plan Rabbi Trust Agreement, including any amendments thereto,
entered into between the Employer and the Trustee to carry out the provisions
of the Plan.

 

1.28        “Trust
Fund” shall mean the cash and other assets and/or properties held and
administered by Trustee pursuant to the Trust to carry out the provisions of
the Plan.

 

1.29        “Trustee”
shall mean the designated Trustee acting at any time under the Trust.

 

SECTION 2

 

Eligibility

 

2.1          Eligibility.  Eligibility
to participate in the Plan shall be limited to Service Providers of the
Employer who: (1) (a) are (or were) classified as officers, vice-presidents, or
an equivalent title, and (b) have been selected by the Committee to participate
in the Plan, or (2) are Non-Employee Directors.  The Committee shall designate Service Providers who shall be
covered by this Plan in a separate Acknowledgment (in the form attached hereto
as Appendix 1) for each such Service Provider. 
Participation in the Plan shall commence as of the date such
Acknowledgment is signed by the Service Provider and delivered to the Employer,
provided that deferral of Compensation under the Plan shall not commence until
the Service Provider has complied with the election procedures set forth in
Section 3.3.  Nothing in the Plan or in
the Acknowledgment should be construed to require any contributions to the Plan
on behalf of the Service Provider by Employer.

 

4

 

SECTION 3

 

Deferred
Compensation

 

3.1          Deferred Compensation.

 

(a)           Each
participating Service Provider may elect, in accordance with Section 3.3 of
this Plan, to defer semi-annually the receipt of all or a portion of the
Compensation for active Service otherwise payable to him or her by Employer
during each semi-annual period or portion of a semi-annual period during the
Service Provider’s Service to the Employer. 
Any Compensation deferred by Service Provider pursuant to Section 3.3
shall be recorded by the Employer in an Account, maintained in the name of the
Service Provider, which Account shall be credited with a dollar amount equal to
the total amount of Compensation deferred during each semi-annual period under
the Plan, together with earnings thereon credited in accordance with Section
3.7.  The amount or percentage of
Compensation that Service Provider elects to defer under Section 3.3 will
remain constant for the semi-annual period and shall not be subject to change
during such semi-annual period.  Each
such deferral election by a Non-Employee Director as to Directors Fees or
discontinuance of a deferral election as to Directors Fees will continue in
force for each successive semi-annual period until or unless suspended or
modified by the filing of a subsequent election with the Employer by the
Non-Employee Director in accordance with Section 3.3 of the Plan.  Each deferral election as to an Employee’s
Base Compensation or a Consultant’s Consulting Fees shall continue in force
only for the semi-annual period to which such election applies, and shall not
apply to any successive semi-annual periods. 
Each deferral election as to an Employee’s Cash Bonus shall continue in
force only for the single semi-annual period in which it is paid, regardless of
the period of time as to which it is awarded, and shall not apply to any
successive semi-annual periods.  Any
deferral election with respect to a Cash Bonus must be made prior to the time
the amount of the bonus is determined, prior to the end of the period of time
as to which the bonus is awarded, and at a time that the amount of any such
bonus remains substantially uncertain. 
All deferrals pursuant to this Section 3.1 shall be fully vested at all
times.  Deferral elections shall be
subject to a minimum dollar and maximum percentage amounts as follows: (i) the
minimum semi-annual deferral amount is $2,500, which shall be withheld from the
Employee’s Compensation, and (ii) the maximum deferral percentage amounts for
each Plan Year shall be determined by the Committee prior to the commencement
of such Plan Year; but in no event shall the maximum deferral percentage exceed
the maximum amount of the Employee’s Base Salary which may be deferred under
applicable federal and state labor and employment laws (including wage and hour
laws), 100% of the Employee’s Cash Bonus, 100% of the Consultant’s Consulting
Fees and 100% of the Non-Employee Director’s Directors Fees.

 

(b)           Employer
shall not be obligated to make any other contribution to the Plan on behalf of
any Service Provider at any time. 
Employer may make Employer Contributions to the Plan on behalf of one or
more Service Providers.  Employer
Contributions, if any, made to Accounts of Service Providers shall be
determined in the sole and absolute discretion of the Employer, and may be made
without regard to whether the Service Provider to whose Account such
contribution is credited has made, or is making, contributions pursuant to
Section 3.1(a).  The Employer shall not
be bound or obligated to apply any specific formula or basis for calculating
the amount of any Employer Contributions and Employer shall have sole and

 

5

 

absolute discretion as to
the allocation of Employer Contributions among participating Service Provider
Accounts.  The use of any particular
formula or basis for making an Employer Contribution in one year shall not bind
or obligate the Employer to use such formula or basis in any other year.  Employer Contributions may be subject to a
substantial risk of forfeiture in accordance with the terms of a vesting
schedule, which may be selected by the Employer in its sole and absolute
discretion.

 

(c)           Amounts
deferred under the Plan shall be calculated and withheld from the Employee’s
base salary and/or cash bonus after such compensation has been reduced to
reflect salary reduction contributions to the Employer’s Code Section 125
(cafeteria) and Code Section 401(k) (savings) plans, and after any reductions
for contributions to the Code Section 423 (employee stock purchase) plan.

 

3.2          Payment of Account Balances.

 

(a)           The
Service Provider shall elect whether he or she will receive distribution of his
or her entire Account, subject to tax withholding requirements, (i) upon
reaching a specified age, (ii) upon passage of a specified number of years,
(iii) upon a Change in Control (iv) upon termination of Service with Employer,
(v) upon the earlier to occur of (A) termination of Service with Employer (B)
passage of a specified number of years or attainment of a specified age, or (C)
upon a Change in Control (vi) upon the later to occur of (A) termination of
Service with Employer (B) passage of a specified number of years or attainment
of a specified age or (C) upon a Change in Control, as elected by Service
Provider in accordance with the form established by the Committee.  Such form may permit an election among some
or all of the alternatives listed in this Section 3.2(a), as determined in the
Committee’s sole discretion.  A
designation of the time of distribution shall be required as a condition of
participation under this Plan.  The
Service Provider shall also elect to receive all amounts payable to him or her
in a lump sum or in equal monthly installments over a designated period of five
or ten years, pursuant to the provisions of Section 3.2(e).  These elections shall be made in accordance
with Section 3.4 of this Plan.

 

(b)           Distributions
shall be made to the maximum extent allowable under the election made by
Service Provider, except that no distribution shall be made to the extent that
the receipt of such distribution, when combined with the receipt of all other
“applicable employee remuneration” (as defined in Code Section 162(m)(4)) would
cause any remuneration received by an Employee to be nondeductible by the
Employer under Code Section 162(m)(1). 
The portion of any distributable amount that is not distributed by
operation of this Section 3.2(b) shall be distributed in subsequent years in
the manner elected by the Service Provider until the Service Provider’s Account
has been fully liquidated.  The
commencement date of the lump sum payment or the five- or ten-year period (whichever
is applicable) shall be automatically extended, when necessary to satisfy the
requirements of this subsection, for one-year periods until all Account
balances have been distributed in the manner elected by the Service Provider.

 

(c)           Upon
termination of Service Provider’s Service with Employer by reason of death or
Permanent Disability prior to the time when payment of Account balances
otherwise would commence under the provisions of Section 3.2(a), Service
Provider or Service Provider’s designated Beneficiary will be entitled to
receive all amounts credited to the Account of Service

 

6

 

Provider as of the date
of his or her death or Permanent Disability (notwithstanding any contrary
election to receive distributions under the first sentence of Section
3.2(a)).  Upon termination of Service
Provider’s Service with Employer by reason other than death or Permanent
Disability prior to the date when payment of Account balances otherwise would
commence under the provisions of Section 3.2(a), the Employer may, in the sole
discretion of the Committee, distribute to Service Provider or Service
Provider’s designated Beneficiary all amounts credited to the Service
Provider’s Account as of the date of such termination (notwithstanding any
contrary election to receive distributions under the first sentence of Section
3.2(a)); provided, however, that
to the extent such distribution involves the distribution of a portion of the
Service Provider’s Account that is invested in Common Stock, then no such
distribution shall be made unless and until the distribution is exempt from
Section 16(b) of the Exchange Act because the conditions of Rule 16b-3(d) of
the Exchange Act have been satisfied with respect to such distribution.  Said amounts shall be payable in the form determined
pursuant to the provisions of Section 3.2(e).

 

(d)           Upon
the death of Service Provider prior to complete distribution to him or her of
the entire balance of his or her Account (and after the date of termination of
employment with Employer), the balance of his or her Account on the date of
death shall be payable to Service Provider’s designated Beneficiary pursuant to
Section 3.2(e).  Notwithstanding any
other provision of the Plan to the contrary, the Service Provider’s designated
Beneficiary may receive the distribution of the remaining portion of such
deceased Service Provider’s Account in the form of a lump sum if the
Beneficiary requests such a distribution and the Committee, in its sole
discretion, consents to such a distribution.

 

(e)           The
Employer shall distribute or direct distribution of the balance of amounts
previously credited to Service Provider’s Account, in a lump sum, or in monthly
installments over a period of five (5) years or ten (10) years as Service
Provider shall designate.  A designation
of the form of distribution shall be required as a condition of participation
under this Plan.  Distribution of the
lump sum or the first installment shall be made or commence within ninety (90)
days following the date specified in the first sentence of Section 3.2(a), or
as otherwise provided in 3.2(c). 
Subsequent installments, if any, shall be made on the first day of each
month following the last installment as determined by Employer.  The amount of each installment shall be
calculated by dividing the Account balance as of the date of the distribution
by the number of installments remaining pursuant to the Service Provider’s
distribution election.  Each such
installment, if any, shall take into account earnings credited to the balance
of the Account remaining unpaid.  The
Service Provider’s distribution election shall be made on a form provided by
Employer. Each distribution shall be made in cash.  Notwithstanding the foregoing or anything to the contrary
contained herein or in the Service Provider’s distribution election form, to
the extent that a Participant’s Account is invested in Common Stock, the
Employer shall distribute or direct distribution of the balance of amounts
previously credited to Service Provider’s Account in such Common Stock and in a
lump sum within ninety (90) days following the date specified in the first
sentence of Section 3.2(a), or as otherwise provided in 3.2(c).

 

3.3          Election to Defer Compensation.  Each election of a Service
Provider to defer compensation as provided in Section 3.1 of this Plan shall be
in writing, signed by the Service Provider, and delivered to Employer, together
with all other documents required under the provisions of this Plan, within
such time as determined by the Committee and communicated to

 

7

 

those Service Providers
who are eligible to participate in the Plan; provided, however, that such
deferral elections must be delivered to Employer at least three (3) months
prior to the beginning of the semi-annual period during each Plan Year with
respect to which the Compensation to be deferred is otherwise payable to
Service Provider; provided, further, that for the Plan Year in which this Plan
is first implemented, and in the case of an Employee who is hired or promoted
to a position of eligibility for participation in the Plan or a Non-Employee
Director who is elected to become a Non-Employee Director during a semi-annual
period, such Service Provider shall have thirty (30) days from the date of notification
of eligibility for participation in the Plan in which to submit the required
election documents for the then current semi-annual period.   Any deferral election made by Service
Provider shall be irrevocable with respect to any Compensation covered by such
election, including Compensation payable in the semi-annual period in which the
election suspending or modifying the prior deferral election is delivered to
Employer. The Employer shall withhold the amount or percentage of Base Salary
specified to be deferred in equal amounts for each payroll period and shall
withhold the amount or percentage of each Cash Bonus specified to be deferred
at the time or times such Cash Bonus is or otherwise would be paid to the
Employee.  The election to defer
Compensation shall be made on the form provided by Employer.  The Employer shall withhold the amount or
percentage of Consulting Fees and/or Directors Fees specified to be deferred at
the time or times such Consulting Fees and/or Directors Fees are or otherwise
would be paid to the Service Provider.

 

3.4          Distribution Election.  The initial distribution election of a Service
Provider as provided in Section 3.2 of this Plan shall be in writing, signed by
the Service Provider, and delivered to Employer, together with all other
documents required under the provisions of this Plan, within such period of
time determined by the Committee and communicated to those Service Providers
who are eligible to participate in the Plan. 
Such distribution elections must be delivered to the Employer prior to
the beginning of the first Plan Year in which Service Provider is eligible to
participate in the Plan; provided however, that a Service Provider who is hired
or promoted to a position of eligibility for participation in the Plan or a
Non-Employee Director who is elected to become a Non-Employee Director during a
Plan Year shall have thirty (30) days from the date of notification of
eligibility for participation in the Plan in which to submit the required
distribution election documents. If permitted by the Committee, a Service
Provider may change the terms of his or her initial distribution election by
making a new election, and any such new election will be effective as of the
date that is twenty-five (25) months following the date the new election is
made and such new election will apply to the Service Provider’s entire account;
provided, however, that a Service
Provider may not change the terms of his or her initial distribution election
with respect to that portion of his or her Account that has been invested in
Common Stock.  A Service Provider may
not make a new election once distributions from the Plan have commenced or
which would first become effective at a time when distributions from the Plan
have commenced.  A Service Provider’s
distribution election shall be in the form established by the Committee in
accordance with the terms of the Plan.

 

3.5          Hardship.

 

(a)           A
Service Provider may apply for distributions from his or her Account to the
extent that the Service Provider demonstrates to the reasonable satisfaction of
the Committee that he or she needs the funds due to Hardship; provided, however, that a Service
Provider may not receive a distribution of the portion of his or her Account
that is invested in Common Stock 

 

8

 

on account of a Hardship,
unless and until the distribution is exempt from Section 16(b) of the Exchange
Act because the conditions of Rule 16b-3(e) of the Exchange Act have been
satisfied with respect to such distribution.  For purposes of this Section 3.5,
a distribution is made on account of “Hardship” only if the distribution is
made on account of an unforeseeable immediate and heavy emergency financial
need of the Service Provider and is necessary to satisfy that emergency
financial need.  Whether a Service
Provider has an immediate and heavy emergency financial need shall be
determined by the Committee based on all relevant facts and circumstances, and
shall include, but not be limited to: the need to pay funeral expenses of a
family member; the need to pay expenses for medical care for Service Provider,
the Service Provider’s spouse or any dependent of Service Provider resulting
from sudden unexpected illness or accident; payments necessary to prevent the eviction
of Service Provider from Service Provider’s principal residence or foreclosure
on the mortgage on that residence; or other similar extraordinary and
unforeseeable circumstances arising as a result of events beyond the control of
Service Provider.  A Hardship
distribution shall not exceed the amount required to relieve the financial need
of the Service Provider, nor shall a Hardship distribution be made if the need
may be satisfied from other resources reasonably available to the Service
Provider.  For purposes of this
paragraph, a Service Provider’s resources shall be deemed to include those
assets of the Service Provider’s spouse and minor children that are reasonably
available to the Service Provider. 
Prior to approving a Hardship distribution, Employer shall require the
Service Provider to certify in writing that the Service Provider’s financial
need cannot reasonably be relieved:

 

(i)            through
reimbursement or compensation by insurance or otherwise; or

 

(ii)           by
other distributions or nontaxable (at the time of the loan) loans from plans
maintained by the Employer or by any other employer, or by borrowing from
commercial sources on reasonable commercial terms, in an amount sufficient to
satisfy the need.

 

(b)           Any
Service Provider receiving a Hardship distribution under this section shall be
ineligible to defer any additional Compensation under the Plan until the first
day of the Plan Year following the second anniversary of the date of the
Hardship distribution.  In addition, a
new deferred election must be submitted to the Employer as a condition of
participation in the Plan.

 

3.6          Service Provider’s Right Unsecured.  The right of the Service
Provider or his or her designated Beneficiary to receive a distribution
hereunder shall be an unsecured claim against the general assets of the
Employer, and neither the Service Provider nor his or her designated
Beneficiary shall have any rights in or against any amount credited to his or
her Account or any other specific assets of the Employer, except as otherwise
provided in the Trust.  Nothing
contained in this Plan, and no action taken pursuant to its provisions, shall
create or be construed to create a trust of any kind or a fiduciary
relationship between the Plan and the Employer or any other person.

 

9

 

3.7          Investment of Contribution.

 

(a)           The
investment options available to each Service Provider shall be determined by
the Employer and set forth in a separate written document or in a manner
acceptable to the Committee, a copy of which shall be attached hereto and by
this reference is incorporated herein. 
Each Service Provider shall have the sole and exclusive right to direct
the Trustee as to the investment of his or her Accounts in accordance with
policies and procedures implemented by the Trustee.  A Service Provider
who is a Non-Employee Director may invest deferred Compensation in Common
Stock, provided that the
investment election occurs prior to the time such Compensation is
deferred.  Once a Service Provider has
directed the investment of a contribution into Common Stock, the Service
Provider may not thereafter change the investment of that portion of his or her
Account.  The right of a Service
Provider to direct the investment of his or her Account into one or more of the
available investment options shall not in any way be considered to alter the
fact that an Account is a bookkeeping account only that measures the Employer’s
obligation to pay benefits hereunder, that the assets being invested at the
direction of a Service Provider are assets of the Employer and that the Service
Provider’s rights under the Plan remain those of an unsecured, general creditor
of the Employer.  Employer shall not be
liable for any investment decision made by any Service Provider while such
funds are held by the Trustee.

 

(b)           Accounts
shall be credited with the actual financial performance or earnings generated
by such investments directed by the Service Provider and made by the Trustee,
until the Account has been fully distributed to the Service Provider or to the
Service Provider’s designated Beneficiary. 
Notwithstanding the foregoing, if a Service Provider directs the
investment of a contribution into Common Stock and the Company (or the Trustee,
if applicable) is unable to effect a purchase of Common Stock and pursuant to
Rule 10b-18 of the Exchange Act and in a manner that does not violate Section
10(b) or Rule 10b-5 of the Exchange Act, then the Service Provider’s Account
shall be credited with the actual financial performance or earnings generated
by a money market account until such time as the Company (or the Trustee, if
applicable) is able to effect a purchase of Common Stock in accordance with the
Service Provider’s direction and pursuant to Rule 10b-18 of the Exchange Act
and in a manner that does not violate Section 10(b) or Rule 10b-5 of the
Exchange Act.

 

(c)           Employer
shall furnish each participant with a statement of his or her account balance
at least annually.

 

3.8          Distribution with Penalty.  Notwithstanding the foregoing,
a Service Provider may elect to receive a distribution of his or her Account at
any time, upon ten (10) days’ notice to Employer; provided that upon such
distribution ten percent (10%) of such Service Provider’s Account shall be
forfeited to Employer and may not be recontributed by Employer to Service
Provider’s Account; provided further that a Service Provider
receiving a distribution under this Section shall be ineligible to defer any
additional Compensation under the Plan until the first day of the Plan Year
following the date of such distribution. 
In addition a new deferral election must be submitted to Employer as a
condition of participation in the Plan.  Notwithstanding
anything to the contrary in this Section 3.8, a Service Provider may not elect
to receive a distribution of that portion of his or her Account that is
invested in Common Stock unless and until the distribution is exempt from
Section 16(b) of the Exchange Act because the conditions of Rule 16b-3(e) of
the Exchange Act have been satisfied with respect to such distribution.

 

10

 

SECTION 4

 

Designation Of Beneficiary

 

4.1          Designation of Beneficiary.  Service Provider may
designate a Beneficiary or Beneficiaries to receive any amount due hereunder by
Service Provider by written notice thereof to Employer at any time prior to
Service Provider’s death and may revoke or change the Beneficiary designated
therein without the Beneficiary’s consent by written notice delivered to
Employer at any time and from time to time prior to Service Provider’s
death.  If Service Provider is married
and a resident of a community property state, one half of any amount due
hereunder which is the result of an amount contributed to the Plan during such
marriage is the community property of the Service Provider’s spouse and Service
Provider may designate a Beneficiary or Beneficiaries to receive only the
Service Provider’s one-half interest. 
If Service Provider shall have failed to designate a Beneficiary, or if
no such Beneficiary shall survive him or her, then such amount shall be paid to
his or her estate.  Designations of
Beneficiaries shall be made on the form provided by Employer.

 

SECTION 5

 

Trust
Provisions

 

5.1          Trust Agreement. 
The Employer may establish the Trust for the purpose
of retaining assets set aside by Employer pursuant to the Trust Agreement for
payment of all or a portion of the amounts payable pursuant to the Plan.  Any benefits not paid from the Trust shall
be paid solely from Employer’s general funds, and any benefits paid from the
Trust shall be credited against and reduce by a corresponding amount the
Employer’s liability to Service Providers under the Plan.  No special or separate fund, other than the
Trust Agreement, shall be established and no other segregation of assets shall
be made to assure the payment of any benefits hereunder.  All Trust Funds shall be subject to the
claims of general creditors of the Employer in the event the Employer is
Insolvent as defined in Section 3 of the Trust Agreement.  The obligations of the Employer to pay
benefits under the Plan constitute an unfunded, unsecured promise to pay and
Service Providers shall have no greater rights than general creditors of the Employer.

 

SECTION 6

 

Amendment, Termination And Transfers By Committee

 

6.1          Amendment.  The
Committee shall have the right to amend this Plan at any time and from time to
time, including a retroactive amendment. 
Any such amendment shall come effective upon the date stated therein,
and shall be binding on all Service Providers, except as otherwise provided in
such amendment; provided, however, that said amendment shall not affect
adversely benefits payable to an affected Service Provider without the Service
Provider’s written approval.

 

11

 

6.2          Termination.  The
Committee shall have the right to terminate this Plan at any time and direct
the lump sum payments of all assets held by the Trust if the Employer is not
Insolvent (as defined in Section 3 of the Trust Agreement) at that time.

 

6.3          Transfers by Committee.

 

(a)           In
the event that a Service Provider transfers employment from the Employer to a
Subsidiary, the Committee shall have the right, but no obligation, to direct
the Trustee to transfer funds in an amount equal to the amount credited to such
Service Provider’s Account (the “Transferred Account”) to a trust established
under a Transferee Plan maintained by such Subsidiary.  The Committee shall determine, in its sole
discretion, whether such transfer shall be made and the timing of such
transfer.  Such transfer shall be made
only if, and to the extent, approval of such transfer is obtained from the
Trustee.

 

(b)           No
transfer shall be made under this Section 6.3 unless the Service Provider for
whose benefit the Transferred Account is held executes a written waiver of all
of such Service Provider’s rights and benefits under this Plan in such form as
shall be acceptable to the Committee.

 

SECTION 7

 

Administration

 

7.1          Administration. 
The Committee shall administer and interpret this Plan
in accordance with the provisions of the Plan and the Trust Agreement.  Any determination or decision by the
Committee shall be conclusive and binding on all persons who at any time have
or claim to have any interest whatever under this Plan.  The Committee may employ legal counsel,
consultants, actuaries and agents as it may deem desirable in the
administration of the Plan and may rely on the opinion of such counsel or the
computations of such consultant or other agent.  The Committee shall have the authority to delegate some or all of
the powers and responsibilities under the Plan and the Trust Agreement to such
person or persons as it shall deem necessary, desirable or appropriate for
administration of the Plan.

 

7.2          Liability of Committee;
Indemnification.  To
the maximum extent not prohibited by law, no member of the Committee shall be
liable to any person and in any event shall be indemnified by the Employer for
any action taken or omitted in connection with the interpretation and
administration of this Plan unless attributable to his or her own bad faith or
willful misconduct.

 

7.3          Expenses.  The
costs of the establishment of the Plan and the adoption of the Plan by
Employer, including but not limited to legal and accounting fees, shall be
borne by Employer.  The expenses of
administering the Plan and the Trust shall be borne by the Trust unless the
Employer elects in its sole discretion to pay some or all of those expenses;
provided, however, that Employer shall bear, and shall not be reimbursed by,
the Trust for any tax liability of Employer associated with the investment of
assets by the Trust.

 

12

 

SECTION 8

 

General And
Miscellaneous

 

8.1          Rights against Employer.  Except as expressly
provided by the Plan, the establishment of this Plan shall not be construed as
giving to any Service Provider or to any person whomsoever, any legal,
equitable or other rights against the Employer, or against its officers,
directors, agents or shareholders, or as giving to any Service Provider or
Beneficiary any equity or other interest in the assets, business or shares of
Employer stock or giving any Service Provider the right to be retained in the
employment of the Employer.  Neither
this plan nor any action taken hereunder shall be construed as giving to any
Service Provider the right to be retained in the employ of the Employer or as
affecting the right of the Employer to dismiss any Service Provider.  Any benefit payable under the Plan shall not
be deemed salary or other compensation for the purpose of computing benefits
under any employee benefit plan or other arrangement of the Employer for the
benefit of its Employees.  Nothing in
the Plan or in any instrument executed pursuant thereto shall confer upon any
Consultant any right to continue in the service of the Employer in any
capacity.  Nothing in the Plan or in any
instrument executed pursuant thereto shall confer upon any Non-Employee Director
any right to continue in the service of the Employer in any capacity or shall
affect any right of the Employer, its Board of Directors or stockholders to
remove any Non-Employee Director pursuant to the Employer’s Bylaws and the
provisions of the Delaware General Corporation Law.

 

8.2          Assignment or Transfer.  No right, title or interest of any kind in the
Plan shall be transferable or assignable by any Service Provider or Beneficiary
or be subject to alienation, anticipation, encumbrance, garnishment,
attachment, execution or levy of any kind, whether voluntary or involuntary,
nor subject to the debts, contracts, liabilities, engagements, or torts of the
Service Provider or Beneficiary.  Any
attempt to alienate, anticipate, encumber, sell, transfer, assign, pledge,
garnish, attach or otherwise subject to legal or equitable process or encumber
or dispose of any interest in the Plan shall be void.

 

8.3          Severability.  If
any provision of this Plan shall be declared illegal or invalid for any reason,
said illegality or invalidity shall not affect the remaining provisions of this
Plan but shall be fully severable, and this Plan shall be construed and
enforced as if said illegal or invalid provision had never been inserted
herein.

 

8.4          Construction. The article and section
headings and numbers are included only for convenience of reference and are not
to be taken as limiting or extending the meaning of any of the terms and
provisions of this Plan.  Whenever
appropriate, words used in the singular shall include the plural or the plural
may be read as the singular.  When used
herein, the masculine gender includes the feminine gender.

 

8.5          Governing Law.  The
validity and effect of this Plan and the rights and obligations of all persons
affected hereby shall be construed and determined in accordance with the laws
of the State of California unless superseded by federal law.

 

8.6          Payment Due to Incompetence.  If the Committee receives
evidence that a Service Provider or Beneficiary entitled to receive any payment
under the Plan is physically or

 

13

 

mentally incompetent to
receive such payment, the Committee may, in its sole and absolute discretion,
direct the payment to any other person or Trust which has been legally
appointed by the courts or to any other person determined by the Employer to be
a proper recipient on behalf of such person otherwise entitled to payment, or
any of them, in such manner and proportion as the Employer may deem
proper.  Any such payment shall be in
complete discharge of the Employer’s obligations under this Plan.

 

8.7          Tax.  The
Employer may withhold from any benefits payable under this Plan, all federal,
state, city or other taxes as shall be required pursuant to any law or
governmental regulation or ruling.

 

8.8          Attorney’s Fees. 
Employer shall pay the reasonable attorney’s fees
incurred by any Service Provider in an action brought against Employer to
enforce Service Provider’s rights under the Plan, provided that such fees shall
only be payable in the event that the Service Provider prevails in. such
action.

 

8.9          Plan Binding on Successors/Assignees.  This Plan shall be binding
upon and inure to the benefit of the Employer and its successor and assigns and
the Service Provider and the Service Provider’s designee and estate.

 

The Employer has
caused its authorized officer to execute this Plan this 19th day of
February, 2003.

 

	
   

  	
  Amylin Pharmaceuticals, Inc.

  
	
   

  
	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Joseph C. Cook, Jr.

  
	
   

  	
  Chief Executive Officer
  and

  Chairman of the Board

  

 

14

 

Appendix 1

 

ACKNOWLEDGMENT

 

The undersigned
Service Provider hereby acknowledges that Employer has selected him or her as a
participant in the Amylin Pharmaceuticals, Inc. 2001 Deferred Compensation
Plan, subject to all terms and conditions of the Plan, a copy of which has been
received, read, and understood by the Service Provider in conjunction with
executing this Acknowledgment.  Service
Provider acknowledges that he or she has had satisfactory opportunity to ask
questions regarding his or her participation in the Plan and has received
satisfactory answers to any questions asked. 
Service Provider also acknowledges that he or she has sufficient
knowledge and experience in financial and business matters to be capable of
evaluating the merits and risks of participation in the Plan.  Service Provider understands that his or her
participation in the Plan shall not begin until this Acknowledgment has been
signed by Service Provider and returned to Employer.

 

	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signed:

  	
   

  	
   

  
	
   

  	
  Service Provider

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  
	
   

  	
  AMYLIN
  PHARMACEUTICALS, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
  Signed:

  	
   

  	
   

  
	
   

  	
  [Officer]

  	
   

  

 

15Exhibit
10.1

 

RESTRICTED
STOCK AWARD AGREEMENT

 

THIS
AGREEMENT, effective as of February 19, 2002 (the “Date of Grant”), is entered
into by and between Nash-Finch Company,
a Delaware corporation (the “Company”), and Ron
Marshall (the “Grantee”).

 

A.  The Company has adopted the Nash Finch
Company 2000 Stock Incentive Plan (the “Plan”) authorizing the Board of
Directors of the Company, or a committee as provided for in the Plan (the Board
or such a committee to be referred to as the “Committee”), to grant certain
types of incentive awards to employees and non-employee directors, consultants
and independent contractors of the Company and its Subsidiaries (as defined in
the Plan).

 

B.  The Company desires to provide the Grantee
with the opportunity to acquire or increase the Grantee’s proprietary interest
in the Company and an added incentive to advance the interests of the Company
by granting to the Grantee a Restricted Stock Award (as defined in the Plan).

 

Accordingly,
the parties agree as follows:

 

1.                                      Grant of Restricted Stock
Award.

 

The
Company hereby grants to the Grantee a Restricted Stock Award of 50,000 shares
(the “Restricted Stock Award Shares”) of the Company’s common stock, $1.66-2/3
par value (the “Common Stock”), according to the terms and subject to the
conditions hereinafter set forth and as set forth in the Plan.

 

2.                                      Share Restrictions.

 

2.1                                 Restriction and Forfeiture. 
Except as provided herein with regard to earlier vesting, the Grantee’s
right to retain the Restricted Stock Award Shares and any Dividend Proceeds (as
defined below) related thereto will be subject to the Grantee remaining in the
continuous employ or service of the Company through February 19, 2007.

 

2.2                                 Vesting of Restricted Stock Award Shares.  The
forfeiture restrictions provided for herein (the “Forfeiture Restrictions”)
shall lapse, and the Grantee shall become vested in the Restricted Stock Award
Shares in five respective installments on the anniversary of the Date of Grant
in each of the years 2003 through 2007, inclusive (each, the “Vesting Date”),
as follows:

 

1

 

	
  Vesting Date

  	
   

  	
  Number of
  Shares

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  February 19, 2003

  	
   

  	
  10,000

  	
   

  
	
  February 19, 2004

  	
   

  	
  10,000

  	
   

  
	
  February 19, 2005

  	
   

  	
  10,000

  	
   

  
	
  February 19, 2006

  	
   

  	
  10,000

  	
   

  
	
  February 19, 2007

  	
   

  	
  10,000

  	
   

  

 

2.3                                 Vesting Date Cash Awards. 
Within 30 days following each Vesting Date, the Company shall pay a cash
award to the Grantee in an amount equal to forty percent (40%) of the Fair
Market Value (as defined in the Plan), as of such Vesting Date, of the
Restricted Stock Award Shares as to which the Forfeiture Restrictions lapse on
the applicable Vesting Date (each, a “Cash Award”).

 

2.4                                 Termination of Employment or Other Service.

 

(a)                                  Termination Due to Death, Disability or
Retirement.

 

(i)                                     In the event the Grantee’s employment or
other service with the Company and all Subsidiaries is terminated by reason of
death or Disability (as defined in the Plan), all unvested Restricted Stock
Award Shares then held by the Grantee will become fully vested and a Cash Award
will be paid.

 

(ii)                                  In the event the Grantee’s employment or
other service with the Company and all Subsidiaries is terminated by reason of
Retirement (as defined in the Plan), all unvested Restricted Stock Award Shares
then held by the Grantee will continue to vest in the manner provided in
Section 2.2 hereof and Cash Awards will be paid in the manner proved in Section
2.3 hereof.

 

(b)                                 Termination for Reasons Other Than Death,
Disability or Retirement.  In the event that the Grantee’s employment
or other service with the Company and all Subsidiaries is terminated prior to
February 19, 2007 for any reason other than death, Disability or Retirement,
all rights of the Grantee under the Plan and this Agreement will immediately
terminate without notice of any kind, and all Restricted Stock Award Shares
then held by the Grantee that have not vested will be terminated and forfeited
and no further Cash Awards will be paid; provided, however, that if such
termination is due to any reason other than voluntary termination by the
Grantee or termination by the Company for “cause” (as defined in the Plan), the
Committee may, in its sole discretion and without obligation to exercise such
discretion, and in such manner as the Committee may determine, cause Restricted
Stock Award Shares to vest and/or continue to vest or become free of transfer
restrictions, as the case may be, following such termination of employment or
service; and, to the extent such vesting or continued vesting is permitted,
Cash Awards will be paid.

 

2.5                                 Change in Control.

 

(a)                                  Impact of Change in Control.  If
a Change in Control (as defined in the Plan) of the Company occurs, this
Restricted Stock Award, if it has been outstanding for more than six months,
will become immediately fully vested and non-forfeitable, and a Cash Award will
be paid, regardless of whether the Grantee remains in the employ or other
service of the Company.

 

2

 

(b)                                 Limitation on Change in Control Payments.  Notwithstanding
Section 2.5(a) to the contrary, if, with respect to the Grantee, acceleration
of the vesting of this Restricted Stock Award (which acceleration could be
deemed a “payment” within the meaning of Section 280G(b)(2) of the Internal
Revenue Code of 1986, as amended (the “Code”)), together with any other
payments which the Grantee has the right to receive from the Company or any
corporation which is a member of an “affiliated group” (as defined in Section
1504(b) of the Code) of which the Company is a member, would constitute a
“parachute payment” (as defined in Section 280G(b)(2) of the Code), the
payments to the Grantee as set forth herein will be reduced to the largest
amount as will result in no portion of such payments being subject to the excise
tax imposed by Section 4999 of the Code; provided, however, that if the Grantee
is subject to a separate agreement with the Company (including that certain
letter agreement between Company and Grantee, dated
       , as the same may subsequently be
amended or replaced from time to time (the “Change in Control Agreement”)) that
expressly addresses the potential application of Sections 280G or 4999 of the
Code to amounts to be received by Grantee upon a Change of Control (including,
without limitation, that “payments” under such agreement or otherwise will be
reduced, that the Grantee will have the discretion to determine which
“payments” will be reduced, that such “payments” will not be reduced or that
such “payments” will be “grossed up” for tax purposes), then this Section
2.5(b) will not apply, and any “payments” to the Grantee pursuant to Section
2.5(a) of this Agreement will be treated as “payments” arising under such
separate agreement.

 

3.                                      Issuance of Restricted Stock
Award Shares.

 

3.1                                 Rights as a Stockholder; Transferability.  The
Grantee will, as soon as practicable after the Date of Grant, be recorded on
the books of the Company as the owner of the Restricted Stock Award Shares, and
the Company will issue five duly issued and executed stock certificates
evidencing the Restricted Stock Award Shares. 
Subject to the terms of this Agreement, the Grantee will have all voting
dividend, liquidation and other rights with respect to the Restricted Stock
Award Shares upon becoming the holder of record of such Restricted Stock Award
Shares.  Prior to the termination of the
Forfeiture Restrictions, such Restricted Stock Award Shares will not be
assignable or transferable by the Grantee, either voluntarily or involuntarily,
and may not be subjected to any lien, directly or indirectly, by operation of
law or otherwise.  Any attempt to
transfer, assign or encumber the Restricted Stock Award Shares other than in
accordance with this Agreement and the Plan will be null and void, and all
Restricted Stock Award Shares will immediately be forfeited to the Company.

 

3.2                                 Enforcement of Forfeiture Restrictions.  To
enforce the Forfeiture Restrictions, the Committee may place a legend on the
stock certificates evidencing the Restricted Stock Award Shares that refers to
the Forfeiture Restrictions and may require the Grantee to keep such stock
certificates, together with stock powers executed in blank, in the custody of
the Company or its transfer agent until the Forfeiture Restrictions have
terminated.

 

3.3                                 Dividend Proceeds. 
Until vesting, any and all dividends or distributions paid with respect
to Restricted Stock Award Shares, including stock dividends or distributions in
kind, the proceeds of any stock split or the proceeds resulting from any
changes or exchanges described in Section 4 of this Agreement, but excluding
ordinary cash dividends paid generally with respect to shares of Common Stock,
will be deemed to be “Dividend Proceeds” and will be subject to the Forfeiture
Restrictions and other obligations provided for herein to the same extent as
the Restricted Stock Award Shares to which such Dividend Proceeds relate.  The Committee may, however, in its sole
discretion elect to distribute such Dividend Proceeds to the Grantee as they
are made, retain and hold such Dividend Proceeds subject to the Forfeiture
Restrictions and other obligations provided for herein or cause such Dividend
Proceeds to be paid to the Company pursuant to Section 8 of this Agreement to 

 

3

 

the
extent necessary to satisfy any federal, state or local withholding or other
employment-related tax requirements attributable to such Dividend
Proceeds.  No adjustment will be made
for ordinary cash dividends, Dividend Proceeds or any other rights as to which there
is a record date preceding the date the Grantee becomes the holder of record of
the Restricted Stock Award Shares.

 

4.                                      Adjustments.

 

In
the event of any reorganization, merger, consolidation, recapitalization,
liquidation, reclassification, stock dividend, stock split, combination of
shares, rights offering or divestiture (including a spin-off) or any other
change in the corporate structure or shares of the Company, the Committee (or,
if the Company is not the surviving corporation in any such transaction, the
board of directors of the surviving corporation), in order to prevent dilution
or enlargement of the rights of the Grantee, will make appropriate adjustments
(which determination will be conclusive) as to the number and kind of
securities subject to this Agreement.

 

5.                                      Rights of Grantee.

 

5.1                                 Employment or Service. 
Nothing in this Agreement will interfere with or limit in any way the
right of the Company or any Subsidiary to terminate the employment or other
service of the Grantee at any time, nor confer upon the Grantee any right to
continue in the employ or other service of the Company or any Subsidiary at any
particular position or rate of pay or for any particular period of time.

 

5.2                                 Breach of Confidentiality or Non-Compete
Agreements.  Notwithstanding anything in this Agreement
or the Plan to the contrary, and in addition to the terms set forth in Section
6.2 of this Agreement, in the event that the Grantee materially breaches the
terms of any confidentiality or non-compete agreement entered into with the
Company or any Subsidiary, including but not limited to those provided for in
Section 6 of this Agreement, whether such breach occurs before or after
termination of the Grantee’s employment or other service with the Company or
any Subsidiary, the Committee in its sole discretion may immediately terminate
all rights of the Grantee under the Plan and this Agreement without notice of
any kind.

 

6.                                      Grantee Covenants.

 

6.1                                 Competitive
Activities.  Grantee
agrees that in the event he voluntarily terminates his employment or service to
the Company prior to February 19, 2008, other than for “Good Reason” (as
defined below), he will not, without the prior written consent of the Company:

 

(a)                                  alone or in any
capacity (other than by way of holding shares listed on a stock exchange in a
number not exceeding five percent of the outstanding class or series so listed)
with any other person or entity, directly or indirectly engage in competition
with the Company or any Subsidiary, in association with, or as an officer,
director, employee, principal, agent or consultant of, any of the peer group
companies named, for cumulative total stockholder return comparison purposes,
in the Company’s proxy statements issued in the years 2002 through 2007,
inclusive, for a period ending one year after the date of termination or on
February 19, 2008, whichever is earlier; or

 

(b)                                 directly or
indirectly, solicit for employment, employ or attempt to employ any Tier I-IV
employee of the Company or any Subsidiary for a period of one year from the
date of termination.

 

4

 

For purpose of this Section 6.1, “Good Reason” will have the meaning
provided in the Change of Control Agreement.

 

6.2                                 Remedies for
Breach.  In the event of a breach of
either of the covenants set forth in Section 6.1 of this Agreement, then in
either such event, the Grantee shall forfeit all vested Restricted Stock Award
Shares and any Dividend Proceeds related thereto to the Company, and shall
immediately transfer and assign to the Company all such vested Restricted Stock
Award Shares and the amount of all Cash Awards and Dividend Proceeds related
thereto, or the equivalent number or value thereof; and, in addition to any
other legal remedies as may be available to it, the Company shall be entitled
to an immediate injunction from a court of competent jurisdiction to prevent
the continuation of the breach without further having to show damage.  Notwithstanding the foregoing, the Grantee
will not be required to forfeit Cash Awards to the extent equivalent amounts
(i) have been paid or remain payable (following the forfeiture provided above)
with respect to taxes due upon the vesting of Restricted Stock Award Shares;
and (ii) are not otherwise recoverable by the Grantee from taxing authorities
by virtue of any credit, any deduction or through any amendment to any prior
tax return (regardless of whether Grantee takes such a deduction or credit or
files any such amended return).

 

7.                                      Securities Law and Other
Restrictions.

 

Notwithstanding
any other provision of the Plan or this Agreement, the Company will not be
required to issue, and the Grantee may not sell, assign, transfer or otherwise
dispose of, any Restricted Stock Award Shares, unless (a) there is in effect
with respect to the Restricted Stock Award Shares a registration statement
under the Securities Act of 1933, as amended, and any applicable state or
foreign securities laws or an exemption from such registration, and (b) there
has been obtained any other consent, approval or permit from any other
regulatory body which the Committee, in its sole discretion, deems necessary or
advisable.  The Company may condition
such issuance, sale or transfer upon the receipt of any representations or
agreements from the parties involved, the placement of any legends on
certificates representing Restricted Stock Award Shares, or the receipt of an
opinion of counsel acceptable to the Company, as may be deemed necessary or
advisable by the Company in order to comply with such securities law or other
restrictions.

 

8.                                      Withholding Taxes.

 

The
Company is entitled to (a) withhold and deduct from future wages of the
Grantee, or cause to be paid to the Company out of Dividend Proceeds (or from
other amounts that may be due and owing to the Grantee from the Company), or
make other arrangements for the collection of, all legally required amounts
necessary to satisfy any federal, state or local withholding and
employment-related tax requirements attributable to the acquisition of the
Restricted Stock Award Shares, the receipt of Cash Awards, the receipt of
dividends or distributions on the Restricted Stock Award Shares or the
termination of the Forfeiture Restrictions applicable to the Restricted Stock
Award Shares, or (b) require the Grantee promptly to remit the amount of such
withholding to the Company.  In the
event that the Company is unable to withhold such amounts, for whatever reason,
the Grantee agrees to pay to the Company an amount equal to the amount the
Company would otherwise be required to withhold under federal, state or local
law.

 

5

 

9.                                      Subject to Plan.

 

The Restricted Stock Award and the Restricted Stock Award Shares
granted and issued pursuant to this Agreement have been granted and issued
under, and are subject to the terms of, the Plan.  The terms of the Plan are incorporated by reference in this
Agreement in their entirety, and the Grantee, by execution of this Agreement,
acknowledges having received a copy of the Plan.  The provisions of this Agreement will be interpreted as to be
consistent with the Plan, and any ambiguities in this Agreement will be
interpreted by reference to the Plan. 
In the event that any provision of this Agreement is inconsistent with
the terms of the Plan, the terms of the Plan will prevail.

 

10.                               Miscellaneous.

 

10.1                           Binding Effect. 
This Agreement will be binding upon the heirs, executors, administrators
and successors of the parties to this Agreement.

 

10.2                           Governing Law. 
This Agreement and all rights and obligations under this Agreement will
be construed in accordance with the Plan and governed by the laws of the State
of Minnesota, without regard to conflicts of laws provisions.  Any legal proceeding related to this
Agreement will be brought in an appropriate Minnesota court, and the parties to
this Agreement consent to the exclusive jurisdiction of the court for this
purpose.

 

10.3                           Entire Agreement. 
This Agreement, the Change in Control Agreement and the Plan set forth
the entire agreement and understanding of the parties to this Agreement with
respect to the grant and vesting of this Restricted Stock Award and supersede
all prior agreements, arrangements, plans and understandings relating to the
grant and vesting of this Restricted Stock Award.

 

10.4                           Amendment and Waiver. 
Other than as provided in the Plan, this Agreement may be amended,
waived, modified or canceled only by a written instrument executed by the
parties to this Agreement or, in the case of a waiver, by the party
waiving compliance.

 

10.5                           Severability.  Whenever possible, each provision of this
Agreement will be interpreted so that it is valid under the applicable
law.  If any provision of this Agreement
is to any extent invalid under the applicable law, that provision will still be
effective to the extent it remains valid. 
The remainder of this Agreement will also continue to be valid, and the
entire Agreement will continue to be valid in other jurisdictions.

 

6

 

 

The parties to this Agreement have executed this Agreement effective
the day and year first above written.

 

	
   

  	
   

  	
  NASH FINCH
  COMPANY

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ATTEST:

  	
   

  	
  By:

  	
  /s/
  Ron Marshall

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/
  Kathleen McDermott

  	
   

  	
  Its:
  Chief Executive Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By execution of this Agreement,

  the Grantee acknowledges having

  received a copy of the Plan.

  	
   

  	
  GRANTEE

  	
   

  
	
   

  	
   

  	
  /s/ Ron Marshall

  	
   

  
	
   

  	
   

  	
   

  	
  (Signature)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Ron
  Marshall

  	
   

  
	
   

  	
   

  	
   

  	
  (Name
  and Address)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
						

 

7

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