8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) February 18, 2022

Sprouts Farmers Market, Inc.

(Exact name of registrant as specified in its charter)

Delaware	001-36029	32-0331600
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(I.R.S. Employer Identification No.)

5455 E. High Street, Suite 111

Phoenix, Arizona 85054

(Address of principal executive offices and zip code)

(480) 814-8016

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, $0.001 par value	SFM	NASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

Appointment of Nicholas Konat as President and Chief Operating Officer

On February 24, 2022, Sprouts Farmers Market, Inc. (the “Company”) announced the appointment of Nicholas Konat as its President and Chief Operating Officer, effective March 21, 2022.

Mr. Konat, age 44, has been the Chief Merchandising Officer at Petco Health and Wellness Company, Inc. (NASDAQ: WOOF), a leading brand in the U.S. pet care industry, since October 2018. Mr. Konat joined Petco in September 2015 as Vice President of Brand, Product Innovation and Design before being promoted to Vice President of Private Brands and Merchandising in June 2017 and Senior Vice President – General Manager in January 2018. Prior to joining Petco, Mr. Konat served as Director of Food Merchandise Planning at Target Corporation (NYSE: TGT), capping a more than nine-year career at Target where he held a range of merchandising, planning and leadership roles across the food and fashion categories. Mr. Konat also spent six years with Accenture plc (NYSE: ACN), a multinational professional services company. Mr. Konat holds an honors bachelor’s degree in political science and government from St. John’s University.

The Company and Mr. Konat entered into an offer letter providing for the terms of Mr. Konat’s employment with the Company (the “Offer Letter”). The Offer Letter provides for an annualized base salary of $700,000, a short-term incentive bonus potential targeted at 100% of Mr. Konat’s base salary, participation in the Company’s annual long-term equity incentive plan valued at 1.25 times Mr. Konat’s base salary, and a one-time equity award grant of $3,000,000 comprised of RSUs vesting 75% on the second anniversary of the grant date and 25% on the third anniversary of the grant date pursuant to the terms of a restricted stock unit grant agreement. Mr. Konat will also receive a sign-on cash award of $650,000, will be an “eligible executive” under the Company’s Amended & Restated Executive Severance and Change in Control Plan, dated February 25, 2020, subject to certain terms in the Offer Letter, will be eligible to participate in the Company’s medical and other benefit plans generally available to the Company’s executive officers and will receive reimbursement for up to $150,000 of relocation expenses. Mr. Konat also will become a party to the Company’s Confidentiality, Non-Competition and Non-Solicitation Agreement applicable to executive officers.

The foregoing description of the Offer Letter and restricted stock unit grant agreement does not purport to be complete and is qualified in its entirety by reference to the complete text of the Offer Letter and restricted stock unit grant agreement, filed as Exhibits 10.1 and 10.2, respectively, to this Current Report on Form 8-K and are incorporated herein by reference.

There is no arrangement or understanding pursuant to which Mr. Konat was appointed as President and Chief Executive Officer. There are no related party transactions between the Company and Mr. Konat that are reportable under Item 404(a) of Regulation S-K.

On February 24, 2022, the Company issued a press release announcing Mr. Konat’s appointment. A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K.

Transition of Gil Phipps to Senior Marketing Advisor

On February 18, 2022, the Company entered into a letter agreement with Gil Phipps (the “Letter Agreement”). Mr. Phipps will transition from his role as the Company’s Senior Vice President - Chief Marketing Officer to the role of Senior Marketing Advisor through May 31, 2022 pursuant to the terms of the Letter Agreement and will perform duties as assigned to him by the Company’s Chief Executive Officer.

The foregoing description of the Letter Agreement does not purport to be complete and is qualified in its entirety by reference to the complete text of the Letter Agreement, filed as Exhibit 10.3 to this Current Report on Form 8-K and is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

Exhibit Number	Description
10.1	Offer Letter from Sprouts Farmers Market, Inc., to Nicholas Konat, dated January 25, 2022
10.2	2022 Form of Restricted Stock Unit Agreement under Sprouts Farmers Market, Inc. 2013 Incentive Plan for President and Chief Operating Officer
10.3	Letter Agreement between Sprouts Farmers Market, Inc. and Gil Phipps, dated February 18, 2022
99.1	Press release of Sprouts Farmers Market, Inc., dated February 24, 2022, entitled “Sprouts Farmers Market, Inc. Appoints Nicholas Konat as President and Chief Operating Officer”
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	SPROUTS FARMERS MARKET, INC.
Date: February 24, 2022	By:	/s/ Brandon F. Lombardi
	Name:	Brandon F. Lombardi
	Title:	Chief Legal Officer and Corporate Secretary

EX-10.1

Exhibit 10.1

 

January 25, 2022

Nick Konat:

Sprouts Farmers Market, Inc. is pleased to make you the following employment offer for the position of President & Chief Operating Officer.

Position and Duties:	President & Chief Operating Officer of Sprouts Farmers Market, Inc. (the “Company”) commencing at an agreed upon date once the offer is finalized.
Base Salary:	Your base salary will be $700,000 per annum, pro-rated for any partial year based on actual days of employment.
STIP:	Commencing in 2022, you will be eligible for an annual cash bonus opportunity at a target of 100% of your base salary and a maximum of 300% of base salary, subject to the Company satisfying performance goals in accordance with the Company’s short-term incentive plan established by the Board of Directors.
LTIP:	Commencing in March 2022, you will be eligible for annual equity grants pursuant to the Company’s long-term incentive program, with an annual grant value equal to 125% of your base salary, comprised of 50% performance share awards (“PSAs”) vesting on the third anniversary of the grant date based on achievement of performance goals to be established by the Board of Directors and 25% restricted stock units (“RSUs”) and 25% stock options, each vesting ratably over three years beginning on the first anniversary of the grant date. You will be eligible to earn up to 200% of the PSAs awarded depending on performance against such performance goals. The actual number of RSUs and PSAs granted will be determined using the 20-day trailing average share price of the Company’s common stock on the respective grant dates. The actual number of stock options granted will be calculated using a Black-Scholes valuation for the Company’s common stock and shall have an exercise price equal to the market value on the grant date. The form of PSA, RSU and stock option agreements will be the most recent general forms filed with the SEC.
Sign-On Awards:	On your start date, you will receive a sign-on equity grant equal to $3,000,000 of RSUs, vesting at 75% on the two-year anniversary of the grant date, and the remaining 25% on the three-year anniversary of the grant date. In addition, you will receive a sign-on cash award equal to $650,000 which will be subject to repayment at 50% (net of your tax obligation on such amount) should you voluntarily resign as an employee of the Company or be terminated for Cause (as such term is defined in the Severance Plan defined below) prior to the first anniversary of your start date, and at 25% (net of your tax obligation on such amount) should you voluntarily resign as an employee the Company or be terminated for Cause between the first and second anniversary of your start date.
Severance	You will be treated as an “Eligible Executive” under the Company’s Amended and Restated Executive Severance and Change in Control Plan, effective February 25, 2020 (the “Severance Plan”), as in effect on the date hereof as filed with the SEC as Exhibit 10.7 to the Company’s 2020 Form 10-K. Additionally, the second sentence in the definition of “Involuntary Termination” in the Severance Plan shall not apply to you. In addition, in the event of an “Involuntary Termination” as defined herein, any unvested RSUs from your $3,000,000 sign-on equity grant will vest immediately prior to such termination.
Restrictive Covenants:	Your employment is subject to your signing and complying with the terms of the Company’s Confidentiality, Non-Competition, and Non-Solicitation Agreement in the form filed with the SEC as Exhibit 10.6 to the Company’s 2020 Form 10-K.

Benefits:

You will be eligible to participate in the Company’s 401(k) and other benefit plans for salaried employees, subject to the terms of those plans. Your paid time off will be subject to the Company’s flexible time off policy (i.e., the Company does not accrue vacation time for salaried employees who can take as much as needed and approved by his/her supervisor).

Relocation:

You will be required to relocate and reside in a reasonable proximity to our primary offices in Phoenix, Arizona. The Company will reimburse you for up to $150,000 (grossed-up for taxes) in relocation expenses to cover home sale closing costs, transportation of goods, temporary housing, etc. This relocation reimbursement amount is subject to the same repayment terms as set forth under the Sign-On Awards section above.

On behalf of Jack Sinclair, and all of us at store support, welcome to the Sprouts team!

Sincerely,

/s/ Timmi Zalatoris

Timmi Zalatoris

SVP, Human Resources

Nick Konat

/s/ Nick Konat

Signed & dated

Your employment is contingent upon successful completion of a background check. You understand that your employment with Sprouts is at-will and that either party can terminate the relationship at any time with or without cause and with or without notice. You further acknowledge that this offer letter does not represent an employment contract, express or implied, guaranteeing employment for any specific duration, nor does it guarantee any fixed terms and/or conditions of employment.

EX-10.2

Exhibit 10.2

SPROUTS FARMERS MARKET, INC.

RSU Agreement

Cover Sheet

Sprouts Farmers Market, Inc., a company organized under the laws of the State of Delaware (“Company”), hereby grants an award of restricted stock units (“RSUs”) to the individual named below. The terms and conditions of the RSUs are set forth in this cover sheet (“Cover Sheet”), in the attached RSU Agreement (the “Agreement”) and in the Sprouts Farmers Market, Inc. 2013 Incentive Plan (the “Plan”). All capitalized terms used but not defined in this Cover Sheet and the Agreement will have the meanings ascribed to such terms in the Plan.

Granted to:	Nicholas Konat
Grant Date:
Number of RSUs:
Vesting Schedule:	Percentage of Shares 75% of shares 25% of shares	Vest Date Second anniversary of Grant Date Third anniversary of Grant Date
Delivery of Shares:	As and when the RSUs vest, a number of Shares equal to the number of RSUs so vesting shall be delivered as soon as practicable thereafter in settlement of such RSUs.

By signing this Cover Sheet, you agree to all of the terms and conditions described in this Cover Sheet, in the Agreement and in the Plan. If you do not sign and return this Cover Sheet and the attached Irrevocable Standing Order to Sell Shares within 60 days of the Grant Date, the Company will have the right to rescind this award.

Signature: _____________________ Date: _______________

SPROUTS FARMERS MARKET, INC.

By:

Name: Brandon Lombardi

Title: Chief Legal Officer and Corporate Secretary

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SPROUTS FARMERS MARKET, INC.

2013 INCENTIVE PLAN

RSU AGREEMENT

Right to Shares	The award of RSUs represents your right to receive, and the Company’s obligation to deliver, one Share per RSU, subject to the terms and conditions of this Agreement, the Plan and the Cover Sheet.
Vesting	The RSUs awarded to you will vest in accordance with the schedule set forth in the Cover Sheet. All RSUs will cease vesting as of the date your employment with the Company and its Affiliates has terminated for any reason.
Delivery; Settlement Change in Control	As and when RSUs vest, a number of Shares equal to the number of such RSUs shall be delivered as soon as practicable thereafter in settlement of such RSUs, and upon such delivery, you shall have no further rights with respect to those RSUs. Notwithstanding the foregoing: (A) if there occurs a Change in Control (as defined in Exhibit A), and this award does not continue or is not assumed by an acquiror on a substantially equivalent basis, then all RSUs that have not yet vested shall vest immediately prior to the Change in Control; and (B) if there occurs a Change in Control, and this award continues or is assumed by an acquiror on a substantially equivalent basis, and your employment is terminated by the Company or an acquiror without Cause (as defined in Exhibit A) or by you for Good Reason (as defined in Exhibit A), in each case within 24 months following the Change in Control, then all RSUs that have not yet vested shall vest immediately on your date of termination.
Termination	Should your employment with the Company and its Affiliates terminate pursuant to an “Involuntary Termination”, as such term is defined in the letter agreement between you and the Company dated January 25, 2022, all RSUs that have not yet vested shall vest immediately prior to such termination. Should your employment with the Company and its Affiliates terminate for any reason except pursuant to a Change in Control or Involuntary Termination as described above, all of your RSUs then outstanding will terminate, and you will no longer have any right to receive any Shares in respect of such RSUs. The grant of RSUs does not confer upon you any right to continued employment with the Company or interfere with the Company’s right to terminate your employment at any time.

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Taxes

When Shares are delivered to you upon settlement of any of your RSUs, the Company is required to withhold taxes pursuant to applicable law. The withholding obligation may be satisfied through a “sell to cover” whereby you irrevocably direct a securities broker approved by the Company to sell a portion of your Shares subject to the RSUs upon vesting and to deliver the sale proceeds to the Company in payment of the applicable withholding taxes. You agree to provide these directions by signing and returning the Irrevocable Standing Order to Sell Shares attached hereto, along with a signed copy of the Cover Sheet, within 60 days of the Grant Date. The number of Shares that the broker will sell will be based on an estimate made by the broker of the Shares required to be sold to satisfy the withholding taxes. You agree that the proceeds received from the sale of Shares will be used to satisfy the withholding taxes and, accordingly, you authorize the broker to pay such proceeds to the Company for such purpose. To the extent that the proceeds obtained by such sale exceed the amount necessary to satisfy the withholding taxes, such excess proceeds shall be deposited into your brokerage account and in the event of a shortfall, additional Shares may be sold and/or cash withholding may be required from you. Any remaining Shares shall be deposited into your brokerage account. If there is not a market in the Shares or the Company determines in its sole discretion that the sell to cover procedure is not advisable or sufficient, the Company will have the right to make other arrangements to satisfy the withholding taxes due upon issuance of the Shares with respect to the RSUs, including, but not limited to, the right to deduct amounts from salary or payments of any kind otherwise due to the Participant or withhold in Shares, provided that the Company only withholds the amount of Shares necessary to satisfy the statutory minimum withholding amount. If such other arrangements are made, your Irrevocable Standing Order to Sell Shares will be voided. You represent to the Company that, as of the date you sign the Irrevocable Standing Order to Sell Shares, you are not aware of any material nonpublic information about the Company or the Shares. You and the Company have structured this Agreement to constitute a “binding contract” relating to the sale of Shares, consistent with the affirmative defense to liability under Section 10(b) of the Exchange Act under Rule 10b5-1(c) issued under such Act.

Restrictions on Resale and Settlement

By signing this Agreement, you agree not to sell any Shares received upon settlement of RSUs at a time when applicable laws, regulations or Company policies prohibit a sale. The Company’s obligation to deliver Shares upon settlement of the RSUs shall be subject to applicable laws, rules and regulations and also to such approvals by governmental agencies as may be deemed appropriate to comply with relevant securities laws and regulations.

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Transfer of RSUs	You cannot transfer or assign RSUs or your right to receive Shares upon settlement of RSUs. For instance, you may not sell RSUs or use them as security for a loan. If you attempt to do any of these things, your RSUs will immediately become invalid. Regardless of any marital property settlement agreement, the Company or a securities broker, as applicable, is not obligated to recognize your former spouse’s interest in your RSUs in any way.
Stockholder Rights; Dividend Equivalent Rights	You, or your estate or heirs, have no rights as a stockholder of the Company in respect of RSUs until Shares have been delivered in settlement of the RSUs. No adjustments are made for dividends or other rights if the applicable record date occurs before Shares are delivered, except as described in the Plan. However, to the extent you hold RSUs on the record date of any cash dividend on Shares, you will be entitled to a payment in an amount, per RSU held, equal to the amount of the cash dividend declared and paid in respect of one Share. This Dividend Equivalent Right will be included in your regular compensation for the pay period during which the actual cash dividend is paid, and will be subject to applicable withholding taxes.
Applicable Law	This Agreement will be interpreted and enforced under the laws of the State of Delaware.
The Plan and Other Agreements	The text of the Plan and any amendments thereto are incorporated in this Agreement by reference. This Agreement, the Cover Sheet and the Plan constitute the entire understanding between you and the Company regarding the RSUs. Any prior agreements, commitments or negotiations concerning the RSUs are superseded.

By signing the Cover Sheet of this Agreement, you agree to all of the terms and conditions described above and in the Plan and evidence your acceptance of the powers of the Committee of the Board of Directors of the Company that administers the Plan.

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Exhibit A

Certain Definitions

“Affiliate” means, when used with reference to any Person, any other Person that directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common control with, or owns greater than fifty percent (50%) of the voting power in, the specified Person (the term “control” for this purpose shall mean the ability, whether by the ownership of shares or other equity interest, by contract or otherwise, to elect a majority of the directors of a corporation, independently to select the managing partner of a partnership or the managing member or the majority of the managers, as applicable, of a limited liability company, or otherwise to have the power independently to remove and then select a majority of those Persons exercising governing authority over an entity, and control shall be conclusively presumed in the case of the direct or indirect ownership of fifty percent (50%) or more of the voting equity interests in the specified Person).

“Cause” shall have the meaning set forth in any effective employment agreement between the Company or any of its Subsidiaries or Affiliates on the one hand, and you on the other hand, or if no such employment agreement is in effect that contains a definition of “Cause”, then Cause shall mean the occurrence of any one or more of the following events: (i) a conviction of or pleading guilty to (a) a felony, or (b) a misdemeanor that causes or is reasonably likely to cause material harm to the business, financial condition or operating results of the Company or any of its Affiliates; (ii) theft, embezzlement or fraud committed by you in connection with the performance of your job duties; (iii) engaging in any activity that gives rise to a material conflict with the Company or any of its Affiliates; (iv) the misappropriation of any material business opportunity of the Company or any of its Subsidiaries or Affiliates; (v) any material failure to comply with, observe or carry out the rules, regulations, policies, directions, codes of ethics and/or conduct and restrictions applicable to team members generally or established or approved by the Board from time to time for executive officers of the Company or any of its Subsidiaries or Affiliates, including (without limitation), in any case, those regarding conflicts of interest; and (vi) substance abuse or use of illegal drugs that materially impairs the performance of your job duties or causes or is likely to cause material harm to the business, financial condition or operating results of the Company or any of its affiliates. In order to terminate you for Cause, (I) the Company must deliver a written notice of its intent to terminate you for Cause, (II) you must be given a reasonable opportunity to cure any such acts or omissions (if curable) that constitute “Cause” within 30 days after receipt of such notice, and (III) you must have failed to timely cure any such acts or omissions.

“Change in Control” shall mean:

(i) any event occurs the result of which is that any “person,” as such term is used in Sections 13(d) and 14(d) of the Exchange Act, becomes the “beneficial owner”, as defined in Rules l3d-3 and l3d-5 under the Exchange Act directly or indirectly, of more than 50% of the voting stock of the Company or any successor company thereto, including, without limitation, through a merger or consolidation or purchase of voting stock of the Company; provided that the transfer of 100% of the voting stock of the Company to a Person that has an ownership structure identical to that of the Company prior to such transfer, such that the Company becomes a wholly owned subsidiary of such Person, shall not be treated as a Change in Control;

(ii) during any period of two (2) consecutive years, individuals who at the beginning of such period constituted the Board, together with any new directors whose election by such Board or whose nomination for election by the stockholders of the Company was approved by a vote of a majority of the directors of the Company then still in office who were either directors at the beginning of such period or whose election or nomination for election was previously so approved, cease for any reason to constitute a majority of the Board then in office;

(iii) the sale, lease, transfer, conveyance or other disposition, in one or a series of related transactions other than a merger or consolidation, of all or substantially all of the assets of the Company and its consolidated subsidiaries taken as a whole to any Person or group of related Persons; or

(iv) the adoption of a plan relating to the liquidation or dissolution of the Company.

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“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

“Good Reason” shall have the meaning ascribed thereto in any effective employment agreement between the Company or any of its Subsidiaries or Affiliates on the one hand, and you on the other hand, or if no such employment agreement is in effect that contains a definition of “Good Reason”, then Good Reason shall mean the occurrence of any of the following: (i) material reduction in your base salary or target annual bonus opportunity; (ii) adverse change in your job title; provided, however, that a change in your duties or responsibilities without a change in your job title shall not constitute “Good Reason”; or (iii) a requirement that you work at any office or location more than 50 miles from the location of the then current principal office of the Company in Phoenix, Arizona (excluding normal travel responsibilities). In order for you to terminate employment for Good Reason, you must provide the Company with at least 30 days’ prior written notice specifying in reasonable detail the reason therefor, and the Company shall have a reasonable opportunity to cure any such Good Reason within 15 days after receipt of such notice. If the Company is not seeking to cure, it shall not be obligated to allow you to continue performing duties for the Company during the 15-day cure period and may, in its sole discretion, accelerate such termination of employment to any date during the 15-day cure period. You may not terminate employment for Good Reason regarding any act or omission of which you had actual notice for 90 days or more prior to giving notice of termination for “Good Reason”.

“Person” means and includes any individual, partnership, joint venture, corporation, limited liability company, estate, trust, or other entity.

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IRREVOCABLE STANDING ORDER TO SELL SHARES

I have been granted an award in respect of Restricted Stock Units (“RSUs”) by Sprouts Farmers Market, Inc. (the “Company”), which is evidenced by a restricted stock unit award agreement between me and the Company (the “Agreement,” copy attached). Provided that I remain employed by the Company on the applicable vesting date, the shares vest according to the provisions of the Agreement.

I understand that on or as soon as practicable after the vesting date (the “issuance date”), the shares issuable in respect of the RSUs (the “Shares”) will be deposited into my account at E*Trade or such other broker the Company may engage at such time (the “Broker”) and that I will recognize taxable ordinary income as a result. Pursuant to the terms of the Agreement and as a condition of my receipt of the Shares, I understand and agree that, on the issuance date, I must sell a number of shares sufficient to satisfy all withholding taxes applicable to that ordinary income. Therefore, I hereby direct the Broker to sell, at the market price and on the issuance date (or the first business day thereafter if the issuance date should fall on a day when the market is closed), the number of Shares that the Company informs the Broker is sufficient to satisfy the applicable withholding taxes, which shall be calculated based on the closing price of the Company’s ordinary shares on the last trading day before the issuance date. I understand that the Broker will remit the proceeds to the Company for payment of the withholding taxes.

I understand and agree that by signing below, I am making an Irrevocable Standing Order to Sell Shares which will remain in effect until the vesting date. I also agree that this Irrevocable Standing Order to Sell Shares is in addition to and subject to the terms and conditions of any existing Account Agreement that I have with the Broker.

Signature

Print Name

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EX-10.3

Exhibit 10.3

 

February 18, 2022

Gil Phipps

c/o Sprouts Farmers Market, Inc.

5455 East High Street, Suite 111

Phoenix, Arizona 85054

Re: Employment Transition

Dear Gil

This will confirm our discussions regarding your role with Sprouts Farmers Market, Inc. (together with its subsidiaries and affiliates, the “Company”). Beginning on February 18, 2022 (the “Effective Date”), you will transition from Senior Vice President - Chief Marketing Officer to the position of Senior Marketing Advisor. As Senior Marketing Advisor, you will have the powers, duties and responsibilities as may be assigned to you from time to time by the Chief Executive Officer. You will continue to be paid your base salary in effect as of the date of this letter, and you will continue to participate in the Company’s benefit plans, 2021 cash bonus plan, and will continue to vest in any outstanding equity awards pursuant to their terms.

It is contemplated that you will serve as Senior Marketing Advisor through May 31, 2022, at which time your continued employment with the Company will be evaluated by the Chief Executive Officer; provided that this letter is not an employment contract, and your employment remains at will. You agree that you will no longer be eligible to receive severance under the Company’s Amended and Restated Executive Severance and Change in Control Plan dated February 25, 2020. However, the Chief Executive Officer reserves the right to review your eligibility for severance benefits. Should your employment not continue for any reason, you agree to sign a waiver and release of claims in a form provided by the Company.

Sincerely,

SPROUTS FARMERS MARKET, INC.

By: /s/ Timmi Zalatoris

Name: Timmi Zalatoris

Title: Senior Vice President, Human Resources

Agreed to and Accepted by:

/s/ Gil Phipps

Gil Phipps

Date: 2/18/2022

1

EX-99.1

Exhibit 99.1

 

Investor Contact:	Media Contact:
Susannah Livingston	media@sprouts.com
(602) 682-1584
susannahlivingston@sprouts.com

Sprouts Farmers Market, Inc. Announces Appointment of Nicholas Konat as President and Chief Operating Officer

PHOENIX, Ariz. – (Globe Newswire) – February 24, 2022 – Sprouts Farmers Market, Inc. (Nasdaq: SFM) today announced that Nicholas Konat has been appointed as president and chief operating officer of the company, effective March 21, 2022. Konat has most recently served as chief merchandising officer at Petco Health and Wellness Company, Inc. (NASDAQ: WOOF), a leading brand in the U.S. pet care industry and will oversee the company’s operations, marketing, merchandising, and innovation functions and report to Jack Sinclair, chief executive officer.

“I am absolutely thrilled to welcome Nick to the Sprouts executive leadership team,” said Sinclair. “Nick’s deep-rooted merchandising and product innovation experience with preeminent retail brands will help to propel our company forward as we continue to execute on our strategic plan.”

Konat joined Petco in 2015 and prior to his appointment as chief merchandising officer in 2018, served as vice president of private brands and merchandising and senior vice president – general manager. Prior to joining Petco, Konat served as director of food merchandise planning at Target Corporation, capping a more than nine-year career at Target where he held a range of merchandising, planning and leadership roles across the food and fashion categories. Konat also spent six years with Accenture plc, a multinational professional services company. Konat holds an honors bachelor’s degree in political science and government from St. John’s University.

“I am honored to join Sprouts and look forward to working with the team as we continue to profitably grow by fulfilling our mission of providing healthy living options for less to more people,” said Konat. “Sprouts pioneered making healthy food affordable twenty years ago, and I hope to build on this foundation by serving our customers, making lasting positive changes to the company and improving access to fresh, natural and organic foods as we expand across the country.”

Forward-Looking Statements

Certain statements in this press release are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. Any statements contained herein that are not statements of historical fact should be considered forward-looking statements that involve certain risks and uncertainties that may cause actual results to differ materially from expectations as of the date of this release. These risks include those set out in the company’s Securities and Exchange Commission filings. The company intends these forward-looking statements to speak only as of the time of this release and does not undertake to update or revise them as more information becomes available, except as required by law.

Corporate Profile

Sprouts is the place where goodness grows. True to its farm-stand heritage, Sprouts offers a unique grocery experience featuring an open layout with fresh produce at the heart of the store. Sprouts inspires wellness naturally with a carefully curated assortment of better-for-you products paired with purpose-driven people. The healthy grocer continues to bring the latest in wholesome, innovative products made with lifestyle-friendly ingredients such as organic, plant-based and gluten-free. Headquartered in Phoenix, and one of the fastest-growing retailers in the country, Sprouts employs approximately 31,000 team members and operates more than 370 stores in 23 states nationwide. To learn more about Sprouts, and the good it brings communities, visit about.sprouts.com.

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Source: Sprouts Farmers Market, Inc

Phoenix, AZ

2/24/22

XML

Document and Entity Information	Feb. 18, 2022
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Feb. 18, 2022
Entity Registrant Name	Sprouts Farmers Market, Inc.
Entity Central Index Key	0001575515
Entity Emerging Growth Company	false
Entity File Number	001-36029
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	32-0331600
Entity Address, Address Line One	5455 E. High Street
Entity Address, Address Line Two	Suite 111
Entity Address, City or Town	Phoenix
Entity Address, State or Province	AZ
Entity Address, Postal Zip Code	85054
City Area Code	480
Local Phone Number	814-8016
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of Each Class	Common Stock, $0.001 par value
Trading Symbol	SFM
Security Exchange Name	NASDAQ