US Foods Holding Corp. 8-K
Exhibit 10.1
November 22, 2022
Mr. David Flitman
Dear David,
On behalf of US Foods Holding Corp. (the “Company” or “US
Foods”), I am delighted to confirm the terms of our offer of employment as the Company’s Chief Executive Officer, with a start
date on or about January 5, 2023. The key terms of this employment offer are as follows:
Reporting / Nomination to the Board
You will report to the Board of Directors of the Company (the “Board”).
Effective as of your start date, you will be appointed as a member of the Board and, during your employment as Chief Executive Officer,
you will be renominated for re-election by the stockholders as a continuing director for each Board term thereafter.
Outside Activities
During your employment, you may continue to serve on one outside for-profit
board, with the Board’s prior consent, and engage in civic, charitable and similar activities, and manage your personal investments,
in each case, so long as none of these activities interfere with your duties to the Company.
Annual Base Salary
Your annual base salary rate will be $1,300,000 to be paid according to
the Company’s regular payroll schedule. Your base salary may be increased (not decreased) from time to time in the discretion of
the Board.
US Foods Annual Incentive Plan
You will be eligible to participate in the Company’s Annual Incentive
Plan (the “AIP”). Your target bonus percentage under the AIP will be 150% of your base salary. Your participation in the AIP
will be subject to the terms and conditions of the plan document and the Executive Severance Agreement (below). In the event that the
commencement of your employment is on or after January 6, 2023, then any bonus for 2023 will be pro-rated based upon your start date.
Long-Term Equity Incentive Compensation
Commensurate with your level at the Company, commencing with annual grants
made to senior executives in 2023, you will be eligible to participate in the Company’s annual long-term incentive (“LTI”)
program, subject to the terms and conditions of the Company’s long-term incentive plan, with an aggregate annual grant date value
of 555% of your base salary. As a reference, the awards granted under the 2022 LTI program for your role was comprised of 50% Time-Based
Restricted Stock Units (“RSUs”), vesting ratably over three years and 50% Performance-based RSUs, cliff vesting after three
years. Our expectation for the 2023 LTI program is to follow the 2022 design.
Special, One-time RSU Award
In connection with the commencement of your employment, you will be granted
a one-time award of Time-Based RSUs with a grant date value of $10,000,000, effective on the first Monday of the month following the month
of your start date. These RSUs will vest ratably over a three-year period on each anniversary of the date of grant, subject to your continued
employment with the Company on the applicable vesting date except as otherwise provided in the award agreement. The other terms and conditions
of this award will be set forth in an award agreement as agreed in connection with this letter agreement.
9399 West Higgins Road, Suite 100 | Rosemont, IL 60018
| TEL 847-720-8000 | www.usfoods.com
Special, One-time Value Creation Award
In addition, you will receive a one-time grant of Performance-Based RSUs
with an aggregate grant date value of $6,000,000 (the “Value Creation Award”) upon your start date. The Value Creation Award
will vest in two equal tranches, with the first tranche vesting at the end of a two-year performance period, and the second tranche vesting
at the end of a four-year performance period, in each case, if and only if certain stock price goals are met and subject to your continued
employment through the end of the applicable performance period, except as otherwise provided in the award agreement. The other terms
and conditions of this award will be set forth in an award agreement as agreed in connection with this letter agreement.
You will receive notification and instructions for accepting these awards,
from Fidelity, our equity plan administrator once the grants have been processed.
Special, One-time Cash Award
In connection with the commencement of your employment, the Company will
make a one-time cash payment to you of $3,000,000 (the “Sign-On Bonus”). You will be required to repay all of your Sign-On
Bonus if, prior to the six-month anniversary of your start date, your employment with US Foods is terminated for Cause or you voluntarily
terminate your employment with US Foods without Good Reason (and not due to Permanent Disability).
Executive Severance Agreement
The Executive Severance Agreement enclosed with this letter sets forth
the severance benefits to which you will be entitled under various termination provisions, including in the event of a qualifying termination
in connection with a change in control of the Company, as we have agreed. You and the Company will enter into such agreement on your start
date.
Executive Stock Ownership Guidelines
To reinforce the importance of stock ownership and further align our senior
leaders’ interests with those of our shareholders, US Foods has adopted stock ownership guidelines. In accordance with our Executive
Stock Ownership Guidelines, you will be required to hold US Foods equity having a value equal to 6 times your Annual Base Salary within
5 years of the commencement of your employment. You will receive more information regarding these Guidelines, including the types of equity
that count towards meeting your guideline, shortly after your start date.
Annual Executive Allowance
You will receive an annual executive allowance equal to $20,000, payable
as soon as practicable following your first 30 days of employment, less applicable withholding taxes. This allowance is intended to defray
the cost of expenses such as financial or legal planning, professional organization membership, or executive physicals.
2
9399 West Higgins Road, Suite 100 | Rosemont, IL 60018 | TEL 847-720-8000 | www.usfoods.com
Location
Your primary work location will be at the Company’s offices in the
Chicago, Illinois area. On or before the first anniversary of your start date, you will relocate your personal residence from your current
home in Dallas, Texas to South Carolina, and, in connection with such relocation, the Company will reimburse you for your expenses in
accordance with the applicable Company policies and procedures. In addition, until the earlier of (i) the first anniversary of your start
date and (ii) the date of the closing of the sale of your home in Dallas, Texas (such earlier date, the “Relocation Date”),
the Company will reimburse you for your reasonable temporary housing expenses in the Chicago, Illinois area in accordance with the applicable
Company policies and procedures. After your start date, the Company will reimburse you for first class commercial air travel between Dallas,
Texas (or, after the Relocation Date, South Carolina) and Chicago, Illinois, such expenses to be substantiated in accordance with Company
policies and procedures and subject to any applicable vendor arrangements with the Company for executive travel.
Business Expenses
The Company will reimburse you for all business expenses incurred in connection
with your employment in accordance with applicable Company policy. During your employment, air travel for business purposes may be via
private charter aircraft as you deem from time to time to be most efficient to perform your duties. All commercial air travel for business
purposes shall be via first class (or business class for international travel where first class is unavailable).
The Company will pay for your reasonable professional fees incurred to
negotiate and prepare this letter agreement and the agreements identified herein.
Health & Welfare and Retirement Benefits
You and your qualifying dependents will be eligible to enroll in the standard
health, welfare and retirement benefits made available to all full-time salaried employees of the Company, upon
satisfying any applicable eligibility or participation criteria. You will generally become
eligible to participate in our group insurance programs on your first day of employment. Your participation in these health,
welfare and retirement benefit programs is voluntary and will be subject to the terms and conditions of each plan. A copy of our
employee benefits guide is enclosed. Certain participation costs for our employee benefit programs are borne by our employees. Participation
in our group insurance programs is subject to the requirements established by the group insurance carriers.
Vacation
You will be entitled to vacation and other paid time-off benefits at levels
generally available to other members of the ELT.
Indemnification/D&O Insurance
You will be indemnified and held harmless as an officer, employee and director
of the Company (including advances of litigation expenses and attorneys fees, subject to a customary undertaking for repayment to if you
are found not to be entitled to indemnification) to the maximum extent permitted under the Company’s charters, by-laws and applicable
law. You will be covered as an insured under the contracts of directors and officers liability insurance that insure members of the Board.
This paragraph will survive any termination of your employment for any reason and termination of your service as a member of the Board.
Other Terms & Conditions
The compensation and benefits offered in this letter are subject to the
terms and conditions of the applicable US Foods plans, programs, and policies. Except as may be provided in the Executive Severance Agreement,
nothing in this letter is intended in any way to limit the Company’s right to amend or terminate those plans, programs, or policies.
3
9399 West Higgins Road, Suite 100 | Rosemont, IL 60018 | TEL 847-720-8000 | www.usfoods.com
To the extent any reimbursements or in-kind benefits due to you under this
letter constitute “deferred compensation” under Section 409A of the Internal Revenue Code, any such reimbursements or in-kind
benefits shall be paid to you in a manner consistent with Treas. Reg. Section 1.409A-3(i)(l)(iv).
If you accept this offer, you will serve as an at-will employee of US Foods,
subject to the provisions of the Executive Severance Agreement. This means that your employment with US Foods will have no specific or
definite term, and that either you or the Company may terminate your employment at any time for any reason, or no reason at all, and with
or without notice, subject to the provisions of the Executive Severance Agreement.
This letter agreement, the Executive Severance Agreement and the award
agreements for the Special One-Time equity awards, comprise the entire understanding between you and the Company concerning your employment
with US Foods and do not constitute a guarantee of employment. To the extent any inconsistency between the terms of this letter agreement,
on the one hand, and the Executive Severance Agreement or either Special One-Time equity award agreement, on the other hand, such latter
agreement shall control. The terms set forth in this letter agreement, as well as the fact and contents
of any discussions between us regarding your potential future employment by us, including any information that we may disclose to you
about the Company, its business, financial results and future prospects, are strictly confidential and should not be disclosed by you
to any other party without our prior written consent or until publicly released by the Company.
This letter agreement may be executed in counterparts, with each such counterpart
as an original and all such counterparts taken together shall constitute one and the same instrument.
Again, we are pleased to extend you this offer, and we look forward to
the valuable contributions you will make to US Foods. To acknowledge your acceptance of this offer, please sign below and return a copy
to me.
Please feel free to contact me if you have any questions. David, on behalf
of the entire leadership team at US Foods, I look forward to your acceptance of this offer.
Best regards,
/s/ Bob Dutkowsky
Bob Dutkowsky
Executive Chairman
US Foods Holding Corp.
Accepted By: /s/ David Flitman
David Flitman
cc: Cheryl Bachelder, Compensation and Human
Capital Committee Chair
4
9399 West Higgins Road, Suite 100 | Rosemont, IL 60018 | TEL 847-720-8000 | www.usfoods.com
US Foods Holding Corp. 8-K
Exhibit 10.3
RESTRICTED STOCK UNIT GRANT NOTICE
UNDER THE
US FOODS HOLDING CORP. 2019 LONG-TERM INCENTIVE PLAN
(Performance-Based Restricted Stock Unit
Award)
US Foods Holding Corp. (the “Company”),
pursuant to the US Foods Holding Corp. 2019 Long-Term Incentive Plan (the “Plan”), hereby grants to the Participant
set forth below the number of Restricted Stock Units set forth below. The Restricted Stock Units are subject to all of the terms and conditions
as set forth herein, in the Restricted Stock Unit Agreement (attached hereto), and in the Plan, all of which are incorporated herein in
their entirety. Capitalized terms not otherwise defined herein shall have the meaning set forth in the Plan.
| Participant: |
David Flitman |
| Date of Grant: |
[Insert Grant Date] |
| Performance Period: |
With respect to 50% of the Restricted Stock Units granted (the “First Tranche”), the applicable Performance Period is the period from the Date of Grant through and including the second anniversary thereof (the “First Vesting Date”). With respect to the other 50% of the Restricted Stock Units Granted (the “Second Tranche” and, together with the First Tranche, the “Tranches”), the applicable Performance Period is the period from the Date of Grant through and including the fourth anniversary thereof (the “Second Vesting Date” and, together with the First Vesting Date, the “Vesting Dates”). |
|
Performance Goals:
Number of Restricted Stock Units: |
The performance goals set forth in this Grant Notice
[Insert Total No. of Shares]
|
Except as otherwise provided in the Plan, the
Restricted Stock Unit Agreement or any other agreement between the Company or any of its Subsidiaries and the Participant, the Restricted
Stock Units shall vest: (a) in the case of the First Tranche, based on the achievement of the applicable Performance Goal over the applicable
Measurement Period (as defined below) and subject to the Participant’s continued service through the First Vesting Date and (b)
in the case of the Second Tranche, based on the achievement of the applicable Performance Goal over the applicable Measurement Period
and subject to the Participant’s continued service through the Second Vesting Date, provided, however, that, in each
case, any then-outstanding Restricted Stock Units shall vest:
| (i) | immediately prior to a Change in Control, if such Restricted Stock Units would not otherwise be continued, converted, assumed, or
replaced by the Company, a member of the Company Group or a successor entity thereto, (x) without regard to the achievement of the applicable
Performance Goal with respect to the First Tranche and (y) based on (and subject to) the achievement of the applicable Performance
Goal over the applicable Measurement Period with respect to the Second Tranche; |
| (ii) | if the Participant undergoes a Termination by the Service Recipient without Cause or by the Participant for Good Reason at any time
upon or following a Change in Control in which such Restricted Stock Units are continued, converted, assumed, or replaced by the Company,
a member of the Company Group or a successor entity thereto, (x) without regard to the achievement of the applicable Performance Goal
with respect to the First Tranche and (y) based on (and subject to) the achievement of the applicable Performance Goal over the applicable
Measurement Period with respect to the Second Tranche; |
| (iii) | if the Participant undergoes a Termination prior to a Vesting Date as a result of such Participant’s death or Permanent Disability;
or |
| (iv) | if the Participant undergoes a Termination by the Service Recipient without Cause or by the Participant for Good Reason prior to a
Change in Control (a “Non-CIC Qualifying Termination”), provided, however, that (x) the number of Restricted
Stock Units that shall vest in such circumstance shall be pro-rated based on the number of days during the period from the Date of Grant
through the applicable Vesting Date that elapsed prior to such termination of employment; and (y) such pro-rated vesting of the First
Tranche and the Second Tranche, respectively, shall be based on (and subject to) the achievement of the applicable Performance Goal over
the applicable Measurement Period. |
In the event that, with respect to either Tranche (other
than the First Tranche under paragraphs (i) and (ii) above), the applicable Performance Goal is not achieved as of the last day of
the applicable Measurement Period, such Tranche shall be forfeited without consideration.
Performance Goals:
Subject to the terms of the Restricted Stock Unit Agreement and the Plan,
each Tranche shall vest based on achievement of the applicable Performance Goal set forth in the table below. For each Tranche, the applicable
Performance Goal shall be deemed achieved if the Share Price equals or exceeds such Performance Goal on any 30 consecutive trading days
during the applicable Measurement Period.
| |
Performance Goal |
| First Tranche |
$40 |
| Second Tranche |
$55 |
| a. | “Share Price” means, with respect to any trading day, the closing price of a share of Common Stock on the New York
Stock Exchange on such day. |
| b. | “Measurement Period” shall mean, with respect
to either Tranche, the applicable Performance Period; provided, however, that (i) if there is a Change in Control prior to the
applicable Vesting Date, the Measurement Period will instead end on the date of the Change in Control and (ii) if, prior to a Change
in Control, the Participant undergoes a Termination prior to the applicable Vesting Date as a result of such Participant’s death
or Permanent Disability or as a result of a Non-CIC Qualifying Termination, the Measurement Period will instead end on the date of such
Termination; provided, further, that with respect to a Non-CIC Qualifying Termination, the Measurement Period for the Second Tranche
will instead end 30 days following the date of such Termination. |
* * *
THE UNDERSIGNED PARTICIPANT ACKNOWLEDGES RECEIPT OF THIS RESTRICTED
STOCK UNIT GRANT NOTICE, THE RESTRICTED STOCK UNIT AGREEMENT AND THE PLAN, AND, AS AN EXPRESS CONDITION TO THE GRANT OF RESTRICTED STOCK
UNITS HEREUNDER, AGREES TO BE BOUND BY THE TERMS OF THIS RESTRICTED STOCK UNIT GRANT NOTICE, THE RESTRICTED STOCK UNIT AGREEMENT AND THE
PLAN.
| US FOODS HOLDING CORP. |
|
PARTICIPANT |
| |
|
|
| By: |
|
|
|
| Name: |
David Works |
|
|
| Title: |
Executive Vice President, |
|
|
| |
Chief Human Resources Officer |
|
|
RESTRICTED STOCK UNIT
AGREEMENT
UNDER THE
US FOODS HOLDING
CORP. 2019 LONG-TERM INCENTIVE PLAN
Pursuant to the Restricted Stock Unit Grant
Notice (the “Grant Notice”) delivered to the Participant (as defined in the Grant Notice), and subject to the terms
of this Restricted Stock Unit Agreement (this “Restricted Stock Unit Agreement”) and the US Foods Holding Corp. 2019
Long-Term Incentive Plan (the “Plan”), US Foods Holding Corp. (the “Company”) and the Participant
agree as follows. Capitalized terms not otherwise defined herein shall have the same meaning as set forth in the Plan or the Grant Notice.
1.
Grant of Restricted Stock Units. The Company hereby grants to the Participant the target number of Restricted Stock
Units provided in the Grant Notice.
2.
Vesting. Subject to the terms and conditions set forth in the Grant Notice, this Restricted Stock Unit Agreement
and the Plan, the Restricted Stock Units shall vest based on (i) the achievement of the Performance Goals set forth in the Grant Notice
during the Measurement Periods set forth in the Grant Notice and (ii) except as otherwise provided in the Grant Notice, the Participant’s
continuous employment through the applicable Vesting Date. Attainment of the Performance Goals shall be determined and certified by the
Committee in writing prior to the vesting of any Restricted Stock Units; provided that, in the event any Restricted Stock Units
vest in connection with the Participant’s Termination, as set forth in the Grant Notice, such determination and certification shall
occur no later than sixty (60) days following such Termination.
3.
Settlement of Restricted Stock Units. The Restricted Stock Units, to the extent vested, shall be settled in Common
Stock within sixty (60) days following the applicable Vesting Date or, if earlier, within sixty (60) days following (a) the date of a
Change in Control to the extent applicable under paragraph (i) of the Grant Notice or (b) if the Restricted Stock Units vest in connection
with the Participant’s Termination under paragraph (ii), (iii) or (iv) of the Grant Notice, the Participant’s Termination
and subject to Section 13(u) of the Plan, to the extent applicable.
4.
Treatment of Restricted Stock Units upon Termination. The provisions of Section 9(c)(ii) of the Plan are incorporated
herein by reference and made a part hereof.
5.
Definitions.
(a)
The terms “Cause”, “Good Reason” and “Permanent Disability” as used in
the Grant Notice or in this Restricted Stock Unit Agreement shall have the meanings set forth in the Executive Severance Agreement, dated
as of November 22, 2022, between the Participant and the Company.
(b)
The term “Company” as used in this Restricted Stock Unit Agreement with reference to the Participant’s
employment and the definitions herein shall include the Company and its Subsidiaries.
(c)
Whenever the word “Participant” is used in any provision of this Restricted Stock Unit Agreement under circumstances
where the provision should logically be construed to apply to the executors, the administrators, or the person or persons to whom the
Restricted Stock Units may be transferred by will or by the laws of descent and distribution, the word “Participant” shall
be deemed to include such person or persons.
6.
Non-Transferability. The Restricted Stock Units are not transferable by the Participant except to Permitted Transferees
in accordance with Section 13(b) of the Plan. Except as otherwise provided herein, no assignment or transfer of the Restricted Stock Units,
or of the rights represented thereby, whether voluntary or involuntary, by operation of law or otherwise, shall vest in the assignee or
transferee any interest or right herein whatsoever, but immediately upon such assignment or transfer the Restricted Stock Units shall
terminate and become of no further effect.
7.
Dividend Equivalent Payments. The Participant shall be eligible to receive dividend equivalents pursuant to the provisions
of Sections 9(d)(ii) and 13(c) of the Plan.
8.
Tax Withholding. The provisions of Section 13(d)(i) of the Plan are incorporated herein by reference and made a part
hereof. The Participant shall satisfy such Participant’s withholding liability referred to in Section 13(d)(i) of the Plan by having
the Company withhold from the number of shares of Common Stock otherwise issuable or deliverable pursuant to the settlement of the Award
a number of shares with a Fair Market Value equal to such withholding liability, provided that the number of such shares may not have
a Fair Market Value greater than the minimum required statutory withholding liability unless the Participant elects a higher withholding
rate and the Committee determines that such higher withholding rate will not result in adverse accounting consequences.
9.
Notice. Every notice or other communication relating to this Restricted Stock Unit Agreement between the Company
and the Participant shall be in writing, and shall be mailed to or delivered to the party for whom it is intended at such address as may
from time to time be designated by such party in a notice mailed or delivered to the other party as herein provided; provided that,
unless and until some other address be so designated, all notices or communications by the Participant to the Company shall be mailed
or delivered to the Company at its principal executive office, to the attention of the Company Secretary, and all notices or communications
by the Company to the Participant may be given to the Participant personally or may be mailed to the Participant at the Participant’s
last known address, as reflected in the Company’s records. Notwithstanding the above, all notices and communications between the
Participant and any third-party plan administrator shall be mailed, delivered, transmitted or sent in accordance with the procedures established
by such third-party plan administrator and communicated to the Participant from time to time.
10.
No Right to Continued Service. This Restricted Stock Unit Agreement does not confer upon the Participant any right
to continue as an employee or service provider to the Company.
11.
Binding Effect. This Restricted Stock Unit Agreement shall be binding upon, and inure to the benefit of, the heirs,
executors, administrators and successors of the parties hereto.
12.
Waiver and Amendments. Except as otherwise set forth in Section 12 of the Plan, any waiver, alteration, amendment
or modification of any of the terms of this Restricted Stock Unit Agreement shall be valid only if made in writing and signed by the parties
hereto; provided, however, that any such waiver, alteration, amendment or modification is consented to on the Company’s
behalf by the Committee. No waiver by either of the parties hereto of their rights hereunder shall be deemed to constitute a waiver with
respect to any subsequent occurrences or transactions hereunder unless such waiver specifically states that it is to be construed as a
continuing waiver.
13.
Governing Law. This Restricted Stock Unit Agreement shall be construed and interpreted in accordance with the laws
of the State of Delaware, without regard to the principles of conflicts of law thereof. Notwithstanding anything contained in this Restricted
Stock Unit Agreement, the Grant Notice or the Plan to the contrary, if any suit or claim
is instituted by the Participant or the Company relating to this Restricted Stock Unit Agreement, the Grant Notice or the Plan, the Participant
hereby submits to the exclusive jurisdiction of and venue in the courts of Delaware.
14.
Plan. The terms and provisions of the Plan are incorporated herein by reference. In the event of a conflict or inconsistency
between the terms and provisions of the Plan and the provisions of this Restricted Stock Unit Agreement, the Plan shall govern and control.
15.
Compliance With Section 409A of the Code. The Award governed hereby is intended to be exempt from or comply with
Section 409A of the Code, and shall be interpreted and construed accordingly. To the extent this Restricted Stock Unit Agreement provides
for the Award to become vested and be settled upon the Participant’s Termination, the applicable shares of Common Stock shall be
transferred to the Participant or his or her beneficiary upon the Participant’s “separation from service,” within the
meaning of Section 409A of the Code; provided that if the Participant is a “specified employee,” within the meaning
of Section 409A of the Code, then to the extent the Award constitutes nonqualified deferred compensation, within the meaning of Section
409A of the Code, such shares of Common Stock shall be transferred to the Participant or his or her beneficiary upon the earlier to occur
of (i) the six (6)-month anniversary of such separation from service and (ii) the date of the Participant’s death.
US Foods Holding Corp. 8-K
Exhibit 10.4
EXECUTIVE SEVERANCE AGREEMENT
This Executive Severance
Agreement (the “Agreement”), effective as of the date set forth on the signature page below (the “Effective
Date”) is made and entered into by and between US Foods Holding Corp. (the “Employer” or the “Company”)
and Mr. David Flitman (the “Executive”).
AGREEMENT
In consideration of the
foregoing, of the mutual promises contained herein and for other valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Employer and the Executive intend to be legally bound and agree as follows:
1.
Term of Employment. Executive’s employment under this Agreement (the “Term”)
shall commence on the Effective Date and shall continue until Executive’s employment is terminated pursuant to the terms of Section
4 of this Agreement. The date on which Executive’s employment is terminated pursuant to Section 4 of this Agreement shall be the
“Termination Date.”
2.
Employment At Will. Executive agrees that no provision in this Agreement shall be construed to create
an express or implied employment contract or a promise of employment for any specific period of time. Executive further acknowledges and
agrees that Executive’s employment with the Employer is “at will” (unless Executive entered into a written employment
contract, signed by an officer of the Employer who is authorized to do so, that expressly provides that Executive’s employment is
not “at will”) and can be terminated at any time by the Employer or the Executive, for any reason or for no reason. Notwithstanding
the foregoing, the Executive agrees to provide the Company with forty-five (45) days’ notice of his or her intent to terminate the
employment relationship; provided, however, that such notice period may be waived by the Company in its discretion, upon
request by the Executive. The parties entered into an employment letter agreement dated November 22, 2022 (the “Employment Letter
Agreement”).
3.
Duties. During the Term, the Executive will serve as Chief Executive Officer for the Employer. The Executive
will have the powers and authority normally associated with such position. In addition, the Executive will assume such other responsibilities,
consistent with Executive’s position, as the Employer may delegate to the Executive from time to time. The Executive will be employed
on a fulltime basis and shall devote his or her full employment time, efforts and energy to the performance of his or her duties for the
Employer. Executive agrees that, except as otherwise provided in the Employment Letter Agreement, during the Term, Executive will not
engage in any other employment, occupation, consulting or other business activity, nor will Executive engage in any activities that conflict
with Executive’s obligations to the Company.
4.
Termination. The Executive shall be entitled to the following payments and benefits should his or her
employment with the Employer terminate under the conditions described below:
4.1 Resignation
for Good Reason. The Executive may terminate his or her employment for “Good Reason” at any time upon forty-five
(45) days’ notice to the Employer. For this purpose, “Good Reason” shall be deemed to exist if, absent the
Executive’s written consent: (i) there is a material diminution in title and/or duties, responsibilities or authority of the
Executive, including a change in reporting responsibilities such that the Executive no longer reports directly to the USFD Board (as
defined below) or its successor or, following a restructuring, merger or acquisition or other similar event, the Board of Directors
of the ultimate parent entity resulting from such an event; (ii) the Employer changes the geographic location of the
Executive’s principal place of business to a location that is at least fifty (50) miles away from the geographic location of
the Executive’s principal place of business prior to such change (“Relocation”); (iii) there is a willful
failure or refusal by the Employer to perform any material obligation under this Agreement; or (iv) there is a reduction in the
Executive’s annual rate of base salary as in effect on the date of this Agreement (or as the same may be increased hereafter)
(“Annual Base Salary”) or annual bonus target percentage of base salary as in effect on the date of this
Agreement (or as the same may be increased hereafter) (the “Target Bonus Percentage”); provided, however,
and notwithstanding anything to the contrary in this Agreement, that if the condition described in clause (iv) occurs and the
Executive terminates employment for Good Reason, then any severance payments or benefits determined under this Agreement with
reference to the Executive’s Annual Base Salary and Target Bonus Percentage, shall instead be determined prior to any
reduction in the Executive’s Annual Base Salary and Target Bonus Percentage described in clause (iv) of this Agreement. In any
case of any event described in clauses (i) through (iv) above, the Executive shall only have ninety (90) days from the date the
event that constitutes Good Reason first arises to provide the Employer with written notice of the grounds for a Good Reason
termination, and the Employer shall have a period of thirty (30) days to cure after receipt of the written notice. Following the
expiration of the Company’s thirty (30) day cure period, the Executive shall have sixty (60) days to resign due to Good
Reason. Resignation by the Executive following Employer’s cure or before the expiration of the thirty (30) day cure period
shall constitute a voluntary resignation and not a termination for Good Reason.
4.2
Resignation Not for Good Reason. The Executive may terminate his or her employment for other than “Good Reason”
at any time upon forty-five (45) days’ notice to the Employer.
4.3
For Cause Termination. The Employer may terminate Executive’s employment for “Cause” at any time upon
written notice to the Executive. For this purpose, “Cause” shall be deemed to exist if (i) the Executive has committed
fraud, theft or embezzlement from the Employer; (ii) the Executive pleads guilty or nolo contendere to or is convicted of any felony
or other crime involving moral turpitude, fraud, theft, or embezzlement; (iii) the Executive willfully fails or refuses to perform any
material obligation under this Agreement or to carry out the reasonable directives of the USFD Board (as defined below), and the Executive
fails to cure the same within a period of 30 days after written notice of such failure is provided to the Executive by the USFD Board;
or (iv) the Executive has engaged in on-the-job conduct that violates the Employer’s written Code of Ethics or company policies,
and which is materially detrimental to the Employer. The Executive’s resignation in advance of an anticipated termination for Cause
shall constitute a termination for Cause.
4.4
Not for Cause Termination. The Employer may terminate Executive’s employment without “Cause” at any time
upon forty-five (45) days’ notice to the Executive.
4.5
Disability. The Executive’s employment and this Agreement shall terminate in the event of the Executive’s “Permanent
Disability”; provided, however, that the Agreement shall remain in force solely for the purpose of payment of
any benefits which accrued or were triggered prior to or by reason of the Executive’s “Permanent Disability”. For this
purpose, a “Permanent Disability” shall be deemed to exist if the Executive becomes eligible to receive long-term disability
benefits under any long-term disability plan or program maintained by the Employer for its employees.
4.6
Death. This Agreement shall terminate upon the Executive’s death; provided, however, that the Agreement
shall remain in force solely for the purpose of payment of any benefits which accrued or were triggered prior to or by reason of the Executive’s
death, and in such event such benefits, if any, shall be paid to the Executive’s designated beneficiary.
4.7
Resignation as Director. Upon the termination of the Executive’s employment for any reason and effective as of the
Termination Date, the Executive shall be deemed to have resigned from the Executive’s position as a member of the USFD Board, as
well as the board of directors (or similar governing body) of any of its subsidiaries and Affiliates (as defined below). On or immediately
following such Termination Date, the Executive shall confirm the foregoing by submitting to the Employer in writing a confirmation of
the Executive’s resignation(s).
5.
Compensation and Benefits Upon Termination.
5.1
Upon the termination of the Executive’s employment for any reason, the Employer will pay to the Executive all accrued but
unpaid Annual Base Salary, at the rate then in effect, through the date of the Executive’s termination of active employment. The
Executive shall also be entitled to payment of other vested benefits accrued to the date of termination of employment in accordance with
the terms and conditions of the applicable plans in which the Executive is a participant and to any unreimbursed business expenses incurred
through the date of termination in accordance with applicable Company policy.
5.2
If at any time during the Term of the Agreement prior to a Change in Control (as defined below), (i) the Executive terminates his
or her employment for Good Reason or (ii) the Employer terminates the Executive’s employment without Cause, and, in either case,
the Executive executes (and does not later revoke) a Waiver and Release Agreement, and satisfies the Payment Preconditions (as defined
below), then the following paragraphs (a) through (g) shall apply. The “Payment Preconditions” are: (i) the Waiver
and Release Agreement shall be substantially in the form provided as Attachment A, subject to any modifications deemed necessary by the
Employer in its sole discretion to reflect developments in the law following the date of this Agreement, (ii) the Executive shall have
executed the Waiver and Release Agreement within the time period specified by the Employer (which shall not exceed 52 days following the
Executive’s termination of employment), and (iii) the Executive shall have complied with all of the Executive’s obligations
under Section 6 of this Agreement.
(a) Base
Salary and Payment Schedule. The Employer shall pay the Executive an amount equal to twenty-four (24) months of the Executive’s
Annual Base Salary in effect immediately prior to the date of Executive’s termination of employment. Such amount shall be paid in
equal installments over a period of twenty-four (24) months in accordance with the Company’s regular payroll schedule, with such
payments to begin, in the Company’s sole discretion, no later than sixty (60) days following the date of the Executive’s termination
of employment (with any installment payment that would, but for the delay of such payment by the Company, otherwise have been payable
if such installment payments had begun on the first payroll period following such date of termination of employment, also being paid on
the date the Company first begins payment of such amounts).
| (1) | Pro Rata Portion. The Employer shall pay the Executive an amount equal to a pro-rata portion of
the amount of the annual cash bonus that the Executive would have earned under the Employer’s annual incentive program in respect
of the calendar year in which the Executive’s termination of employment occurred, based on the Employer’s achievement of the
applicable criteria for such year. Such amount shall be pro-rated based on the number of days from January 1 of the calendar year in which
the termination occurred to the date of actual termination of employment, notwithstanding any contrary term of the incentive program that
would require the Executive to remain employed until the date of payment. This payment shall be made when the Employer makes its incentive
payments to its active employees under and in accordance with the terms of the applicable annual incentive program. |
| (2) | Fixed Portion. The Employer shall also pay the Executive an amount equal to the product of: (A)
the Executive’s then current Target Bonus Percentage, multiplied by (B) the Executive’s then current Annual Base
Salary, multiplied by (C) two (2). Such amount shall be paid in equal installments over a period of twenty-four (24) months in accordance
with the Company’s regular payroll schedule, with such payments to begin, in the Company’s sole discretion, no later than
sixty (60) days following the date of the Executive’s termination of employment (with any installment payment that would, but for
the delay of such payment by the Company, otherwise have been payable if such installment payments had begun on the first payroll period
following such date of termination of employment, also being paid on the date that the Company first begins payment of such amounts). |
| (3) | Prior Year Bonus. The Employer shall also pay the Executive any unpaid annual cash bonus for a
year prior to the year in which such termination occurs to the extent earned in accordance the Employer’s annual incentive program,
and paid when annual cash bonuses for such year are paid to other senior executives of the Employer. |
The following example illustrates
the application of Section 5.2(b)(2).
Example 1. At
the time of the Executive’s termination of employment, the Executive’s Annual Base Salary is $1,300,000, and the Executive’s
Target Bonus Percentage is 150%. The amount calculated pursuant to Section 5.2(b)(2) would be (A) 150%, multiplied by (B) $1,300,000,
multiplied by (C) 2, or $3,900,000.
(c) Stock
Options and Other Equity Awards. If, upon the date of termination of the Executive’s employment, the Executive holds any options
or other equity awards with respect to stock of the Employer, then all such options and equity awards shall be treated in accordance with
the terms of the relevant stock incentive plan document and individual award agreement.
(d) Health
Benefits. Upon the Executive’s termination of employment, the Executive will be eligible to elect individual and dependent continuation
group medical and dental coverage, as provided under Internal Revenue Code (“Code”) Section 4980B(f) (“COBRA”),
for the maximum COBRA coverage period available, subject to all conditions and limitations (including payment of premiums and cancellation
of coverage upon obtaining duplicate coverage or Medicare entitlement). If the Executive elects COBRA coverage, the Employer shall pay
to the Executive, in a single payment, the aggregate premium costs to the Executive of the elected COBRA coverage (including the cost
of COBRA coverage for any spouse or other dependents of the Executive who are qualified beneficiaries under COBRA and enrolled in the
applicable group medical and dental coverage as of the Executive’s termination date) for the twenty-four (24) month period beginning
with the first day of the month following the Executive’s termination date. The Executive (or dependents, as applicable)
shall be responsible for paying the full cost of the COBRA coverage (including the two percent (2%) administrative charge) effective with
the first day of the month following the Executive’s termination date.
(e) Outplacement
Services. The Executive shall be entitled to career transition and outplacement services to include one-on-one coaching covering reemployment,
career changes, entrepreneurial/consulting ventures, etc., and access to comprehensive office and administrative services for a period
not to exceed twelve (12) months following Executive’s termination date. Such outplacement services will be provided by an outside
organization selected and paid for by the Employer.
(f) Effect
upon Other Benefits. Notwithstanding the foregoing, the period of time during which the Executive receives benefits following termination
of employment shall not count as service or employment with the Employer, and the amount of any payments under this Agreement shall not
be treated as compensation paid by the Employer, for purposes of any other employee benefit plan, policy, program or arrangement maintained
by the Employer. During the Term, the Executive shall be ineligible for any severance payments and benefits under the Company’s
Severance Plan (or any successor thereto) and shall be eligible for severance benefits only as provided in this Agreement.
5.3
If at any time within eighteen (18) months following a Change in Control, (i) the Executive terminates his or her employment for
Good Reason or (ii) the Employer terminates the Executive’s employment without Cause, and, in either case, the Executive executes
(and does not later revoke) a Waiver and Release Agreement, and satisfies the Payment Preconditions, then the following paragraphs (a)
through (h) shall apply:
(a) Base
Salary and Payment Schedule. The Employer shall pay the Executive an amount equal to thirty-six (36) months of the Executive’s
Annual Base Salary in effect immediately prior to the date of Executive’s termination of employment. Such amount shall be paid as
a lump-sum payment no later than sixty (60) days following the date of the Executive’s termination of employment.
| (1) | Pro Rata Portion. The Employer shall pay the Executive an amount equal to a pro-rata portion of
the amount of the annual cash bonus that the Executive would have earned under the Employer’s annual incentive program in respect
of the calendar year in which the Executive’s termination of employment occurred, based on the Executive’s then current Target
Bonus Percentage. Such amount shall be pro-rated based on the number of days from January 1 of the calendar year in which the termination
occurred to the date of actual termination of employment, notwithstanding any contrary term of the incentive program that would require
the Executive to remain employed until the date of payment. Such amount shall be paid as a lump-sum payment no later than sixty (60) days
following the date of the Executive’s termination of employment. |
| (2) | Fixed Portion. The Employer shall also pay the Executive an amount equal to the product of: (A)
the Executive’s then current Target Bonus Percentage, multiplied by (B) the Executive’s then current Annual Base Salary, multiplied
by (C) three (3). Such amount shall be paid as a lump-sum payment no later than sixty (60) days following the date of the Executive’s
termination of employment. |
| (3) | Prior Year Bonus. The Employer shall also pay the Executive any unpaid annual cash bonus for a
year prior to the year in which such termination occurs to the extent earned in accordance the Employer’s annual incentive program,
and paid when annual cash bonuses for such year are paid to other senior executives of the Employer. |
The following example illustrates
the application of Section 5.3(b)(2).
Example 1. At
the time of the Executive’s termination of employment, the Executive’s Annual Base Salary is $1,300,000, and the Executive’s
Target Bonus Percentage is 150%. The amount calculated pursuant to Section 5.3(b)(2) would be (A) 150%, multiplied by (B) $1,300,000,
multiplied by (C) 3, or $5,850,000.
(c) Stock
Options and Other Equity Awards. If, upon the date of termination of the Executive’s employment, the Executive holds any options
or other equity awards with respect to stock of the Employer, then all such options and equity awards shall be treated in accordance with
the terms of the relevant stock incentive plan document and individual award agreement.
(d) Health
Benefits. Upon the Executive’s termination of employment, the Executive will be eligible to elect individual and dependent continuation
group medical and dental coverage, as provided under COBRA, for the maximum COBRA coverage period available, subject to all conditions
and limitations (including payment of premiums and cancellation of coverage upon obtaining duplicate coverage or Medicare entitlement).
If the Executive elects COBRA coverage, the Employer shall pay to the Executive, in a single payment, the aggregate premium costs to the
Executive of the elected COBRA coverage (including the cost of COBRA coverage for any spouse or other dependents of the Executive who
are qualified beneficiaries under COBRA and enrolled in the applicable group medical and dental coverage as of the Executive’s termination
date) for the twenty-four (24) month period beginning with the first day of the month following the Executive’s termination date.
The Executive (or dependents, as applicable) shall be responsible for paying the full cost of the COBRA coverage (including the two
percent (2%) administrative charge) effective with the first day of the month following the Executive’s termination date.
(e) Outplacement
Services. The Executive shall be entitled to career transition and outplacement services to include one-on-one coaching covering reemployment,
career changes, entrepreneurial/consulting ventures, etc., and access to comprehensive office and administrative services for a period
not to exceed twelve (12) months following Executive’s termination date. Such outplacement services will be provided by an outside
organization selected and paid for by the Employer.
(f) Effect
upon Other Benefits. Notwithstanding the foregoing, the period of time during which the Executive receives benefits following termination
of employment shall not count as service or employment with the Employer, and the amount of any payments under this Agreement shall not
be treated as compensation paid by the Employer, for purposes of any other employee benefit plan, policy, program or arrangement maintained
by the Employer. During the Term, the Executive shall be ineligible for any severance payments and benefits under the Company’s
Severance Plan (or any successor thereto) and shall be eligible for severance benefits only as provided in this Agreement.
(g) Change
in Control. For purposes of this Agreement, a “Change in Control” means if there occurs any of the following: (a)
the acquisition (whether by purchase, merger, consolidation, combination or other similar transaction) by any individual, entity or group
(within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended, and any successor thereto (the
“Exchange Act”)) (each such individual, entity or group, a “Person”) of beneficial ownership (within
the meaning of Rule 13d-3 promulgated under the Exchange Act) of more than 50% (on a fully diluted basis) of either (i) the then outstanding
shares of common stock of Employer, par value $0.01 per share (and any stock or other securities into which such Common Stock may be converted
or into which it may be exchanged (“Common Stock”)), taking into account as outstanding for this purpose such Common
Stock issuable upon the exercise of options or warrants, the conversion of convertible stock or debt, and the exercise of any similar
right to acquire such Common Stock or (ii) the combined voting power of the then outstanding voting securities of Employer entitled to
vote generally in the election of directors; provided, however, that for purposes of this Agreement, the following
acquisitions shall not constitute a Change in Control: (1) any acquisition by Employer or any Person that directly or indirectly controls,
is controlled by, or is under common control with Employer (with the term ‘“control” (including, with correlative
meaning, the terms “controlled by” and “under common control with”), as applied to any Person, meaning
the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether
through the ownership of voting or other securities, by contract, or otherwise) (each such Person, an Affiliate”); (2)
any acquisition by any employee benefit plan sponsored or maintained by Employer or any Affiliate; or (3) in respect of an equity
award issued pursuant to any stock incentive plan of the Company held by the Executive, any acquisition by the Executive or any group
of Persons (within the meaning of Rule 13d-3 promulgated under the Exchange Act) including the Executive (or any entity controlled by
the Executive or any group of Persons including the Executive); (b) during any period of twelve (12) months, individuals (the “Incumbent
Directors”) who, at the beginning of such period, constitute the Board of Directors of Employer
(the “USFD Board”) cease for any reason to constitute at least a majority of the USFD Board, provided, that
any person becoming a director subsequent to the date hereof, whose election or nomination for election was approved by a vote of at least
two-thirds of the Incumbent Directors then on the USFD Board (either by a specific vote or by approval of the proxy statement of Employer
in which such person is named as a nominee for director, without written objection to such nomination) shall be an Incumbent Director;
provided, however, that no individual initially elected or nominated as a director of Employer as a result of an actual
or threatened election contest, as such terms are used in Rule 14a-12 of Regulation 14A promulgated under the Exchange Act, with respect
to directors or as a result of any other actual or threatened solicitation of proxies or consents by or on behalf of any person other
than the USFD Board shall be deemed to be an Incumbent Director; or (c) the sale, transfer or other disposition of all or substantially
all of the assets of Employer to any Person that is not an Affiliate of Employer.
5.4
Notwithstanding anything in this Agreement to the contrary, payments and benefits under Section 5.2 or Section 5.3, as the case
may be, shall not be made or be available if the Executive’s termination of employment is due to the Executive’s death (except
as set forth in Section 4.6), Permanent Disability (except as set forth in Section 4.5), voluntary resignation without Good Reason, or
involuntary termination by the Employer with Cause.
5.5
The Employer may withhold from any amounts payable under this Agreement such United States federal, state, or local taxes, or any
foreign taxes, as shall be required to be withheld pursuant to any applicable law or regulation.
5.6
The Executive shall not be required to mitigate the amount of any payment contemplated by this Agreement (whether by seeking new
employment or in any other manner), nor shall any such payment be reduced by any compensation that the Executive may receive from any
other source.
5.7
This Agreement is intended to comply with Section 409A of the Code and will be interpreted in a manner intended to comply with
Section 409A of the Code. The payments to Executive pursuant to this Agreement are also intended to be exempt from Section 409A of the
Code to the maximum extent possible, under either the separation pay exemption pursuant to Treas. Reg. Section 1.409A-1(b)(9)(iii) or
as short-term deferrals pursuant to Treas. Reg. Section 1.409A-1(b)(4) (“Section 409A Exceptions”). Notwithstanding
anything herein to the contrary, (i) if at the time of Executive’s termination of employment with the Employer, he or she is a
“specified employee” as defined in Section 409A of the Code (and any related regulations or other pronouncements thereunder)
and the deferral of the commencement of any payments or benefits otherwise payable hereunder as a result of such termination of employment
is necessary in order to prevent any accelerated or additional tax under Section 409A of the Code, then, after taking into account the
Section 409A Exceptions, the Employer will defer the commencement of the payment of any such payments or benefits hereunder (without
any reduction in such payments or benefits ultimately paid or provided to the Executive) until the date that is six (6) months following
the Executive’s termination of employment with the Employer (or the earliest date as is permitted under Section 409A of the Code)
and (ii) if any other payments of money or other benefits due to the Executive hereunder could cause the application of an accelerated
or additional tax under Section 409A of the Code, such payments or other benefits shall be deferred if deferral will make such payment
or other benefits compliant under Section 409A of the Code, or otherwise such payment or other benefits shall be restructured, to the
extent possible, in a manner, determined by the Employer, that does not cause such an accelerated or additional tax. To the extent any
reimbursements or in-kind benefits due to the Executive under this Agreement constitute “deferred compensation” under Section
409A of the Code, any such reimbursements or in-kind benefits shall be paid to Executive in a manner consistent with Treas. Reg. Section
1.409A-3(i)(l)(iv). Each payment made under this Agreement shall be designated as a “separate payment” within the meaning
of Section 409A of the Code. Additionally, for purposes of Section 409A of the Code, (i) if the commencement of any payment or benefit
provided under Section 5.2 or Section 5.3, as the case may be, that constitutes “deferred compensation” under Section 409A
of the Code could, by application of the terms of Section 5.2 or Section 5.3, as the case may be, occur in one of two taxable years,
then the commencement of such payment or benefit shall begin on the first payroll date occurring in January of such second taxable year
and (ii) any references herein to Executive’s “termination of employment” shall refer to Executive’s “separation
from service” with the Employer and its affiliates within the meaning of Section 409A of the Code. In addition, to the extent any
payment hereunder constitutes “nonqualified deferred compensation,” and a Change in Control occurs that is not a “change
in control event,” in each case as such terms are defined under Section 409A of the Code, then such amount shall be paid pursuant
to the schedule set forth in Section 5.2.
6.
Confidential Information; Non-Competition/Non-Interference. The Executive acknowledges by signing this
Agreement that (i) the principal business of Employer and its subsidiaries, and including any future acquired subsidiaries (any such subsidiaries,
“Affiliate Subsidiaries”, and collectively with Employer, the “USF Group”) is the foodservice distribution
business, including the acquisition, procurement, production, sale and distribution of food and related products, equipment, goods and
services to restaurants, schools, hospitals, and other institutions or establishments that serve food (the “Present Business”);
(ii) the Employer or any Affiliate Subsidiary constitute one of a limited number of persons who have developed the Present Business; (iii)
the Executive’s work for the Employer or any Affiliate Subsidiary has given and will continue to give the Executive access to the
confidential affairs and proprietary information of the Employer or any Affiliate Subsidiary, not readily available to the public; and
(iv) the agreements and covenants of the Executive contained in this Section 6 are essential to the business and goodwill of the Employer
or any Affiliate Subsidiary. Accordingly, the Executive agrees as follows:
6.1
Confidentiality. The Executive shall hold in a fiduciary capacity for the benefit of the Employer all secret or confidential
information, knowledge or data relating to the Employer or any affiliated companies, and their respective businesses, employees, suppliers
or customers, which shall have been obtained by Executive during the Executive’s employment by the Employer and which shall not
be or become public knowledge (“Confidential Information”). During the Term and after termination of Executive’s
employment with the Employer, the Executive shall not, except as the Executive deems necessary in his reasonable business judgment to
discharge his duties during Executive’s employment, without the prior written consent of the USFD Board or as otherwise may be required
by law or legal process (provided, that the Executive shall give the Employer reasonable notice of such process, and the ability to contest
it), communicate or divulge any Confidential Information to anyone other than the Employer and those designated by it. Notwithstanding
the above, this Agreement shall not prevent Executive from revealing evidence of criminal wrongdoing to law enforcement or prohibit Executive
from divulging Confidential Information by order of court or agency of competent jurisdiction, or from making other disclosures that are
protected under the provisions of law or regulation. Nothing in this Agreement prohibits Executive from reporting possible violations
of federal law or regulation to any governmental agency or entity, including but not limited to the Department of Justice, the Securities
and Exchange Commission, the Congress, and any Inspector General, or making other disclosures that are protected under the whistleblower
provisions of applicable law or regulation. Executive does not need the prior authorization of Employer to make any such reports or disclosures,
and Executive is not required to notify Employer that Executive has made such reports or disclosure.
Executive acknowledges
and agrees that the Company has provided Executive with written notice below that the Defend Trade Secrets Act, 18 U.S.C. § 1833(b),
provides an immunity for the disclosure of a trade secret to report suspected violations of law and/or in an anti-retaliation lawsuit,
as follows:
(1) IMMUNITY.
— An individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of
a trade secret that —
(A)
is
made —
(i) in
confidence to a Federal, State or local government official, either directly or indirectly, or to an attorney; and
(ii) solely
for the purpose of reporting or investigating a suspected violation of law; or
(B)
is
made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.
(2) USE
OF TRADE SECRET INFORMATION IN ANTI-RETALIATION LAWSUIT.—An individual who files a lawsuit for retaliation by an employer for reporting
a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the
court proceeding, if the individual—
(A) files
any document containing the trade secret under seal; and
(B) does not
disclose the trade secret, except pursuant to court order.
6.2
Return of Property. Executive acknowledges and agrees that Executive has no expectation of privacy with respect to Employer’s
telecommunications, networking or information processing systems (including, without limitation, stored company files, email messages
and voice messages) and that Executive’s activity and any files or messages on or using any of those systems may be monitored at
any time without notice. Executive further acknowledges and agrees that all records, files, customer order guides, pricelists, photo/videographic
materials, computers, and computer related equipment (e.g. hardware, software, disks, electronic storage devices, etc.), cell phones,
smart phones, Blackberries, personal data assistants, keys, equipment, access cards, passwords, access codes, badges, credit cards or
other tangible material, and all other documents, including but not limited to Confidential Information, that Executive receives, acquires,
produces or has access to as a result of Executive’s employment with Employer (regardless of the medium in which any information
is stored) (collectively “Property”), are the exclusive property of Employer. The Executive also agrees that upon leaving
the Employer’s employ, he or she will not take with him or her, and he or she will surrender to the Employer, any record, list,
drawing, blueprint, specification or other document or Property of the Employer, its subsidiaries and Affiliates, together with any copy
and reproduction thereof, mechanical or otherwise, which is of a confidential nature relating to the Employer, its subsidiaries and Affiliates,
or, without limitation, relating to its or their method of distribution, client relationships, marketing strategies or any description
of formulae or secret processes, or which was obtained by Executive or entrusted to Executive during the course of his or her employment
with the Employer. The Executive agrees to return to the Employer all books, records, lists and other written, typed, printed or electronically
stored materials, whether furnished by the Employer or prepared by the Executive, which contain any information relating to the Employer,
its subsidiaries and Affiliates, including their respective businesses, employees, suppliers or customers, promptly upon termination of
this Agreement, and the Executive shall neither make nor retain any copies of such material without the prior written consent of the Employer.
6.3
Non-Competition. The Executive agrees that during the Term of his or her employment with the Employer and for a period
of twenty-four (24) months after Executive’s termination of employment with the Employer for any reason (the “Restricted
Period”), Executive will not, anywhere within the Restricted Territory, engage in Competition with any member of the USF Group.
For purposes of this Agreement, “Competition” shall mean (a) owning, operating, or controlling (other than as a passive
owner of not more than five percent (5%) of the outstanding stock of any class of a corporation) any entity which competes directly or
indirectly with any product line of or service of the type and/or character offered by or competitive with the USF Group as of the termination
of Executive’s employment and which is material to the Present Business (a “Competitor”) or (b) holding any
position for a Competitor or engaging in any activities for a Competitor as an employee, agent, consultant, independent contractor, or
in any other capacity if such position or activities involve: (i) responsibilities similar to responsibilities Executive had or performed
for Employer during the Term; (ii) supervision of employees or other personnel in the provision of services that are similar to or competitive
with those offered or provided by the USF Group during the Term; (iii) development or implementation of strategies or methodologies related
to the provision of services similar to or competitive with the services offered or provided by the USF Group during the Term; or (iv)
responsibilities in which Executive would utilize or disclose Confidential Information, provided, that, such restriction shall
not apply to a food manufacturing company or business, food retail company or business or other supplier not engaged primarily in foodservice
distribution. For purposes of this Agreement, “Restricted Territory” shall mean the following geographic territory
to the maximum extent determined to be reasonable by a court of competent jurisdiction: (i) all counties or parishes in the state(s)
in which Executive was employed by the Employer during the Term; (ii) all counties or parishes included within any US Foods Region that
Executive directly or indirectly managed during the Term; and (iii) all states in the United States of America in which the USF Group
conducts business as of the date of the termination of Executive’s employment with the Employer. The Executive acknowledges that
the geographic restrictions in this Section 6.3 are reasonable and necessary because, during the Term, the Executive will be exposed
to Confidential Information and customer relationships on a nationwide basis.
6.4
Non-Solicitation of Restricted Customers. During the Restricted Period, the Executive shall not, directly or indirectly,
for the purpose of providing products or services competitive with those conducted, authorized, offered or provided by the Employer, solicit,
market, service, contact, sell to or attempt to sell to any Restricted Customer.
(a) For
purposes of this Section 6.4, a “Restricted Customer” is any person or entity:
| (1) | to whom the Executive sold products or services on behalf of the Company at any time during the Term,
including sales performed while the Executive was in training; or |
| (2) | to whom the Employer sold products or services and with whom the Executive had contact on behalf of the
Employer in connection with such sale at any time during the Term; or |
| (3) | to whom the Employer sold products or services at any time during the Term and which sale was made through
any employee of the Employer whom the Executive directly or indirectly managed or supervised (at any level of management or supervision);
or |
| (4) | with regard to whom, at any time during the Term, the Executive (or any employee of the Employer whom
the Executive directly or indirectly managed or supervised, at any level of management or supervision): (i) participated in the preparation
of a written sales proposal or bid containing Confidential Information to such person or entity on behalf of the Employer; (ii) participated
in the setting of prices, margins, or credit terms for such person or entity on behalf of the Employer; or (iii) used or received or
created or reviewed any Confidential Information relating to such person or entity on behalf of the Employer; or |
| (5) | who is, or functions as, a food broker or contract management company or group purchasing organization
or otherwise represents one or more customers or negotiates on their behalf, and to whom or through whom Executive or any employee of
the Employer whom the Executive directly or indirectly managed or supervised (at any level of management or supervision) sold products
or services on behalf of the Employer at any time during the Term. |
(b) Examples
of indirect “solicitation, marketing, servicing, contacting, selling to or attempting to sell to” that are prohibited by this
Section 6.4 include but are not limited to, providing Confidential Information to a person or entity that is competitive with the Employer
regarding a Restricted Customer; advising or encouraging a Restricted Customer to reduce or cease doing business with the Employer or
to do business with a person or entity that provides products or services competitive with the Employer; switching or swapping sales,
solicitation, or service responsibility for a Restricted Customer with an employee of a person or entity that is competitive with the
Employer; participating in the supervision or management of any person or entity that is competitive with the Employer or an employee
of such person or entity, regardless of other intervening levels of management or supervision, with regard to a Restricted Customer; participating
in the setting of prices, credit terms or margins for a Restricted Customer; participating in developing and executing marketing and sales
strategies and decisions affecting a Restricted Customer; and receiving any personal benefit (present or future) in the event a Restricted
Customer should do any business with a person or entity that is competitive with the Employer.
6.5
Non-Solicitation of Employees; Non-Interference. The Executive agrees that during the Restricted Period, Executive will
not, directly or indirectly, on behalf of Executive or for any other person (other than the Employer), solicit to hire or hire any person
(i) who is an employee of the USF Group, or (ii) who has left the employment of the USF Group for a period of six (6) months following
the termination of such employee’s employment with the USF Group, for employment with any person, business, firm, corporation, partnership
or other entity other than the USF Group.
6.6
Effect of Other Agreements. In the event Executive executed other written agreements with Employer relating to the subject
matter of this Section 6, and/or in the event Executive enters into other written agreements that contain provisions similar to the provisions
contained herein, all such provisions shall be interpreted to provide the Employer with cumulative rights and remedies and the benefits
and protections provided to the Employer under each such agreement shall be given full force and effect.
6.7
Cooperation. During the Restricted Period, upon reasonable request of the Employer, the Executive shall cooperate in any
internal or external investigation, litigation or any dispute relating to any matter in which he or she was involved during his or her
employment with the Employer; provided, however, that the Executive shall not be obligated to spend time and/or travel in
connection with such cooperation to the extent that it would unreasonably interfere with the Executive’s other commitments and obligations.
The Employer shall reimburse the Executive for all expenses the Executive reasonably incurs in so cooperating.
6.8
Notification. Before accepting employment with any other person, organization or entity while employed by the Employer and
during the Restricted Period, the Executive will inform such person, organization or entity of the restrictions contained in this Section
6. The Executive further consents to notification by Employer to Executive’s
subsequent employer or other third party of Executive’s obligations under this Agreement.
6.9
Other Acknowledgements. The parties acknowledge and agree that the restrictions of this Section 6 have been carefully negotiated
at arm’s length and are believed by the parties to be reasonable and necessitated by legitimate business needs. Notwithstanding
the preceding statement, if any provision set forth in this Section 6 is determined by any competent court or tribunal to be unenforceable
or invalid for any reason, the parties agree that this Section 6 will be interpreted to extend only over the maximum period of time for
which it may be enforceable, and/or over the maximum geographical area as to which it may be enforceable, and/or to the maximum extent
in any and all respects as to which it may be enforceable, all as determined by such court or tribunal. The parties further acknowledge
and agree that the Executive’s obligations under this Agreement are unique and that any breach or threatened breach of such obligations
may result in irreparable harm and substantial damages to the USF Group. Accordingly, in the event of a breach or threatened breach by
the Executive of any of the provisions of this Section 6, any member of the USF Group shall have the right, in addition to exercising
any other remedies at law or equity which may be available to it under this Agreement or otherwise, to obtain ex parte, preliminary, interlocutory,
temporary or permanent injunctive relief, specific performance and other equitable remedies in any court of competent jurisdiction, to
prevent the Executive from violating such provision or provisions or to prevent the continuance of any violation thereof, together with
an award or judgment for any and all damages, losses, liabilities, expenses and costs incurred by the USF Group as a result of such breach
or threatened breach including, but not limited to, attorneys’ fees incurred by the USF Group in connection with, or as a result
of, the enforcement of these covenants. The Executive expressly waives any requirement based on any statute, rule or procedure, or other
source, that any member of the USF Group post a bond as a condition of obtaining any of the above described remedies.
7.
Clawback/Forfeiture of Benefits. In addition to the Employer’s legal and equitable remedies (including
injunctive relief) if, (i) the Executive has violated any portions of Section 6, or (ii) any of the Employer’s financial statements
are required to be restated resulting from fraud attributable to the Executive, then (a) the Employer may recover or refuse to pay any
of the compensation or benefits that may be owed to the Executive under Section 5.2 or Section 5.3, as the case may be, of this Agreement,
and (b) the Employer may prohibit the Executive from exercising all or any options with respect to stock of the Employer or may recover
all or any portion of the gain realized by the Executive from (1) such options exercised, (2) the vesting of any equity award received
from the Employer or (3) the sale of any equity award received from the Employer, in each case in the twelve (12) month period immediately
preceding any violation of Section 6 or any restatement of financial statements, or in the periods following the date of any such violation
or restatement. In addition, the Employer may pursue any remedies available pursuant to the Clawback Policy of Employer effective May
25, 2016, as it may be amended from time to time (including as necessary to comply with Rule 10D-1 promulgated under the Securities Exchange
Act of 1934).
8.
Excise Tax Matters.
(a) Anything
in this Agreement to the contrary notwithstanding and except as set forth below, in the event it shall be determined that any
payment, distribution or other benefit by the Employer or its Affiliates to or for the benefit of the Executive (whether paid or
payable or distributed or distributable pursuant to the terms of this Agreement or otherwise) (collectively, the
“Payments”) would be subject to the excise tax imposed by Section 4999 of the Code or any interest or penalties
are incurred by Executive with respect to such excise tax (such excise tax, together with any such interest and penalties, are
hereinafter collectively referred to as the “Excise Tax”), then the Payments shall be either (i) delivered in
full pursuant to the terms of this Agreement or (ii) delivered to such lesser extent as would result in no portion
of the payment being subject to the Excise Tax as determined in accordance with Section 8(b).
(b)
The determination of whether Section 8(a)(i) or Section 8(a)(ii) shall be given effect shall be made by Employer on the basis of
which of such clauses results in the receipt by Executive of the greater Net After-Tax Receipt (as defined below) of the aggregate Payments.
The term “Net After-Tax Receipt” shall mean the present value (as determined in accordance with Section 280G of the
Code) of the payments net of all applicable federal, state and local income, employment and other applicable taxes and the Excise Tax.
(c)
If Section 8(a)(ii) is given effect, the reduction shall be accomplished in accordance with Section 409A of the Code and the following:
first by reducing, on a pro rata basis, cash Payments payable pursuant to this Agreement and then by forfeiting any equity-based awards
that vest and become payable, starting with the most recent equity-based awards that vest, to the extent necessary to accomplish such
reduction.
(d)
Unless Employer and Executive otherwise agree in writing, any determination required under this Section 8 shall be made by Employer’s
independent accountants or compensation consultants (the “Third Party”), and all such determinations shall be conclusive,
final and binding on the parties hereto. Employer and Executive shall furnish to the Third Party such information and documents as the
Third Party may reasonably request in order to make a determination under this Section 8. Employer shall bear all fees and costs of the
Third Party with respect to all determinations under or contemplated by this Section 8.
9.
Resolution of Differences Over Breaches of Agreement. The parties shall use good faith efforts to resolve
any controversy or claim arising out of, or relating to this Agreement or the breach thereof. If despite their good faith efforts, the
parties are unable to resolve such controversy or claim, then such controversy or claim shall be resolved by arbitration in Chicago, Illinois,
with one (1) arbitrator, in accordance with the National Rules for Resolution of Employment Disputes of the American Arbitration Association,
and judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. The arbitrator shall have
the discretion to award reasonable attorneys’ fees, costs and expenses, including fees and costs of the arbitrator and the arbitration,
to the prevailing party. Notwithstanding the above, nothing in this Agreement prevents either the Executive or the Employer from seeking
a temporary restraining order, preliminary injunction, or other temporary or interlocutory equitable relief from a court of competent
jurisdiction, provided that, following the court’s ruling on a petition or application for temporary or equitable injunctive relief,
any such action in a court of competent jurisdiction shall be stayed and the remainder of the dispute submitted to binding arbitration
for final resolution on the merits.
10.
Complete Agreement. This Agreement contains the complete agreement and understanding concerning the employment
arrangement between the parties and, except as set forth in Sections 5.2(c), 5.3(c), 6.6 and 7 of this Agreement, supersedes all other
agreements, understandings or commitments between the parties as to such subject matter. No amendment, waiver or revocation of this Agreement
shall be effective unless set forth in writing expressly stating the amendment, waiver or revocation and signed by an authorized officer
of Employer.
11.
Successors and Assigns. Executive expressly agrees that this Agreement, including the rights and obligations
hereunder, may be transferred and/or assigned by the Employer without the further consent of Executive, and that this Agreement is for
the benefit of and may be enforced by and is binding upon Employer, its present and future successors, assigns, subsidiaries, Affiliates,
and purchasers, but is not assignable by Executive. In the event of the Executive’s death, all amounts due to the Executive (including
the Executive’s death following a termination under Section 5.2 or Section 5.3) shall be paid to the Executive’s designated
beneficiary, if applicable, or to the Executive’s estate.
12.
Notices. All notices required to be given or which may be given under this Agreement must be in writing,
must be either personally delivered, or delivered by first class mail (postage prepaid) or by a nationally recognized express courier.
Notices will be deemed given when personally delivered, when delivered to the addressee’s address (when delivered by express courier)
or five (5) days after having been deposited with the U.S. Postal Service if mailed, and addressed as follows:
| If to the Employer: |
If to the Executive: |
| US Foods Holding Corp. |
To the address set forth by the Executive at the end of this Agreement |
| 9399 W. Higgins Road |
| Rosemont, Illinois 60018 |
|
| Attn: General Counsel |
|
Either party may change the address to which
such notices are to be addressed by notice thereof to the other party in the manner set forth above.
13.
Miscellaneous.
13.1
The Executive agrees that any and all processes, systems, software, technology or other intellectual property created or developed
by the Executive as part of the work being performed by him or her for the Employer is “work for hire,” which is owned exclusively
by the Employer and for which the Employer receives all ownership rights, including the copyrights thereto. The Executive hereby assigns
to the Employer any and all right, title and interest the Executive may have in such work.
13.2
This Agreement may be amended, superseded, canceled, renewed or extended, and the terms hereof may be waived, only by a written
instrument signed by the parties or, in the case of a waiver, by the party waiving compliance. No delay on the part of either party in
exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of either party
of such rights, power or privilege or any single or partial exercise of any such right, power or privilege, preclude any other further
exercise thereof or the exercise of any other such right, power or privilege.
13.3
If any portion of this Agreement is held unenforceable or inoperative for any reason, such portion will not affect any other portion
of this Agreement, and the remainder will be as effective as though the ineffective portion had not been contained in this Agreement.
13.4
The validity of this Agreement and of any of the terms or provisions as well as the rights and duties of the parties hereunder
will be governed by the laws of the State of Illinois (excluding the conflict of laws provisions thereof). Except for claims subject to
the mandatory arbitration provision in Section 9 of this Agreement, the exclusive venue for any litigation between Executive and Employer
based upon any fact, matter or claim arising out of or relating to this Agreement shall be the state or federal courts located in Chicago,
Illinois, and Executive hereby consents to any such court’s exercise of personal jurisdiction over him or her for such purpose.
Executive acknowledges and agrees that Executive has significant material connections with Illinois. Executive shall not challenge jurisdiction
in Illinois on any grounds including forum non conveniens or lack of personal jurisdiction.
* * *
IN WITNESS WHEREOF,
the parties have executed this Agreement as of the date below.
| EMPLOYER: |
|
EXECUTIVE: |
| |
|
|
| US Foods Holding Corp. |
|
|
| |
|
David Flitman |
| |
|
|
|
|
|
|
| By: David Works |
|
|
| Its: EVP and Chief Human Resources Officer |
|
|
| |
|
Address: [On file with Company] |
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| Date: [ ] |
|
|
Executive Severance Agreement
ATTACHMENT A
FORM OF WAIVER AND RELEASE AGREEMENT
In consideration for the benefits to be provided
to me under the terms of the Executive Severance Agreement by and between U.S. Foods Holding Corp (the “Company”) and me,
effective [ ] (the “Agreement”), I hereby acknowledge, understand and agree under this Waiver and Release Agreement (the “Release”)
to the following:
1. General
Release. In consideration of the foregoing, including, without limitation, payment to me of the determined amounts under the Agreement,
I unconditionally release the Company and all of its partners, affiliates, parents, predecessors, successors and assigns, and their respective
officers, directors, trustees, employees, agents, administrators, representatives, attorneys, insurers or fiduciaries, past, present or
future (collectively, the “Released Parties”) from any and all administrative claims, actions, suits, debts, demands, damages,
claims, judgments, or liabilities of any nature, including costs and attorneys’ fees, whether known or unknown, including, but not
limited to, all claims arising out of my employment with or separation from the Company and (by way of example only) any claims for bonus,
severance, or other benefits apart from the benefits set forth in the Agreement; claims for breach of contract, wrongful discharge, tort
claims (e.g., infliction of emotional distress, defamation, negligence, privacy, fraud, misrepresentation); claims under federal, state
and local wage and hour laws and wage payment laws; claims for reimbursements; claims for commissions; or claims under the following,
in each case, as amended: 1) Title VII of the Civil Rights Act of 1964 (race, color, religion, sex and national origin discrimination);
2) 42 U.S.C. § 1981 (discrimination); 3) the Equal Pay Act of 1963, 29 U.S.C. § 206(d) (1) (equal pay); 4) Executive Order 11246
(race, color, religion, sex and national origin discrimination); 5) Age Discrimination in Employment Act and Executive Order 11,141 (age
discrimination); (6) the Americans with Disabilities Act of 1990 (“ADA”), 42 U.S.C. § 12101, et seq.; 7) the Family and
Medical Leave Act; 8) the Immigration Reform and Control Act; 9) the Sarbanes-Oxley Act; 10) the Dodd-Frank Wall Street and Consumer Protection
Act; 11) the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1001 et seq.; 12) the Vietnam Era Veterans Readjustment
Assistance Act; 13) §§ 503-504 of the Rehabilitation Act of 1973 (handicap discrimination); 14) the Illinois Human Rights Act,
the Illinois Whistleblower Act, and all other state, federal, or local laws, statutes, regulations, common laws or claims at equity, relating
to conduct or events occurring prior to the date of this Release.
2. General
Release Exclusions. This Release shall not extend to or include the following: (a) any rights or obligations under applicable law
which cannot be waived or released pursuant to an agreement, such as the right to file a charge with or participate in an investigation
by a government agency such as the Equal Employment Opportunity Commission (although you waive any right to monetary recovery should any
agency pursue any claims on your behalf, except that you may receive money properly awarded by the U.S. Securities and Exchange Commission
as a securities whistleblower incentive); (b) any rights or claims that arise after the date of this Release; (c) any rights I may have
under the Company’s, or any applicable affiliate’s Director’s and Officer’s insurance policy or under the Company’s,
or any applicable affiliate’s charter or by-laws; (d) any rights I may have under the Company’s 2007 Stock Incentive Plan
for Key Employees of USF Holding Corp. and its Affiliates or any other equity plan maintained by the Company or its affiliates; (e) the
right to enforce this Agreement; or (f) any rights I may have under any benefit plans maintained by the Company or its affiliates. I represent
and warrant that, as of the Effective Date, I have not assigned or transferred any claims of any nature that I would otherwise have against
the Company, its successors or assigns. I further agree to waive my rights under any other statute or regulation, state or federal, which
provides that a general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time
of executing the release, which if known to him must have materially affected his settlement with the debtor.
3. Intent
of Release; Covenant Not to Sue. I intend this Release to be binding on my successors, and I specifically agree not to file or continue
any claim in respect of matters covered by this Release. I further agree never to institute any suit, complaint, proceeding, grievance
or action of any kind at law, in equity, or otherwise in any court of the United States or in any state, or in any administrative agency
of the United States or any state, county or municipality, or before any other tribunal, public or private, against the Company arising
from or relating to my employment with or my termination of employment from the Company and/or any other occurrences to the date of this
Release, other than a claim challenging the validity of this Release under the ADEA.
4. Whistleblowing.
You agree that (i) no one interfered with your ability to report within the Company possible violations of any law, and (ii) it was the
Company’s policy throughout your employment to encourage such reporting.
5. Acknowledgments.
I further acknowledge and agree that:
| (A) | My waiver of rights under this Release is knowing and voluntary and in compliance with the Older Workers
Benefit Protection Act of 1990 (“OWBPA”); |
| (B) | I understand the terms of this Release; |
| (C) | The consideration offered by the Company under the Agreement in exchange for the signing of this Release
represents consideration over and above that to which I would otherwise be entitled, and that the consideration would not have been provided
had I not agreed to sign this Release and do not sign this Release; |
| (D) | The Company is hereby advising me in writing to consult with an attorney prior to executing this Release; |
| (E) | The Company is giving me a period of twenty-one (21) days within which to consider this Release; |
| (F) | Following my execution of this Release, I have seven (7) days in which to revoke this Release by written
notice. An attempted revocation not actually received by the Company prior to the revocation deadline will not be effective; |
| (G) | This entire Release shall be void and of no force and effect if I choose to so revoke, and if I choose
not to so revoke this Release shall then become effective and enforceable. |
This Section does not waive rights or
claims that may arise under the ADEA after the date I sign this Release. To the extent barred by the OWBPA, the covenant not to sue contained
in Section 3 does not apply to claims under the ADEA that challenge the validity of this Release.
To revoke this Release,
I must send a written statement of revocation to:
U. S. Foods Holding Corp.
9399 W. Higgins Road
Rosemont, Illinois 60018
Attn: General Counsel
The revocation must be received no later
than 5:00 p.m. on the seventh day following my execution of this Release. If I do not revoke, the eighth day following my acceptance will
be the “Effective Date” of this Release.
I acknowledge that I remain bound by, and reaffirm
my intention to comply with, continuing obligations under any agreements between myself and the Company, as presently in effect, including,
but not limited to, my post-employment obligations set forth in the Agreement.
BY SIGNING THIS RELEASE, I ACKNOWLEDGE THAT:
I HAVE READ THIS RELEASE AND UNDERSTAND ITS TERMS; I HAVE HAD THE OPPORTUNITY TO REVIEW THIS RELEASE WITH LEGAL OR OTHER PERSONAL ADVISORS
OF MY OWN CHOICE; I UNDERSTAND THAT BY SIGNING THIS RELEASE I AM RELEASING THE RELEASED PARTIES OF ALL CLAIMS AGAINST THEM; I HAVE BEEN
GIVEN TWENTY-ONE DAYS TO CONSIDER THE TERMS AND EFFECT OF THIS RELEASE AND I VOLUNTARILY AGREE TO ITS TERMS.
SIGNED this _______ day of ________, 20___.
[SAMPLE—to be executed at the time of termination]
