# EDGAR Filing Document

**Accession Number:** 0001646972
**File Stem:** 0001646972-23-000030
**Filing Date:** 2023-3
**Character Count:** 13092
**Document Hash:** 365eb620bdd391c20be5358695348f0d
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001646972-23-000030.hdr.sgml**: 20230307

**ACCESSION NUMBER**: 0001646972-23-000030

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20230301

**ITEM INFORMATION**: Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers

**FILED AS OF DATE**: 20230307

**DATE AS OF CHANGE**: 20230307

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Albertsons Companies, Inc.
- **CENTRAL INDEX KEY:** 0001646972
- **STANDARD INDUSTRIAL CLASSIFICATION:** RETAIL-GROCERY STORES [5411]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0225

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-39350
- **FILM NUMBER:** 23713085

**BUSINESS ADDRESS:**
- **STREET 1:** 250 PARKCENTER BLVD.
- **CITY:** BOISE
- **STATE:** ID
- **ZIP:** 83706
- **BUSINESS PHONE:** 208-395-6200

**MAIL ADDRESS:**
- **STREET 1:** 250 PARKCENTER BLVD.
- **CITY:** BOISE
- **STATE:** ID
- **ZIP:** 83706

?xml version="1.0" ? aci-20230301

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D. C. 20549**

**FORM 8-K** 

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the**

**Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported):**

**March 1, 2023** 

**Albertsons Companies, Inc.** 

**(Exact Name of Registrant as Specified in Charter)**

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| | | |
|:---|:---|:---|
| **Delaware** | **001-39350** | **47-4376911** |
| **(State or Other Jurisdiction of Incorporation)** | **(Commission File Number)** | **(IRS Employer Identification No.)** |

---

**250 Parkcenter Blvd.** 

**Boise, Idaho 83706** 

**(Address of principal executive office and zip code)**

**(208) 395-6200** 

**(Registrant's telephone number, including area code)**

**Not Applicable**

**(Former Name or Former Address, if Changed Since Last Report)**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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

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| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| Class A common stock, $0.01 par value | ACI | New York Stock Exchange |

---

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| | |
|:---|:---|
| Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). |
| Emerging growth company | ☐ |
| If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ |

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| | |
|:---|:---|
| **Item 5.02** | **Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.** |

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(e) As previously disclosed, on October 13, 2022, Albertsons Companies, Inc. (the "Company") entered into an agreement and plan of merger (the "Merger Agreement") by and among the Company, The Kroger Co. and Kettle Merger Sub, Inc.

To help consummate the merger contemplated by the Merger Agreement and to ensure a successful and efficient integration process, the Company has established a retention program to incentivize and promote retention of a key group of Company employees. Subject to the retention program, on March 1, 2023, the Company entered into retention agreements (each, a "Retention Agreement") with key leaders across the Company, including the named executive officers Sharon McCollam, President and Chief Financial Officer, Susan Morris, Executive Vice President and Chief Operations Officer and Anuj Dhanda, Executive Vice President and Chief Information Officer. Pursuant to their respective Retention Agreement, Ms. McCollam, Ms. Morris and Mr. Dhanda were granted special retention incentive awards (each, a "SRI Award") in the amounts of $4 million, $4 million and $1 million, respectively.

Each SRI Award will be payable in cash in two equal installments. The first installment will be payable on the closing date of the merger and the second installment will be payable six months thereafter, subject to the executive's continued employment through the applicable payment dates with the surviving corporation of the merger (or such other affiliate that employs the executive after the closing of the merger) or SpinCo (as that term is defined in the Merger Agreement). If an executive is terminated on or after the closing date of the merger, any unpaid SRI Award will become payable, if the executive was terminated without "cause", due to the executive's "death or disability", or if the executive resigned for "good reason" (each term as defined in the executive's respective employment agreement). The Retention Agreements include customary restrictive covenants of nondisclosure, non-disparagement, non-solicitation and non-competition (as applicable). The restrictive covenants survive a termination of employment for a period of twelve months. In the event the Merger Agreement is terminated, the SRI Award will be paid in two equal installments with the first installment to be paid on the later of (a) the Merger Agreement termination date or (b) October 13, 2024, and the second installment to be paid on the later of (x) the Merger Agreement termination date or (y) October 13, 2025.

The foregoing description does not purport to be complete and is qualified in its entirety by reference to the Form Retention Agreement which is filed as Exhibit 10.1 hereto and incorporated by reference herein.

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| | |
|:---|:---|
| **Item 9.01** | **Financial Statements and Exhibits.** |

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(d) Exhibits.

10.1 <u>[Form Special Retention Incentive Agreement](a101formspecialretentionin.htm)</u> <br> 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

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**SIGNATURES**

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

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| | | |
|:---|:---|:---|
| | Albertsons Companies, Inc. | Albertsons Companies, Inc. |
| | (Registrant) | (Registrant) |
| March 7, 2023 | By: | /s/ Juliette W. Pryor |
|  | Name: | Juliette W. Pryor |
|  | Title: | Executive Vice President, General Counsel and Secretary |

---

## Exhibit 10.1

Exhibit 10.1

***PERSONAL AND CONFIDENTIAL***

Date

EE name

Title

RE: Confidential Special Retention Incentive Award

Dear First Name,

You play a key role in our ability to successfully fulfill our purpose each day, and we have identified you as being vital to our continued operations. Given the importance of your contributions, you have been selected to receive a Special Retention Incentive Award (an "SRI Award") to remain employed during the critical period before and shortly after the Closing Date of the transaction contemplated by the Merger Agreement between the Albertsons Companies, Inc. (the "Company") and The Kroger Company (the "Merger Agreement").

Conditioned upon your continuous employment with the Company or one of its subsidiaries or successors, including The Kroger Company and SpinCo, as that term is defined in the Merger Agreement, you are eligible to receive a total SRI Award of $x, less applicable withholdings. SRI Awards are denominated in cash and payable in two SRI Installments:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 50% will be earned on the Closing Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 50% will be earned 6 months following the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If the Merger Agreement is terminated, the first SRI Installment will be earned the later of October 13, 2024, or the Termination Date of the Merger Agreement, and the second SRI Installment will be earned the later of October 13, 2025, or the Termination Date.

Installment will be paid no later than the payroll period following the date earned.

Payment of the SRI Award is also conditioned upon:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Satisfactory performance of your duties through the applicable Installment payment date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Compliance with all Company policies, the Company Code of Business Conduct and all federal, state, and local laws and regulations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Compliance with the terms of your written employment agreement, including but not limited to the Restrictions and Obligations relating to Confidentiality, Non-Competition, Non-Solicitation and Non-Disparagement.

If you are terminated, on or after the Closing Date for one of the following reasons, any unpaid SRI Award Installment will be paid as soon as administratively practicable after you execute a general release of claims (a "Release") to be provided by the Company, but no later than thirty (30) days thereafter: <sup>1</sup>

<sup>1</sup>However, to the extent required by Section 409A of the Internal Revenue Code of 1986, if the period between the date of the Termination Triggering Event and the deadline for execution of the Release spans two (2) calendar years, any such SRI Award Installment shall not be paid until the second calendar year. For purposes of Section 409A, each installment payment is deemed to be a separate payment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• due to your death or disability (as defined in your written employment agreement) while any portion of the SRI Award is outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• by the Company without Cause, as that term is defined in your written employment agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if you resign from your employment, for Good Reason as that term is defined in your written employment agreement.

Please keep your invitation to participate confidential, and please direct questions to . If you wish to receive the SRI Award, please sign below by March 15<sup>th</sup>, 2023. Thank you for your ongoing commitment to the Company.

Sincerely,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Vivek Sankaran

President & Chief Executive Officer

By signing below, I acknowledge that I have read and understood the terms and conditions of the Special Incentive Award, and I agree to the terms and conditions.

___________________________________________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Associate Signature and Date EMP ID: XXX

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