Document:

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.

 

 

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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.

 

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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

 

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9399 West Higgins Road, Suite 100 | Rosemont, IL 60018 | TEL 847-720-8000 | www.usfoods.comUS Foods Holding Corp. 8-K

Exhibit 10.2

 

RESTRICTED STOCK UNIT GRANT NOTICE

UNDER THE

US FOODS HOLDING CORP. 2019 LONG-TERM INCENTIVE PLAN

(Time-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]
	Number of Restricted Stock Units:	[Insert No. of Restricted Stock Units Granted]
	Vesting Dates:	[Insert dates of the three anniversaries of the date of grant]

Provided the Participant has not undergone a Termination
at the time of each of the following dates (each, a “Vesting Date”):

 

		·	One-third (1⁄3) of the Restricted Stock Units (rounded down to the nearest whole unit) will vest on the first (1st)
anniversary of the Date of Grant;

		·	One-third (1⁄3) of the Restricted Stock Units (rounded down to the nearest whole unit) will vest on the second (2nd)
anniversary of the Date of Grant; and

		·	The remaining unvested Restricted Stock Units will vest on the third (3rd) anniversary of the Date of Grant;

 

provided, however, that the Restricted
Stock Units shall, upon the earliest to occur of the following circumstances:

 

		(i)	fully vest immediately prior to a Change in Control if the 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, or provided such other treatment as determined
by the Committee; or

		(ii)	fully vest immediately upon the Participant’s Termination
by the Service Recipient without Cause, by such Participant for Good Reason or upon the Participant’s Termination due to Permanent
Disability or death (each, a “Qualifying 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	 	 

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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 number of Restricted Stock Units
provided in the Grant Notice.

2.           
Vesting. Subject to the terms of this Restricted Stock Unit Agreement and the Plan, the Restricted Stock Units shall
vest and the restrictions on such Restricted Stock Units shall lapse as provided in the Grant Notice. The period of time that the Restricted
Stock Units remain subject to vesting shall be the Restricted Period.

3.           
Settlement of Restricted Stock Units. The provisions of Section 9(d)(ii) of the Plan are incorporated herein by reference
and made a part hereof, provided that the Restricted Stock Units shall be settled in Common Stock within sixty (60) days following each
Vesting Date or, if earlier and subject to Section 16 of this Restricted Stock Unit Agreement, within sixty (60) days following a Change
in Control, a Qualifying Termination or the Participant’s Termination due to Permanent Disability or death, each as contemplated
by the Grant Notice and subject to Section 13(u) of the Plan, to the extent applicable.

4.           
Treatment of Restricted Stock Units upon Termination. Subject to the Termination vesting provisions contained in
the Grant Notice, 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)               
Whenever the word “Participant” is used in 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 determined by the Committee not to 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 Service Recipient.

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.              
Protected Rights. Nothing contained in this Restricted Stock Unit Agreement or the Plan is intended to limit the
Participant’s ability to (a) report possible violations of law or regulation to, or file a charge or complaint with, any Government
Agency, (b) communicate with any Government Agency or otherwise participate in any investigation or proceeding that may be conducted by
any Government Agency, including providing documents or other information, without notice to the Company, or (c) under applicable United
States federal law to (i) disclose in confidence trade secrets to federal, state, and local government officials, or to an attorney, for
the sole purpose of reporting or investigating a suspected violation of law or (ii) disclose trade secrets in a document filed in a lawsuit
or other proceeding, but only if the filing is made under seal and protected from public disclosure.

13.              
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.

14.              
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.

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15.              
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.

16.              
Compliance With Section 409A of the Code. The Restricted Stock Units granted hereby are 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 Restricted Stock Units 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 Restricted Stock Units are deemed 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.

 

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