Document:

Exhibit 10.2

 

 

SUNDANCE ENERGY AUSTRALIA LTD

 

ACN 112 202 883

 

LONG TERM INCENTIVE PLAN — EXECUTIVES, DIRECTORS, EMPLOYEES AND CONSULTANTS

 

RESTRICTED SHARE UNITS

 

TERMS AND CONDITIONS

 

 

Table of Contents

 

	
1.
    	
Definitions and   Interpretation
    	
3
    
	
 
    	
 
    	
 
    
	
2.
    	
Awards
    	
6
    
	
 
    	
 
    	
 
    
	
3.
    	
Purpose of the   LTI Program
    	
6
    
	
 
    	
 
    	
 
    
	
4.
    	
General   description of the LTI Program
    	
7
    
	
 
    	
 
    	
 
    
	
5.
    	
RSUs
    	
7
    
	
 
    	
 
    	
 
    
	
6.
    	
Vesting
    	
8
    
	
 
    	
 
    	
 
    
	
7.
    	
Shares
    	
8
    
	
 
    	
 
    	
 
    
	
8.
    	
Participants
    	
9
    
	
 
    	
 
    	
 
    
	
9.
    	
Earning Period
    	
9
    
	
 
    	
 
    	
 
    
	
10.
    	
Maximum number   of RSUs and Grant of RSUs
    	
9
    
	
 
    	
 
    	
 
    
	
11.
    	
Determination   of the targets
    	
10
    
	
 
    	
 
    	
 
    
	
12.
    	
Requirement   for continued employment or service
    	
10
    
	
 
    	
 
    	
 
    
	
13.
    	
Termination of   employment or service
    	
10
    
	
 
    	
 
    	
 
    
	
14.
    	
Shareholder   rights attached to RSUs
    	
11
    
	
 
    	
 
    	
 
    
	
15.
    	
Claw back
    	
11
    
	
 
    	
 
    	
 
    
	
16.
    	
Administration   of the Program
    	
12
    
	
 
    	
 
    	
 
    
	
17.
    	
Amendments to   the Terms
    	
12
    
	
 
    	
 
    	
 
    
	
18.
    	
Rights of   Participant
    	
12
    
	
 
    	
 
    	
 
    
	
19.
    	
General
    	
13
    
	
 
    	
 
    	
 
    
	
20.
    	
Security   Interests
    	
15
    
	
 
    	
 
    	
 
    
	
21.
    	
Governing law   and jurisdiction
    	
15
    

 

 

Sundance Energy Australia Limited ACN 112 202 883

 

Terms and Conditions — RSUs

 

1.                                      Definitions and Interpretation

 

1.1                               Definitions

 

In these Terms, unless the contrary intention appears:

 

“Acceptance Form” means a duly completed and executed document of acceptance by a LTI Recipient of an Offer in a form approved by the Board from time to time.

 

“Associated Company” means any body which is a related body corporate under Section 50 of the Corporations Act.

 

“ASX” means ASX Limited ACN 008 624 691.

 

“Board” means the Board of Directors of the Company as constituted from time to time.

 

“Change in Control” means any circumstance where Control of the Company changes from that subsisting as at the Grant Date.

 

“Closed Period” has the same meaning as in the Company’s Securities Trading Policy.

 

“Company” means Sundance Energy Australia Limited ACN 112 202 883, or its successor.

 

“Control” means where a person:

 

(a)                                 owns beneficially, directly or indirectly, more than 50% of the Company’s issued voting securities;

 

(b)                                 has the ability to direct or cause the direction of the management and policies of the Company, whether through the ownership of voting securities, by contract or otherwise; or

 

(c)                                  otherwise controls the Company for the purposes of section 50AA of the Corporations Act.

 

“Corporations Act” means the Australian Corporations Act 2001 (Cth).

 

“Director” means a director of the Company or any Associated Company.

 

“Earning Period” means an earning period commencing on the first day of the Company’s Financial Year and ending on the last day of that Financial Year.

 

“Employee” means a person whom the Board determines to be in the full-time or part-time employment of a company in the Group as a potential LTI Recipient and for the purposes of these Terms each Director is deemed to be an Employee.

 

“Final Vesting Date” means the 3rd anniversary of the Grant Date.

 

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“Financial Year” currently means each year commencing on the first day of July and ending on the 30th day of June though, upon the adoption by the Company of a different Financial Year, will mean that newly adopted Financial Year.

 

“Governing Law” means all laws, regulations and stock exchange listing rules governing the Group, including the Corporations Act and the Listing Rules, and any applicable US laws and regulations including federal securities law.

 

“Grant Date” means the date set out in the Offer, which will be on or around the date of Board approval of the grant of RSUs.

 

“Group” means the Company and its Associated Companies.

 

“Interim Vesting Date” in relation to a Financial Year during the term of a RSU means the final day of that Financial Year.

 

“Listing Rules” means the official listing rules of the ASX.

 

“LTI” means long term incentive.

 

“LTI Recipient” means an Employee or other individual who has been selected by the Board to receive an Offer or who has been approved for participation in the LTI Program under the Plan.

 

“LTI Program” means the share incentive program which forms all or part (as applicable) of the equity component of the LTI established by the Company under the Plan and for the purposes of these Terms each Director is deemed to participate in the LTI Program.

 

“Market Price” means, in relation to the Company, the weighted average market price of a Share sold on the ASX during one week of trading days immediately before the close of the Financial Year for which the RSUs are granted, or where the Board determines that this price does not fairly and appropriately reflect the market value of the Company as at the close of that Financial Year, the market price of a Share on such other date or period that the Board considers appropriate, as determined by the Board in good faith and in its absolute discretion, having regard to arm’s length valuation principles and generally accepted valuation methodologies. The Company must ensure that any such price determined by the Board fairly and appropriately reflects the market value of the Company.

 

“Offer” means an offer of RSUs made in accordance with the Plan.

 

“Offer Period” means the time period for the acceptance of an Offer.

 

“Participant” means a LTI Recipient who accepts an Offer to participate in the Plan, agrees to be bound by the Rules and has been provided with RSUs under the LTI Program.

 

“Person” includes a body corporate and the trustee of a trust estate.

 

“Plan” means the Incentive Compensation Plan for Executives established by the Company on 6 April 2011, and operated in accordance with the Rules. The Board decided in a meeting held on 6 April 2011, to establish the Plan, which includes the LTI Program.

 

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“Qualifying Reason” means death, total and permanent disability, Redundancy, termination of the Employee without cause, or any other reason as determined by the Board in its absolute discretion.  For the avoidance of doubt, termination with cause means any right to immediate termination (including for the reasons of fraud, defalcation and/or gross misconduct in relation to the affairs of the Company or any Associated Company (whether or not charged with an offence) or doing any act which in the opinion of the Board brings the Company or any Associated Company into disrepute) and also includes sustained performance below expectations by the Employee.

 

“Redundancy” means the termination of the employment of the Employee by the Company or an Associated Company by reason of the relevant position of employment no longer being required or as part of a restructure or reduction in the Management or organisational structure of the Company or the Associated Company.

 

“RSU” means a restricted share unit each carrying a right to receive one Share issued under these Terms.

 

“Rules” means the rules governing the Plan, as amended from time to time.

 

“Section 409A” means as defined in clause 19.10.

 

“Security Interest” means a mortgage, charge, pledge, lien or other encumbrance of any nature.

 

“Settlement Date” means as defined in clause 7.2.

 

“Share” means a fully paid Ordinary Share in the capital of the Company which ranks equally with and has the same rights as other fully paid Ordinary Shares in the capital of the Company.

 

“Terms” means these terms and conditions of the RSUs.

 

“Termination of Employment” means the termination or cessation of employment or the holding of an office with the Company or any Associated Company (other than for the purposes of re-employment with any other company in the Group) of a Participant.

 

“Vesting Date” means each date on which one or more RSUs vest in accordance with these Terms.

 

1.2                               Interpretation

 

In these Terms, unless the contrary intention appears:

 

(a)                                 reference to any legislation or any provision of any legislation includes any modification or re-enactment of the legislation or any legislative provision substituted for, and all legislation and statutory instruments and regulations issued under, the legislation;

 

(b)                                 words denoting the singular include the plural and vice versa;

 

(c)                                  words denoting a gender include other genders;

 

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(d)                                 words denoting an individual or persons include bodies corporate and trusts and vice versa;

 

(e)                                  headings are for convenience only and do not affect the interpretation of these Terms;

 

(f)                                   reference to a clause or paragraph is a reference to a clause or paragraph of these Terms, or the corresponding Term or Terms of the RSUs under the Plan as amended from time to time;

 

(g)                                  reference to any document or agreement includes reference to that document or agreement as amended, novated, supplemented, varied or replaced from time to time; and

 

(h)                                 where any word or phrase is given a definite meaning in these Terms, any part of speech or other grammatical form of that word or phrase has a corresponding meaning.

 

2.                                      Awards

 

2.1                               At its sole discretion, the Board may grant you an award of RSUs, in accordance with the LTI equity component of the Company’s Plan; the Plan comprises both LTI and Short Term Incentive components.

 

2.2                               RSUs will be granted by the Company under the LTI Program established under the Plan as part of your LTI bonus, and in consideration of, and subject to your performance of, services to the Group, as a Director of the Company, executive or employee of, or consultant to, the Group.

 

2.3                               These Terms set out the general terms and conditions of the RSUs.

 

2.4                               The RSUs and the LTI Program are expressly subject to these Terms, the Plan and any additional terms and conditions the Board in its absolute discretion may elect to include in an Offer.  If you receive or have received any other award under the Plan, or any other equity compensation plan for any year, it will be governed by the terms and conditions of the applicable award or equity compensation, which may be different from these Terms.

 

2.5                               By accepting a grant of RSUs, you expressly agree to these Terms and the Plan, and any applicable Rules.

 

2.6                               Capitalised terms used in these Terms that are not defined in the text have the meanings set out in clause 1 above, or in the Plan.

 

3.                                      Purpose of the LTI Program

 

3.1                               The LTI Program’s objectives are to reward Directors of the Company, executives, and employees of, and consultants to, the Group (potential LTI Recipients) for achieving the Group’s long term goals, to align the interests of LTI Recipients and shareholders, to attract and retain potential LTI Recipients, and to form part of a competitive incentive package.

 

3.2                               The purpose of the LTI Program is to direct LTI Recipients’ attention to achieving the Company’s financial targets, and increasing the Company’s shareholder value. The

 

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LTI Program provides potential LTI Recipients with the opportunity to receive LTI awards under the Plan in the form of RSUs.

 

3.3                               You may only receive RSUs under the LTI Program where you have earned an LTI award under the Plan after achieving targets and objectives under the Plan.

 

3.4                               RSUs do not confer upon you any right, entitlement or interest in Shares in the Company or any Associated Company or any option to acquire Shares in the Company or shares in any Associated Company, other than in accordance with these Terms.

 

3.5                               The manner in which RSUs will be granted to you is set out in these Terms.

 

3.6                               In the case of a non-executive director, the Board in its absolute discretion may grant RSUs:

 

(a)                                 solely to attract or retain that director or both; or

 

(b)                                 as part of that director’s remuneration package,

 

and for the purposes of these Terms that director will be deemed to have achieved targets and objectives under the Plan and to have earned an LTI award under the Plan.

 

4.                                      General description of the LTI Program

 

4.1                               The LTI Program will continue to operate until the Board in its absolute discretion decides to amend or terminate it. The Remuneration Committee will review the LTI Program at least annually, and report its findings to the Board. The first Earning Period will commence on 1 July 2010, and end on 30 June 2011, and will proceed from there on a Financial Year basis.

 

4.2                               The LTI Program offers the possibility of receiving Shares as an incentive, via the settlement of RSUs granted to you, if your targets set for the Earning Period are achieved.

 

4.3                               The Board will decide your maximum number of RSUs, in accordance with clause 10.  The actual number of RSUs awarded to you will be determined by reference to the level of achievement of your targets set for the Earning Period.

 

4.4                               The Board in its absolute discretion may make a written offer to grant RSUs to some or all potential LTI Recipients each year in accordance with the LTI Program, setting out the maximum number of RSUs proposed to be granted on these Terms.  Any such offer will be made as soon as reasonably practicable after the end of the previous Financial Year.

 

5.                                      RSUs

 

5.1                               The number of RSUs which may be granted to you pursuant to these Terms under the LTI Program will be communicated to you in writing, in accordance with clause 4.4.

 

5.2                               Each RSU gives you the unsecured right to receive, subject to these Terms, one Share in the future at a time determined in accordance with clause 7.2.

 

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5.3                               You will not be required to pay any consideration for the issue of the Shares on settlement of your RSUs.

 

5.4                               The Board, in its sole and absolute discretion, may grant an award of RSUs subject to such additional terms and conditions as determined by the Board and set forth in the Acceptance Form.

 

6.                                      Vesting

 

6.1                               Subject to your continuous employment with, or other service to, the Group (as determined by the Board in its absolute discretion), the Rules and these Terms, and except as otherwise provided in your Acceptance Form, the RSUs will vest in four equal annual tranches, beginning on the Grant Date and ending on the third anniversary of the Grant Date, as follows.

 

	
Tranche
    	
 
    	
Vesting Date
    
	
Tranche 1 (25%)
    	
 
    	
Grant Date
    
	
Tranche 2 (25%)
    	
 
    	
1st anniversary of the   Grant Date
    
	
Tranche 3 (25%)
    	
 
    	
2nd anniversary of the   Grant Date
    
	
Tranche 4 (25%)
    	
 
    	
3rd anniversary of the   Grant Date
    

 

6.2                               Any fractional Shares resulting from the application of the vesting schedule referred to in clause 6.1 will be aggregated, and the Shares resulting from such aggregation will vest on the first anniversary of the Grant Date.

 

6.3                               Each date on which one or more RSUs vest in accordance with these Terms is referred to as a Vesting Date.

 

7.                                      Shares

 

7.1                               Each RSU will be fully satisfied by the issue of one Share.

 

7.2                               Subject to clauses 7.3 and 7.5 below, prior vesting and your compliance with these Terms and the Plan, settlement of each Share will occur on the 60th day following the Vesting Date or any earlier date determined by the Board in its absolute discretion (the Settlement Date).

 

7.3                               If the scheduled Settlement Date falls within a Closed Period, the Board will extend that Settlement Date to a date no later than 5 business days after the end of the Closed Period, or with your approval to a later date. If you do not wish the Board to extend the Settlement Date, then before the Board does so you must:

 

(a)                                 request the Board in writing not to extend the Settlement Date; and

 

(b)                                 provide payment in cash or check acceptable to the Company prior to that Settlement Date to satisfy the supplemental taxable income withholding obligations, in accordance with clause 19.9 below.

 

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7.4                               It is acknowledged that any extension of the Settlement Date under clause 7.3 is intended to benefit Participants and facilitate administration of the Plan, since in the usual course some of the Shares will need to be sold on the Settlement Date to satisfy the supplemental taxable income withholding obligations, and except in limited circumstances the Participants cannot sell Shares during a Closed Period. Refer to clause 19.9 below.

 

7.5                               If the scheduled Settlement Date falls outside a Closed Period, and despite this either the Company’s Securities Trading Policy or Australian law or both do not permit any of your Shares to be sold on the scheduled Settlement Date to satisfy the supplemental taxable income withholding obligations, you may request the Board in writing to extend the Settlement Date to a date no later than 5 business days after this restriction ends and the Shares are permitted to be sold. The Board may do so in its discretion, provided that the Board is satisfied that:

 

(a)                                 your Shares are not permitted to be sold on the scheduled Settlement Date to satisfy the supplemental taxable income withholding obligations;

 

(b)                                 the request is made in good faith; and

 

(c)                                  it is reasonable in the circumstances to extend the Settlement Date, having regard to any hardship to you that might arise, if you were required to provide payment in cash or check acceptable to the Company prior to that scheduled Settlement Date to satisfy the supplemental taxable income withholding obligations, in accordance with clause 19.9 below.

 

7.6                               You will continue to be bound by the Company’s Securities Trading Policy, and participation in the Plan will not affect or alter your obligations under that Securities Trading Policy.

 

8.                                      Participants

 

8.1                               The Board, in its absolute discretion, will determine who can participate in the LTI Program.

 

8.2                               Participation in the LTI Program will not affect or alter the terms of your employment.

 

9.                                      Earning Period

 

Each LTI Program Earning Period commences on the first day of the Company’s Financial Year and ends on the last day of that same Financial Year.

 

10.                               Maximum number of RSUs and Grant of RSUs

 

10.1                        The Board decides, in its absolute discretion, the maximum number of RSUs for each Financial Year by dividing the value of your LTI award under the Plan by the Market Price of the Shares, in accordance with the Plan and subject to any exceptions set out in the Plan, as follows:

 

 

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10.2                        The Board will provide you with notice of the number of RSUs you have been granted, subject to these Terms, including your continued employment with, or service to, the Group.

 

10.3                        Generally, the Board will award grants of RSUs pursuant to this LTI Program within 4 months of the end of the relevant Financial Year with respect to the Plan, unless the Board in its absolute discretion determines that additional time is required to make this decision.

 

11.                               Determination of the targets

 

Under the Plan, the Board, in its absolute discretion, will determine the performance targets applicable during the Earning Period, as well as the principles for determining whether the targets have been achieved and how they translate into RSUs to be granted under this LTI Program on an annual basis.

 

12.                               Requirement for continued employment or service

 

12.1                        The Board will determine, in its absolute discretion, who the potential LTI Recipients of the Group are.

 

12.2                        Subject to clause 13, if your employment or other service in the Group has terminated before the applicable Vesting Date of the RSUs, those unvested RSUs will be forfeited, and you will not be issued Shares or any other compensation or benefit in relation to the forfeited RSUs.

 

12.3                        Your right to RSUs is personal to you, and RSUs are to be allotted, if at all, only to you.

 

12.4                        Your right to RSUs cannot be transferred.

 

13.                               Termination of employment or service

 

13.1                        Where you cease to be employed by, or otherwise providing services to, the Company or an Associated Company before the Final Vesting Date due to a Qualifying Reason:

 

(a)                                 vested RSUs as at the date of termination will be satisfied by the issue to you (or to your heirs and devisees in the event of your death) of one Share for each vested RSU, within 60 days of the termination of your employment or services; and

 

(b)                                 any unvested RSUs at the date of termination will be forfeited, subject to the Board exercising its discretion in accordance with clause 13.2 to deem some or all of those unvested RSUs to be vested and compliance with clauses 19.8 - 19.10 below (Section 409A), in which case any such deemed vested RSUs will be satisfied by the issue to you (or to your heirs and devisees in the event of your death) of one Share for each such deemed vested RSU, within 90 days of the termination of your employment or services.

 

13.2                        For the purposes of clause 13.1(b), when determining whether any unvested RSUs at the date of termination should be either deemed to be vested or forfeited subject to compliance with clauses 19.8 to 19.10 below (Section 409A) the Board must act in good faith, and have regard to:

 

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(a)                                 your length of employment by, or service to, the Company or any Associated Company, and contribution to the Company or any Associated Company;

 

(b)                                 the circumstances of the termination of your employment by, or service to, the Company;

 

(c)                                  the date when the RSUs would have vested if your employment or service had not been terminated;

 

(d)                                 the interests of the Company or any Associated Company; and

 

any other matters the Board considers relevant to the exercise of its discretion.

 

13.3                        Where you cease to be employed by, or otherwise providing services to the Company or an Associated Company before the Final Vesting Date other than for a Qualifying Reason:

 

(a)                                 vested RSUs as at the date of termination will be satisfied by the issue to you of one Share for each vested RSU, within 60 days of the termination of your employment; and

 

(b)                                 any unvested RSUs at the date of termination will be forfeited.

 

14.                               Shareholder rights attached to RSUs

 

14.1                        You will have no rights as a shareholder with respect to any Shares until the Settlement Date of those Shares. You are not entitled to participate in any new issue to existing shareholders in the Company unless your RSUs have vested before the record date for determining entitlements to the new issue of securities, and been satisfied by the issue to you of Shares, and you participate as a result of holding Shares.

 

14.2                        From the Settlement Date of your Shares, you will have all rights as a shareholder, including the right to receive dividends and capital repayments, with respect to the Shares.

 

15.                               Claw back

 

The Board, in its discretion (which discretion must be exercised in good faith), reserves the right to claw back and cancel without compensation any RSUs issued under these Terms, whether vested or unvested, if any of the following conditions apply prior to the Settlement Date applying to the RSUs concerned:

 

(a)                                 the Company’s financial statements are required to be restated due to material non-compliance with any financial reporting requirements under Governing Law (other than a restatement due to a change in accounting rules) and:

 

(i)                                     as a result of such restatement, a performance measure which was a material factor in determining the award is restated; and

 

(ii)                                  in the opinion of the Board, a lower number of RSUs would have been granted to you based upon the restated financial results;

 

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(b)                                 should it subsequently be found that the information or assumptions relied on by the Board in determining the award of RSUs to you under the Plan are materially erroneous;

 

(c)                                  in the event that there is evidence of fraud by any employee resulting in a material adverse change to the Company’s financial statements; or

 

(d)                                 in the event that there is a material adverse change in the circumstances of the Company.

 

16.                               Administration of the Program

 

16.1                        The Board shall administer and monitor the LTI Program and decide on all disputes or other matters relating to the LTI Program. The Board, in its absolute discretion, reserves the right to accelerate vesting of all or any portion of outstanding RSUs granted to any Participant for any reason. The Board need not take the same action with respect to all Participants or all RSUs held by any Participant.

 

16.2                        Where the Terms provide for a determination, decision, approval or opinion of the Board, such determination, decision, approval or opinion of the Board shall be in its absolute discretion, subject to any express obligation to act in good faith set out in these Terms.

 

16.3                        Any power or discretion which is conferred on the Board by these Terms may be exercised by the Board in the interests or for the benefit of the Company, and the Board is not, in exercising any such power or discretion, under any fiduciary or other obligation to any other person, subject to any express obligation to act in good faith set out in these Terms.

 

16.4                        The decision of the Board as to the interpretation, effect or application of these Terms will be final.

 

16.5                        The Board may delegate such functions and powers as it may consider appropriate, for the efficient administration of the LTI Program, to a committee made up of persons capable of performing those functions and exercising those powers.

 

16.6                        The Board may take and rely upon independent professional or expert advice in or in relation to the exercise of any of its powers or discretions under these Terms.

 

17.                               Amendments to the Terms

 

17.1                        The Board shall be entitled to amend these Terms, the LTI Program, the Plan and the Rules during any Earning Period subject to all applicable laws, rules and regulations.

 

17.2                        Any change of these Terms will not materially affect or prejudice RSUs provided to Participants at or before that time, unless approved by the affected Participants.

 

18.                               Rights of Participant

 

Nothing in these Terms:

 

(a)                                 confers on any Participant the right to continue as an Employee of, or consultant to, the Company or any Associated Company;

 

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(b)                                 affects any rights which the Company or any Associated Company may have to terminate the employment or office of any Employee of, or consultant to, the Company or any other potential LTI Recipient; or

 

(c)                                  may be used to increase damages in any action brought against the Company or any Associated Company in respect of any such termination.

 

19.                               General

 

19.1                        The rights of the Participants with respect to RSUs and these Terms are subject to the Rules, the Plan, the Company’s Constitution, the Corporations Act and, where appropriate, the Listing Rules.

 

19.2                        If, at any time while RSUs are held by Participants, the issued capital of the Company is reorganised in any way, or the Company makes a bonus issue of Shares or pro rata issue of Shares or other issue of securities, the rights of the Participants may be varied either to:

 

(a)                                 comply with the ASX Listing Rules or other applicable rules which apply to the reconstruction or issue at the time of the reconstruction or issue; or

 

(b)                                 ensure that the Participants will neither be unfairly disadvantaged as a result nor receive a benefit that the holders of Shares do not receive,

 

or both.

 

19.3                        If:

 

(a)                                 a takeover bid is made to acquire Shares in the Company, then at any time offers under a takeover bid remain open for acceptance; or

 

(b)                                 any other Change in Control occurs, then prior to the consummation of the Change in Control transaction,

 

the Board in its absolute discretion may give written notice of the bid to the holders of RSUs, stating that:

 

(c)                                  all or any unvested RSUs, as determined by the Board, will vest and be fully satisfied by the issue of one Share each, on any date determined by the Board; and

 

(d)                                 in accordance with clause 7.2, the Settlement Date of all or any vested RSUs, as determined by the Board, will be an earlier date than the 60th day following the Vesting Date.

 

In connection with a takeover bid or any other Change in Control, the Board in its absolute discretion may also provide for the cancellation of outstanding RSUs and a cash payment equal to the then fair market value of the RSUs immediately prior to the closing of the Change in Control transaction.  In connection with any other corporate event (except a Change in Control), the Board in its absolute discretion may provide for the assumption or substitution of outstanding RSUs.

 

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19.4                        Any calculations or adjustments that are required to be made under this clause 19 will be made by the Board and will, in the absence of manifest error, be final and conclusive and binding on the Company and the Participants.

 

19.5                        The LTI Program must operate in accordance with these Terms and the Rules which bind the Company, each Associated Company, and each LTI Recipient and Participant.

 

19.6                        Notwithstanding any Term or Rule, no RSU, Share or remuneration benefit (including, but not limited to, any termination benefit) may be provided if to do so would contravene any Governing Law including, without limitation, the Corporations Act or the Listing Rules.

 

19.7                        The Company must pay all the expenses, costs and charges incurred in operating the LTI Program and the Plan.

 

19.8                        As a Participant you have sole responsibility for:

 

(a)                                 paying any related personal income taxation, withholding tax, other taxation liability, social security contributions or other taxes or charges related to your LTI grant; and

 

(b)                                 complying with all social security and other reporting obligations,

 

in accordance with the Governing Law applicable to you in relation to the LTI Program. You should consult your own tax adviser regarding the tax consequences of participating in the LTI Program. You will need to consider your own circumstances, in light of the benefit that you are likely to receive under the LTI Program.

 

19.9                        Notwithstanding the foregoing, unless the Participant provides payment in cash or check acceptable to the Company prior to each Settlement Date, the Company shall automatically withhold the number of whole Shares otherwise deliverable to the Participant with a value at the conversion date equal to the minimum statutory withholding rates for federal, state, and local income taxes and employment taxes applicable to supplemental taxable income withholding obligations, or the Company shall make alternative arrangements for that number of whole Shares to be sold to satisfy those supplemental taxable income withholding obligations, which may include arranging for the Participant to sell that number of whole Shares on behalf of the Company and irrevocably authorise and direct that the proceeds be paid to the Company or the Company’s nominee, on terms acceptable to the Company.  The Participant shall promptly pay to the Company any remaining amount required to be withheld.

 

19.10                 To the extent applicable, the grant, vesting and settlement of RSUs awarded to any Participant are intended to satisfy the short-term deferral exception for purposes of Section 409A of the Internal Revenue Code of 1986, as amended (Section 409A).  To the extent required for compliance with Section 409A, RSUs granted under the LTI Program shall be interpreted and administered to the maximum extent possible to comply with Section 409A, including a six month delay in payment to “specified employees” payable on account of a “separation from service” each as determined under Section 409A.

 

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19.11                 The Company or the Associated Company (as applicable) shall be entitled to deduct any withholding required or imposed by Governing Law, including without limitation  Pay As You Go tax instalments, from any bonus remuneration payments or benefits provided by the Company or the Associated Company to or in respect of a Participant. For the avoidance of doubt, the Company is under no obligation to pay any taxation liability, social security contribution or other tax or charge incurred by any Participant in relation to the LTI Program, which will remain the sole responsibility of the Participant.

 

19.12                 For the sole purpose of calculating the remuneration of non-executive directors per annum in accordance with clause 62 of the Company’s Constitution, the value of grants of RSUs and any Shares issued in satisfaction of RSUs will be determined either by:

 

(a)                                 reference to the valuation ascribed to those RSUs and Shares in the Company’s remuneration report in its Annual Report for that year (being the Company’s financial year); or

 

(b)                                 any other reasonably appropriate valuation methodology,

 

and disregarding the value of any RSUs and Shares which have been taken into account by the Company under clause 62 in relation to an earlier Financial Year.

 

20.                               Security Interests

 

Participants must not and cannot grant any Security Interest in or over or otherwise dispose or deal with any RSUs or any interest in any RSU, and any such Security Interest or disposal or dealing will not be recognised in any manner by the Company.

 

21.                               Governing law and jurisdiction

 

This LTI Program and the RSUs provided to the Participants under the Terms will be governed by the laws of the State of South Australia, subject as necessary to any applicable US laws and regulations including federal securities law.

 

15Exhibit 10.1

  

  

  

  

  

  
    SEVENTH AMENDMENT

    

    

    SEVENTH AMENDMENT, dated as of November 26, 2019 (this “Amendment”), to the Credit Agreement referred to below, among US FOODS, INC., as the Borrower, the other Loan Parties party hereto,
      CITICORP NORTH AMERICA, INC., as administrative agent (in such capacity, the “Administrative Agent”) and collateral agent (in such capacity, the “Collateral Agent”) and Citibank, N.A., as the new term loan lender referred to below (in
      such capacity, the “New Term Loan Lender”), and the Cashless Term Lenders (as defined below) party hereto.  Capitalized terms are used herein as defined in Section 1 hereof.

    

    

    RECITALS

    

    

    WHEREAS, the Borrower is party to the credit agreement, dated as of May 11, 2011, by and among the Borrower, the Administrative Agent and Collateral Agent and the banks and other financial institutions
      party thereto, as Lenders, as amended by the First Amendment, dated as of June 7, 2013 (the “First Credit Agreement Amendment”), as amended and restated by the Second Amendment, dated as of June 27, 2016, as amended by the Third Amendment,
      dated as of February 17, 2017, as amended by the Fourth Amendment, dated as of November 30, 2017, as amended by the Fifth Amendment, dated as of June 22, 2018, and as amended by the Sixth Amendment, dated as of September 13, 2019 (such credit
      agreement, as further amended, restated, modified and supplemented from time to time prior to the Seventh Amendment Effective Date (as defined below), the “Existing Credit Agreement”; the Existing Credit Agreement as amended pursuant to this
      Amendment, the “Amended Credit Agreement”);

    

    

    WHEREAS, pursuant to subsections 2.8 and 3.4(h) of the Existing Credit Agreement, the Borrower has requested to establish “Specified Refinancing Commitments” and to incur “Specified Refinancing Term
      Loans” from “Specified Refinancing Lenders” to refinance in full all Initial Term Loans outstanding under the Existing Credit Agreement as of immediately prior to the Seventh Amendment Effective Date (the “Existing Term Loans”) with the cash
      proceeds of, or an allocation of the principal amount of, the Repriced Term Loans (as defined and described below);

    

    

    WHEREAS, the Repriced Term Loans shall have the same terms under the Loan Documents as the Existing Term Loans, other than as set forth in Section 3(a) of this Amendment (the amendments and
      modifications set forth in Section 3(a), the “Repricing Amendments”);

    

    

    WHEREAS, the Borrower has requested that each of (i) the New Term Loan Lender and (ii) the Lenders holding Existing Term Loans that have executed and delivered a consent to this Amendment substantially
      in the form of Exhibit A hereto prior to 5:00 p.m., New York City

    

    

    

    

    
      
        

    

    
     

    

     

    

    time, on Thursday, November 21, 2019 (a “Consent” and each such lender, a “Cashless Term Lender”) extend credit to the Borrower in the form of “Rollover Indebtedness” pursuant to subsection 3.4(h) of the
      Existing Credit Agreement in an aggregate principal amount under clauses (i) and (ii) above of $2,128,500,000 (collectively, the “Repriced Term Loans” and the commitments provided by the New Term Loan Lender and the Cashless Term Lenders
      hereunder, the “Repriced Term Loan Commitments”), the cash proceeds of which, or an allocation of the principal amount thereof, will be used to repay in full the outstanding principal amount of all Existing Term Loans (the “Repricing
        Transactions”), on the terms and subject to the conditions set forth herein;

    

    

    WHEREAS, the Borrower has requested that the Lenders effect the amendments and modifications to the Existing Credit Agreement set forth in Section 3(b) of this Amendment (the “Other Amendments”)
      pursuant to subsection 10.1(a) of the Existing Credit Agreement, in each case as described herein, and the Lenders party hereto have agreed to such amendments and modifications effective immediately after the consummation of the Repricing
      Transactions;

    

    

    WHEREAS, the Borrower, the New Term Loan Lender, the Cashless Term Lenders and the Administrative Agent are willing to agree to this Amendment on the terms set forth herein;

    

    

    WHEREAS, the Borrower, the other Loan Parties and the Collateral Agent are party to a Guarantee and Collateral Agreement, dated as of May 11, 2011, as amended by the First Credit Agreement Amendment
      (as further amended, restated, amended and restated, supplemented or otherwise modified prior to the date hereof, the “Guarantee and Collateral Agreement”), and have agreed to provide certain acknowledgements and reaffirmations that the grant
      of security interests contained in the Guarantee and Collateral Agreement shall continue in full force and effect notwithstanding the terms of this Amendment and the effectiveness of the Amended Credit Agreement;

    

    

    NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained and for other good and valuable consideration, the sufficiency and receipt of which is hereby acknowledged, the
      parties hereto hereby agree as follows:

    

    

    Section 1.          Defined Terms; References.

    

    

    (a)          Unless otherwise specifically defined herein, each term used herein that is defined in the Existing Credit Agreement has the meaning assigned to such
      term in the Existing Credit Agreement, provided that, if the definition of such term is amended hereby, then such term shall have the meaning assigned thereto in the Amended Credit Agreement.

    

    

    (b)          From and after the Seventh Amendment Effective Date, all references to the “Credit Agreement” in any Loan Document and all references in the Existing
      Credit Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Existing

     

    

     

    

    
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    Credit Agreement, shall, unless expressly provided otherwise or the context clearly requires otherwise, refer to the Amended Credit Agreement.

    

    

    Section 2.          Provisions Relating to Repriced Term Loans

    

    

    (a)          Repriced Term Loans. Subject to the terms and conditions hereof and pursuant to subsection 2.8 of the Existing Credit Agreement, each Cashless
      Term Lender hereby agrees to make Repriced Term Loans in an aggregate principal amount equal to such Lender’s Existing Term Loans (or such lesser amount corresponding to the amount of Repriced Term Loans as may be allocated to such Cashless Term
      Lender by the Administrative Agent, if any) on the Seventh Amendment Effective Date and approves the amendments to the Existing Credit Agreement as set forth in this Amendment. Subject to the terms and conditions hereof and pursuant to subsection 2.8
      of the Existing Credit Agreement, the New Term Loan Lender agrees to make, in a single draw on the Seventh Amendment Effective Date, Repriced Term Loans in Dollars to the Borrower in an aggregate principal amount equal to $287,667,060.45 and approves
      of the Other Amendments.  The Repriced Term Loans shall have the same terms as the Existing Term Loans, except as set forth in and modified by this Amendment. The Repriced Term Loans, once disbursed pursuant to this Amendment, shall be assigned the
      same CUSIP as the Existing Term Loans. The Administrative Agent hereby consents, pursuant to subsection 2.8(b) of the Existing Credit Agreement, to the inclusion of the New Term Loan Lender as an Additional Specified Refinancing Lender (if and to the
      extent such consent is required thereunder).

    

    

    (b)          Use of Proceeds. The cash proceeds of the Repriced Term Loans made by the New Term Loan Lender shall be applied toward the payment of the
      aggregate outstanding principal amount of the Existing Term Loans that are not exchanged for Repriced Term Loans. Upon the Seventh Amendment Effective Date after giving effect to this Amendment, all Existing Term Loans shall be repaid in full (in
      cash or by exchange) and no longer outstanding.

    

    

    (c)          Credit Agreement Governs. Effective as of the Seventh Amendment Effective Date, the Repriced Term Loans shall be “Loans”, “Term Loans” and,
      unless the context clearly requires otherwise, “Initial Term Loans” under the Amended Credit Agreement and shall be subject to the provisions (including any provisions restricting the rights, or regarding the obligations, of the Loan Parties or any
      provisions regarding the rights of the Term Loan Lenders and the other Secured Parties) of the Amended Credit Agreement and the other Loan Documents.

    

    

    (d)          Notice. The Borrower shall provide the Administrative Agent notice prior to 9:30 A.M. (or such shorter period as may be agreed to by the
      Administrative Agent in its reasonable discretion), New York City time, on the Seventh Amendment Effective Date specifying the amount of the Repriced Term Loans to be borrowed on the Seventh Amendment Effective Date.  Upon receipt of such notice the
      Administrative Agent shall promptly notify the New Term Loan Lender and Cashless Term Lenders thereof.  The New Term Loan Lender will make the amount

     

    

     

    

    
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    of its Repriced Term Loan Commitments available for the account of the Borrower at the office of the Administrative Agent specified in subsection 10.2 of the Existing Credit Agreement prior to 12:00 noon, New York City
      time (or, if the time period for the Borrower’s delivery of notice was extended, such later time as agreed to by the Borrower and the Administrative Agent in their reasonable discretion), on the Seventh Amendment Effective Date in funds immediately
      available to the Administrative Agent.

    

    

    (e)          Principal and Interest. The principal amount of the Repriced Term Loans shall be payable after the Seventh Amendment Effective Date as and to
      the extent set forth in subsection 2.2(b) of the Amended Credit Agreement for Initial Term Loans as of the Seventh Amendment Effective Date.  Interest will accrue on the Repriced Term Loans from and after the Seventh Amendment Effective Date as
      provided in the Amended Credit Agreement for Initial Term Loans.  The initial Interest Period applicable to the Repriced Term Loans that are Eurocurrency Loans shall be the period identified by the Borrower in the borrowing notice relating to the
      Repriced Term Loans referenced in subsection 2(d) above, which period may at the Borrower’s election be shorter than one month.

    

    

    Section 3.          Amendments to the Existing Credit Agreement.

    

    

    (a)          Repricing Amendments. The Existing Credit Agreement is hereby amended to effect the foregoing and as follows:

    

    

    (1)          Subsection 1.1 of the Existing Credit Agreement is hereby amended by adding the following new definitions, to appear in proper alphabetical order:

    

    

    “Seventh Amendment”:  the Seventh Amendment, dated as of the Seventh Amendment Effective Date, among the Administrative Agent, the Collateral Agent, the Borrower and the Lenders party thereto.

    

    

    “Seventh Amendment Effective Date”:  November 26, 2019.

    

    

    (2)          Subsection 1.1 of the Existing Credit Agreement is hereby further amended to amend and restate the following definitions in their entirety as follows:

    

    

    “Applicable Margin”:  (A) (a) with respect to ABR Loans during the period from the Restatement Effective Date until the Third Amendment Effective Date, the rate per annum specified in this
      Agreement as in effect immediately prior to the Third Amendment Effective Date and (b) with respect to Eurocurrency Loans during the period from the Restatement Effective Date until the Third Amendment Effective Date, the rate per annum specified in
      this Agreement as in effect immediately prior to the Third Amendment Effective Date; (B) (a) with respect to ABR Loans during the period from the Third Amendment Effective Date until the Fourth Amendment Effective Date, 1.75% per annum and (b) with
      respect to Eurocurrency

     

    

     

    

    
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    Loans during the period from the Third Amendment Effective Date until the Fourth Amendment Effective Date, 2.75% per annum; (C) (a) with respect to ABR Loans during the period from the Fourth Amendment Effective Date
      until the Fifth Amendment Effective Date, the rate per annum specified in this Agreement as in effect immediately prior to the Fifth Amendment Effective Date and (b) with respect to Eurocurrency Loans during the period from the Fourth Amendment
      Effective Date until the Fifth Amendment Effective Date, the rate per annum specified in this Agreement as in effect immediately prior to the Fifth Amendment Effective Date; (D) (a) with respect to Initial Term Loans that are ABR Loans, during the
      period from the Fifth Amendment Effective Date until the Seventh Amendment Effective Date, 1.00% per annum and (b) with respect to Initial Term Loans that are Eurocurrency Loans, during the period from the Fifth Amendment Effective Date until the
      Seventh Amendment Effective Date, 2.00% per annum; (E) (a) with respect to Initial Term Loans that are ABR Loans, during the period from the Seventh Amendment Effective Date and thereafter, 0.75% per annum and (b) with respect to Initial Term Loans
      that are Eurocurrency Loans, during the period from the Seventh Amendment Effective Date and thereafter, 1.75% per annum; and (F) (a) with respect to Incremental B‐2019 Term Loans that are ABR Loans, during the period from the Sixth Amendment
      Effective Date and thereafter, 1.00% per annum and (b) with respect to Incremental B-2019 Term Loans that are Eurocurrency Loans, during the period from the Sixth Amendment Effective Date and thereafter, 2.00% per annum.”

    

    

    “Initial Term Loan”:  any Term Loan made pursuant to subsection 2.1(a), the Second Amendment, the Third Amendment, the Fourth Amendment, the Fifth Amendment and the Seventh Amendment; and
      collectively, the “Initial Term Loans”.

    

    

    “Initial Term Loan Commitment”:  as to any Lender, (v) prior to the Third Amendment Effective Date, its obligation to make Initial Term Loans to the Borrower pursuant to subsection 2.1(a) and
      the Second Amendment in an aggregate principal amount not to exceed the amount set forth opposite such Lender’s name on Schedule A under the heading “Term Loan Commitment”, (w) on and after the Third Amendment Effective Date and prior to the Fourth
      Amendment Effective Date, its obligation to make Initial Term Loans to the Borrower pursuant to subsection 2.1(a) and the Third Amendment in an aggregate principal amount not to exceed the amount set forth opposite such Lender’s name on Schedule A to
      the Third Amendment under the heading “Additional Repriced Term Loan Commitment”, (x) on and after the Fourth Amendment Effective Date and prior to the Fifth Amendment Effective Date, its obligation to make Initial Term Loans to the Borrower pursuant
      to subsection 2.1(a) and the Fourth Amendment in an aggregate principal amount not to exceed the amount set forth opposite such Lender’s name on Schedule A to the Fourth Amendment under the heading “Additional Repriced Term Loan Commitment”, (y) on
      and after the Fifth Amendment Effective Date and prior to the Seventh Amendment Effective Date, its obligation to make Initial Term Loans to the Borrower pursuant to subsection 2.1(a) and the Fifth Amendment in an aggregate principal amount not to

     

    

     

    

    
      5

      
        

    

     

    

     

    

    exceed the amount set forth opposite such Lender’s name on Schedule A to the Fifth Amendment under the heading “Additional Repriced Term Loan Commitment” and (z) on and after the Seventh Amendment Effective Date, its
      obligation to make Initial Term Loans to the Borrower pursuant to the Seventh Amendment in an aggregate principal amount as set forth in the Seventh Amendment, in each case as such amount may be adjusted or reduced pursuant to the terms hereof and
      thereof.  The original aggregate amount of the Initial Term Loan Commitment on the Restatement Effective Date is $2,200.0 million.

    

    

    “Lead Arrangers”: Citigroup Global Markets Inc. on behalf of Citibank, N.A., Citicorp USA, Inc. and Citicorp North America, Inc., Deutsche Bank Securities Inc. (other than with respect to the
      Seventh Amendment), BMO Capital Markets Corp., Goldman Sachs Lending Partners LLC, ING Capital LLC, JPMorgan Chase Bank, N.A., KKR Capital Markets LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Morgan Stanley Senior Funding, Inc.,
      Natixis , New York Branch (other than with respect to the Seventh Amendment), Coöperatieve Rabobank U.A., New York Branch, Wells Fargo Securities, LLC, with respect to the Sixth Amendment, the Incremental Arrangers (as defined in the Sixth Amendment)
      and, with respect to the Seventh Amendment only, Fifth Third Bank and SunTrust Robinson Humphrey, Inc., as Joint Lead Arrangers and Joint Bookrunning Managers under this Agreement.

    

    

    (3)          Subsection 2.5(e) of the Existing Credit Agreement is hereby amended by adding the following new clause (z) at the end thereof (and by (i) deleting the word “and” directly before the
      existing clause (z) thereof and (ii) relettering the existing clauses (v), (w), (x), (y) and (z) thereof as clauses (u), (v), (w), (x) and (y), respectively):

     

    

    “and (z) after giving effect to the transactions contemplated by the Seventh Amendment, the Repriced Term Loan Commitments (as defined in the Seventh Amendment) shall constitute Initial Term Loan
      Commitments hereunder (and shall not constitute Incremental Term Loan Commitments or Incremental Commitments hereunder) and the Repriced Term Loans (as defined in the Seventh Amendment) shall constitute Initial Term Loans hereunder (and shall not
      constitute Incremental Term Loans or Incremental Loans hereunder).”

    

    

    (4)          Subsection 3.4(a) of the Existing Credit Agreement is hereby amended by replacing “Fifth Amendment Effective Date” with “Seventh Amendment Effective Date” in the ninth and eleventh
      sentences thereof.

    

    

    (5)          Subsection 3.8(a) of the Existing Credit Agreement is hereby amended by replacing “the last two sentences of 3.4(a)” with “the last five sentences of 3.4(a)” in the parenthetical in the
      first sentence thereof.

     

    

     

    

    
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    (b)          Other Amendments. The Existing Credit Agreement is hereby further amended to effect the foregoing and as follows, effective immediately after the completion of
      the Repricing Transactions:

    

    

    (1)          Section 1 of the Existing Credit Agreement is hereby amended by adding the following new subsection immediately after subsection 1.2:

    

    

    “1.3 Divisions.  For all purposes under the Loan Documents, in connection with any division or plan of division under Delaware law (or any comparable event under a different jurisdiction’s
      laws): (a) if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability of a different Person, then it shall be deemed to have been transferred from the original Person to the subsequent Person, and (b)
      if any new Person comes into existence, such new Person shall be deemed to have been organized on the first date of its existence by the holders of its equity interests at such time.”

    

    

    (2)          Section 10 of the Existing Credit Agreement is hereby amended by adding the following new subsection immediately after subsection 10.23:

    

    

    “10.24 Acknowledgment Regarding Any Supported QFCs.

    

    

    To the extent that the Loan Documents provide support, through a guarantee or otherwise, of Hedging Obligations or any other agreement or instrument that is a QFC (such support, “QFC Credit Support”
      and each such QFC, a “Supported QFC”), the parties acknowledge and agree as follows with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall
      Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the “U.S. Special Resolution Regimes”) in respect of such Supported QFC and QFC Credit Support (with the provisions below applicable
      notwithstanding that the Loan Documents and any Supported QFC may in fact be stated to be governed by the laws of the State of New York and/or of the United States or any other state of the United States):

    

    

    (a)          In the event a Covered Entity that is party to a Supported QFC (each, a “Covered Party”) becomes subject to a proceeding under a U.S. Special Resolution Regime,
      the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit
      Support) from such Covered Party will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in
      property) were governed by the laws of the United States or a state of the United States. In the event a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights
      under the

     

    

     

    

    
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    Loan Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against such Covered Party are permitted to be exercised to no greater extent than such
      Default Rights could be exercised under the U.S. Special Resolution Regime if the Supported QFC and the Loan Documents were governed by the laws of the United States or a state of the United States.  Without limitation of the foregoing, it is
      understood and agreed that rights and remedies of the parties with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit Support.

    

    

    (b)          As used in this Section 10.24, the following terms shall have the following meanings:

    

    

    “BHC Act Affiliate” of a party means an “affiliate” (as such term is defined under, and interpreted in accordance with, 12 U.S.C. 1841(k)) of such party.

    

    

    “Covered Entity” means any of the following:

    

    

    (i)          a “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b);

    

    

    (ii)          a “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or

    

    

    (iii)          a “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).

    

    

    “Default Right” has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.

    

    

    “QFC” has the meaning assigned to the term “qualified financial contract” in, and shall be interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D).”

    

    

    Section 4.          Reaffirmation of the Guarantee and Collateral Agreement.  The Guarantee and Collateral Agreement, including the guaranty of the
      Obligations, the grants of Liens on the Collateral to secure the Obligations, and the covenants and agreements contained therein, is hereby acknowledged and reaffirmed and shall continue in full force and effect.  Notwithstanding the terms of this
      Amendment and the effectiveness of the Amended Credit Agreement, the Guarantee and Collateral Agreement and all of the Collateral described therein do and shall continue to secure the payment of all Obligations of the Loan Parties under the Loan
      Documents, in each case, as amended by this Amendment.

    

    

    Section 5.          Representations and Warranties.  In order to induce the New Term Loan Lender and the Cashless Roll Lenders to enter into this Amendment
      and to make Repriced Term

     

    

     

    

    
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    Loans, the Borrower and (as to subsections 5(a) and 5(b) below) each other Loan Party represents and warrants to the New Term Loan Lender and the Cashless Roll Lenders that as of the Seventh Amendment Effective Date:

    

    

    (a)          the execution, delivery and performance by such Loan Party of this Amendment are within such Loan Party’s corporate or other organizational powers,
      have been duly authorized by all necessary corporate or other organizational action of such Loan Party, and will not (i) violate any Requirement of Law or Contractual Obligation of such Loan Party in any respect that would reasonably be expected to
      have a Material Adverse Effect or (ii) result in, or require, the creation or imposition of any Lien (other than Permitted Liens) on any of such Loan Party’s properties or revenues pursuant to any such Requirement of Law or Contractual Obligation;

    

    

    (b)          this Amendment constitutes a legal, valid and binding obligation of such Loan Party, enforceable against such Loan Party in accordance with its terms,
      except as enforceability may be limited by applicable domestic or foreign bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles (whether
      enforcement is sought by proceedings in equity or at law); and

    

    

    (c)          after giving effect to this Amendment, all representations and warranties of the Borrower contained in the Existing Credit Agreement are true and
      correct in all material respects on and as of the Seventh Amendment Effective Date, except to the extent that any such representations and warranties expressly relate to a given date, in which case they were true and correct in all material respects
      as of such date.

    

    

    Section 6.          Conditions to Effectiveness.  The agreements and amendments set forth in Sections 2 and 3 of this Amendment shall become effective on the
      date (the “Seventh Amendment Effective Date”) that each of the following conditions shall have been satisfied:

    

    

    (a)          Counterparts.   The Administrative Agent shall have received (i) a counterpart of this Amendment executed by each of the Loan Parties, (ii) a
      counterpart of this Amendment executed by the New Term Loan Lender, (iii) a duly executed Consent from each Cashless Term Lender and (iv) if the Lenders described in clauses (ii) and (iii) above do not constitute Required Lenders immediately after
      the consummation of the Repricing Transactions and solely as a condition to the effectiveness of the Other Amendments, a counterpart of this Amendment executed by one or more Lenders that, together with the Lenders described in clauses (ii) and (iii)
      above, constitute Required Lenders;

    

    

    (b)          Corporate Certificates and Authorizations.  The Administrative Agent shall have received customary secretary’s certificates related to
      organizational documents, resolutions and

     

    

     

    

    
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    officer incumbency, as well as good standing certificates (or similar document to the extent relevant in the applicable jurisdiction of organization), with respect to each Loan Party;

    

    

    (c)          Legal Opinions. The Administrative Agent shall have received a written opinion of Cravath, Swaine & Moore LLP, special counsel to the Loan
      Parties, addressed to the Administrative Agent, Collateral Agent, the New Term Loan Lender and the Cashless Roll Lenders, dated the Seventh Amendment Effective Date, in form and substance reasonably satisfactory to the Administrative Agent;

    

    

    (d)          PATRIOT Act and Anti-Money Laundering.  The Administrative Agent shall have received, at least three days prior to the
      Seventh Amendment Effective Date, all documentation and other information required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including, without limitation, the PATRIOT Act, as has
      been reasonably requested in writing at least 10 days prior to the Seventh Amendment Effective Date by the Administrative Agent;

    

    

    (e)          Borrowing Notice.  The Administrative Agent shall have received a customary borrowing notice in respect of the Repriced
      Term Loans as required by Section 2(d) of this Amendment;

    

    

    (f)          Prepayment. Substantially concurrently with the making of the Repriced Term Loans by the New Term Loan Lender and the
      Cashless Roll Lenders on the Seventh Amendment Effective Date as provided for herein, the Borrower shall pay all accrued but unpaid interest on the Existing Term Loans as of the Seventh Amendment Effective Date; and

    

    

    (g)          Solvency Certificate.  The Administrative Agent shall have received a solvency certificate executed by a senior financial
      officer of the Borrower in substantially the form of Exhibit P to the Credit Agreement.

    

    

    The Administrative Agent shall give prompt notice in writing to the Borrower of the occurrence of the Seventh Amendment Effective Date.  The making of the Repriced Term Loans by the New Term Loan
      Lender and Cashless Roll Lenders shall conclusively be deemed to constitute an acknowledgement by the Administrative Agent, the New Term Loan Lender and Cashless Roll Lenders, and an agreement of the parties hereto, that each of the conditions
      precedent set forth in Section 6 hereof shall have been satisfied in accordance with its respective terms.

    

    

    Section 7.          Expenses.  The Borrower shall pay all reasonable out-of-pocket expenses of the Administrative Agent incurred in connection with the
      preparation, execution and delivery of this Amendment and the other instruments and documents to be delivered hereunder, if any (including the reasonable fees, disbursements and other charges of Cahill Gordon & Reindel LLP, counsel for the Administrative Agent).

     

    

     

    

    
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    Section 8.          Cashless Rollover of Existing Term Loans. Each Cashless Term Lender agrees that, on the Seventh Amendment Effective Date, all (or such
      lesser amount corresponding to the amount of Repriced Term Loans as the Administrative Agent may allocate to such Lender) of its Existing Term Loans shall be exchanged (pursuant to subsection 3.4(h) of the Existing Credit Agreement) for Repriced Term
      Loans under the Amended Credit Agreement, and such Existing Term Loans so exchanged shall be deemed repaid in full on the Seventh Amendment Effective Date, including with respect to all accrued and unpaid interest, fees, expenses and other
      compensation owed to such Cashless Term Lender and due and payable by the Borrower pursuant to this Amendment and the Existing Credit Agreement.  Each Cashless Term Lender acknowledges and agrees that the Administrative Agent may, in its sole
      discretion, elect not to allocate Repriced Term Loans to such Lender in an amount equal to 100% of the principal amount of its Existing Term Loans, in which case the difference between the principal amount of such Lender’s Existing Term Loans as of
      immediately prior to the Seventh Amendment Effective Date and the principal amount of Repriced Term Loans allocated to such Lender by the Administrative Agent, if any, will be repaid on, and subject to the occurrence of, the Seventh Amendment
      Effective Date.  Each Cashless Term Lender waives any right to receive any payments under subsection 3.12 of the Amended Credit Agreement as a result of the Repricing Transactions.

    

    

    Section 9.          Counterparts.  This Amendment may be executed in any number of counterparts and by different parties hereto on separate counterparts,
      each of which when so executed and delivered shall be deemed to be an original, but all of which when taken together shall constitute a single instrument.  Delivery of an executed counterpart of a signature page of this Amendment by facsimile or any
      other electronic transmission shall be effective as delivery of a manually executed counterpart hereof.

    

    

    Section 10.          Applicable Law.  THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED
      AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO ITS PRINCIPLES OR RULES OF CONFLICT OF LAWS TO THE EXTENT SUCH PRINCIPLES OR RULES ARE NOT MANDATORILY APPLICABLE BY STATUTE AND WOULD REQUIRE OR PERMIT THE
      APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.

    

    

    Section 11.          Headings.  The headings of this Amendment are for purposes of reference only and shall not limit or otherwise affect the meaning hereof.

    

    

    Section 12.          Effect of Amendment.

    

    

    (a)          On and after the Seventh Amendment Effective Date, the rights and obligations of the parties to the Existing Credit Agreement shall be governed by the
      Amended Credit

     

    

     

    

    
      11

      
        

    

     

    

     

    

    Agreement, it being understood that those rights and obligations that are specified in the Existing Credit Agreement as surviving a termination of that agreement shall survive in accordance with their respective terms
      and without prejudice and remain in full force and effect.

    

    

    (b)          Each Loan Party reaffirms its obligations under the Loan Documents to which it is party and the validity, enforceability and perfection of the Liens
      granted by it pursuant to the Security Documents.  Each of the Loan Parties hereby consents to this Amendment and confirms that all obligations of such Loan Party under the Loan Documents to which such Loan Party is a party shall continue to apply to
      the Amended Credit Agreement.  The parties hereto acknowledge and agree that the amendment of the Amended Credit Agreement pursuant to this Amendment and all other Loan Documents amended and/or executed and delivered in connection herewith shall not
      constitute a novation of the Amended Credit Agreement and the other Loan Documents as in effect prior to the Seventh Amendment Effective Date.

    

    

    (c)          This Amendment shall constitute a Loan Document and a Specified Refinancing Amendment for purposes of the Amended Credit Agreement.

    

    

    

    

    [Remainder of Page Intentionally Left Blank]

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  
    12

    
      

    

  

   

  

   

  

  
    IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their respective authorized officers as of the day and year first above written.

    

    

    

    

    
      	 	
              US FOODS, INC.

            	 
	 	 	 	 
	 	 	 	 
	
              

              

            	
              By: 

            	
              /s/ Dirk J. Locascio

            	 
	 	 	
              Name:  Dirk J. Locascio

            	 
	 	 	
              Title:    Chief Financial Officer

            	 

    

    

    

    

    

    
      	 	
              E & H DISTRIBUTING, LLC

            	 
	 	 	 	 
	 	 	 	 
	
              

              

            	
              By: 

            	
              /s/ Dirk J. Locascio

            	 
	 	 	
              Name:  Dirk J. Locascio

            	 
	 	 	
              Title:    Chief Financial Officer

            	 

    

    

    

    

    

    
      	 	
              GREAT NORTH IMPORTS, LLC

            	 
	 	 	 	 
	 	 	 	 
	
              

              

            	
              By: 

            	
              /s/ Dirk J. Locascio

            	 
	 	 	
              Name:  Dirk J. Locascio

            	 
	 	 	
              Title:    Chief Financial Officer

            	 

    

    

    

    

    

    
      	 	
              TRANS-PORTE, INC.

            	 
	 	 	 	 
	 	 	 	 
	
              

              

            	
              By: 

            	
              /s/ Dirk J. Locascio

            	 
	 	 	
              Name:  Dirk J. Locascio

            	 
	 	 	
              Title:    Chief Financial Officer

            	 

    

    

    

    

    

    
      	 	
              US FOODS CULINARY EQUIPMENT &

              SUPPLIES, LLC

            	 
	 	 	 	 
	 	 	 	 
	
              

              

            	
              By: 

            	
              /s/ Dirk J. Locascio

            	 
	 	 	
              Name:  Dirk J. Locascio

            	 
	 	 	
              Title:    Chief Financial Officer

            	 

    

    

    

    
      

      

      

      

    

    
      [Signature Page to Seventh Amendment to USF Term Loan Credit Agreement]

      
        

      

    

     

    

    

    

    
      

      

      
        	 	
                FRESH UNLIMITED, INC.

              	 
	 	 	 	 
	 	 	 	 
	
                

                

              	
                By: 

              	
                /s/ Dirk J. Locascio

              	 
	 	 	
                Name:  Dirk J. Locascio

              	 
	 	 	
                Title:    Chief Financial Officer

              	 

      

      

      

      

      

      
        	 	
                BAY-N-GULF, INC.

              	 
	 	 	 	 
	 	 	 	 
	
                

                

              	
                By: 

              	
                /s/ Dirk J. Locascio

              	 
	 	 	
                Name:  Dirk J. Locascio

              	 
	 	 	
                Title:    Chief Financial Officer

              	 

      

      

      

      

      

      
        	 	
                FOOD SERVICES OF AMERICA, INC.

              	 
	 	 	 	 
	 	 	 	 
	
                

                

              	
                By: 

              	
                /s/ Dirk J. Locascio

              	 
	 	 	
                Name:  Dirk J. Locascio

              	 
	 	 	
                Title:    Chief Financial Officer

              	 

      

      

      

      

      

      
        	 	
                SYSTEMS SERVICES OF AMERICA, INC.

              	 
	 	 	 	 
	 	 	 	 
	
                

                

              	
                By: 

              	
                /s/ Dirk J. Locascio

              	 
	 	 	
                Name:  Dirk J. Locascio

              	 
	 	 	
                Title:    Chief Financial Officer

              	 

      

      

      

      

      

      

      

      
        [Signature Page to Seventh Amendment to USF Term Loan Credit Agreement]

        
          

        

      

       

      

      

      

      
        

        

        
          	 	
                  CITICORP NORTH AMERICA, INC., as 

                  Administrative Agent and Collateral Agent

                	 
	 	 	 	 
	 	 	 	 
	
                  

                  

                	
                  By: 

                	
                  /s/ David Tuder

                	 
	 	 	
                  Name:  David Tuder

                	 
	 	 	
                  Title:    Vice President

                	 
	 	 	 	 

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        

        
          [Signature Page to Seventh Amendment to USF Term Loan Credit Agreement]

          
            

          

        

         

        

        

        

        
          

          

          
            	 	
                    CITIBANK, N.A., as New Term Loan Lender

                  	 
	 	 	 	 
	 	 	 	 
	
                    

                    

                  	
                    By: 

                  	
                    /s/ David Tuder

                  	 
	 	 	
                    Name:  David Tuder

                  	 
	 	 	
                    Title:    Vice President

                  	 
	 	 	 	 

          

          

          

          

          

        

        

        

      

      

      

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    
      [Signature Page to Seventh Amendment to USF Term Loan Credit Agreement]

      
        

      

    

     

    

    

    

    
      [LENDER CONSENTS ON FILE WITH BORROWER AND ADMINISTRATIVE AGENT]

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

  

  

  
    
      

    

  

  

    

    

    
      ANNEX I

      

      

      Lender Consent to Seventh Amendment

      

      

      CONSENT (this “Consent”) to the Seventh Amendment, dated as of        , 2019 (the “Amendment”), to the credit agreement, dated as of May 11, 2011, as amended on June 7, 2013,
        as amended and restated on June 27, 2016, as amended on February 17, 2017, as amended on November 30, 2017, as amended on June 22, 2018, and as amended on September 13, 2019 and as the same may be further amended, supplemented, waived or otherwise
        modified prior to the date hereof, among the Borrower, the Lenders, the Administrative Agent, and the other institutions party thereto, including but not limited to the amendments to the Existing Credit Agreement pursuant to Section 2 and 3 of the
        Amendment.  Capitalized terms used but not defined in this Consent are used as defined in the Amendment.

      

      

      The undersigned Cashless Term Lender hereby irrevocably and unconditionally approves the amendments to the Existing Credit Agreement contained in the Amendment and acknowledges and agrees that 100%
        of the outstanding principal amount of the Existing Term Loans held by such Lender immediately prior to the Seventh Amendment Effective Date (or such lesser amount allocated to such lender by the Administrative Agent) will be prepaid on the Seventh
        Amendment Effective Date by the allocation of a Repriced Term Loan in like principal amount.

      

      

      IN WITNESS WHEREOF, the undersigned has caused this Consent to be executed and delivered by a duly authorized officer as of the date first written above.

      

      

      
        	

              	,

                

              	 
	
                
                  as a Lender (type name of the legal entity)

                

              	 
	 	
                

                

              	 	 

      

    

    
      

      

      
        	
                By: 

              	
                

                

              	 	 
	 	
                Name:  

                

              	 	 
	 	
                Title:    

                

              	 	 
	 	 	 	 

      

    

    

    

    
      If a second signature is necessary:

    

    

    

    

    

    
      	
              By: 

            	
              

              

            	 	 
	 	
              Name:  

              

            	 	 
	 	
              Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00302-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00302-of-00352.parquet"}]]