Document:

Exhibit 10.1

 

 

3400 Cumberland Boulevard 

Atlanta, Georgia 30339

 

August 10, 2020

 

John A. Stegeman

Chief Executive Officer

HD Supply Construction and Industrial—White Cap

3400 Cumberland Boulevard

Atlanta, Georgia 30339

 

Dear John,

 

As you know, the board of directors (the
“Board”) of HD Supply Holdings, Inc. (“HD Supply” and, together with its subsidiaries and
affiliates, successors and assigns, the “Company”) has approved the Company pursuing a potential sale of the
HD Supply Construction and Industrial – White Cap business unit (the “C&I Business”) to Clayton, Dubilier
and Rice, LLC (the “Transaction”).

 

As
a valued member of the team, your continued leadership and contributions are critical to the success of the Transaction. You will
play an important role in preparing for the sale of the C&I Business and to the continued success of the C&I Business following
the closing of the Transaction (the “Closing”). To help ensure that your services are retained and to reward
you for your commitment to the work that lies ahead, you are eligible to receive a lump sum cash transaction bonus (the “Transaction
Bonus”) in the amount of $1,065,000, pursuant to the terms of this letter.

 

Except as
provided below, your right to the Transaction Bonus is contingent (1) on the Closing of the Transaction, and (2) your continued
service with the Company from the date of this letter through the Closing. In addition, payment of the Transaction Bonus is contingent
on your dedication to the Company’s successful completion of the Transaction for the $2.9 billion purchase price and other
transaction terms contemplated by the Board and your acting in good faith throughout the Closing and otherwise complying with the
terms of this letter and the Transaction purchase agreement.

 

General Terms

 

You
agree that during your employment with the Company, you will devote your full working time and attention and best efforts to the
service and benefit of the Company’s business and will comply with all rules, regulations, policies and instructions of the
Company and fully cooperate in assisting the Company in its efforts to successfully close the Transaction for the purchase price
and other transactions terms contemplated by the Board. I retain discretion to adjust or rescind the Transaction Bonus payout for
your failure to provide such good faith cooperation.

 

If the Company is not successful in closing
the Transaction, or the Company determines for any reason to forego the Transaction, or for any other reason the Closing does not
occur, this agreement will expire and the Transaction Bonus will not be paid.

 

Voluntary or Involuntary Termination

 

In the event that you are involuntarily
terminated without Cause (as defined below) or your employment is terminated as a result of your death before payment of the Transaction
Bonus you or, in the event of your death, your successors, will be entitled to receive the Transaction Bonus, contingent on the
Closing occurring, in a lump sum cash amount payable within forty-five (45) days following the Closing. In all cases, receipt of
any Transaction Bonus following your death or termination without Cause is also conditioned on you or, in the event of your death,
your successors signing, and not revoking, a release of claims in a form acceptable to the Company’s general counsel. Such
release must become effective and irrevocable pursuant to its terms within thirty (30) days after your death or termination date.

 

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You will not be entitled to receive any
Transaction Bonus: (1) if you are terminated from the Company for Cause before the Closing, (2) you voluntarily resign your employment
with the Company before the Closing, regardless of when or why you have resigned your employment; or (3) you become entitled to
receive payments under the Change in Control Agreement entered into between you and the Company on November 14, 2016 and/or accelerated
vesting of your equity awards under the Company’s equity plans.

 

“Cause” means, as reasonably
determined by the Company: (1) willful or gross neglect of your duties with the Company; (2) your conviction of any felony, or
of any lesser crime or offense that involves theft or moral turpitude or that materially adversely affects the property, reputation
or goodwill of the Company; (3) willful or gross misconduct in connection with the performance of your duties for the Company;
(4) your theft or misappropriation of business assets of the Company or of any existing or prospective customer of the Company;
(5) your poor or inadequate work performance which has not been cured within ten (10) days following written notice thereof by
the Company; (6) your violation of any securities laws as determined by the Company’s general counsel in his or her absolute
discretion; (7) breach of your covenants to the Company relating to confidential and proprietary information, trade secrets, noncompetition
or non-solicitation; and/or (8) conduct, act or omission by you that is detrimental to the business of the Company or conduct by
you that constitutes a violation of Company policies and procedures applicable to you which may be in effect at the time of the
occurrence.

 

Payment Terms
and Conditions

 

Should you remain eligible, and if the
terms triggering payout of the Transaction Bonus are satisfied, the Transaction Bonus will be paid to you in a lump sum cash payment
within forty-five (45) days following the Closing. The Transaction Bonus is subject to all standard tax and other payroll withholdings.
Notwithstanding any provision contained herein, payment to you of any Transaction Bonus shall be conditioned on: (1) your signing,
and not revoking, a release of claims, in a form acceptable to the Company’s general counsel, that becomes effective and
irrevocable pursuant to its terms within thirty (30) days after the Closing; (2) your continuous active employment with the Company
through the Closing; and (3) your continuing compliance with the terms of this agreement, including with respect to your obligations
of confidentiality contained herein.

 

Tax Matters

 

Section 409A. The Transaction Bonus
and the terms of this agreement shall be construed and interpreted to comply with, or be exempt from, Section 409A of the Internal
Revenue Code of 1986, as amended (“Section 409A”). It is intended that amounts payable pursuant to this agreement
shall be excluded from the requirements of Section 409A as short-term deferral amounts to the maximum possible extent. The Company,
however, makes no representations or warranties as to whether the terms this agreement comply with or are exempt from Section 409A
and you acknowledge and agree that you are responsible for all taxes imposed on you as a result of payments provided by this agreement,
including any taxes imposed under Section 409A.

 

Section 280G. Notwithstanding any
provision of this agreement to the contrary, if any payment or benefit to be paid or provided hereunder or under any other plan
or agreement would be an “Excess Parachute Payment,” within the meaning of Section 280G of the Internal Revenue Code,
or any successor provision thereto, but for the application of this sentence, then the payments and benefits to be paid or provided
hereunder shall be reduced to the minimum extent necessary (but in no event to less than zero) so that no portion of any such payment
or benefit, as so reduced, constitutes an Excess Parachute Payment; provided, however, that the foregoing reduction shall be made
only if and to the extent that such reduction would result in an increase in the aggregate payments and benefits to be provided
to you, determined on an after-tax basis (taking into account the excise tax imposed pursuant to Section 4999 of the Internal Revenue
Code, or any successor provision thereto, any tax imposed by any comparable provision of state law, and any applicable federal,
state and local income taxes). The determination of whether any reduction in such payments or benefits to be provided hereunder
is required pursuant to the preceding sentence shall be made at the expense of the Company (to the extent of payments made by the
Company) by an independent accounting firm or a nationally recognized law firm chosen by the Company. The fact that your right
to payments or benefits may be reduced by reason of the limitations contained in this section shall not of itself limit or otherwise
affect any other rights or obligations you may have under this agreement.

 

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Non-Competition and Non-Solicitation Covenants

 

You
agree that you will not, for a period of two (2) years following the date of your termination of employment with the Company (the
“Restricted Period”), enter into or maintain an employment, contractual, or other relationship, either directly
or indirectly, to provide services in the same or similar manner as you perform for the Company to any company or entity engaged
in any way in a business that competes directly or indirectly with the Company its parents, subsidiaries, affiliates or related
entities, in the United States, Canada, or any other location in which the Company currently conducts business or may conduct business
prior to the Closing other than with respect to the C&I Business.

 

You
further agree that during the Restricted Period, you will not directly or indirectly (1) solicit or attempt to solicit any business
related to the Company existing as of the Closing from any of the Company’s customers or suppliers with whom you had business
contact or about whom you received confidential information other than with respect to the C&I Business (collectively, the
“Customers and Suppliers”) during the one-year period prior to the Closing (provided that you may continue to
solicit business from such Customers and Suppliers on behalf of the C&I Business following the Closing in the performance of
your duties while employed with the C&I Business after the Closing); or (2) solicit any person who is an employee of the Company
to terminate his or her relationship with the Company or the C&I Business.

 

Confidentiality and Trade Secrets

 

You
acknowledge that through your employment you have acquired and had access to, and will continue to acquire and have access to,
the Company’s Confidential Information and Trade Secrets. You further acknowledge that the Company has made reasonable efforts
under the circumstances to maintain the secrecy of its Trade Secrets. By signing
below, you agree to hold in confidence and to not publish, disclose or use any Confidential Information or Trade Secrets for as
long as the Confidential Information retains its character as confidential and is not readily available to the public, and in the
case of Trade Secrets, for so long as the information remains a Trade Secret, except in connection with the good faith performance
of your duties for the Company, provided that following the Closing, you will not be able to publish, disclose or use the Confidential
Information or Trade Secrets of the Company for any purpose, except that you may (1) disclose Confidential Information to comply
with a legal process or governmental inquiry (but only upon prompt written notice to the Company’s general counsel to the
extent legally permissible), and (2) use Confidential Information and Trade Secrets of the C&I Business in the performance
of your duties while employed with the C&I Business after the Closing.  Further, any claims of violation of these provisions
with regard to the C&I Business’s Confidential Information and Trade Secrets following the Closing shall be that of the
C&I Business and not of the Company (and therefore enforceable by the purchaser of the C&I Business).  You further
agree to return all documents, disks or any other item or source containing Confidential Information or Trade Secrets, or any other
Company to the Company or the C&I Business (as applicable) on or before your termination date from the applicable entity. Nothing
in this agreement is intended to prohibit you from reporting possible violations of federal law to any governmental agency or entity,
or from making other disclosures that are protected under the whistleblower provisions of federal law. You do not need the Company’s
prior authorization to make any such reports or disclosures and you are not required to notify the Company that such reports or
disclosures have been made.

 

“Confidential
Information” shall include any data or information, other than Trade Secrets, that is valuable to the Company or the
C&I Business and not generally known to competitors of the Company or the C&I Business or other outsiders, regardless of
whether the confidential information is in printed, written, or electronic form, retained in your memory, or has been compiled
or created by you. This includes, but is not limited to: technical, financial, credit marketing, personnel, staffing, payroll,
computer systems, marketing, advertising, merchandising, operations, strategic planning, product, vendor, customer or store planning
data, trade secrets, information relating to the Transaction or other information similar to the foregoing, including the existence
and terms of this agreement. 

 

“Trade
Secret” means information, without regard to form, including, but not limited to, any technical or non-technical data,
formula, pattern, compilation, program, device, method, technique, drawing, process, financial data, financial plans, strategic
plans, product plans, or list of actual or potential customers or suppliers which is not commonly known by or available to the
public and which information: (1) derives economic value, actual or potential, from not being generally known to, and not being
readily ascertainable by proper means by, other persons who can derive economic value from its disclosure or use and (2) is the
subject of efforts that are reasonable under the circumstances to maintain its secrecy.

 

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You further
acknowledge that your breach of any of the covenants contained in this section of the agreement and/or the section above entitled
“Non-Competition and Non-Solicitation Covenants” would result in immediate and irreparable harm to the Company, the
C&I Business, or both, that cannot be adequately or reasonably compensated by law. Accordingly, you agree that the Company
and the C&I Business shall be entitled, if any such breach shall occur or be threatened or attempted, to seek from a court
a temporary, preliminary, and permanent injunction, without being required to post a bond, enjoining and restraining such breach
or threatened or attempted breach by you. You acknowledge that the Company has informed you, in accordance with 18 U.S.C. §
1833(b), that you may not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of
a trade secret where the disclosure: (1) is made: (a) in confidence to a federal, state, or local government official, either directly
or indirectly, or to an attorney; and (b) solely for the purpose of reporting or investigating a suspected violation of law; or
(2) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.

 

Unvested Equity

 

The Closing will not constitute a “change
in control” as defined in HD Supply’s equity plans (the “Company Equity Plans”). Therefore, any
unvested awards previously granted to you under the Company Equity Plans will be forfeited and cancelled as of the Closing, or
any earlier termination of your employment with the Company. All stock options previously granted to you under the Company Equity
Plans that are vested as of the Closing (or earlier employment termination) will be forfeited and cancelled if not exercised within
90 days of the Closing or any earlier employment termination, except as otherwise provided by the Company Equity Plan or your award
agreement. Pursuant to our Policy on Trading in Securities, you must continue to preclear your trades in Company stock with Legal
for a six-month period after your termination of employment with the Company in order to facilitate compliance with SEC rules applicable
to Section 16 officers, and you may only trade when you are not in possession of the Company’s material nonpublic information.
If you have any questions, please discuss with the Company’s general counsel.

 

At-Will Employment

 

This agreement does not alter your status
as an at-will employee, which means that the Company and you each have the absolute power to terminate the employment relationship
with or without Cause, and with or without prior notice. This agreement should not be construed, nor is it intended to be a contract
of employment for a specified period of time.

 

Governing Law

 

Any action,
claim or dispute or other proceeding arising out of this agreement (the “claim”) must be formally initiated
within one (1) year after the claim arises or be forever barred. Any claim will be governed by Delaware law regardless of the application
of rules of conflict of law. Any claim shall only be brought in the Superior Court of Cobb County, State of Georgia or in the Federal
District Court, Northern District of Georgia, Atlanta Division. The parties irrevocably submit to the jurisdiction of these courts
for purposes of any claim.

 

Please review this document
and indicate your acceptance of the terms by signing below and returning to Charles White, Vice President, Total Rewards, on or
before _________, 2020.

 

	Sincerely,	 
	 	 
	        	 
	Joseph J. DeAngelo	 
	Chief Executive Officer	 

 

By signing below, I hereby accept and agree to the terms set
forth in this agreement.

 

 

	       	 	        
	John A. Stegeman (Signature)	 	Date Signed

 

    Page 4 of 4Exhibit 10.2

 

 

 

HD SUPPLY HOLDINGS, INC.

RESTRICTED STOCK AGREEMENT

 

This RESTRICTED
STOCK AGREEMENT (this “Agreement”), effective August ___, 2020 (the “Grant Date”),
is between HD Supply Holdings, Inc., a Delaware corporation (the “Company”), and __________________ (the
“Employee”). Capitalized terms used herein without definition shall have the meanings set forth in the
HD Supply Holdings, Inc. Omnibus Incentive Plan (the “Plan”).

 

Section 1.             Grant of Restricted Stock. The Company hereby evidences and confirms its grant to Employee, effective on the Grant
Date, of an award of ___________ Shares of Restricted Stock (the “Restricted Stock”). This Agreement
is entered into pursuant to, and the Restricted Stock granted hereunder is subject to, the terms and conditions of the Plan, which
are incorporated herein by reference. If there is any inconsistency between any express provision of this Agreement and any express
provision of the Plan, the express provision of the Plan shall govern.

 

Section 2.              Vesting and Forfeiture of Restricted Stock.

 

(a)           Restriction Period. Subject to the other provisions of this Section 2, the Restricted Stock shall vest fifty percent
(50%) on the second anniversary of the grant date and twenty-five percent (25%) on each of the third- and fourth-year anniversaries
of the grant date, subject to the Employee’s continuous employment with the Company or any of its Subsidiaries through the
applicable vesting date; provided that: (i) if Employee receives payments that are subject to excise tax on “parachute
payments” as contemplated by Code Section 280G, the Restricted Stock will either vest as scheduled and Employee will pay
the applicable excise tax or the amount of Restricted Stock will be reduced if the reduction results in a net increase in after-tax
benefit to Employee; and (ii) if the Employee’s employment is terminated before the vesting date by reason of the
Employee’s death, Disability, involuntary termination without Cause or resignation for “Good Reason” (a “Special
Termination”), any unvested portion of the Restricted Stock shall immediately vest as of the date of such Special
Termination. “Good Reason” means a voluntary termination
of Employee’s employment with the Company because of the occurrence of any of the following events: (1) the Company materially
reduces Employee’s authority, duties or responsibilities; (2) the Company materially reduces Employee’s base salary;
(3) unless agreed to in writing by Employee, the Company requires Employee to be based at or generally work from any location more
than fifty (50) miles from the geographical center of Employee’s work location on the date of this Agreement; (4) the Company
materially reduces the target bonus opportunity or long-term incentive (cash or stock) grant date value provided by the Company
to Employee such that the target bonus opportunity and long-term incentive grant date value provided to Employee by the Company
is materially less, in the aggregate, than was provided to Employee immediately prior to the date of this Agreement, but only to
the extent that such reduction results in a material reduction in Employee’s total compensation; or (5) any failure by the
Company to obtain the assumption of this Agreement by any successor or assign of the Company. Notwithstanding
the foregoing, (a) Employee is required to provide notice of any such condition to the Company within forty-five (45) days after
Employee becomes aware of, or should reasonably be aware of, a condition that gives Employee the right to terminate employment
with the Company for Good Reason, and the Company will then have ten (10) business days to cure and/or remedy such condition, prior
to the existence of such condition being deemed to be “Good Reason,” and (b) Employee’s termination for Good
Reason must occur within one hundred eighty (180) days after Employee becomes aware of a condition that gives Employee the right
to terminate employment with the Company for Good Reason.  

 

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(b)           Termination of Employment. If Employee’s employment with the Company and its Subsidiaries terminates for any
reason, any Restricted Stock that is unvested as of the date of such termination and that does not, in accordance with Section
2(a), become vested on such date shall be cancelled and forfeited effective as of the date of such termination. The undersigned
hereby (i) appoints the Company as the attorney-in-fact of the undersigned to take such actions as may be necessary or appropriate
to effectuate a transfer of the record ownership of any such Shares that are unvested and forfeited hereunder, (ii) agrees
to deliver to the Company, as a precondition to the issuance of any certificate or certificates with respect to unvested Shares
of Restricted Stock hereunder, one or more stock powers, endorsed in blank, with respect to such Shares of Restricted Stock, and
(iii) agrees to sign such other powers and take such other actions as the Company may reasonably request to accomplish the
transfer or forfeiture of any unvested Shares of Restricted Stock that are forfeited hereunder.

 

(c)           Change in Control. In the event of a Change in Control, the treatment of any unvested Shares of Restricted Stock
shall be governed by Article XIV of the Plan.

 

(d)         
Discretion of Committee. Notwithstanding anything contained in this Agreement to the contrary, the Committee, in
its sole discretion, may accelerate the vesting with respect to the Restricted Stock granted under this Agreement, at such times
and upon such terms and conditions as the Committee shall determine.

 

Section 3.             Securities Law Compliance. Notwithstanding any other provision of this Agreement, the Employee may not sell the Shares
acquired upon vesting of the Restricted Stock unless such Shares are registered under the Securities Act of 1933, as amended (the
“Securities Act”), or, if such Shares are not then so registered, such sale would be exempt from the
registration requirements of the Securities Act. The sale of such Shares must also comply with other applicable laws and regulations
governing the Common Stock, and the Employee may not sell the Shares of Common Stock if the Company determines that such sale would
not be in material compliance with such laws and regulations.

 

Section 4.             Employee’s Rights and Obligations with Respect to Restricted Stock.

 

(a)          
Restriction on Transfer. Prior to the vesting thereof, the Restricted Stock is not assignable or transferable, in
whole or in part, and it may not, directly or indirectly, be offered, transferred, sold, pledged, assigned, alienated, hypothecated
or otherwise disposed of or encumbered (including, but not limited to, by gift, operation of law or otherwise) other than by the
laws of descent and distribution to the estate of the Employee upon the Employee’s death; provided, however,
that, if an event occurs resulting in lapse of all substantial risks of forfeiture results in unvested shares of Restricted Stock
being includible in the Employee’s income for federal, state or local tax purposes, a sufficient number of Shares of Restricted
Stock shall, notwithstanding this Section 4(a), be released from the transfer restrictions herein so as to permit such tax liability
to be satisfied with such Shares. Any purported transfer in violation of this Section 4(a) shall be void ab initio.

 

(b)          Ownership
of Shares. Subject to the restrictions set forth in the Plan and this Agreement, the Employee shall possess all incidents
of ownership of the Shares of Restricted Stock granted hereunder, including, without limitation, (i) the right to vote such
Shares of Restricted Stock, and (ii) subject to Section 4(c), the right to receive dividends with respect to such Shares
of Restricted Stock (but only to the extent declared and paid to holders of Common Stock by the Company in its sole discretion),
provided, that any such dividends shall be treated, to the extent required by applicable law, as additional compensation
for tax purposes if paid on Shares of Restricted Stock.

 

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(c)           Dividends.
Any dividends with respect to Restricted Stock (whether such dividends are paid in cash, stock or other property) (i) shall
be subject to the same restrictions (including the risk of forfeiture) as the Restricted Stock with regard to which they are issued;
(ii) shall herein be encompassed within the term “Restricted Stock”; (iii) may be held by the Company
for the Employee prior to vesting; and (iv) if so held by the Company, shall be paid or otherwise released to the Employee,
without interest, promptly after the vesting of the Restricted Stock with regard to which they were issued.

 

(d)           Stock
Certificates. The Company may electronically issue stock certificates or evidence the Employee’s interest by using a
restricted book entry account with the Company’s transfer agent. Physical possession or custody of any stock certificates
that are issued shall be retained by the Company until such time as the Restricted Stock vests.

 

(e)           Section
83(b) Election. The Employee hereby acknowledges that Employee may file an election pursuant to Code Section 83(b) to be taxed
currently on the Fair Market Value of the Shares of Restricted Stock (“83(b) Election”), provided that,
to be effective, such election must be filed with the Internal Revenue Service no later than thirty (30) days after the Grant Date.
Any such 83(b) Election shall use as the value of the Restricted Stock the Fair Market Value of the Restricted Stock on the Grant
Date determined as provided in the Plan, and the Employee shall take a consistent position on the Employee’s tax returns.
The Employee will seek the advice of his or her own tax advisors as to the advisability of making such a Section 83(b) Election,
the potential consequences of making such an election, the requirements for making such an election, and the other tax consequences
of the Restricted Stock under federal, state, and any other laws that may be applicable. The Company, its Subsidiaries, affiliates
and agents have not and are not providing any tax advice to the Employee. Employee agrees that, if Employee makes an 83(b) Election,
Employee shall give notice to the Company of such election within 30 days of the date of this Agreement.

 

(f)            Withholding.
The award, vesting, or lapse of restrictions with respect to the Shares of Restricted Stock acquired hereunder, and the payment
of dividends with respect to such Shares, may give rise to “wages” subject to withholding. No later than the date applicable
wage income in connection with the award, vesting or lapse restrictions with respect to the Restricted Stock is first includable
in Employee’s gross income for federal income tax purposes, full payment in United States dollars in cash, or cash equivalents
satisfactory to the Committee, shall be made to the Company through a nondiscretionary broker-assisted sale procedure (sell-to-cover)
in which that number of Restricted Shares sufficient to satisfy any withholding tax or other similar taxes, charges or fees associated
with the award, vesting or lapse restrictions with respect to the Restricted Shares, are sold on the open market and the proceeds
remitted to Company. Notwithstanding the foregoing, effective at such time as the Committee approves a Share withholding procedure
established with the third party stock plan administrator, payment of withholding tax obligations shall be satisfied through a
nondiscretionary net settlement in which the third party stock plan administrator withholds that number of Shares of Restricted
Stock sufficient to satisfy the withholding tax obligations and surrenders said Shares to the Company. In no event shall the Fair
Market Value of the Shares withheld to satisfy applicable withholding taxes exceed the maximum amount of taxes required to be withheld.
In the event that the Company (or in the case of an Executive Officer or Director, the Committee) determines that the sale or withholding
of Shares to satisfy withholding tax or similar taxes, charges or fees would violate applicable law or Company policy, and with
approval of the Committee, Employee shall pay to the Company in cash, or such other payment method permitted by the Plan that would
not violate applicable law or Company policy, the required withholding taxes or other similar taxes, charges or fees associated
with award, vesting or lapse of restrictions with respect to the Restricted Stock. The Committee may require the Employee to furnish
or execute such other documents as the Committee shall reasonably deem necessary to comply with or satisfy the requirements of
the Securities Act, applicable state or non-U.S. securities laws or any other law.

 

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Section 5.              Non-Competition/Non-Solicitation; Confidential Information. In consideration of the grant of the Restricted Stock,
Employee agrees to the restrictive covenants set forth in this Section 5.

 

(a)          
Non-Competition/Non-Solicitation. In consideration of the receipt of the Restricted Stock granted pursuant to this
Agreement, the receipt and sufficiency of which Employee hereby acknowledges, the Employee agrees that while he or she is employed
by the Company or any of its Subsidiaries (collectively, the “Company Group”) and for a period of one
(1) year after the effective date of termination of his or her employment with the Company Group for any reason, he or she will
not:

 

(i)           Either directly or indirectly, engage in any business or enterprise (whether as owner, partner, officer, director, employee,
independent contractor, consultant, investor, lender or otherwise, except as the holder of not more than one percent (1%) of the
outstanding stock of a publicly-held company) that competes anywhere in any geographic area where the Company does business, including
but not limited to the United States and Canada and their respective states, territories or provinces (collectively, the “Territory”)
with the business of the Company Group as then engaged in or any prospective business which the Company is actively developing
or implementing by any member of the Company Group or any of their respective Affiliates;

 

(ii)          Either alone or in association with others, directly or indirectly, (x) solicit, or permit any organization
directly or indirectly controlled by the Employee to solicit, any employee of the Company Group to leave the employ of the Company
Group, or (y) solicit for employment or engage as an independent contractor, or permit any organization directly or
indirectly controlled by the Employee to solicit for employment or engage as an independent contractor, any person who was employed
by the Company Group at any time during the term of the Employee’s employment with the Company Group and whose employment
with the Company Group has been terminated for a period less than six months; or

 

(iii)        
Either alone or in association with others, directly or indirectly, solicit or otherwise attempt to establish for himself
or herself or any other person, firm or entity, anywhere in the Territory any business relationship of a nature that is competitive
with the business or relationship of any member of the Company Group with any person, firm or corporation which was a customer,
client, vendor, supplier or distributor (or an actively sought prospective customer, client, vendor, supplier or distributor) of
any member of the Company Group and with whom the Employee had direct or indirect contact or knowledge, either personally or as
a result of Employee’s supervision of any Company Group employee, or encourage, induce, attempt to induce, solicit or attempt
to solicit any such person or entity to terminate his or her relationship with the Company. For purposes of this Section 5(a)(iii),
the Company Group’s business or relationship with a customer, client, vendor, supplier or distributor (or actively sought
prospective business or relationship) shall have existed: (x) at any time during the Employee’s period of employment
with the Company Group (in the case of any activity during such period of employment); or (y) during the twelve-month
period preceding the effective date of the Employee’s termination of employment with the Company Group (in the case
of any activity after such termination of employment).

 

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(b)           Confidential Information. The Employee agrees not to disclose any confidential or proprietary information, trade
secrets, customer lists, drawings, designs, information regarding product development, marketing plans, sales plans, manufacturing
plans, management organization information, operating policies or manuals, business plans, financial records, packaging design
or other financial, commercial, business or technical information relating to any member of the Company Group or any of their respective
Affiliates, including, without limitation, any such information or materials that any member of the Company Group or any of their
respective Affiliates receives belonging to suppliers, customers or others who do business with any member of the Company Group
or any of their respective Affiliates (collectively, “Confidential Information”), to any third person
unless such Confidential Information has been previously disclosed to the public or is in the public domain (other than by reason
of Employee’s breach of this Section 5). Nothing in this Agreement is intended to prohibit Employee from reporting possible
violations of federal law to any governmental agency or entity, or from making other disclosures that are protected under the whistleblower
provisions of federal law. Employee does not need the Company’s prior authorization to make any such reports or disclosures
and is not required to notify Company that such reports or disclosures have been made. Employee acknowledges that the Company has
informed Employee, in accordance with 18 U.S.C. § 1833(b), that Employee may not be held criminally or civilly liable under
any federal or state trade secret law for the disclosure of a trade secret where the disclosure (a) is made (1) in confidence to
a federal, state, or local government official, either directly or indirectly, or to an attorney; and (2) solely for the purpose
of reporting or investigating a suspected violation of law; or (b) is made in a complaint or other document filed in a lawsuit
or other proceeding, if such filing is made under seal.

 

(c)          
Reasonable Protection. The Company and the Employee agree that, during the period of the Employee’s employment
with the Company Group, (i) the Employee will have a prominent role in the management of the business, and the development
of the goodwill, of the Company Group, and will obtain Confidential Information that could be used to compete unfairly against
members of the Company Group and their respective Affiliates and (ii) the covenants and restrictions contained in this Section
5 are necessary for the protection of the business and goodwill of the Company Group and the Employee considers them to be reasonable
for such purpose.

 

(d)           Injunctive Relief. The Employee agrees that any breach of the covenants contained in this Section 5 is likely to
cause the Company Group substantial and irrevocable damage which is difficult to measure and, in the event of any such breach or
threatened breach, that the Company, in addition to such other remedies which may be available, shall have the right to (i)
effect the forfeiture of any unvested Shares of Restricted Stock held by the Employee and/or (ii) obtain an injunction from
a court restraining such a breach or threatened breach and the right to specific performance of the provisions of this Section
5 and hereby waives the adequacy of a remedy at law as a defense to such relief.

 

(e)           Blue Pencil. The Employee agrees that in the event that any court of competent jurisdiction shall finally hold that
any provision of this Section 5 is void or constitutes an unreasonable restriction against the Employee, the provisions of this
Section 5 shall not be rendered void but shall apply to such extent as such court may determine constitutes a reasonable restriction
under the circumstances.

 

(f)            The
provisions of this Section 5 shall survive in accordance with its terms the vesting or termination of the Restricted Stock.

 

    Page 5 of 8

     

    

 

Section 6.              Miscellaneous.

 

(a)          
Acknowledgement and Acceptance. Within thirty (30) days of the Grant Date, Employee must accept the terms and conditions
of this Restricted Stock grant, as outlined in the Plan and this Agreement, by executing and delivering a signed copy of this Agreement
to the Company or by electronic acceptance pursuant to the online acceptance procedure established by the Company. Otherwise, the
Company may, at its discretion, rescind the Agreement in its entirety and forfeit and cancel the Restricted Stock Award granted
hereunder.

 

(b)          
Authorization to Share Personal Data. The Employee authorizes the Company or any Affiliate of the Company that has or lawfully
obtains personal data relating to the Employee to divulge or transfer such personal data to the Company or to a third party, in
each case in any jurisdiction, if and to the extent reasonably appropriate in connection with this Agreement or the administration
of the Plan.

 

(c)           
No Guarantee of Employment. Nothing in the Plan or this Agreement shall interfere with or limit in any way the right of
the Company to terminate any Employee’s employment at any time, or confer upon any Employee any right to continue in the
employ or retention of the Company.

 

(d)          
Interpretation. The Committee shall have full power and discretion to construe and interpret the Plan (and any rules and
regulations issued thereunder) and this Award. Any determination or interpretation by the Committee under or pursuant to the Plan
or this Agreement shall be final and binding and conclusive on all persons affected hereby.

 

(e)          
Forfeiture of Awards. The Restricted Stock granted hereunder (and gains earned or accrued in connection therewith) shall
be subject to such generally applicable policies as to forfeiture and recoupment (including, without limitation, upon the occurrence
of material financial or accounting errors, financial or other misconduct or Competitive Activity) as may be adopted by the Committee
or the Board from time to time, and is otherwise subject to forfeiture or disgorgement of profits as provided by law or by the
Plan.

 

(f)          
Consent to Electronic Delivery. By entering into this Agreement and accepting the Restricted Stock evidenced hereby, the
Employee hereby consents to the delivery of information (including, without limitation, information required to be delivered to
the Employee pursuant to applicable securities laws) regarding the Company, the Plan, this Agreement and the Restricted Stock via
Company web site or other electronic delivery.

 

(g)          
Binding Effect; Benefits. This Agreement shall be binding upon and inure to the benefit of the parties to this Agreement
and their respective successors and assigns. No provision of this Agreement, express or implied, is intended or shall be construed
to give any person other than the parties to this Agreement or their respective successors or assigns any legal or equitable right,
remedy or claim under or in respect of any agreement or any provision contained herein.

 

(h)          Amendment. This Agreement may not be amended, modified or supplemented orally, but only by a written instrument executed
by the Employee and the Company.

 

(i)          
Governing Law and Venue. To the extent not preempted by federal law, this Agreement and the Restricted Stock shall be construed
in accordance with and governed by the laws of the State of Delaware regardless of the application of rules of conflict of law
that would apply the laws of any other jurisdiction. Any and all claims and disputes of any kind whatsoever arising out of or relating
to this Agreement or the Restricted Stock shall only be brought in the Delaware Chancery Court. Employee hereby waives any objection
which Employee may now have or may hereafter have to the foregoing choice of venue and further irrevocably submits to the exclusive
jurisdiction of the Delaware Chancery Court in any such claim or dispute. In the event that the Delaware Chancery Court determines
that it cannot or will not exercise subject matter jurisdiction over such dispute, then the Superior Court of Cobb County, State
of Georgia, shall have exclusive jurisdiction and venue over any such claim or dispute.

 

    Page 6 of 8

     

    

 

(j)          
Waiver of Jury Trial. Each party hereby waives, to the fullest extent permitted by applicable law, any right he, she or
it may have to a trial by jury in respect of any suit, action or proceeding arising out of this Agreement, the Restricted Stock,
or any transaction contemplated hereby. Each party (i) certifies that no representative, agent or attorney of any other
party has represented, expressly or otherwise, that such other party would not, in the event of litigation, seek to enforce the
foregoing waiver and (ii) acknowledges that he, she or it and the other party hereto have been induced to enter into the
Agreement by, among other things, the mutual waivers and certifications in this Section 7(j).

 

(k)          
Limitations of Actions. Employee may file a written claim with the Committee if Employee believes he or she is being denied
any benefit or right under this Agreement or with respect to the Restricted Stock. Any claim must be delivered to the Committee
within forty-five (45) calendar days of the later of the date of vesting of the Restricted Stock or the specific event giving rise
to the claim. The Committee will notify the Employee of its decision in writing as soon as administratively practicable. Claims
not responded to by the Committee in writing within one hundred twenty (120) calendar days of the date the written claim is delivered
to the Committee shall be deemed denied. The Committee’s decision is final and conclusive and binding on all Employee and
other persons. No lawsuit relating to the Agreement may be filed before a written claim is filed with the Committee and is denied
or deemed denied and any lawsuit must be filed, in accordance with the venue provisions of Section 7(i), within one year of such
denial or deemed denial or be forever barred.

 

(l)           
Section and Other Headings, etc. The section and other headings contained in this Agreement are for reference purposes only
and shall not affect the meaning or interpretation of this Agreement.

 

(m)          
Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original
and all of which together shall constitute one and the same instrument.

 

IN WITNESS WHEREOF, the Company and Employee
have executed this Agreement as of the Grant Date.

 

	 	HD SUPPLY HOLDINGS, INC.
	 	 
	 	 
	 	By:	 
	 	 	Joseph J. DeAngelo
	 	 	Chairman, President & Chief Executive Officer

 

	 	Date Signed:	 

 

    Page 7 of 8

     

    

 

	 	EMPLOYEE
	 	 
	 	 
	 	[by electronic acceptance]
	 	 
	 	Name:	 
	 	 
	 	Date Signed:	 

 

    Page 8 of 8

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