Document:

EX-10.5

  Exhibit 10.5

   

  ADDENDUM TO EMPLOYMENT AGREEMENT

  	THIS ADDENDUM to the Employment Agreement dated January 8, 2018 and effective as of July 1, 2018 (the “Agreement”) by and among Richard E. Allison, Jr. (the “Executive”), Domino’s Pizza, Inc. (the “Company”) and Domino’s Pizza LLC (the “Principal Subsidiary”) is effective as of February 24, 2022 (the “Addendum”).

  Recitals

  	WHEREAS, the parties desire to amend certain obligations contained in the Agreement as set forth herein;

  	NOW THEREFORE, in consideration of the premises and mutual agreements set forth herein, and in the Agreement, the parties hereto agree as follows. 

  Addendum

  1.	The defined terms set forth in the Agreement and Recitals above are incorporated by reference in this Addendum.

  2.	A new Sub-Section 4.5.3 is added to the Agreement after Sub-Section 4.5.2 and shall read as follows:

  Notwithstanding Section 4.5.2 above, effective July 16, 2022, the Company’s obligation to provide the Executive and his spouse the entitlement to participate in the Company’s health plan shall terminate and the Company shall instead provide to the Executive during his lifetime and to the Executive’s spouse during her lifetime an annual payment in an amount to be determined by the Company and based on the methodology described in Appendix A (each such annual payment, a “Payment”). For the avoidance of doubt, the Executive’s spouse will be entitled to receive a Payment only for so long as she is married to the Executive; provided, however, in the event that the Executive predeceases his spouse while they are married to each other, his spouse shall continue to receive a Payment for the remainder of her life. Each Payment shall be made in accordance with Appendix A. On a basis no less frequently than annually, the Company shall fund the trust in an amount as is sufficient, in the Company’s discretion, to make the Payment contemplated by this Section 4.5.3 for the year following the year in which the Company makes such contribution to the trust. In the event that Executive or his spouse becomes eligible for health care coverage through another employer, the Payment for the Executive or his spouse, or both, as the case may be, shall cease until such time as the Executive or his spouse, or both, as the case may be, is no longer eligible for such other coverage. In addition to the Payments provided to the Executive and to the Executive’s spouse, for so long as Executive or his spouse receives a Payment hereunder, the Company shall make available to the Executive and the Executive’s spouse a Company resource to assist the Executive and the Executive’s spouse in reviewing, evaluating and securing health care coverage. Any benefit associated with the provision of such resource shall be taxable to the Executive or the Executive’s spouse, as applicable, on an annual basis. Alternatively, the Executive and/or the Executive’s spouse may secure a resource of his/her choosing to assist in reviewing, evaluating and securing health care coverage.

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  3.	A new Appendix A is hereby inserted into the Agreement after the signature page and shall read as follows:

  The Payment described in Section 4.5.3 of the Agreement will be based on the annual cost of (a) individual market coverage (for clarification purposes, this shall include medical insurance coverage, prescription medicine coverage, dental insurance coverage and vision insurance coverage) elected by the Executive and the Executive’s spouse, and once each becomes Medicare-eligible, the cost of their Medicare supplemental coverage (inclusive of Part B premiums), (b) the cost of the annual membership fee to join a physician group, described at times as “concierge medicine” or “membership medicine,” (c) seventy-five percent (75%) of the out-of-pocket costs not covered by the policies contemplated under (a) (including but not limited to deductibles, copayments and coinsurance for those items covered by a medical, prescription drug, dental or vision plan) as well as other health care expenses for services that are medically necessary but are excluded from coverage by the individual market plan or by Medicare (inclusive of medical, prescription drug, dental or vision expenses) (for the avoidance of doubt, the Executive or Executive’s spouse shall pay the remaining twenty-five percent (25%) of such costs), and (d) the cost of any third-party resource retained by the Executive and/or the Executive’s spouse to assist them in reviewing, evaluating and securing such healthcare coverage and to manage payments and act as advocates on claims for the Executive and/or the Executive’s spouse; provided, that in no event shall the amount of the Payment by the Company exceed $150,000 per year, subject to the increase for inflation described below. For item (c) above, health care expenses that are excluded from coverage by the individual market plan or by Medicare should be substantiated with an explanation of benefits (EOB) or other document from the insurer stating the expense is not covered under the terms of the applicable plan, where possible without negative impact to the Executive and/or the Executive’s spouse. Starting for calendar 2023, such $150,000 Payment limit shall be increased automatically by three percent (3%) once for every five (5) year period that the Payment is in effect for the Executive and/or the Executive’s spouse.

   

  By October 15th of each year, the Executive and/or his spouse shall notify the Company of the coverage they have elected for the following year or request the assistance of the Company resource in choosing such coverage. The Company will then make the payment of the Payment in two installments. The first installment, which will equal to the annual cost of the items described in subsections (a), (b), and (d) above, will be made by February 1st of each year, provided that the Executive and/or his spouse have provided documentation of such expenses by January 10th of that year. If receipt of such documentation is delayed, the first installment of the Payment will be equally delayed. The second installment of the Payment will cover any expenses covered under subsection (c) above and will be paid by the Company on or before December 31st of each year provided that the Executive or his spouse has delivered supporting documentation (including an Explanation of Benefits from Medicare or the individual market coverage as well as the document showing the substantiation described above) of 

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  such expenses on or before December 1st of that year. Again, if receipt of such documentation is delayed, the second installment of the Payment will be equally delayed. The Company will issue a Form 1099 to the Executive and/or his spouse on an annual basis covering the Payment made during each calendar year.

    

  Receipt of the Payment is not conditioned on the Executive and his spouse agreeing to use the Payment to purchase health insurance or certifying or substantiating that they have done so. The amount of the Payment for any year shall not affect the amount of the Payment for a subsequent year, and the right to payment of the Payment shall not be subject to liquidation or exchange for any other benefit.

   

  4.	Any provisions in the Agreement not revised herein remain in full force and effect.

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  	IN WITNESS WHEREOF, this Addendum has been executed on behalf of the Company and the Principal Subsidiary by their respective duly authorized representatives and by the Executive, as of the date first above written.

   

   

  THE COMPANY:					DOMINO’S PIZZA, INC.

   

   

  By:___/s/ David A. Brandon______
Name:  David A. Brandon
Title:  Chairman 

   

  PRINCIPAL SUBSIDIARY:			DOMINO’S PIZZA LLC

   

   

  By:____/s/ Lisa V. Price_________
Name:  Lisa V. Price
Title:  Chief Human Resources Officer

   

   

  THE EXECUTIVE:					___/s/ Richard E. Allison, Jr.______

  Name:  Richard E. Allison, Jr.

   

   

   

  4EX-10.6

  Exhibit 10.6

   

  		
	Name:
	[●]

	Number of RSUs subject to Award:
	[●]

	Date of Grant:
	[●]

   

  DOMINO’S PIZZA, INC.

  2004 EQUITY INCENTIVE PLAN

  RESTRICTED STOCK UNIT AWARD AGREEMENT

   

  This agreement (including any exhibits hereto, this “Agreement”) evidences an award (this “Award”) of restricted stock units (the “RSUs”) granted by Domino’s Pizza, Inc. (the “Company”) to the undersigned (the “Participant”) pursuant and subject to the terms and conditions of the Domino’s Pizza, Inc. 2004 Equity Incentive Plan (as amended from time to time, the “Plan”), which is incorporated herein by reference.  Except as otherwise defined herein, all capitalized terms used herein have the same meaning as in the Plan.

   

  1.RSU Award.  The Company grants to the Participant on the date set forth above (the “Date of Grant”) the number of restricted stock units (the “Restricted Stock Units”) set forth above giving the Participant the conditional right to receive, without payment and pursuant to and subject to the terms and conditions set forth in this Agreement and in the Plan, one share of Stock with respect to each resulting Restricted Stock Unit that becomes vested pursuant to this Award, subject to adjustment pursuant to Section 7 of the Plan in respect of transactions occurring after the date hereof.   

   

  2.Vesting Conditions.  The RSUs shall vest as provided for in Exhibit A hereto.

  3.Delivery of Shares; Settlement of Award.

   

  (a)In General.  The Company shall, as soon as practicable and in all events no later than thirty (30) days following the applicable Settlement Date, transfer to the Participant (or, in the event of the Participant’s death, to the person to whom this Award has passed by will or the laws of descent and distribution) the number of shares of Stock that equals the vested portion of this Award.  No shares of Stock will be transferred pursuant to this Award unless and until all legal requirements applicable to the issuance or transfer of such shares have been satisfied. 

  (b)Settlement Date.  For purposes of this Agreement, “Settlement Date” means the date on or following and by reference to which any vested RSUs subject to this Award are to be settled, if at all, in whole or in part, through the delivery of shares of Stock, as set forth below:  

  (i)Other than in the event of a Covered Transaction (as defined in the Plan), the Settlement Date for the First RSU Tranche (as defined in Exhibit A) shall be the First Scheduled Vesting Date (as defined in Exhibit A), the Settlement Date for the Second RSU Tranche (as defined in Exhibit A) 

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  Exhibit 10.6

  shall be the Second Scheduled Vesting Date (as defined in Exhibit A) and the Settlement Date for the Third RSU Tranche (as defined in Exhibit A) shall be the Third Scheduled Vesting Date (as defined in Exhibit A). 

  (ii)In the event of a Covered Transaction, the Settlement Date shall be the date of consummation of the Covered Transaction, with the Company transferring shares of Stock underlying the RSUs immediately prior to the consummation of such Covered Transaction; provided that if the Covered Transaction does not meet the requirements for a “change in control event,” as that term is defined in Treasury Regulations § 1.409A–3(i)(5)(i), the Settlement Date for any portion of this Award that is subject to, and not exempt from, the applicable requirements of Section 409A (the “409A Award Portion”) shall be the Scheduled Vesting Date (as defined in Exhibit A) applicable to the 409A Award Portion.

  (iii)Notwithstanding anything to the contrary in this Agreement, if the Participant is determined to be a “specified employee” within the meaning of Section 409A and the Treasury regulations thereunder, as determined by the Company, at the time of the Participant’s “separation from service” within the meaning of Section 409A and the Treasury regulations thereunder (after giving effect to the presumptions contained therein), then to the extent necessary to prevent any accelerated or additional tax under Section 409A, the settlement and delivery of any shares of Stock hereunder upon such separation from service will be delayed until the earlier of:  (a) the date that is six months and one day following the Participant’s separation from service and (b) the Participant’s death.  

  4.Forfeiture; Recovery of Compensation.

   

  The Administrator may cancel, rescind, withhold or otherwise limit or restrict this Award at any time if the Participant is not in compliance with all applicable provisions of this Agreement and the Plan.  By accepting this Award, the Participant expressly acknowledges and agrees that his or her rights under this Award, and those of any permitted transferee of this Award, including the right to any shares of Stock acquired under this Award or proceeds from the disposition thereof, are subject to any applicable clawback or incentive compensation recovery policy of the Company as may be in effect from time to time.  Nothing in the preceding sentence shall be construed as limiting the general application of Section 10 of this Agreement.

   

  5.Dividends; Other Rights.

   

  This Award shall not be interpreted to bestow upon the Participant any equity interest or ownership in the Company or any Affiliate prior to the date on which the Company delivers shares of Stock (if any) to the Participant.  The Participant is not entitled to vote any shares of Stock by reason of the granting of this Award, and the Participant shall have the rights of a shareholder only as to those shares of Stock, if any, that are actually delivered under this Award.  Notwithstanding the foregoing, upon the delivery of any shares of Stock in respect of any vested RSUs subject hereto, the Participant shall be entitled to a cash payment by the Company in an 

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  Exhibit 10.6

  amount equal to the amount that the Participant would have received, if any, as a regular cash dividend had the Participant held such shares of Stock from the Date of Grant to the date such shares of Stock are delivered hereunder, less all applicable taxes and withholding obligations. Any such payment shall be paid, if at all, without interest on the date such shares of Stock are delivered hereunder.

   

  6.Certain Tax Matters.

   

  The Participant expressly acknowledges that because this Award consists of an unfunded and unsecured promise by the Company to deliver Stock in the future, subject to the terms hereof, it is not possible to make a so-called “83(b) election” with respect to this Award.  This Award is intended to be exempt from, or comply with, Section 409A and shall be construed by the Administrator accordingly.  Notwithstanding the preceding, neither the Company, nor any Affiliate, nor the Administrator, nor any person acting on behalf of any of them, shall be liable to the Participant by reason of any acceleration of income, or any tax or additional tax, asserted (A) by reason of any failure of this Award or any portion thereof to satisfy the requirements for exemption from, or compliance with, Section 409A or (B) by reason of Section 4999 of the Code.  All references to “Section 409A” in this Agreement shall be references to Section 409A of the Code, the Treasury Regulations promulgated thereunder and such other guidance as determined by the Company in its sole discretion.

   

  7.Withholding.  The Participant shall pay to the Company, or make provision satisfactory to the Company for payment of, any taxes required by law to be withheld in connection with the vesting and/or settlement of the RSUs (including, without limitation, any amount that is treated as “wages” for FICA/FUTA or Medicare tax purposes on a current basis rather than when distributed).  The Administrator may, in its sole discretion, require that a portion of the shares of Stock that would have otherwise been delivered to the Participant upon vesting and settlement of the RSUs be sold by the Participant or retained by the Company to satisfy any applicable federal, state or local income, employment or other tax withholding and payment obligations, or in the case of any such taxes due upon vesting and prior to delivery of shares of Stock hereunder that the number of shares subject to this Award may be reduced to satisfy such tax withholding and payment obligations (but, with respect to any amounts constituting deferred compensation subject to Section 409A, as determined by the Company in its sole discretion, not in excess of amounts permitted to be accelerated by Section 409A including Treasury Regulation Section 1.409A-3(j)(4)(vi)).  The Company and its Affiliates may, to the extent permitted by law, deduct any unsatisfied tax obligations from any payment of any kind otherwise due to the Participant.  

   

  8.Transfer of Award.

   

  This Award may not be transferred except as expressly permitted under Section 6(a)(4) of the Plan. 

   

  9.Effect on Employment.

   

  This Agreement is not a contract of employment between the Company (or any Subsidiary) and the Participant.  The Participant retains the right to terminate his or her 

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  Exhibit 10.6

  employment with the Company (or one of its Subsidiaries, as applicable), and the Company (and its Subsidiaries as applicable) retains the right to terminate or modify the terms of the Participant’s employment, subject to any rights retained by either party under the Participant’s employment agreement, if Participant has an employment agreement, and no loss of rights, contingent or otherwise, under this Agreement upon termination of employment shall be claimed by the Participant as an element of damages in any dispute over such termination of employment.

   

  10.Provisions of the Plan.

   

  This Agreement is subject in its entirety to the provisions of the Plan, which are incorporated herein by reference.  A copy of the Plan as in effect on the Date of Grant has been furnished to the Participant.  By accepting all or any part of this Award, the Participant agrees to be bound by the terms of the Plan and this Agreement.  In the event of any conflict between the terms of this Agreement and the Plan, the terms of the Plan shall control (except as otherwise expressly provided herein).

   

  11.Acknowledgements.

   

  The Participant acknowledges and agrees that (i) this Agreement may be executed in two or more counterparts, each of which shall be an original and all of which together shall constitute one and the same instrument, (ii) this agreement may be executed and exchanged using facsimile, portable document format (PDF) or electronic signature, which, in each case, shall constitute an original signature for all purposes hereunder and (iii) such signature by the Company will be binding against the Company and will create a legally binding agreement when this Agreement is countersigned by the Participant.

   

  [Signature page follows.]

   

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  IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized officer.

   

  DOMINO’S PIZZA, INC.

   

  ______________________________

  Name:	Richard E. Allison, Jr.

  Title:	Chief Executive Officer

   

  Dated: 

   

  Acknowledged and Agreed:

   

   

  By:  _______________________________________ 

  [●]

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