Document:

Exhibit 10.19

 

Execution Version

 

AMENDMENT NO. 1
 TO
 ABL CREDIT AGREEMENT

 

This Amendment No. 1 to ABL Credit Agreement, dated as of June 28, 2013 (this “Amendment”), is entered into by and among HD SUPPLY, INC., a Delaware corporation (“HD Supply” or “Parent Borrower”), the other Borrowers party hereto, the Lenders party hereto, GENERAL ELECTRIC CAPITAL CORPORATION (“GECC”), as Administrative Agent and U.S. ABL Collateral Agent, and GE CANADA FINANCE HOLDING COMPANY (“GE Canada”), as Canadian Agent and Canadian Collateral Agent.

 

RECITALS

 

WHEREAS, the Parent Borrower, the other Borrowers party thereto, the Administrative Agent, the other Agents party thereto and the Lenders are parties to that certain ABL Credit Agreement, dated as of April 12, 2012 (as amended or otherwise modified to date, as amended hereby and as it may be from time to time hereafter amended, restated or otherwise modified from time to time, the “Credit Agreement”).

 

WHEREAS, the Parent Borrower and the Borrowers have requested that the Administrative Agent and Lenders agree to certain amendments to the Credit Agreement, all as and to the extent, and solely as and to the extent, set forth in this Amendment and subject to the terms and conditions set forth in this Amendment.

 

WHEREAS, the Administrative Agent and the Lenders party hereto are willing to so amend the Credit Agreement as and to the extent, and solely as and to the extent, and subject to the terms and conditions set forth in this Amendment.

 

WHEREAS, this Amendment shall constitute a Loan Document and these Recitals shall be construed as part of this Amendment.

 

NOW THEREFORE, in consideration of the premises and the mutual covenants hereinafter contained, and of the Loans and other extensions of credit heretofore, now or hereafter made to, or for the benefit of, the Borrowers by the Lenders, the Borrowers, the other Loan Parties, the Administrative Agent, the other Agents and the Lenders hereby agree as follows:

 

1.                                      Concurrent with the closing of the Amendment, the following titles and roles shall be in place:

 

 

GENERAL ELECTRIC CAPITAL CORPORATION,
 as Administrative Agent and U.S. ABL Collateral Agent

 

WELLS FARGO SECURITIES, 
 as Syndication Agent

 

BANK OF AMERICA MERRILL LYNCH
 BARCLAYS BANK PLC
 GOLDMAN SACHS BANK USA
 JPMORGAN CHASE BANK, N.A.
 CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH
 DEUTSCHE BANK AG, NEW YORK, NY BRANCH
 UBS SECURITIES LLC
 CITIBANK, N.A.,
 as Co-Documentation Agents

 

JPMORGAN CHASE BANK, N.A.,
 as Issuing Lender

 

GE CANADA FINANCE HOLDING COMPANY,
 as Canadian Agent and Canadian Collateral Agent,

 

GE CAPITAL MARKETS, INC.
 WELLS FARGO SECURITIES,
 as Joint Lead Arrangers and Joint Bookrunning Managers,

 

BANK OF AMERICA MERRILL LYNCH
 BARCLAYS BANK PLC
 GOLDMAN SACHS BANK USA
 JPMORGAN CHASE BANK, N.A.
 CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH
 DEUTSCHE BANK AG, NEW YORK, NY BRANCH
 UBS SECURITIES LLC
 CITIGROUP GLOBAL MARKETS INC.,
 as Joint Bookrunning Managers

 

2

 

2.                                      Definitions. Except to the extent otherwise specified herein, capitalized terms used in this Amendment shall have the same meanings ascribed to them in the Credit Agreement (as amended hereby).

 

3.                                      Amendments.

 

3.1                               Each Lender signatory hereto that (a) is a current Lender under the Credit Agreement consents to its U.S. Facility Commitment and/or Canadian Facility Commitment, upon the effectiveness of this Amendment, being equal to the applicable amount set forth on Schedule A hereto under the heading “New Commitment” and (b) is not a current Lender under the Credit Agreement agrees that it shall, upon the effectiveness of this Amendment, become a Lender under the Credit Agreement having a U.S. Facility Commitment and/or Canadian Facility Commitment equal to the applicable amount set forth on Schedule A hereto under the heading “New Commitment” and shall be bound by all of the terms and conditions of the Credit Agreement and each other Loan Document applicable to the Lenders. To the extent that the new U.S. Facility Commitment and/or Canadian Facility Commitment of any Lender signatory hereto is not equal to its existing U.S. Facility Commitment and/or Canadian Facility Commitment under the Credit Agreement, such increase or decrease of the applicable Commitment amount shall be effectuated by means of an assignment of Commitments in accordance with the provisions of Section 11.6(g) of the Credit Agreement, without the need for any other documentation to effectuate such assignments. The Administrative Agent and Canadian Agent shall effectuate such assignments, as applicable, among the current Lenders and new Lenders, including by sending funding notices to the relevant current and new Lenders. The Lenders party hereto hereby waive the three-Business Day advance notice required pursuant to Section 11.6(g).

 

3.2                               Section 1.1 of the Credit Agreement is amended by amending and restating the pricing grid in the definition of “Applicable Margin” in its entirety to read as follows:

 

	
Level
    	
 
    	
Average
   Excess
   Availability
    	
 
    	
ABR
    	
 
    	
Applicable
   Margin
   Adjusted
   LIBOR
    	
 
    	
Canadian
   Prime Rate
    	
 
    	
BA Rate
    	
 
    
	
I
    	
 
    	
Greater than $750.0 million
    	
 
    	
0.50
    	
%
    	
1.50
    	
%
    	
0.50
    	
%
    	
1.50
    	
%
    
	
II
    	
 
    	
Less than or equal to $750.0 million but   greater than $400.0 million
    	
 
    	
0.75
    	
%
    	
1.75
    	
%
    	
0.75
    	
%
    	
1.75
    	
%
    

 

3

 

	
Level
    	
 
    	
Average
   Excess
   Availability
    	
 
    	
ABR
    	
 
    	
Applicable
   Margin
   Adjusted
   LIBOR
    	
 
    	
Canadian
   Prime Rate
    	
 
    	
BA Rate
    	
 
    
	
III
    	
 
    	
Less than or equal to $400.0 million
    	
 
    	
1.00
    	
%
    	
2.00
    	
%
    	
1.00
    	
%
    	
2.00
    	
%
    

 

3.3                               Section 1.1 of the Credit Agreement is amended by amending and restating the pricing grid in the definition of “Commitment Fee Percentage” in its entirety to read as follows:

 

	
Level
    	
 
    	
Average Daily Used
   Percentage
    	
 
    	
Commitment Fee Rate
    	
 
    
	
I
    	
 
    	
Less than 50%
    	
 
    	
0.375
    	
%
    
	
II
    	
 
    	
Greater than or equal to 50%
    	
 
    	
0.25
    	
%
    

 

3.4                               Section 1.1 of the Credit Agreement is amended by amending and restating clause (vii) of the definition of “Eligible Inventory” in its entirety to read as follows:

 

“(vii) that consists of goods which have been returned by the buyer, other than goods that are undamaged or that are resaleable in the normal course of business, and other than any other returned goods which are deemed saleable following an appraisal of such goods, including inventory appraisals conducted from time to time hereunder in accordance with the terms of this Agreement;”.

 

3.5                               Section 1.1 of the Credit Agreement is amended by amending the definition of “Eligible Inventory” by deleting the word “or” at the end of clause (xii), by deleting the period (“.”) at the end of clause (xiii) and replacing it with a semicolon (“;”), and by adding a new clause (xiv) as set forth below:

 

“or (xiv) that is located on premises owned, leased or rented by a Person that is not a Loan Party unless the Loan Parties have delivered to the Administrative Agent an agreement reasonably satisfactory in form and substance to the 

 

4

 

Administrative Agent executed by the Person owning, leasing or renting any such location pursuant to which such Person waives or subordinates any Lien it may have on such Inventory, and agrees to permit the U.S. ABL Collateral Agent or the Canadian Collateral Agent, as applicable, to enter upon the premises and remove such Inventory or to use the premises for an agreed upon period of time to process, store and/or dispose of such Inventory; provided that Inventory having an aggregate book value less than or equal to 3.0% of the Borrowing Base as then in effect (based on the Borrowing Base Certificate last delivered) shall not be excluded in any event pursuant to this clause (xiv).”

 

3.6                               Section 1.1 of the Credit Agreement is amended by amending and restating the definition of “Maturity Date” in its entirety to read as follows:

 

“Maturity Date”: the earlier of (i) June 28, 2018 and (ii) if obligations under the Cash Flow Facility remain outstanding prior to June 28, 2018, the maturity date (as may be extended and further extended from time to time) of the Cash Flow Facility under the Cash Flow Credit Agreement.”

 

3.7                               Section 3.1(a) of the Credit Agreement is amended by deleting the dollar figure “$400.0 million” from clause (ii) of the proviso of the first sentence thereof and replacing it with the dollar figure “$250.0 million”.

 

4.                                      Representations and Warranties of the Borrowers.  The Borrowers, jointly and severally, hereby represent and warrant to the Administrative Agent and the Lenders, as of the date of this Amendment and as of the effective date of this Amendment, that:

 

4.1                               The execution, delivery and performance by each Borrower of this Amendment have been duly authorized by all necessary corporate, limited liability company or other constituent document action, and this Amendment constitutes the legal, valid and binding obligation of each Borrower enforceable against each such Borrower 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).

 

4.2                               Each of the execution, delivery and performance of this Amendment by each Borrower (a) will not violate any Requirement of Law or Contractual Obligation of such Borrower in any respect that would reasonably be expected to have a Material Adverse Effect and (b) will not result in, or require, the creation or imposition of any Lien (other than Permitted Liens) on any of its properties or revenues pursuant to any such Requirement of Law or Contractual Obligation.

 

5

 

4.3                               No Default or Event of Default has occurred and is continuing under the Credit Agreement or any other Loan Document or would result from the execution and delivery of this Amendment. In addition, each Borrower hereby represents, warrants and reaffirms that the Credit Agreement and each of the other Loan Documents remains in full force and effect.

 

5.                                      Conditions Precedent to Effectiveness.  The effectiveness of the amendments and other agreements set forth in Section 3 hereof are subject in each instance to the satisfaction or waiver of each of the following conditions precedent, each in a manner reasonably satisfactory to the Administrative Agent:

 

5.1                               Amendment.  This Amendment shall have been duly executed and delivered by each Borrower, each Agent and each Lender.

 

5.2                               No Default.  No Default or Event of Default shall have occurred and be continuing or would result from the effectiveness of this Amendment.

 

5.3                               Reaffirmations by Guarantors.  The U.S. Subsidiary Guarantors and the Canadian Subsidiary Guarantors shall have reaffirmed their obligations under the U.S. Guarantee and Collateral Agreement and the Canadian Guarantee and Collateral Agreement, respectively, in each instance after giving effect to this Amendment, pursuant to written reaffirmations which are reasonably acceptable to the Administrative Agent and Canadian Agent, respectively.

 

5.4                               Legal Opinion.  The Administrative Agent shall have received an opinion of counsel to the Borrowers as to enforceability of this Amendment in form and substance reasonably satisfactory to the Administrative Agent.

 

6.                                      Reference to and Effect Upon the Credit Agreement and other Loan Documents.

 

6.1                               Full Force and Effect.  Except as specifically provided herein, the Credit Agreement and each other Loan Document shall remain in full force and effect and each is hereby ratified and confirmed by each Borrower. The Borrowers hereby confirm that each Loan Document and all Collateral encumbered thereby will continue to guarantee or secure, as the case may be, to the fullest extent possible in accordance with the Loan Documents the payment and performance of all “Obligations” under each of the Loan Documents (in each case as such terms are defined in the applicable Loan Document).

 

6.2                               No Waiver.  The execution, delivery and effect of this Amendment shall be limited precisely as written and shall not, except as specifically provided herein, be deemed to (a) be a consent to any waiver of any term or condition, or to any amendment or modification of any term or condition of the Credit Agreement or any other Loan Document or (b) prejudice any right, power or remedy which any Agent or any Lender now has or may have in the future under or in connection with the Credit Agreement or any other Loan Document.

 

6

 

6.3                               Certain Terms.  Each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof’, “herein” or any other word or words of similar import shall mean and be a reference to the Credit Agreement as amended hereby, and each reference in any other Loan Document to the Credit Agreement or any word or words of similar import shall be and mean a reference to the Credit Agreement as amended hereby.

 

7.                                      Counterparts. This Amendment may be executed in any number of counterparts, each of which when so executed shall be deemed an original but all such counterparts shall constitute one and the same instrument. Delivery of an executed counterpart of a signature page to this Amendment by telecopier or “pdf’ shall be as effective as delivery of a manually executed counterpart signature page to this Amendment.

 

8.                                      GOVERNING LAW.  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.

 

9.                                      Headings.  Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.

 

[Signature Pages Follow]

 

7

 

IN WITNESS WHEREOF, this Amendment has been duly executed as of the date first written above.

 

 

	
 
    	
BORROWERS:
    
	
 
    	
 
    
	
 
    	
HD   SUPPLY INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Ricardo Nunez
    
	
 
    	
Name:   Ricardo Nunez
    	
 
    
	
 
    	
Title:   Senior Vice President, General Counsel and Corporate Secretary
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
HD   SUPPLY CANADA INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Ricardo Nunez
    
	
 
    	
Name:   Ricardo Nunez
    	
 
    
	
 
    	
Title:   Vice President and Secretary
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
HD   SUPPLY POWER SOLUTIONS, LTD.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By   HD Supply GP & Management, Inc., as its general partner
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Ricardo Nunez
    
	
 
    	
Name:   Ricardo Nunez
    	
 
    
	
 
    	
Title:   Vice President and Secretary
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
HD   SUPPLY WATERWORKS, LTD.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By   HD Supply GP & Management, Inc., as its general partner
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Ricardo Nunez
    
	
 
    	
Name:   Ricardo Nunez
    	
 
    
	
 
    	
Title:   Vice President and Secretary
    
				

 

 

	
 
    	
HD   SUPPLY FACILITIES MAINTENANCE, LTD.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By   HD Supply GP & Management, Inc., as its general partner
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Ricardo Nunez
    
	
 
    	
Name:   Ricardo Nunez
    	
 
    
	
 
    	
Title:   Vice President and Secretary
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
HD   SUPPLY CONSTRUCTION SUPPLY, LTD.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By   HD Supply GP & Management, Inc., as its general partner
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Ricardo Nunez
    
	
 
    	
Name:   Ricardo Nunez
    	
 
    
	
 
    	
Title:   Vice President and Secretary
    
				

 

 

	
 
    	
GENERAL   ELECTRIC CAPITAL CORPORATION,
    
	
 
    	
as   Administrative Agent and U.S. ABL Collateral Agent
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Steven Flowers
    
	
 
    	
Name:   Steven Flowers
    	
 
    
	
 
    	
Title:   Duly Authorized Signatory
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
GE   CANADA FINANCE HOLDING COMPANY,
    
	
 
    	
as   Canadian Agent and Canadian Collateral Agent
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Italo Fortino
    
	
 
    	
Name:
    	
Italo   Fortino
    
	
 
    	
Title:   Duly Authorized Signatory
    	
 
    
						

 

 

	
 
    	
Bank   of America, N.A.,
   in its capacity as a Joint Bookrunning Manager,
   Co-Documentation Agent,
   and as a U.S. Facility Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Andrew A Doherty
    
	
 
    	
Name:   Andrew A Doherty
    	
 
    
	
 
    	
Title:   Senior Vice President
    
				

 

 

	
 
    	
Bank   of America, N.A., (acting through its Canada branch) as a Canadian Facility   Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Medina Sales de Andrade
    
	
 
    	
Name:   Medina Sales de Andrade
    	
 
    
	
 
    	
Title:   Vice President
    
				

 

 

	
 
    	
Barclays   Bank PLC,
   as a U.S. Facility Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Sreedhar Kona
    
	
 
    	
Name:   Sreedhar Kona
    	
 
    
	
 
    	
Title:   Vice President
    
				

 

 

	
 
    	
Barclays   Bank PLC,
   as a Canadian Facility Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Sreedhar Kona
    
	
 
    	
Name:   Sreedhar Kona
    	
 
    
	
 
    	
Title:   Vice President
    
				

 

 

	
 
    	
JPMorgan   Chase Bank, N.A.,
   as a U.S. Facility Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Peter S. Predun
    
	
 
    	
Name:   Peter S. Predun
    	
 
    
	
 
    	
Title:   Executive Director
    
				

 

 

	
 
    	
JPMorgan   Chase Bank, Toronto Branch,
   as a Canadian Facility Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Peter S. Predun
    
	
 
    	
Name:   Peter S. Predun
    	
 
    
	
 
    	
Title:   Executive Director
    
				

 

 

	
 
    	
WELLS   FARGO BANK, NA,
   as a U.S. Facility Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Nima Rassouli
    
	
 
    	
Name:   Nima Rassouli
    	
 
    
	
 
    	
Title:   Authorized Signatory
    
				

 

 

	
 
    	
WELLS   FARGO CAPITAL FINANCE CORPORATION CANADA
   as a Canadian Facility Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Domenic Cosentino
    
	
 
    	
Name:   
    	
Domenic   Cosentino
    
	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    	
Wells   Fargo Capital Finance
    
	
 
    	
 
    	
Corporation   Canada
    

 

 

	
 
    	
CREDIT   SUISSE AG, CAYMAN ISLANDS BRANCH,
   as a U.S. Facility Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   William O’Daly
    
	
 
    	
Name:   
    	
William   O’Daly
    
	
 
    	
Title:
    	
Authorized   Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Philipp Horat
    
	
 
    	
Name:   
    	
Philipp   Horat
    
	
 
    	
Title:
    	
Authorized   Signatory
    

 

 

	
 
    	
CREDIT   SUISSE AG, CAYMAN ISLANDS BRANCH,
   as a Canadian Facility Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   William O’Daly
    
	
 
    	
Name:   
    	
William   O’Daly
    
	
 
    	
Title:
    	
Authorized   Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Philipp Horat
    
	
 
    	
Name:   
    	
Philipp   Horat
    
	
 
    	
Title:
    	
Authorized   Signatory
    

 

 

	
 
    	
Citibank,   N.A.,
   as a U.S. Facility Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   K. Kelly Gunness
    
	
 
    	
Name:   
    	
K.   Kelly Gunness
    
	
 
    	
Title:
    	
Vice   President
    

 

 

	
 
    	
Citibank,   N.A., Canadian branch,
   as a Canadian Facility Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Niyousha Zarinpour
    
	
 
    	
Name:   
    	
Niyousha   Zarinpour
    
	
 
    	
Title:
    	
Authorized   Signer
    

 

 

	
 
    	
DEUTSCHE   BANK AG NEW YORK BRANCH,
   as a U.S. Facility Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael Getz
    
	
 
    	
Name:   
    	
Michael   Getz
    
	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Marcus M. Parkington
    
	
 
    	
Name:   
    	
Marcus   M. Parkington
    
	
 
    	
Title:
    	
Director
    

 

 

	
 
    	
DEUTSCHE   BANK AG CANADA BRANCH,
   as a Canadian Facility Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Paul M. Junst
    
	
 
    	
Name:   
    	
Paul   M. Junst
    
	
 
    	
Title:
    	
Managing   Director & Principal Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   R. Engel
    
	
 
    	
Name:   
    	
R.   Engel
    
	
 
    	
Title:
    	
Assistant   Vice President
    

 

 

	
 
    	
UBS   Loan Finance LLC,
   as a U.S. Facility Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Joselin Fernandes
    
	
 
    	
Name:   
    	
Joselin   Fernandes
    
	
 
    	
Title:
    	
Associate   Director
    
	
 
    	
 
    	
Banking   Products Services, US
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   David Urban
    
	
 
    	
Name:   
    	
David   Urban
    
	
 
    	
Title:
    	
Associate   Director
    
	
 
    	
 
    	
Banking   Products Services, US
    

 

 

	
 
    	
UBS   Loan Finance LLC,
   as a Canadian Facility Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Joselin Fernandes
    
	
 
    	
Name:   
    	
Joselin   Fernandes
    
	
 
    	
Title:
    	
Associate   Director
    
	
 
    	
 
    	
Banking   Products Services, US
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   David Urban
    
	
 
    	
Name:   
    	
David   Urban
    
	
 
    	
Title:
    	
Associate   Director
    
	
 
    	
 
    	
Banking   Products Services, US
    

 

 

	
 
    	
Goldman   Sachs Bank USA,
   as a U.S. Facility Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Mark Walton
    
	
 
    	
Name:   
    	
Mark   Walton
    
	
 
    	
Title:
    	
Authorized   Signatory
    

 

 

	
 
    	
Goldman   Sachs Bank USA,
   as a Canadian Facility Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Mark Walton
    
	
 
    	
Name:   
    	
Mark   Walton
    
	
 
    	
Title:
    	
Authorized   Signatory
    

 

 

	
 
    	
PNC   BANK, NATIONAL ASSOCIATION
   as a U.S. Facility Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   D. Allison Rivera
    
	
 
    	
Name:   
    	
D.   Allison Rivera
    
	
 
    	
Title:
    	
Vice   President
    

 

 

	
 
    	
PNC   BANK, CANADA BRANCH,
   as a Canadian Facility Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Mike Danby
    
	
 
    	
Name:   
    	
Mike   Danby
    
	
 
    	
Title:
    	
Assistant   Vice President
    

 

 

	
 
    	
SunTrust   Bank,
   as a U.S. Facility Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Sandra M. Salazar
    
	
 
    	
Name:   
    	
Sandra   M. Salazar
    
	
 
    	
Title:
    	
Vice   President
    

 

 

	
 
    	
U.S.   Bank National Association,
   as a U.S. Facility Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Matthew Kasper
    
	
 
    	
Name:   
    	
Matthew   Kasper
    
	
 
    	
Title:
    	
Vice   President
    

 

 

	
 
    	
U.S.   Bank, N.A., Canada Branch,
   as a Canadian Facility Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Joseph Rauhala
    
	
 
    	
Name:   
    	
Joseph   Rauhala
    
	
 
    	
Title:
    	
Principal   Officer
    

 

 

	
 
    	
CITY   NATIONAL BANK, A NATIONAL BANKING ASSOCIATION,
   as a U.S. Facility Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Brent Phillips
    
	
 
    	
Name:   
    	
Brent   Phillips
    
	
 
    	
Title:
    	
Vice   President
    

 

 

	
 
    	
CITY   NATIONAL BANK, A NATIONAL BANKING ASSOCIATION,
   as a Canadian Facility Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Brent Phillips
    
	
 
    	
Name:   
    	
Brent   Phillips
    
	
 
    	
Title:
    	
Vice   President
    

 

 

	
 
    	
UPS   Capital Corporation,
   as a U.S. Facility Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   William H. Talbot
    
	
 
    	
Name:   
    	
William   H. Talbot
    
	
 
    	
Title:
    	
Director   of Portfolio
    

 

 

Schedule A:  Commitments and Addresses

 

U.S. Facility

 

	
Lender
    	
 
    	
Address
    	
 
    	
Commitment
    	
 
    
	
General Electric Capital Corporation
    	
 
    	
General Electric Capital Corporation
   299 Park Avenue
   New York, New York 10171
   Attention: HD Supply Account Manager
   Facsimile: (646) 428-7099
    	
 
    	
$
    	
322,475,488.57
    	
 
    
	
Bank of America, N.A.
    	
 
    	
Bank of America, N.A.
   300 Galleria Pkwy, Ste 800
   Atlanta, GA 30339
   Facsimile: 312-453-4665
    	
 
    	
$
    	
131,355,015.67
    	
 
    
	
Barclays Bank PLC
    	
 
    	
Barclays Bank PLC
   745 7th Avenue
   New York, NY, 10019 USA
   Facsimile: 212-526-5115
    	
 
    	
$
    	
131,355,015.67
    	
 
    
	
JPMorgan Chase Bank, N.A.
    	
 
    	
JPMorgan Chase
   JPM-Delaware Loan Operations
   500 Stanton Christiana Road, Ops 2/3
   Newark DE 19713
   Facsimile: 201-244-3885
    	
 
    	
$
    	
131,355,015.67
    	
 
    
	
Wells Fargo Bank, NA
    	
 
    	
Wells Fargo Bank, NA
   2450 Colorado Ave.
   Suite 3000W
   Santa Monica, CA 90404
   Facsimile: 866-615-7803
    	
 
    	
$
    	
131,355,015.67
    	
 
    
	
Credit Suisse AG, Cayman Islands Branch
    	
 
    	
Credit Suisse AG
   Eleven Madison Avenue
   New York, NY 10010
   Facsimile: 212-743-2254
    	
 
    	
$
    	
61,485,326.49
    	
 
    
	
Citibank, N.A.
    	
 
    	
Citibank, N.A.
   388 Greenwich Street, 17th Floor
   New York, NY 10013
   Facsimile:
    	
 
    	
$
    	
60,625,391.85
    	
 
    
	
Deutsche Bank AG   New York Branch
    	
 
    	
Deutsche Bank AG
   60 Wall Street
   New York, NY 10005
   Facsimile: 646-863-9256
    	
 
    	
$
    	
60,625,391.85
    	
 
    

 

 

	
Lender
    	
 
    	
Address
    	
 
    	
Commitment
    	
 
    
	
UBS Loan Finance LLC
    	
 
    	
UBS Loan Finance LLC
   677 Washington Blvd.
   Stamford, CT 06901
   Facsimile: 203-719-3888
    	
 
    	
$
    	
60,625,391.85
    	
 
    
	
Goldman Sachs Bank USA
    	
 
    	
Goldman Sachs Bank USA
   200 West Street
   New York, NY 10282
   Facsimile: (917)977-3966
    	
 
    	
$
    	
40,416,927.90
    	
 
    
	
PNC Bank, National Association
    	
 
    	
PNC Bank, National Association
   4720 Piedmont Row Drive
   Suite 300,
   Charlotte, NC 28210
   Facsimile: 704-634-7918
    	
 
    	
$
    	
40,416,927.90
    	
 
    
	
SunTrust Bank
    	
 
    	
SunTrust Bank
   303 Peachtree Street, 23rd Fl.
   Atlanta, GA 30308
   Facsimile: 404-859-3792
    	
 
    	
$
    	
47,000,000.00
    	
 
    
	
U.S. Bank National Association
    	
 
    	
U.S. Bank National Association
   425 Walnut Street, 14th Fl.,
   CN-OH-W14S
   Cincinnati, OH 45202
   Facsimile: 512-632-2040
    	
 
    	
$
    	
38,706,293.71
    	
 
    
	
City National Bank, a National Banking   Association
    	
 
    	
City National Bank
   555 S. Flower St. 24th Floor
   Los Angeles, CA 90071
   Facsimile: (213) 673-2858
    	
 
    	
$
    	
22,202,797.20
    	
 
    
	
UPS Capital Corporation
    	
 
    	
UPS Capital Corporation
   35 Glenlake Parkway, NE
   Atlanta, GA 30328
   Facsimile: 404-704-1501
    	
 
    	
$
    	
20,000,000.00
    	
 
    
	
Total
    	
 
    	
 
    	
 
    	
$
    	
1,300,000,000.00
    	
 
    

 

 

Canadian Facility

 

	
Lender
    	
 
    	
Address
    	
 
    	
Commitment
    	
 
    
	
GE Canada Finance Holding Company
    	
 
    	
GE Canada Finance Holding Company
   c/o General Electric Capital Corporation
   299 Park Avenue
   New York, New York 10171
   Attention: HD Supply Account Manager
   Facsimile: (646) 428-7099
    	
 
    	
$
    	
52,524,511.43
    	
 
    
	
Bank of America, N.A. (acting through its
   Canada Branch)
    	
 
    	
Bank of America, N.A.
   181 Bay Street,
   Toronto, Ontario, M5J 2V8
   Facsimile: (312)453-4041
    	
 
    	
$
    	
21,394,984.33
    	
 
    
	
Barclays Bank PLC
    	
 
    	
Barclays Bank PLC
   745 7th Avenue
   New York, NY, 10019 USA 
   Facsimile: 212-526-5115
    	
 
    	
$
    	
21,394,984.33
    	
 
    
	
JPMorgan Chase Bank, Toronto Branch
    	
 
    	
J.P. Morgan
   JPM — Delaware Loan Operations 
   500 Stanton Christiana Road, 3/Ops2
   Newark, DE 19713 (United States)
   Facsimile: 201-244-3885
    	
 
    	
$
    	
21,394,984.33
    	
 
    
	
Wells Fargo Capital Finance Corporation   Canada
    	
 
    	
Wells Fargo Bank, NA 
   2450 Colorado Ave.
   Suite 3000W
   Santa Monica, CA 90404 
   Facsimile: 866-615-7803
    	
 
    	
$
    	
21,394,984.33
    	
 
    
	
Credit Suisse AG, 
   Cayman Islands Branch
    	
 
    	
Credit Suisse AG
   Eleven Madison Avenue
   New York, NY 10010
   Facsimile: 212-743-2254
    	
 
    	
$
    	
10,014,673.51
    	
 
    
	
Citibank, N.A., Canadian branch
    	
 
    	
Citibank, N.A.
   388 Greenwich Street, 17th Floor 
   New York, NY 10013
   Facsimile:
    	
 
    	
$
    	
9,874,608.15
    	
 
    
	
Deutsche Bank AG   
   Canada Branch
    	
 
    	
Deutsche Bank AG Canada Branch
   199 Bay Street, Commerce Court West,
   Suite 4700, Toronto, Ontario M5L 1E9
   Facsimile: (416) 915-7288
    	
 
    	
$
    	
9,874,608.15
    	
 
    

 

 

	
Lender
    	
 
    	
Address
    	
 
    	
Commitment
    	
 
    
	
UBS Loan Finance LLC
    	
 
    	
UBS Loan Finance LLC 
   677 Washington Blvd. 
   Stamford, CT 06901
   Facsimile: 203-719-3888
    	
 
    	
$
    	
9,874,608.15
    	
 
    
	
Goldman Sachs Bank USA
    	
 
    	
Goldman Sachs Bank USA
   200 West Street
   New York, NY 10282
   Facsimile: (917) 977-3966
    	
 
    	
$
    	
6,583,072.10
    	
 
    
	
PNC Bank Canada Branch
    	
 
    	
PNC Bank Canada Branch
   130 King Street West, Suite 2140
   P.O. Box 462, Toronto, ON M5X 1E4
   Facsimile. 416-361-0085
    	
 
    	
$
    	
6,583,072.10
    	
 
    
	
U.S. Bank, N.A., Canada Branch
    	
 
    	
U.S. Bank National Association
   425 Walnut Street, 14th Fl., CN-OHW14S
   Cincinnati, OH 45202
   Facsimile: 512-632-2040
    	
 
    	
$
    	
6,293,706.29
    	
 
    
	
City National Bank, a National Banking   Association
    	
 
    	
City National Bank
   555 S. Flower St. 24th Floor 
   Los Angeles, CA 90071 
   Facsimile: (213) 673-2858
    	
 
    	
$
    	
2,797,202.80
    	
 
    
	
Total
    	
 
    	
 
    	
 
    	
$
    	
200,000,000.00Exhibit 10.44

 

DIRECTOR INDEMNIFICATION AGREEMENT

 

Indemnification Agreement, dated as of                           , 20     (this “Agreement”), between HD Supply Holdings, Inc., a Delaware corporation (the “Company”), HD Supply, Inc., a Delaware corporation (“Opco” and, together with the Company, the “Company Entities”) and                                  (“Indemnitee”).

 

WHEREAS, qualified persons are reluctant to serve corporations as directors unless they are provided with broad indemnification and insurance against claims arising out of their service to and activities on behalf of the corporations; and

 

WHEREAS, the Company Entities have determined that attracting and retaining such persons is in the best interests of their respective stockholders and that it is reasonable, prudent and necessary for the Company Entities to indemnify such persons to the fullest extent permitted by applicable law and to provide reasonable assurance regarding insurance.

 

NOW, THEREFORE, the Company Entities and Indemnitee hereby agree as follows:

 

1.                                     Defined Terms; Construction.

 

(a)                                 Defined Terms. As used in this Agreement, the following terms shall have the following meanings:

 

“Change in Control” means, and shall be deemed to have occurred if, on or after the date of this Agreement, (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended), other than (A) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its subsidiaries acting in such capacity, or (B) a corporation owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company, is or becomes the “beneficial owner” (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of the Company representing more than 50% of the total voting power represented by the Company’s then outstanding Voting Securities, (ii) during any period of two consecutive years commencing from and after the date hereof, individuals who at the beginning of such period constitute the board of directors of the Company and any new director whose election by the board of directors of the Company or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute a majority thereof, (iii) the stockholders of the Company approve a merger or consolidation of the Company with any other corporation other than a merger or consolidation that would result in the Voting Securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into Voting Securities of the surviving entity) more than 50% of the total voting power represented by the Voting Securities of the Company or such surviving entity outstanding immediately after such merger or consolidation, (iv) the stockholders of the Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition by the

 

1

 

Company of (in one transaction or a series of related transactions) all or substantially all of its assets, or (v) the Company shall file or have filed against it, and such filing shall not be dismissed, any bankruptcy, insolvency or dissolution proceedings, or a trustee, administrator or creditors committee shall be appointed to manage or supervise the affairs of the Company.

 

“Corporate Status” means the status of a person who is or was a director (or a member of any committee of a board of directors) of either of the Company Entities or any of their respective subsidiaries (or is or was serving in an equivalent role with respect to any such entity not organized as a corporation), or of any predecessor thereof, or is or was serving at the request of either of the Company Entities as a director (or a member of any committee of a board of directors, or in an equivalent role with respect to any such entity not organized as a corporation) of another corporation, limited liability company, partnership, joint venture, trust or other enterprise, or of any predecessor thereof, including service with respect to an employee benefit plan.

 

“Determination” means a determination that either (x) there is a reasonable basis for the conclusion that indemnification of Indemnitee is proper in the circumstances because Indemnitee met a particular standard of conduct (a “Favorable Determination”) or (y) there is no reasonable basis for the conclusion that indemnification of Indemnitee is proper in the circumstances because Indemnitee met a particular standard of conduct (an “Adverse Determination”). An Adverse Determination shall include the decision that a Determination was required in connection with indemnification and the decision as to the applicable standard of conduct.

 

“DGCL” means the General Corporation Law of the State of Delaware, as amended from time to time.

 

“Expenses” means all attorneys’ fees and expenses, retainers, court, arbitration and mediation costs, transcript costs, fees of experts, bonds, witness fees, costs of collecting and producing documents, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees and all other disbursements or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in, appealing or otherwise participating in a Proceeding.

 

“Independent Legal Counsel” means an attorney or firm of attorneys competent to render an opinion under the applicable law, selected in accordance with the provisions of Section 5(e), who has not otherwise performed any services for the Company Entities or any of their subsidiaries or for Indemnitee within the last three years (other than with respect to matters concerning the rights of Indemnitee under this Agreement or under indemnity agreements similar to this Agreement).

 

“Proceeding” means a threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, including without limitation a claim, demand, discovery request, formal or informal investigation, inquiry, administrative hearing,

 

2

 

arbitration or other form of alternative dispute resolution, including an appeal from any of the foregoing.

 

“Voting Securities” means any securities of the Company or Opco, as applicable, that vote generally in the election of directors.

 

(b)                                Construction. For purposes of this Agreement:

 

(i)                                    References to any of the Company Entities or any of their “subsidiaries” shall include any corporation, limited liability company, partnership, joint venture, trust or other entity or enterprise that before or after the date of this Agreement is party to a merger or consolidation with any of the Company Entities or any such subsidiary or that is a successor to any of the Company Entities as contemplated by Section 8(d) (whether or not such successor has executed and delivered the written agreement contemplated by Section 8(d)).

 

(ii)                                 References to “fines” shall include any excise taxes assessed on Indemnitee with respect to an employee benefit plan.

 

(iii)                              References to a “witness” in connection with a Proceeding shall include any interviewee or person called upon to produce documents in connection with such Proceeding.

 

2.                                     Agreement to Serve.

 

Indemnitee agrees to serve as a director of the Company and/or one or more of its subsidiaries and in such other capacities as Indemnitee may serve at the request of the Company Entities from time to time, and, by its execution of this Agreement, the Company Entities confirm their request that Indemnitee serve as a director of the Company and in such other capacities. Indemnitee shall be entitled to resign or otherwise terminate such service with immediate effect at any time, and neither such resignation or termination nor the length of such service shall affect Indemnitee’s rights under this Agreement. This Agreement shall not constitute an employment agreement, supersede any employment agreement to which Indemnitee is a party or create any right of Indemnitee to continued employment or appointment.

 

3.                                     Indemnification.

 

(a)                                General Indemnification. The Company Entities shall indemnify Indemnitee, jointly and severally, to the fullest extent permitted by applicable law in effect on the date hereof or as amended to increase the scope of permitted indemnification, against Expenses, losses, liabilities, judgments, fines, penalties and amounts paid in settlement (including all interest, assessments and other charges in connection therewith) incurred by Indemnitee or on Indemnitee’s behalf in connection with any Proceeding in any way connected with, resulting from or relating to Indemnitee’s Corporate Status.

 

3

 

(b)                               Additional Indemnification Regarding Expenses. Without limiting the foregoing, in the event any Proceeding is initiated by Indemnitee or the Company Entities or any of their subsidiaries to enforce or interpret this Agreement or any rights of Indemnitee to indemnification or advancement of Expenses (or related obligations of Indemnitee) under such Company Entity’s or any such subsidiary’s certificate of incorporation or bylaws, any vote of stockholders or directors of the Company Entities or any of their subsidiaries, the DGCL, any other applicable law or any liability insurance policy, the Company Entities shall indemnify Indemnitee, jointly and severally, against all Expenses incurred by Indemnitee or on Indemnitee’s behalf in connection with such Proceeding, whether or not Indemnitee is successful in such Proceeding, except to the extent that the court presiding over such Proceeding determines that (i) material assertions made by Indemnitee in such Proceeding were in bad faith or were frivolous or (ii) as a matter of applicable law, such Expenses must be limited in proportion to the success achieved by Indemnitee in such Proceeding and the efforts required to obtain that success, as determined by the court presiding over such Proceeding.

 

(c)                        Partial Indemnification. If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company Entities for a portion of any Expenses, losses, liabilities, judgments, fines, penalties and amounts paid in settlement incurred by Indemnitee, but not for the total amount thereof, the Company Entities shall nevertheless jointly and severally indemnify Indemnitee for such portion.

 

(d)                                Nonexclusivity. The indemnification provided by this Agreement shall not be deemed exclusive of any rights to which Indemnitee may be entitled under either of the Company Entities’ certificate of incorporation or bylaws, any agreement, any vote of stockholders or directors, the DGCL, any other applicable law or any liability insurance policy, provided that to the extent that Indemnitee is entitled to be indemnified by the Company Entities under this Agreement and by any shareholder of the Company or any affiliate of any such shareholder under any other agreement or instrument, or by any insurer under a policy maintained by any such shareholder or affiliate, the obligations of the Company Entities hereunder shall be primary, and the obligations of such shareholder or affiliate secondary, and the Company Entities shall not be entitled to contribution or indemnification from or subrogation against such shareholder or affiliate. Any such shareholder or affiliate shall be entitled to enforce the Company’s obligation to provide indemnification in accordance with the priorities set forth in this Section 3(d) directly against the Company, and each such shareholder or affiliate shall constitute an express intended third party beneficiary under this Agreement for such purpose. In the event that any such shareholder or affiliate makes indemnification payments or advances to Indemnitee in respect of any Expenses, losses, liabilities, judgments, fines, penalties or amounts paid in settlement for which the Company would also be obligated pursuant to this Agreement, the Company shall reimburse such shareholder or affiliate in full on demand.

 

(e)                                  Exceptions. Any other provision herein to the contrary notwithstanding, the Company Entities shall not be obligated under this Agreement to indemnify Indemnitee:

 

4

 

(i)                                    For Expenses incurred in connection with Proceedings initiated or brought voluntarily by Indemnitee and not by way of defense, counterclaim or crossclaim, except (x) as contemplated by Section 3(b), (y) in specific cases if the board of directors of the Company has approved the initiation or bringing of such Proceeding and (z) as may be required by law.

 

(ii)                                 For an accounting of profits arising from the purchase and sale by Indemnitee of securities within the meaning of Section 16(b) of the Securities Exchange Act of 1934, as amended, or any similar successor statute.

 

(iii)                               If the Indemnitee, with respect to the matter out of which the claim for indemnification arises, did not act in good faith and in a manner the Indemnitee reasonably believed to be in or not opposed to the best interests of the Company Entities.

 

(f)                                  Subrogation. In the event of payment under this Agreement, the Company Entities shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute such documents and do such acts as the Company Entities may reasonably request to secure such rights and to enable the Company Entities effectively to bring suit to enforce such rights, provided that the Company Entities shall not be subrogated to any claim of Indemnitee for indemnification from any shareholder of the Company or any affiliate of any such shareholder.

 

4.                                     Advancement of Expenses.

 

The Company Entities shall pay all Expenses incurred by Indemnitee in connection with any Proceeding in any way connected with, resulting from or relating to Indemnitee’s Corporate Status, other than a Proceeding initiated by Indemnitee for which the Company Entities would not be obligated to indemnify Indemnitee pursuant to Section 3(e)(i), in advance of the final disposition of such Proceeding and without regard to whether Indemnitee will ultimately be entitled to be indemnified for such Expenses and without regard to whether an Adverse Determination has been made, except as contemplated by the last sentence of Section 5(f). Indemnitee shall repay such amounts advanced if and to the extent that it shall ultimately be determined in a decision by a court of competent jurisdiction from which no appeal can be taken that Indemnitee is not entitled to be indemnified by the Company Entities for such Expenses. Such repayment obligation shall be unsecured and shall not bear interest. The Company Entities shall not impose on Indemnitee additional conditions to advancement or require from Indemnitee additional undertakings regarding repayment.

 

5.                                     Indemnification Procedure.

 

(a)                                Notice of Proceeding; Cooperation. Indemnitee shall give the Company Entities notice in writing as soon as practicable of any Proceeding for which indemnification will or could be sought under this Agreement, provided that any failure or delay in giving such notice shall not relieve the Company Entities of their obligations under this Agreement unless and to the extent that (i) none of the Company Entities and their subsidiaries are party

 

5

 

to or aware of such Proceeding and (ii) the Company Entities are materially prejudiced by such failure.

 

(b)                                 Settlement. The Company Entities will not, without the prior written consent of Indemnitee, which may be provided or withheld in Indemnitee’s sole discretion, effect any settlement of any Proceeding against Indemnitee or which could have been brought against Indemnitee unless such settlement solely involves the payment of money by persons other than Indemnitee and includes an unconditional release of Indemnitee from all liability on any matters that are the subject of such Proceeding and an acknowledgment that Indemnitee denies all wrongdoing in connection with such matters. The Company Entities shall not be obligated to indemnify Indemnitee against amounts paid in settlement of a Proceeding against Indemnitee if such settlement is effected by Indemnitee without the Company Entities’ prior written consent, which shall not be unreasonably withheld.

 

(c)                                  Request for Payment; Timing of Payment. To obtain indemnification payments or advances under this Agreement, Indemnitee shall submit to the Company Entities a written request therefor, together with such invoices or other supporting information as may be reasonably requested by the Company Entities and reasonably available to Indemnitee. The Company Entities shall make indemnification payments to Indemnitee no later than 30 days, and advances to Indemnitee no later than 10 days, after receipt of the written request of Indemnitee.

 

(d)                                Determination. The Company Entities intend that Indemnitee shall be indemnified to the fullest extent permitted by law as provided in Section 3 and that no Determination shall be required in connection with such indemnification. In no event shall a Determination be required in connection with advancement of Expenses pursuant to Section 4 or in connection with indemnification for Expenses incurred as a witness or incurred in connection with any Proceeding or portion thereof with respect to which Indemnitee has been successful on the merits or otherwise. Any decision that a Determination is required by law in connection with any other indemnification of Indemnitee, and any such Determination, shall be made within 30 days after receipt of Indemnitee’s written request for indemnification, as follows:

 

(i)                                     If no Change in Control has occurred, (x) by a majority vote of the directors of the applicable Company Entity who are not parties to such Proceeding, even though less than a quorum, with the advice of Independent Legal Counsel, or (y) by a committee of such directors designated by majority vote of such directors, even though less than a quorum, with the advice of Independent Legal Counsel, or (z) if there are no such directors, or if such directors so direct, by Independent Legal Counsel in a written opinion to the Company and Indemnitee.

 

(ii)                                  If a Change in Control has occurred, by Independent Legal Counsel in a written opinion to the applicable Company Entity and Indemnitee.

 

6

 

The Company shall pay all Expenses incurred by Indemnitee in connection with a Determination.

 

(e)                                 Independent Legal Counsel. If there has not been a Change in Control, Independent Legal Counsel shall be selected by the board of directors of the applicable Company Entity and approved by Indemnitee (which approval shall not be unreasonably withheld or delayed). If there has been a Change in Control, Independent Legal Counsel shall be selected by Indemnitee and approved by the applicable Company Entity (which approval shall not be unreasonably withheld or delayed). The applicable Company Entity shall pay the fees and expenses of lndependent Legal Counsel and indemnify Independent Legal Counsel against any and all expenses (including attorneys’ fees), claims, liabilities and damages arising out of or relating to its engagement.

 

(f)                                   Consequences of Determination; Remedies of lndemnitee. The Company Entities shall be bound by and shall have no right to challenge a Favorable Determination. If an Adverse Determination is made, or if for any other reason the Company Entities do not make timely indemnification payments or advances of Expenses, Indemnitee shall have the right to commence a Proceeding before a court of competent jurisdiction to challenge such Adverse Determination and/or to require the Company Entities to make such payments or advances. Indemnitee shall be entitled to be indemnified for all Expenses incurred in connection with such a Proceeding in accordance with Section 3(b) and to have such Expenses advanced by the Company Entities in accordance with Section 4. If Indemnitee fails to timely challenge an Adverse Determination, or if Indemnitee challenges an Adverse Determination and such Adverse Determination has been upheld by a final judgment of a court of competent jurisdiction from which no appeal can be taken, then, to the extent and only to the extent determined by such Adverse Determination or final judgment, the Company Entities shall not be obligated to indemnify or advance Expenses to Indemnitee under this Agreement.

 

(g)                                 Presumptions; Burden and Standard of Proof. In connection with any Determination, or any review of any Determination, by any person, including a court:

 

(i)                                    It shall be a presumption that Determination is not required.

 

(ii)                                 It shall be a presumption that Indemnitee has met the applicable standard of conduct and that indemnification of Indemnitee is proper in the circumstances.

 

(iii)                              The burden of proof shall be on the Company Entities to overcome the presumptions set forth in the preceding clauses (i) and (ii), and each such presumption shall only be overcome if the Company Entities establish that there is no reasonable basis to support it.

 

(iv)                            The termination of any Proceeding by judgment, order, finding, settlement (whether with or without court approval) or conviction, or upon a plea of nolo contendere, or its equivalent, shall not create a presumption that indemnification

 

7

 

is not proper or that Indemnitee did not meet the applicable standard of conduct or that a court has determined that indemnification is not permitted by this Agreement or otherwise.

 

(v)                               Neither the failure of any person or persons to have made a Determination nor an Adverse Determination by any person or persons shall be a defense to Indemnitee’s claim or create a presumption that Indemnitee did not meet the applicable standard of conduct, and any Proceeding commenced by Indemnitee pursuant to Section 5(f) shall be de novo with respect to all determinations of fact and law.

 

6.                                     Directors and Officers Liability Insurance.

 

(a)                                 Maintenance of Insurance. So long as the Company Entities or any of their respective subsidiaries maintains liability insurance for any directors, officers, employees or agents of any such person, the Company Entities shall ensure that Indemnitee is covered by such insurance in such a manner as to provide Indemnitee the same rights and benefits as are accorded to the most favorably insured of the Company Entities’ and any of its subsidiaries’ then current directors and officers. If at any date (i) such insurance ceases to cover acts and omissions occurring during all or any part of the period of lndemnitee’s Corporate Status or (ii) neither the Company Entities nor any of their subsidiaries maintains any such insurance, the Company Entities shall ensure that Indemnitee is covered, with respect to acts and omissions prior to such date, for at least six years (or such shorter period as is available on commercially reasonable terms) from such date, by other directors and officers liability insurance, in amounts and on terms (including the portion of the period of lndemnitee’s Corporate Status covered) no less favorable to Indemnitee than the amounts and terms of the liability insurance maintained by the Company Entities on the date hereof.

 

(b)                               Notice to Insurers. Upon receipt of notice of a Proceeding pursuant to Section 5(a), the Company Entities shall give or cause to be given prompt notice of such Proceeding to all insurers providing liability insurance in accordance with the procedures set forth in all applicable or potentially applicable policies. The Company Entities shall thereafter take all necessary action to cause such insurers to pay all amounts payable in accordance with the terms of such policies.

 

7.                                     Exculpation. etc.

 

(a)                                Limitation of Liability. Indemnitee shall not be personally liable to the Company Entities or any of their subsidiaries or to the stockholders of the Company Entities or any such subsidiary for monetary damages for breach of fiduciary duty as a director of any of the Company Entities or any such subsidiary; provided, however, that the foregoing shall not eliminate or limit the liability of lndemnitee (i) for any breach of lndemnitee’s duty of loyalty to the Company or such subsidiary or the stockholders thereof; (ii) for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of the law; (iii) under Section 174 of the DGCL or any similar provision of other applicable corporations law; or (iv) for any transaction from which Indemnitee derived an improper

 

8

 

personal benefit. If the DGCL or such other applicable law shall be amended to permit further elimination or limitation of the personal liability of directors, then the liability of Indemnitee shall, automatically, without any further action, be eliminated or limited to the fullest extent permitted by the DGCL or such other applicable law as so amended.

 

(b)                                Period of Limitations. No legal action shall be brought and no cause of action shall be asserted by or in the right of the Company Entities or any of their subsidiaries against Indemnitee or Indemnitee’s estate, spouses, heirs, executors, personal or legal representatives, administrators or assigns after the expiration of two years from the date of accrual of such cause of action, and any claim or cause of action of the Company Entities shall be extinguished and deemed released unless asserted by the timely filing of a legal action within such two-year period, provided that if any shorter period of limitations is otherwise applicable to any such cause of action, such shorter period shall govern.

 

8.                                    Miscellaneous.

 

(a)                                  Severability. If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (i) the validity, legality and enforceability of the remaining provisions of this Agreement (including without limitation, each portion of any section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to the fullest extent permitted by law; (ii) such provision or provisions shall be deemed reformed to the extent necessary to conform to applicable law and to give the maximum effect to the intent of the parties hereto; and (iii) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested thereby.

 

(b)                         Notices. All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed duly given (i) on the date of delivery if delivered personally, or by facsimile, upon confirmation of receipt, (ii) on the first business day following the date of dispatch if delivered by a recognized next-day courier service or (iii) on the third business day following the date of mailing if delivered by domestic registered or certified mail, properly addressed, or on the fifth business day following the date of mailing if sent by airmail from a country outside of North America, to Indemnitee as shown on the signature page of this Agreement, to the Company or Opco at the address shown on the signature page of this Agreement, or in each case as subsequently modified by written notice.

 

(c)                                 Amendment and Termination. No amendment, modification, termination or cancellation of this Agreement shall be effective unless it is in writing signed by all the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar), nor shall such waiver constitute a continuing waiver.

 

9

 

(d)                                Successors and Assigns. Each of the Company Entities will require any successor (whether direct or indirect, by purchase, merger, consolidation, reorganization or otherwise) to all or substantially all of the business and assets of such party, by agreement in form and substance satisfactory to Indemnitee and their counsel, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that such Company Entity would be required to perform if no such succession had taken place. This Agreement shall be binding upon and inure to the benefit of each party hereto and its successors and permitted assigns, but neither this Agreement nor any right, interest or obligation hereunder shall be assigned, whether by operation of law or otherwise, by the Company Entities without the prior written consent of Indemnitee.

 

(e)                                 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware applicable to contracts executed and to be performed wholly within such State and without reference to the choice-of-law principles that would result in the application of the laws of a different jurisdiction.

 

(f)                        Integration and Entire Agreement. This Agreement sets forth the entire understanding between the parties hereto and supersedes and merges all previous written and oral negotiations, commitments, understandings and agreements relating to the subject matter hereof between the parties hereto, provided that the provisions hereof shall not supersede the provisions of either of the Company Entities’ certificate of incorporation or bylaws, any agreement, any vote of stockholders or directors, the DGCL or other applicable law, to the extent any such provisions shall be more favorable to Indemnitee than the provisions hereof.

 

(g)                                  Counterparts. This Agreement may be executed in one or more counterparts, each of which shall constitute an original.

 

[Remainder of this page intentionally left blank.]

 

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

 

 

	
 
    	
HD   SUPPLY HOLDINGS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Ricardo J. Nuñez
    
	
 
    	
 
    	
SVP, General   Counsel and Corporate Secretary
    
	
 
    	
 
    
	
 
    	
HD   SUPPLY, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Ricardo J. Nuñez
    
	
 
    	
 
    	
SVP, General   Counsel and Corporate Secretary
    
	
 
    
	
 
    
	
 
    	
Address:
    	
c/o   HD Supply Holdings, Inc.
    
	
 
    	
 
    	
3100   Cumberland Boulevard
    
	
 
    	
 
    	
Suite 1700
    
	
 
    	
 
    	
Atlanta,   GA 30339
    
	
 
    	
 
    	
Attn:   General Counsel
    
	
 
    	
 
    
	
 
    	
 
    
	
Agreed   to and Accepted:
    	
 
    
	
 
    	
 
    
	
Indemnitee:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    	
 
    
	
 
    	
Director
    	
 
    
	
 
    	
 
    
	
Address:
    	
                                                                           
    	
 
    	
 
    
	
                                                                                           
    	
 
    	
 
    
	
                                                                                           
    	
 
    	
 
    
							

 

11

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