[Form of Termination Agreement]
Exhibit 10.53
[Form of Termination Agreement]
[·], 2013
Carlyle Investment Management L.L.C.
1001 Pennsylvania Avenue NW
Washington DC 2004-2505
Attention: Brian Bernasek
Facsimile: (202) 347-1818
Ladies and Gentlemen:
Reference is made to that certain letter agreement, dated August 30, 2007 (the Carlyle Consulting Agreement), among HD Supply Holdings, Inc. (formerly named HDS Investment Holding, Inc.) (Parent), HD Supply, Inc., an indirect, wholly owned subsidiary of Parent (the Company) and TC Group V, L.L.C. (TC Group V), as assigned by TC Group V to Carlyle Investment Management L.L.C. (Carlyle) pursuant to the terms of the Assignment and Assumption Agreement, dated as of June 7, 2012, by and between TC Group V, the other assignors party thereto and Carlyle (such assignment having been consented to by Parent and the Company on June 7, 2012). The Carlyle Consulting Agreement sets forth, among other things, the fees to be paid to Carlyle by the Company for Consulting Services and transaction services to be performed by Carlyle or its affiliates thereunder. Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Carlyle Consulting Agreement.
The parties agree to terminate the Carlyle Consulting Agreement pursuant to paragraph 12 thereof upon the consummation of Parents IPO (as defined in the Stockholders Agreement). In connection with such termination, the Company will pay in cash to Carlyle $[ ] in unpaid Advisory Fees and expenses due with respect to periods prior to such termination, a Transaction Fee with respect to Parents IPO of $[ ] and a Termination Fee of $[ ] (collectively, the Carlyle Termination Fee) on the closing date of Parents IPO. Upon payment of the Carlyle Termination Fee, the Carlyle Consulting Agreement will automatically terminate, provided that paragraphs 3 (with respect to expenses incurred prior to such termination), 5-12, 14-17 and 19-22, in their entirety, shall survive such termination.
The Carlyle Consulting Agreement is being terminated in reliance upon, and subject to, the concurrent termination of the Consulting Agreement, dated as of August 30, 2007, among the Company, Parent and Bain Capital Partners, LLC, and the Amended and Restated Consulting Agreement, dated as of November 23, 2009, among the Company, Parent and Clayton, Dubilier & Rice, LLC, in each case in consideration of a fee in an amount equal to the Carlyle Termination Fee and on terms substantially identical to this letter agreement.
This letter agreement shall constitute written notice of termination of the Carlyle Consulting Agreement in connection with Parents IPO pursuant to paragraph 12 of the Carlyle Consulting Agreement. Carlyle hereby consents to the termination.
This letter agreement may be executed in any number of counterparts, with each executed counterpart constituting an original, but all together one and the same instrument. This letter agreement sets forth the entire understanding and agreement among the parties with respect to the transactions contemplated herein and supersedes and replaces any prior understanding, agreement or statement of intent, in each case written or oral, of any kind and every nature with respect hereto. This letter agreement is governed by and construed in accordance with the laws of the State of New York 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.
If the foregoing is in accordance with your understanding and agreement, please sign and return this letter agreement, whereupon this letter agreement shall constitute a binding agreement with respect to the matters set forth herein.
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| Sincerely, | |||
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| HD SUPPLY HOLDINGS, INC. | |||
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| By: |
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| Name: | Ricardo J. Nunez | |
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| Title: | Senior Vice President, General Counsel and Corporate Secretary | |
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| HD SUPPLY, INC. | |||
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| By: |
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| Name: | Ricardo J. Nunez | |
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| Title: | Senior Vice President, General Counsel and Corporate Secretary | |
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Acknowledged and agreed as of the date first above written: |
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CARLYLE INVESTMENT MANAGEMENT L.L.C. |
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