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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

SCHEDULE 14A

Proxy Statement Pursuant to Section 14(a) of the
Securities Exchange Act of 1934

Filed by the Registrant     ý                        Filed by a Party other than the Registrant     o

Check the appropriate box:

o Preliminary Proxy Statement

o

 

Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))

ý

 

Definitive Proxy Statement

o

 

Definitive Additional Materials.Materials

o

 

Soliciting Material Pursuant to Section 240.14a-12

HD SUPPLY HOLDINGS, INC.



(Name of Registrant as Specified in Its Charter)

Payment of Filing Fee (Check the appropriate box):

ý No fee required.

o

 

Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.

 

 

(1)

 

Title of each class of securities to which transaction applies:

 
 

  (2) Aggregate number of securities to which transaction applies:

 
 

  (3) Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11:

  
  


Table of Contents

  (4) Proposed maximum aggregate value of transaction:

  
  

  (5) Total fee paid:

 
 


o

 

Fee paid previously with preliminary materials.

o

 

Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.

 

 

(1)

 

Amount previously paid:

  
  

  (2) Form, Schedule or Registration Statement No.:

 
  

  (3) Filing Party:

 
 

  (4) Date Filed:

  
  


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GRAPHICGRAPHIC

3100 Cumberland Boulevard, Atlanta, Georgia 30339

March 31, 20142015

Dear Shareholder:Stockholder:

          You are cordially invitedIt is my pleasure to invite you to attend HD Supply Holdings, Inc.'s annual meeting of shareholdersstockholders to be held at 12:30 p.m. (Eastern Time) on May 15, 2014,14, 2015. The meeting will be held at Cumberland Center II, 3100 Cumberland Boulevard, Atlanta, Georgia 30339. Your

          The accompanying notice of meeting and proxy card is enclosed with this proxy statement. A copystatement contain important information, including a description of the Company's fiscal 2013 annualbusiness that will be acted upon at the meeting, as well as the voting procedures and general information about the meeting. At the meeting, we will also report on Form 10-K is also enclosed.the Company's performance and operations and respond to your questions.

          Your vote is important. Whether you plan to attend the annual meeting or not, you may access electronic voting via the Internet, which is described on your enclosed proxy card, or, if you received a proxy card by mail, you may sign, date and return the proxy card in the envelope provided. If you plan to attend the annual meeting you may vote in person. Returning the proxy does not deprive you of your right to attend the annual meeting and vote your shares in person for the matters acted on at the meeting.

          Registration and seating will begin at 12:30 p.m. Each shareholder will be asked to sign an admittance card andstockholder will be asked to present aan admittance ticket (the Notice of Internet Availability that you received by mail) and valid government-issued picture identification. ShareholdersStockholders holding stock in brokerage accounts will need to bring a copy of a brokerage statement reflecting stock ownership as of the March 17, 20142015 record date. Cameras and recording devices willare not be permitted at the meeting. All bags, briefcases and packages will be held at registration and will not be allowed in the meeting.

          On behalf of the board of directors, I want to thankThank you for your support of HD Supply. We look forward to seeing you at the annual meeting.

  Sincerely,

 

 

/s/ JOSEPH J. DEANGELO  

 

 

Joseph J. DeAngelo
Chairman of the Board, President
and Chief Executive Officer

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GRAPHICGRAPHIC

3100 Cumberland Boulevard, Atlanta, Georgia 30339

Notice of Annual Meeting of ShareholdersNOTICE OF 2015 ANNUAL MEETING OF STOCKHOLDERS

To Our Shareholders:

          HD Supply Holdings, Inc.'s annual meeting of shareholders will be held at 3100 Cumberland Boulevard, Atlanta, Georgia 30339, on Thursday, May 15, 2014, at 12:30 p.m. (Eastern Time) (the "Annual Meeting").

          The purposes of the Annual Meeting are:

          Our board of directors has fixed the close of business on March 17, 2014 as the record date for determining holders of our common stock entitled to notice of, and to vote at, the Annual Meeting.

Date and Time:
 

/s/ RICARDO J. NUNEZ  

May 14, 2015, at 12:30 p.m. Eastern Time.


Place:


Ricardo J. NuñezCumberland Center II, 3100 Cumberland Boulevard, Atlanta, Georgia 30339. (follow signs in lobby to annual meeting room)


Record Date:


Senior Vice President, General Counsel
and Corporate SecretaryMarch 17, 2015.


Atlanta, GeorgiaWho May Vote:



Stockholders as of the close of business on March 17, 2015 are entitled to one vote per share at the 2015 annual meeting of stockholders ("Annual Meeting").

Items of Business:


1.


To elect as directors the three persons nominated by the board of directors and named in this proxy statement to serve for terms expiring at our 2018 annual meeting of stockholders;



2.


To ratify the appointment of PricewaterhouseCoopers LLP as our independent registered public accounting firm for the fiscal year ending January 31, 2016;



3.


To act on a stockholder proposal described in this proxy statement, if properly presented at the Annual Meeting; and



4.


To transact any other business as may properly come before the Annual Meeting.

Annual Meeting Materials:


A copy of this proxy statement and our annual report on Form 10-K for our fiscal year ended February 1, 2015 are available free of charge athttp://www.astproxyportal.com/ast/18392/.

Admission:


To attend the meeting in person, please bring your admittance ticket (the Notice of Internet Availability of Proxy Materials that you received by mail), proof of your share ownership as of the record date (such as a brokerage statement), and government-issued photo identification (such as a driver's license).

Date of Mailing:


A Notice of Internet Availability of Proxy Materials or this proxy statement is first being mailed to stockholders on or about March 31, 20142015.

          Your vote is important. Please vote as soon as possible by using the Internet or, if you received a proxy card by mail, by signing and returning the proxy card. Instructions for your voting options are described on the proxy card.

Important Notice Regarding the Availability of Proxy Materials
for the Annual Meeting to be Held on May 15, 2014:
The proxy statement and fiscal 2013 annual report on Form 10-K are available at
http://www.astproxyportal.com/ast/18392/.

By Order of the Board of Directors

/s/ DAN S. MCDEVITT  

Dan S. McDevitt

General Counsel and Corporate Secretary

Atlanta, Georgia
March 31, 2015


Table of Contents

Table of Contents

GENERAL INFORMATION ABOUT THE 20142015 ANNUAL MEETING

 1

OUR EXECUTIVE OFFICERS

 11 10

OUR BOARD OF DIRECTORS

 13

GOVERNANCE OF OUR COMPANY

 17 18

Selecting Nominees for Director

 17 18

Director Independence

 18 19

Executive Sessions of our Non-Management Directors

 18 19

Board Leadership Structure

 18 19

Board's Role in Risk Oversight

 19 20

Corporate Governance Guidelines, Committee Charters and Code of Business Conduct and Ethics

 19 20

Committees of the Board of Directors

 20 21

Compensation Committee Interlocks and Insider Participation

 21 22

Compensation Practices and Risk Management

 21 23

Meetings of the Board of Directors and Attendance at the Annual Meeting

 22 23

Plurality Voting for Election of Directors

 22 24

Succession Planning and Management Development

 22 24

Policies and Procedures for Related Person Transactions

 22 24

Related Person Transactions

 23 24

Communicating with our Board of Directors

 26 27

Policies Regarding Certain Transactions in Company Securities

28

OWNERSHIP OF SECURITIES

 27 29

DIRECTOR COMPENSATION

 32

2014 Director Compensation

32

2014 Stock Awards

33

Narrative Discussion

33

EXECUTIVE COMPENSATION

 35 36

Compensation Discussion and Analysis

  36

Summary Compensation Table

 46 47

Grants of Plan-Based Awards Table

 47 49

Outstanding Equity Awards Table

 48 50

Option Exercises and Stock Vested Table

 49 51

Potential Payments onUpon Termination or Change in Control

 49 51

Report of the Compensation Committee

 52 54

AUDIT MATTERSCOMMITTEE REPORT

 53 55

Report of Audit Committee

 53 55

AUDIT MATTERS

56

Principal Accounting Firm Fees

 54 56

PROPOSAL 1 — ELECTION OF DIRECTORS

 55 57

PROPOSAL 2 — RATIFICATION OF APPOINTMENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 56 58

PROPOSAL 3 — ADVISORY SHAREHOLDER VOTESTOCKHOLDER PROPOSAL ON EXECUTIVE COMPENSATIONGREENHOUSE GAS EMISSIONS

 57

PROPOSAL 4 — ADVISORY VOTE ON THE FREQUENCY OF ADVISORY VOTES ON EXECUTIVE COMPENSATION

58 59

OTHER INFORMATION FOR SHAREHOLDERSSTOCKHOLDERS

 59 61

Section 16(a) Beneficial Ownership Reporting Compliance

 59 61

Solicitation of Proxies

 59 61

ShareholderStockholder Proposals or ShareholderStockholder Nominations for Director at 20152016 Annual Meeting

 59 61

20132014 Annual Report on Form 10-K

 60 62

Other Business

 60 62

Table of Contents

GENERAL INFORMATION ABOUT THE 20142015 ANNUAL MEETING

HD SUPPLY HOLDINGS, INC.

3100 Cumberland Boulevard, Atlanta, Georgia 30339

          This summary highlights information contained elsewhere in this proxy statement. This summaryIt does not contain all of the information that you should consider, and you should read the entire proxy statement carefully before voting.

HD Supply Holdings, Inc.'s 20142015 Annual Meeting InformationInformation:

Date and Date:Thursday, May 14, 2015
Time: May 15, 2014, at 12:30 p.m. Eastern Time.Time

Place:Location:

 

Cumberland Center II, 3100 Cumberland Boulevard, Atlanta, Georgia 30339.
(follow30339 (follow signs in lobby to annual meetingAnnual Meeting room)

Record Date:

 

March 17, 2014.

Voting:


Holders of common stock are entitled to one vote per share.2015

Admission:

 

To attend the meeting in person, you will need your admittance ticket (the Notice of Internet Availability of Proxy Materials that you received by mail), proof of your share ownership as of the record date and(such as a form ofbrokerage statement), and government-issued photo identification.

Date of Mailing:


This proxy statement and proxy card is first being mailed to shareholders on March 31, 2014.identification (such as a driver's license).

Items of BusinessBusiness:

Proposals
 Board Vote
Recommendation

 Page Reference
(for more
information)

 
1. Elect two directors named in this proxy statement FOR BOTH 2
 
2. Ratify the appointment of our independent registered public accounting firm FOR 2
 
3. Advisory Shareholder Vote on Executive Compensation FOR 3
 
4. Advisory Vote on the Frequency of Advisory Votes on Executive Compensation EVERY THREE YEARS 3
 
Proposals
Board Vote
Recommendation

Page Reference
(for more
information)

1.Elect three directors nominated by the board of directorsFOR ALL2, 6, 57
2.Ratify the appointment of our independent registered public accounting firmFOR2-3, 6, 58
3.Vote on a stockholder proposal regarding greenhouse gas emissionsAGAINST7, 59-60


HDS Notice of Annual Meeting and 20142015 Proxy Statement - Page 1


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GENERAL INFORMATION ABOUT THE 20142015 ANNUAL MEETING (continued)

OUR EXECUTIVE OFFICERS

10

OUR BOARD OF DIRECTORS

13

GOVERNANCE OF OUR COMPANY

18

Selecting Nominees for Director

18

Director NomineesIndependence

19

Executive Sessions of our Non-Management Directors

19

Board Leadership Structure

19

          HD Supply Holdings, Inc. (the "Company") currently has ten directors divided into three classes: twoBoard's Role in Class IRisk Oversight

20

Corporate Governance Guidelines, Committee Charters and four in eachCode of Class IIBusiness Conduct and Class III. The terms of officeEthics

20

Committees of the two Class I directors expireBoard of Directors

21

Compensation Committee Interlocks and Insider Participation

22

Compensation Practices and Risk Management

23

Meetings of the Board of Directors and Attendance at the Annual Meeting.Meeting

23

Class IPlurality Voting for Election of Directors

24

          The two nomineesSuccession Planning and Management Development

24

Policies and Procedures for election as Class I directors are listed below. If elected, the nominees for election as Class I directors will serve for a termRelated Person Transactions

24

Related Person Transactions

24

Communicating with our Board of three yearsDirectors

27

Policies Regarding Certain Transactions in Company Securities

28

OWNERSHIP OF SECURITIES

29

DIRECTOR COMPENSATION

32

2014 Director Compensation

32

2014 Stock Awards

33

Narrative Discussion

33

EXECUTIVE COMPENSATION

36

Compensation Discussion and until their successors are electedAnalysis

36

Summary Compensation Table

47

Grants of Plan-Based Awards Table

49

Outstanding Equity Awards Table

50

Option Exercises and qualify. If you sign and return the accompanying proxy cardStock Vested Table

51

Potential Payments Upon Termination or voting instruction card, your shares will be voted for the electionChange in Control

51

Report of the two Class I nominees recommended by the board of directors unless you choose to abstain from voting for either of the nominees. If for any reason either nominee is unable to serve or will not serve, such proxies may be voted for a substitute nominee designated by the board of directors as the proxy holder may determine. The board is not aware of any nominee who will be unable to or will not serve as a director. There is no cumulative voting.

Class I NomineesCompensation Committee

          A nominee must receive the vote of a plurality of the votes validly cast at the Annual Meeting represented either in person or by proxy at the Annual Meeting to be elected. Therefore, the two nominees who receive the most "FOR" votes (among votes properly cast in person, electronically or by proxy) will be elected. Proxies cannot be voted for a greater number of persons than the number of nominees named. The Class I nominees are as follows:

Name
 Age
 Director Since
 Occupation
 Board Committees
 Independent
 
Brian A. Bernasek 41  2011 Director, The Carlyle Group Compensation; Executive No
Stephen M. Zide  54  2007 Managing Director, Bain Capital Compensation (Chair) No
 

          Additional information about the two director nominees as well as our current board of directors who will continue to serve after the Annual Meeting is provided on page 15.

Ratification of the Appointment of the Independent Registered Public Accounting Firm

          The board is asking you to ratify the selection of PricewaterhouseCoopers LLP as our independent registered public accounting firm for the 2014 fiscal year ending February 1, 2015. Set forth below is summary information with respect to the fees billed to us by PricewaterhouseCoopers LLP for services provided to us during the fiscal years ended February 2, 2014 and February 3, 2013. For more information, see pages 58 and 60.

Fees Billed
FYE2013
FYE2012
  54

Audit Fees

$    3.4 million$    3.3 million

Audited-Related Fees

      N/A$    0.5 million

Tax Fees

$    0.8 million$    0.6 million

All Other Fees

      N/A      N/A

Total

$    4.2 million$    4.4 million


HDS Notice of Annual Meeting and 2014 Proxy Statement - Page 2


Table of ContentsAUDIT COMMITTEE REPORT

Advisory Vote on Executive Compensation

          The board is asking you to vote to approve the compensation of our named executive officers, often referred to as a "say-on-pay" advisory vote. While the advisory vote is not binding on our board of directors, the board and compensation committee will take into account the result of the vote when determining future executive compensation arrangements. For more information, see page 61.

Advisory Vote on Frequency of Advisory Vote on Executive Compensation

          The board is asking you to vote for a frequency of every three years for the non-binding advisory vote on the frequency of holding future votes regarding compensation of the named executive officers, commonly referred to as a "say when on pay" advisory vote. For more information, see page 62.

2013 Key Compensation Decisions

          Our Named Executive Officers ("NEOs") are compensated in a manner consistent with our strategy, competitive practice, sound compensation governance principles and shareholder interests.

          Key compensation decisions for our NEOs for fiscal 2013 include the following:


HDS Notice of Annual Meeting and 2014 Proxy Statement - Page 3


TableReport of ContentsAudit Committee

55

GENERALAUDIT MATTERS

56

Principal Accounting Firm Fees

56

PROPOSAL 1 — ELECTION OF DIRECTORS

57

PROPOSAL 2 — RATIFICATION OF APPOINTMENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

58

PROPOSAL 3 — STOCKHOLDER PROPOSAL ON GREENHOUSE GAS EMISSIONS

59

OTHER INFORMATION ABOUT THE 2014 ANNUAL MEETING (continued)FOR STOCKHOLDERS

        61

        company shares having a value equal to hisSection 16(a) Beneficial Ownership Reporting Compliance

        61

        Solicitation of Proxies

        61

        Stockholder Proposals or her base salary. Our CEO is expected to own company shares having a value equal to three times his base salary, which he satisfied by the end of fiscal 2013.

    Incentive awards made to our executive officers, including stock-based compensation, are subject to clawback pursuant to the clawback policy adopted by our board of directors in fiscal 2013.

For more information, see page 36.

2013 Compensation Summary

          The following table summarizes the compensation of our Chief Executive Officer, Principal Financial Officer ("PFO"), former Principal Financial Officer and our next three most highly compensated executive officers, to whom we refer collectively as the Named Executive Officers or NEOs,Stockholder Nominations for fiscal 2013. For more information, see page 48.

Name
 Salary
($)

 Bonus
($)

 Option Awards
($)

 Non-Equity Incentive
Plan Compensation
($)

 All Other
Compensation
($)

 Total
($)

 
  
Joseph J. DeAngelo 975,961    1,525,200  1,304,539  44,589  3,850,289 
Evan Levitt (PFO)  283,269  160,000    108,256  4,503  556,028 
Ronald J. Domanico
(former PFO)

 
 571,465    586,300  374,160  63,630  1,595,555 
Anesa Chaibi  546,639    889,700  560,801  197,648  2,194,788 
John A. Stegeman  725,000  160,000  586,300  276,105  127,296  1,874,701 
Ricardo J. Nuñez  411,308  100,000  586,300  216,032  65,816  1,379,456 
  

2015Director at 2016 Annual Meeting

          Pursuant to Rule 14a-8 of the Securities Exchange Act of 1934, as amended (the "Exchange Act") shareholder proposals submitted for inclusion in the proxy statement for our annual meeting of shareholders expected to be held in May 2015 must be received by us by December 1, 2014. For more information, see page 63.

          This proxy statement and proxy card are furnished in connection with the solicitation of proxies to be voted at our Annual Meeting of shareholders, which will be held at 3100 Cumberland Boulevard, Atlanta, Georgia 30339, on May 15, 2014, at 12:30 p.m. (the "Annual Meeting"). On March 31, 2014, we began mailing to shareholders of record this proxy statement and proxy card.

Why am I receiving this proxy statement and proxy card? 61

          You have received these proxy materials because our board of directors is soliciting your proxy to vote your shares at the Annual Meeting. This proxy statement describes issues on which we would like you to vote at our Annual Meeting of shareholders. It also gives you information on these issues so that you can make an informed decision.

          Our board of directors has made this proxy statement and proxy card available to you because you owned shares of the Company's common stock at the close of business on March 17, 2014.


HDS Notice of Annual Meeting and 2014 Proxy Statement - Page 4


Table of Contents2014 Annual Report on Form 10-K

GENERAL INFORMATION ABOUT THE 2014 ANNUAL MEETING (continued)

          When you vote by using the Internet or by signing and returning the proxy card, you appoint Joseph J. DeAngelo and Ricardo J. Nuñez (with full power of substitution) as your representatives at the Annual Meeting. They will vote your shares at the Annual Meeting as you have instructed them or, if an issue that is not on the proxy card comes up for vote, in accordance with their best judgment. This way, your shares will be voted whether or not you attend the Annual Meeting. Even if you plan to attend the Annual Meeting, we encourage you to vote in advance by using the Internet or (if you received your proxy card by mail) by signing and returning your proxy card. If you vote by Internet, you do not need to return your proxy card.

Who is entitled to vote?

          Holders of our common stock at the close of business on March 17, 2014 are entitled to vote. March 17, 2014 is referred to as the record date. In accordance with Delaware law, a list of shareholders entitled to vote at the meeting will be available in electronic form at the place of the Annual Meeting on May 15, 2014 and will be accessible in electronic form for ten days before the meeting at our principal place of business, 3100 Cumberland Boulevard, Atlanta, Georgia 30339 between the hours of 9:00 a.m. and 5:00 p.m.

To how many votes is each share of common stock entitled?

          Holders of common stock are entitled to one vote per share. On the record date, there were 194,112,859 shares of our common stock outstanding and entitled to vote.

How do I vote?

          Shareholders of record may vote by using the Internet or by mail as described below. Shareholders may also attend the meeting and vote in person. If you hold shares through a bank or broker, please refer to your proxy card, or other information forwarded by your bank or broker to see which voting options are available to you.

You may vote by using the Internet. The address of the website for Internet voting is62http://www.astproxyportal.com/ast/18392/. Internet voting is available 24 hours a day and will be accessible until 11:59 p.m. Eastern Time on May 14, 2014. Easy-to-follow instructions allow you to vote your shares and confirm that your instructions have been properly recorded.

You may vote by mail.  If you received a proxy card by mail and choose to vote by mail, simply mark your proxy card, date and sign it, and return it in the postage-paid envelope.

          The method you use to vote will not limit your right to vote at the Annual Meeting if you decide to attend in person. Written ballots will be passed out to anyone who wants to vote at the Annual Meeting. If you hold your shares in "street name," you must obtain a proxy, executed in your favor, from the holder of record to be able to vote in person at the Annual Meeting.


HDS Notice of Annual Meeting and 2014 Proxy Statement - Page 5


Table of ContentsOther Business

GENERAL INFORMATION ABOUT THE 2014 ANNUAL MEETING (continued)

What if I change my mind after I return my proxy?

          You may revoke your proxy and change your vote at any time before the polls close at the Annual Meeting. You may do this by:

    submitting a subsequent proxy by using the Internet or by mail with a later date;

    sending written notice of revocation to Corporate Secretary, HD Supply Holdings, Inc., 3100 Cumberland Boulevard, Atlanta, Georgia 30339;

    voting in person at the Annual Meeting.

          If you hold shares through a bank or broker, please refer to your proxy card, other information forwarded by your bank or broker to see how you can revoke your proxy and change your vote.

          Attendance at the meeting will not by itself revoke a proxy.

How many votes do you need to hold the Annual Meeting?

          The presence, in person or by proxy, of the holders of a majority of the votes entitled to be cast at the Annual Meeting will constitute a quorum. If a quorum is present, we can hold the Annual Meeting and conduct business.

          An investor group consisting of funds affiliated with Bain Capital Partners, LLC ("Bain"), The Carlyle Group ("Carlyle") and Clayton, Dubilier & Rice, LLC ("CD&R") (collectively, our "Equity Sponsors") beneficially owns more than 50% of our common stock. Therefore, the presence of the Equity Sponsors at the Annual Meeting would constitute a quorum. Our Equity Sponsors, pursuant to a stockholders agreement with the Company, are currently entitled to nominate (or cause to be nominated) nine of the Company's directors, which includes three designees of each Equity Sponsor. Pursuant to the stockholders agreement, the Company has agreed to use its best efforts to cause the election of such nominees to the board of directors, and each party to the stockholders agreement, including the Equity Sponsors, has agreed to vote in favor of the election of such nominees. As of March 14, 2014, the Equity

          Sponsors collectively held approximately 56.36% of our outstanding common stock. See "Related Party Transactions" on page 24 for additional information.

On what items am I voting?

          You are being asked to vote on four items:

    to elect two directors nominated by the board of directors and named in the proxy statement to serve until our 2017 annual meeting of shareholders and until their successors are elected and qualify;

    to ratify the appointment of PricewaterhouseCoopers LLP as our independent registered public accounting firm for the 2014 fiscal year ending February 1, 2015;


HDS Notice of Annual Meeting and 2014 Proxy Statement - Page 6


Table of Contents

GENERAL INFORMATION ABOUT THE 2014 ANNUAL MEETING (continued)

    to conduct an advisory vote on the compensation of our named executive officers, often referred to as a "say on pay"; and

    to conduct an advisory vote on the frequency of future advisory votes on executive compensation, often referred to as a "say when on pay";

          No cumulative voting rights are authorized, and dissenters' rights are not applicable to these matters.

How does the board of directors recommend that I vote?

          The board recommends that you vote as follows:

    FOR both director nominees;
    FOR the ratification of the appointment of our independent registered public accounting firm;
    FOR the approval, on an advisory basis, of executive compensation; and
    FOR an advisory vote on executive compensation EVERY THREE YEARS.

How may I vote in the election of directors, and how many votes must the nominees receive to be elected?

          With respect to the election of directors, you may:

    vote FOR the two nominees for director;
    vote FOR one of the nominees for director and ABSTAIN from voting on the other nominee for director; or
    ABSTAIN from voting on either of the nominees for director.

The Company's Third Amended and Restated By-Laws (the "Bylaws") provide for the election of directors by a62plurality of the votes cast. This means that the two individuals nominated for election to the board of directors who receive the most "FOR" votes (among votes properly cast in person, electronically or by proxy) will be elected.

What happens if a nominee is unable to stand for election?

          If a nominee is unable to stand for election, the board may either:

    reduce the number of directors that serve on the board; or
    designate a substitute nominee.

          If the board designates a substitute nominee, shares represented by proxies voted for the nominee who is unable to stand for election will be voted for the substitute nominee.


HDS Notice of Annual Meeting and 2014 Proxy Statement - Page 7


Table of Contents

GENERAL INFORMATION ABOUT THE 2014 ANNUAL MEETING (continued)

How may I vote for the proposal to ratify the appointment of our independent registered public accounting firm, and how many votes must this proposal receive to pass?

          With respect to this proposal, you may:

    vote FOR the ratification of the accounting firm;
    vote AGAINST the ratification of the accounting firm; or
    ABSTAIN from voting on the proposal.

          In order to pass, the proposal must receive the affirmative vote of a majority of the votes that could be cast at the Annual Meeting by the holders who are present in person, electronically or by proxy. If you abstain from voting on the proposal or your broker is unable to vote your shares, it will have the same effect as a vote against the proposal.

How may I vote on the proposal to approve, on an advisory basis, the executive compensation of the named executive officers as disclosed in this proxy statement, and how many votes must this proposal receive to pass?

          With respect to this proposal, you may:

    vote FOR the approval, on an advisory basis, of executive compensation;
    vote AGAINST the approval, on an advisory basis, of executive compensation; or
    ABSTAIN from voting on the proposal.

          In order to pass, the proposal must receive the affirmative vote of a majority of the votes that could be cast at the Annual Meeting by the holders who are present in person, electronically or by proxy. If you abstain from voting on the proposal, it will have the same effect as a vote against the proposal.

How may I vote on the proposal to indicate, on an advisory basis, my preference for the frequency of future advisory votes on executive compensation?

          With respect this proposal, you may vote to indicate your preference as follows:

    an advisory vote on executive compensation every THREE YEARS;
    an advisory vote on executive compensation every TWO YEARS;
    an advisory vote on executive compensation EVERY YEAR; or
    ABSTAIN from voting on the proposal.

          Unlike the other proposals you are voting on, there is no threshold vote that must be obtained for this proposal to "pass." Rather, the board will take into consideration the outcome of the vote in setting a policy with respect to the frequency of future advisory votes on executive compensation.


HDS Notice of Annual Meeting and 2014 Proxy Statement - Page 8


Table of Contents

GENERAL INFORMATION ABOUT THE 2014 ANNUAL MEETING (continued)

What happens if I sign and return my proxy card but do not provide voting instructions?

          If you return a signed card but do not provide voting instructions, your shares will be voted as follows:

    FOR both director nominees;
    FOR the ratification of the appointment of our independent registered public accounting firm;
    FOR the approval, for an advisory basis, of executive compensation; and
    FOR an advisory vote on executive compensation EVERY THREE YEARS.

Will my shares be voted if I do not vote by using the Internet or by signing and returning my proxy card?

          If you do not vote by using the Internet or by signing and returning your proxy card, then your shares will not be voted and will not count in deciding the matters presented for shareholder consideration at the Annual Meeting.

          If your shares are held in street name through a bank or broker, your bank or broker may vote your shares under certain limited circumstances if you do not provide voting instructions before the Annual Meeting, in accordance with the NASDAQ rules that govern the banks and brokers. These circumstances include voting your shares on "routine matters," such as the ratification of the appointment of our independent registered public accountants described in this proxy statement. With respect to this proposal, therefore, if you do not vote your shares, your bank or broker may vote your shares on your behalf or leave your shares unvoted.

          The remaining proposals are not considered routine matters under the NASDAQ rules relating to voting by banks and brokers. When a proposal is not a routine matter and the brokerage firm has not received voting instructions from the beneficial owner of the shares with respect to that proposal, the brokerage firm cannot vote the shares on that proposal. This is called a "broker non-vote." Broker non-votes that are represented at the Annual Meeting will be counted for purposes of establishing a quorum, but not for determining the number of shares voted for or against the non-routine matter.

          We encourage you to provide instructions to your bank or brokerage firm by voting your proxy. This action ensures your shares will be voted at the meeting in accordance with your wishes.

What is the vote required for each proposal to pass, and what is the effect of abstentions and uninstructed shares on the proposals?

          Our Bylaws provide for the election of directors by aplurality of the votes cast. This means that the two individuals nominated for election to the board of directors who receive the most "FOR" votes (among votes properly cast in person, electronically or by proxy) will be elected. Abstentions are not considered votes cast for or against the nominee under a plurality voting standard. For each other proposal to pass in accordance with our Bylaws, the proposal must receive the affirmative vote of a majority voting power of the shares present in person, electronically or by proxy at the Annual Meeting and entitled to vote. The following table summarizes the board's recommendation on each proposal,


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GENERAL INFORMATION ABOUT THE 2014 ANNUAL MEETING (continued)

the vote required for each proposal to pass and the effect of abstentions and uninstructed shares on each proposal.

Proposal
Number

Item
Board Voting
Recommendation

Votes Required for Approval
Abstentions
Uninstructed
Shares

1Election of DirectorsFORThe two nominees who receive the most FOR votes properly cast in person, electronically or by proxy and entitled to vote will be electedNo effectNo effect
2Ratification of independent registered public accounting firmFORMajority of the voting power of the shares present in person, electronically or by proxy and entitled to voteCount as votes againstDiscretionary voting by broker permitted
3Advisory vote on the compensation of our named executive officers ("say on pay")FORMajority of the voting power of the shares present in person, electronically or by proxy and entitled to voteCount as votes againstNo effect
4Advisory vote on the frequency of future say-on-pay advisory votesEVERY THREE YEARSNo threshold vote to pass. Rather, the board will take into consideration the outcome of the vote in setting a policy with respect to the frequency of future advisory votes on executive compensation.No effectNo effect

What do I need to show to attend the Annual Meeting in person?

          You will need proof of your share ownership (such as a recent brokerage statement or letter from your broker showing that you owned shares of HD Supply Holdings, Inc. common stock as of March 17, 2014) and a form of government-issued photo identification. If you do not have proof of ownership and valid photo identification, you may not be admitted to the Annual Meeting. All bags, briefcases and packages will be held at registration and will not be allowed in the meeting.

Can I receive future proxy materials and annual reports electronically?

          Yes. This proxy statement and the annual report are available by accessing the website located athttp://www.astproxyportal.com/ast/18392/. Instead of receiving paper copies in the mail, shareholders can elect to receive an email that provides a link to our future annual reports and proxy materials on the Internet. Opting to receive your proxy materials electronically will save us the cost of producing and mailing documents to your home or business, will reduce the environmental impact of our annual meetings, and will give you an automatic link to the proxy voting site.

          If you are a shareholder of record and wish to enroll in the electronic proxy delivery service for future meetings, you may do so by going tohttp://www.astproxyportal.com/ast/18392/ and following the prompts.


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GENERAL INFORMATION ABOUT THE 2015 ANNUAL MEETING

HD SUPPLY HOLDINGS, INC.

3100 Cumberland Boulevard, Atlanta, Georgia 30339

This summary highlights information contained elsewhere in this proxy statement. It does not contain all of the information that you should consider, and you should read the entire proxy statement carefully before voting.

2015 Annual Meeting Information:

Date:Thursday, May 14, 2015
Time:12:30 p.m. Eastern Time

Location:


Cumberland Center II, 3100 Cumberland Boulevard, Atlanta, Georgia 30339 (follow signs in lobby to Annual Meeting room)

Record Date:


March 17, 2015

Admission:


To attend the meeting in person, you will need your admittance ticket (the Notice of Internet Availability of Proxy Materials that you received by mail), proof of your share ownership as of the record date (such as a brokerage statement), and government-issued photo identification (such as a driver's license).

Items of Business:

Proposals
Board Vote
Recommendation

Page Reference
(for more
information)

1.Elect three directors nominated by the board of directorsFOR ALL2, 6, 57
2.Ratify the appointment of our independent registered public accounting firmFOR2-3, 6, 58
3.Vote on a stockholder proposal regarding greenhouse gas emissionsAGAINST7, 59-60


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GENERAL INFORMATION ABOUT THE 2015 ANNUAL MEETING (continued)

OUR EXECUTIVE OFFICERS

          The following table sets forth certain information concerning our executive officers. The respective age of each individual in the table below is as of March 31, 2014.

Name
Age
Position

Joseph J. DeAngelo

52President and Chief Executive Officer; Director

Anesa Chaibi

47President and Chief Executive Officer, HD Supply Facilities Maintenance

Evan Levitt

44Senior Vice President, Chief Financial Officer

Steven N. Margolius

55President and Chief Executive Officer, HD Supply Power Solutions

Margaret Newman

45SVP, Human Resources, Communications and Community Relations

Ricardo J. Nuñez

49Senior Vice President, General Counsel and Corporate Secretary

John A. Stegeman

53Executive President, HD Supply and President, HD Supply White Cap

Jerry Webb

56Chief Executive Officer, HD Supply Waterworks
  10

Joseph J. DeAngelo has been President and Chief Executive Officer since January 2005 and has been a director since August 2007. Mr. DeAngelo served as Executive Vice President and Chief Operating Officer of Home Depot from January 2007 through August 2007. From August 2005 to December 2006, he served as Senior Vice President—HD Supply. From January 2005 to August 2005, Mr. DeAngelo served as Senior Vice President—Home Depot Supply, Pro Business and Tool Rental and from April 2004 through January 2005, he served as Senior Vice President—Pro Business and Tool Rental. Mr. DeAngelo previously served as Executive Vice President of The Stanley Works, a tool manufacturing company, from March 2003 through April 2004. From 1986 until April 2003, Mr. DeAngelo held various positions with GE. His final position with GE was as President and Chief Executive Officer of General Electric TIP/Modular Space, a division of General Electric Capital. Mr. DeAngelo holds a bachelor's degree in accounting and economics from the State University of New York at Albany.

Anesa Chaibi has served as President and Chief Executive Officer, HD Supply Facilities Maintenance since September 2005. Prior to joining HD Supply, Ms. Chaibi served as General Manager of Global Quality and Commercial Operations for GE Water & Process Technologies in 2005. Ms. Chaibi began her career in 1989 in the GE Chemical and Materials Leadership Program. She held roles of increasing responsibility in manufacturing, operations, production, marketing, corporate initiatives, global sourcing, Six Sigma Quality, and as a Business Leader within GE Silicones, Plastics, Power Systems, Industrial Systems, Water & Process Technologies and Infrastructure before leaving to join Home Depot and then HD Supply. During her career, she also worked for CSC Index as a Strategic Management Consultant. Ms. Chaibi has a bachelor of science in chemical engineering from West Virginia University and an M.B.A. from the Fuqua School of Business at Duke University.

Evan Levitt has served as Senior Vice President, Chief Financial Officer since 2013. Prior to his appointment as Chief Financial Officer in December 2013, he served as Vice President and Corporate Controller of HD Supply since 2007 when he joined the Company from The Home Depot, where he was the assistant controller and director of financial reporting from 2004 to 2007. He also served in various management roles at Payless ShoeSource from 1999-2004, including Vice President of Accounting and Reporting. Prior to Payless ShoeSource, he held the role of Audit Manager with Arthur Andersen. Mr. Levitt has a bachelor of science in business administration from Washington University.

Steve Margolius has served as President and Chief Executive Officer, HD Supply Power Solutions since December 2013, having served as its president since April 2013. Prior to that, he served as its Chief Operating Officer and HD Supply's Chief Commercial Officer from March 2011 through March 2013. Prior to re-joining HD Supply in March 2011, he served as Executive Vice President and Chief Operating Officer of United Sporting Companies from April 2010 until March 2011. He was President, HD Supply Electrical from April 2006 to March 2010 and President, HD Supply Plumbing/HVAC from July 2009 to March 2010. Mr. Margolius has a bachelor's degree from State University of New York


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OUR EXECUTIVE OFFICERS (continued)

and has attended advanced management programs at Harvard Business School and the Stanford Graduate School of Business.

Margaret Newman joined HD Supply in April 2007 and has served as Senior Vice President, Human Resources, Communications and Community Relations since July 2008. Prior to HD Supply, Ms. Newman held senior Human Resources leadership roles at Conseco Insurance Group from August 2005 to April 2007, and at Sears Roebuck and Company from September 1997 to August 2005. She has more than 19 years of business experience in the manufacturing industry, building her expertise in organizational effectiveness; acquisition and integration; benefits design; talent acquisition and management; leadership development and employee engagement. Ms. Newman holds a bachelor's degree in psychology from Coe College and master's degree in sociology from the University of Wisconsin.

Ricardo J. Nuñez has served as Senior Vice President, General Counsel and Corporate Secretary since August 2007 and was also responsible for managing our Real Estate, Loss Prevention, Corporate Security, Business Continuity, and Environmental, Health and Safety operations for a portion of this time. Mr. Nuñez served as Vice President of Legal Operations of Home Depot from August 2005 to August 2007. Previously, he held leadership positions at General Electric Energy ("GE Energy"), which included lead legal counsel responsible for global manufacturing and sourcing, global compliance, and sales of products and services. Prior to joining GE Energy, Mr. Nuñez served as counsel at Esso Inter-America Inc., the Exxon affiliate responsible for downstream operations throughout Latin America and the Caribbean. Mr. Nuñez also spent four years at Steel, Hector & Davis, a law firm based in Florida, where he practiced real estate and land use law primarily. He is active in various civic and charitable organizations and currently sits on the board of directors of The Westminster Schools and Atlanta Speech School. Mr. Nuñez holds a bachelor's degree in Economics from the Wharton School at the University of Pennsylvania and a J.D. from Columbia Law School.

John A. Stegeman joined HD Supply in April 2010 as Executive President and focused on building the Specialty Construction and Safety business as the President of HD Supply White Cap. Prior to joining HD Supply, Mr. Stegeman was most recently President and Chief Executive Officer of Ferguson Enterprises ("Ferguson"), headquartered in Newport News, Virginia from 2005 to 2009. He began his career with Ferguson in 1985 as a management trainee and advanced through the company holding various management positions in three of Ferguson's five business groups: Waterworks, Plumbing, and Heating and Air Conditioning. As part of the Ferguson Waterworks business group, Mr. Stegeman served as Senior Vice President before being named Chief Operating Officer of Ferguson in May 2005. Mr. Stegeman received a bachelor's degree from Virginia Tech and has attended advanced management programs at Wharton School of Business, IMD, Duke University's Fuqua School of Business, University of Virginia Darden School of Business and Columbia University.

Jerry L. Webb has served as Chief Executive Officer, HD Supply Waterworks since December 2011, and served as President, HD Supply Waterworks from March 2007 to November 2011. Mr. Webb joined the HD Supply team in connection with the acquisition of National Waterworks Holdings, Inc. by HD Supply in August 2005. Mr. Webb has spent his entire career in HD Supply Waterworks and its predecessor companies: National Waterworks, U.S. Filter Distribution Group, Inc. and Davis Water & Waste Industries ("Davis"). Mr. Webb previously served as Vice President of the Southeast Region of National Waterworks from November 2002 through March 2007. He began his career in 1981 with Davis and served in numerous capacities including Sales Representative, Operations Manager, Branch Manager, District Manager and National Sales Manager. Following the acquisition of Davis by U.S. Filter, Mr. Webb served as Vice President for the Southeast Region of U.S. Filter from 1996 until 2002. Mr. Webb holds a B.B.A. degree in accounting from Valdosta State University.


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OUR BOARD OF DIRECTORS

13

          The Company's CertificateGOVERNANCE OF OUR COMPANY

18

Selecting Nominees for Director

18

Director Independence

19

Executive Sessions of Incorporation providesour Non-Management Directors

19

Board Leadership Structure

19

Board's Role in Risk Oversight

20

Corporate Governance Guidelines, Committee Charters and Code of Business Conduct and Ethics

20

Committees of the Board of Directors

21

Compensation Committee Interlocks and Insider Participation

22

Compensation Practices and Risk Management

23

Meetings of the Board of Directors and Attendance at the Annual Meeting

23

Plurality Voting for Election of Directors

24

Succession Planning and Management Development

24

Policies and Procedures for Related Person Transactions

24

Related Person Transactions

24

Communicating with our Board of Directors

27

Policies Regarding Certain Transactions in Company Securities

28

OWNERSHIP OF SECURITIES

29

DIRECTOR COMPENSATION

32

2014 Director Compensation

32

2014 Stock Awards

33

Narrative Discussion

33

EXECUTIVE COMPENSATION

36

Compensation Discussion and Analysis

36

Summary Compensation Table

47

Grants of Plan-Based Awards Table

49

Outstanding Equity Awards Table

50

Option Exercises and Stock Vested Table

51

Potential Payments Upon Termination or Change in Control

51

Report of the Compensation Committee

54

AUDIT COMMITTEE REPORT

55

Report of Audit Committee

55

AUDIT MATTERS

56

Principal Accounting Firm Fees

56

PROPOSAL 1 — ELECTION OF DIRECTORS

57

PROPOSAL 2 — RATIFICATION OF APPOINTMENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

58

PROPOSAL 3 — STOCKHOLDER PROPOSAL ON GREENHOUSE GAS EMISSIONS

59

OTHER INFORMATION FOR STOCKHOLDERS

61

Section 16(a) Beneficial Ownership Reporting Compliance

61

Solicitation of Proxies

61

Stockholder Proposals or Stockholder Nominations for Director at 2016 Annual Meeting

61

2014 Annual Report on Form 10-K

62

Other Business

62

Table of Contents

GENERAL INFORMATION ABOUT THE 2015 ANNUAL MEETING

HD SUPPLY HOLDINGS, INC.

3100 Cumberland Boulevard, Atlanta, Georgia 30339

This summary highlights information contained elsewhere in this proxy statement. It does not contain all of the information that you should consider, and you should read the entire proxy statement carefully before voting.

2015 Annual Meeting Information:

Date:Thursday, May 14, 2015
Time:12:30 p.m. Eastern Time

Location:


Cumberland Center II, 3100 Cumberland Boulevard, Atlanta, Georgia 30339 (follow signs in lobby to Annual Meeting room)

Record Date:


March 17, 2015

Admission:


To attend the meeting in person, you will need your admittance ticket (the Notice of Internet Availability of Proxy Materials that you received by mail), proof of your share ownership as of the record date (such as a brokerage statement), and government-issued photo identification (such as a driver's license).

Items of Business:

Proposals
Board Vote
Recommendation

Page Reference
(for more
information)

1.Elect three directors nominated by the board of directors shall consistFOR ALL2, 6, 57
2.Ratify the appointment of not fewer than three nor more than 21 directors, with the exact number to be fixed by the board of directors.our independent registered public accounting firmFOR2-3, 6, 58
3.Vote on a stockholder proposal regarding greenhouse gas emissionsAGAINST7, 59-60


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GENERAL INFORMATION ABOUT THE 2015 ANNUAL MEETING (continued)

Director Nominees

Board Structure

          HD Supply Holdings, Inc. (the "Company") currently has ten directors divided into three classes: three directors in each of Class I and Class II and four in Class III. The board of directors has fixed the current number of directors at eleven. The Company currently has ten directors and there is one current vacancy.

          The Certificate of Incorporation divides the board into three classes, as nearly equal in number as possible, with the terms of office of the three Class II directors expire at the Annual Meeting.

Class II Election

          The three nominees for election as Class II directors are listed below. If elected, the nominees for election as Class II directors will serve for a term of three years and until their successors are elected and qualify. If you sign and return the accompanying proxy card or voting instruction form, your shares will be voted for the election of the three Class II nominees recommended by the board of directors unless you choose to abstain from voting for any of the nominees. If for any reason any nominee is unable to serve or will not serve, such proxies may be voted for a substitute nominee designated by the board of directors as the proxy holder may determine. The board is not aware of any nominee who will be unable to or will not serve as a director. There is no cumulative voting.

Class II Nominees

          A nominee must receive the vote of a plurality of the votes validly cast at the Annual Meeting represented either in person or by proxy at the Annual Meeting to be elected. Therefore, the three nominees who receive the most "FOR" votes (among votes properly cast in person, electronically or by proxy) will be elected. Proxies cannot be voted for a greater number of persons than the number of nominees named. The Class II nominees are as follows:

 Name
 Age
 Director
Since

 Occupation
 Board Committees
 Independent
 
 Betsy S. Atkins 61 2013 Chairperson, APX Labs, LLC Compensation; N&CG Yes
 Paul B. Edgerley  59  2007 Managing Director, Bain Capital N&CG (Chair); CD&F Yes
 James A. Rubright 68 2014 Principal, Privet Fund Management, LLC CD&F (Chair); N&CG Yes
 

          Additional information about the three director nominees, as well as our current board of directors who will continue to serve after the Annual Meeting, is provided on pages 14-17.

Ratification of the Appointment of the Independent Registered Public Accounting Firm

          The board is asking you to ratify the selection of PricewaterhouseCoopers LLP as our independent registered public accounting firm for the 2015 fiscal year ending January 31, 2016. Set forth below is summary information with respect to the fees billed to us by


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GENERAL INFORMATION ABOUT THE 2015 ANNUAL MEETING (continued)

PricewaterhouseCoopers LLP for services provided to us during the fiscal years ended February 1, 2015 and February 2, 2014. For more information, see pages 55 and 56.

Fees Billed
FYE2015
(Fiscal 2014)

FYE2014
(Fiscal 2013)

Audit Fees

$3.4 million$3.4 million

Audited-Related Fees

N/AN/A

Tax Fees

$0.9 million$0.8 million

All Other Fees

N/AN/A

Total

$4.3 million$4.2 million

Stockholder Proposal on Greenhouse Gas Emissions

          You are being asked to vote on a stockholder proposal jointly filed by Calvert Investments and Sonen Capital regarding greenhouse gas emissions, if properly presented at the Annual Meeting. For more information, see pages 59-60.

2016 Annual Meeting

          Pursuant to Rule 14a-8 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), stockholder proposals submitted for inclusion in the proxy statement for our annual meeting of stockholders expected to be held in May 2016 must be received by us by December 2, 2015. For more information, see page 61.

Why am I receiving these proxy materials?

          The accompanying proxy materials have been furnished to you because the Company is soliciting your proxy to vote your shares at the Annual Meeting. This proxy statement describes issues on which we would like you to vote at our Annual Meeting. It also gives you information on these issues so that you can make an informed decision.

          The proxy materials include our proxy statement for the Annual Meeting, our annual report on Form 10-K for the fiscal year ended February 1, 2015, and the proxy card or a voting instruction card for the Annual Meeting. The Company has made these proxy materials available to you by Internet or, upon your request, has delivered printed versions of these materials to you by mail, because you owned shares of the Company's common stock at the close of business on March 17, 2015.

          When you vote by using the Internet or by signing and returning the proxy card, you appoint Joseph J. DeAngelo and Dan S. McDevitt (with full power of substitution) as your representatives at the Annual Meeting. They will vote your shares at the Annual Meeting as you have instructed them or, if an issue that is not on the proxy card comes up for vote, in accordance with their best judgment. This way, your shares will be voted whether or not you attend the Annual Meeting. Even if you plan to attend the Annual Meeting, we encourage you to vote in advance by using the Internet, or if you received your proxy card by mail, by signing and returning your proxy card. If you vote by Internet, you do not need to return your proxy card.


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GENERAL INFORMATION ABOUT THE 2015 ANNUAL MEETING (continued)

Why did I receive a one-page notice in the mail regarding the Internet availability of proxy materials instead of a full set of proxy materials?

          Pursuant to rules adopted by the U.S. Securities and Exchange Commission, the Company uses the Internet as the primary means of furnishing proxy materials to stockholders. Accordingly, the Company is sending a Notice of Internet Availability of Proxy Materials (the "Notice") to the Company's stockholders. All stockholders will have the ability to access the proxy materials on the website referred to in the Notice or request a printed set of the proxy materials. Instructions on how to access the proxy materials over the Internet or how to request a printed copy may be found in the Notice. In addition, stockholders may request to receive proxy materials in printed form by mail or electronically by email on an ongoing basis. The Company encourages stockholders to take advantage of the availability of the proxy materials on the Internet to help reduce the environmental impact of its annual meetings and reduce the cost to the Company associated with the physical printing and mailing of materials.

Who is entitled to vote?

          Holders of our common stock at the close of business on March 17, 2015 are entitled to vote. March 17, 2015 is referred to as the record date. In accordance with Delaware law, a list of stockholders entitled to vote at the Annual Meeting will be available in electronic form at the place of the Annual Meeting on May 14, 2015 and will be accessible in electronic form for ten days before the meeting at our principal place of business, 3100 Cumberland Boulevard, Atlanta, Georgia 30339 between the hours of 9:00 a.m. and 5:00 p.m.

To how many votes is each share of common stock entitled?

          Holders of common stock are entitled to one vote per share. On the record date, there were 197,256,618 shares of our common stock outstanding and entitled to vote.

How do I vote?

          Stockholders of record may vote by using the Internet or by mail as described below. Stockholders may also attend the Annual Meeting and vote in person.If you hold shares through a bank or broker, please refer to the notice and voting instruction form, or other information forwarded by your bank or broker for details on your voting options.

    You may vote by using the Internet.  The address of the website for Internet voting iswww.voteproxy.com. Internet voting is available 24 hours a day and will be accessible until 5:00 p.m. Eastern Time on May 13, 2015. Easy-to-follow instructions allow you to vote your shares and confirm that your instructions have been properly recorded.

    You may vote by mail.  If you received a proxy card by mail and choose to vote by mail, simply mark your proxy card, date and sign it, and return it in the provided envelope.

          The method you use to vote will not limit your right to vote at the Annual Meeting if you decide to attend in person. Written ballots will be passed out to anyone who wants to vote at the Annual Meeting. If you hold your shares in "street name," you must obtain a proxy, executed in your favor, from the holder of record to be able to vote in person at the Annual Meeting.


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GENERAL INFORMATION ABOUT THE 2015 ANNUAL MEETING (continued)

Is my vote confidential?

          Confidential voting applies to individual stockholders but not to corporate and institutional stockholders. Our confidential voting policy is set forth in our Corporate Governance Guidelines available athttp://ir.hdsupply.com/governance.cfm.

What if I change my mind after I return my proxy?

          You may revoke your proxy and change your vote at any time before the polls close at the Annual Meeting. You may do this by one of the following:

    submitting a subsequent proxy by using the Internet or by mail with a later date;

    sending written notice of revocation to Dan S. McDevitt, General Counsel and Corporate Secretary, HD Supply Holdings, Inc., 3100 Cumberland Boulevard, Atlanta, Georgia 30339;

    voting in person at the Annual Meeting.

          If you hold shares through a bank or broker, please refer to your voting instruction card or other information forwarded by your bank or broker to see how you can revoke your proxy and change your vote.

          Attendance at the meeting will not by itself revoke a proxy.

How many votes do you need to hold the Annual Meeting?

          The presence, in person or by proxy, of the holders of a majority of the votes entitled to be cast at the Annual Meeting will constitute a quorum. If a quorum is present, we can hold the Annual Meeting and conduct business.

On what items am I voting?

          You are being asked to vote on three items:

    to elect three directors nominated by the board of directors and named in the proxy statement to serve until our 2018 annual meeting of stockholders and until their successors are elected and qualify;

    to ratify the appointment of PricewaterhouseCoopers LLP as our independent registered public accounting firm for our 2015 fiscal year ending January 31, 2016; and

    a stockholder proposal regarding greenhouse gas emissions.

          No cumulative voting rights are authorized, and dissenters' rights are not applicable to these matters.


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GENERAL INFORMATION ABOUT THE 2015 ANNUAL MEETING (continued)

How does the board of directors recommend that I vote?

          The board recommends that you vote as follows:

    FOR all director nominees;
    FOR the ratification of the appointment of our independent registered public accounting firm; and
    AGAINST the stockholder proposal regarding greenhouse gas emissions.

How may I vote in the election of directors, and how many votes must the nominees receive to be elected?

          With respect to the election of directors, you may:

    vote FOR all three nominees for director;
    vote FOR one or more of the nominees for director and ABSTAIN from voting on one or more of the other nominees for director; or
    ABSTAIN from voting on any of the nominees for director.

          The Company's Third Amended and Restated By-Laws (the "Bylaws") provide for the election of directors by a plurality of the votes cast. This means that the three individuals nominated for election to the board of directors who receive the most "FOR" votes (among votes properly cast in person, electronically or by proxy) will be elected.

What happens if a nominee is unable to stand for election?

          If a nominee is unable to stand for election, the board may either:

    reduce the number of directors that serve on the board; or
    designate a substitute nominee.

          If the board designates a substitute nominee, shares represented by proxies voted for the nominee who is unable to stand for election will be voted for the substitute nominee.

How may I vote for the proposal to ratify the appointment of our independent registered public accounting firm, and how many votes must this proposal receive to pass?

          With respect to this proposal, you may:

    vote FOR the ratification of the accounting firm;
    vote AGAINST the ratification of the accounting firm; or
    ABSTAIN from voting on the proposal.

          In order to pass, the proposal must receive the affirmative vote of a majority of the votes that could be cast at the Annual Meeting by the holders who are present in person, electronically or by proxy. If you abstain from voting on the proposal or your broker is unable to vote your shares, it will have the same effect as a vote against the proposal.


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GENERAL INFORMATION ABOUT THE 2015 ANNUAL MEETING (continued)

How may I vote for the stockholder proposal regarding greenhouse gas emissions, and how many votes must this proposal receive to pass?

          With respect to this proposal, you may:

    vote FOR the stockholder proposal;
    vote AGAINST the stockholder proposal; or
    ABSTAIN from voting on the proposal.

          In order to pass, the proposal must receive the affirmative vote of a majority of the votes that could be cast at the Annual Meeting by the holders who are present in person, electronically or by proxy. If you abstain from voting on the proposal or your broker is unable to vote your shares, it will have the same effect as a vote against the proposal.

What happens if I sign and return my proxy card but do not provide voting instructions?

          If you return a signed card but do not provide voting instructions, your shares will be voted as follows:

    FOR all director nominees;
    FOR the ratification of the appointment of our independent registered public accounting firm; and
    AGAINST the stockholder proposal regarding greenhouse gas emissions.

Will my shares be voted if I do not vote by using the Internet or by signing and returning my proxy card?

          If you do not vote by using the Internet or by signing and returning your proxy card, then your shares will not be voted and will not count in deciding the matters presented for stockholder consideration at the Annual Meeting.

          If your shares are held in street name through a bank or broker, your bank or broker may vote your shares under certain limited circumstances, in accordance with the NASDAQ rules that govern the banks and brokers, if you do not provide voting instructions before the Annual Meeting. These circumstances include voting your shares on "routine matters," such as the ratification of the appointment of our independent registered public accountants described in this proxy statement. With respect to this proposal, therefore, if you do not vote your shares, your bank or broker may vote your shares on your behalf or leave your shares unvoted.

          The remaining two proposals, the election of director nominees and the stockholder proposal regarding greenhouse gas emissions, are not considered routine matters under the NASDAQ rules relating to voting by banks and brokers. When a proposal is not a routine matter and the brokerage firm has not received voting instructions from the beneficial owner of the shares with respect to that proposal, the brokerage firm cannot vote the shares on that proposal. This is called a "broker non-vote." Broker non-votes that are represented at the Annual Meeting will be counted for purposes of establishing a quorum, but not for determining the number of shares voted for or against the non-routine matter.


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GENERAL INFORMATION ABOUT THE 2015 ANNUAL MEETING (continued)

          We encourage you to provide instructions to your bank or brokerage firm by voting your proxy. This action ensures your shares will be voted at the meeting in accordance with your wishes.

What is the vote required for each proposal to pass, and what is the effect of abstentions and uninstructed shares on the proposals?

          Our Bylaws provide for the election of directors by a plurality of the votes cast. This means that the three individuals nominated for election to the board of directors who receive the most "FOR" votes (among votes properly cast in person, electronically or by proxy) will be elected. Abstentions are not considered votes cast for or against the nominee under a plurality voting standard. For each other proposal to pass in accordance with our Bylaws, the proposal must receive the affirmative vote of a majority voting power of the shares present in person, electronically or by proxy at the Annual Meeting and entitled to vote. The following table summarizes the board's recommendation on each proposal, the vote required for each proposal to pass, and the effect of abstentions and uninstructed shares (proxy card or voting instruction form returned, but voting instructions not provided) on each proposal.

Proposal
Number

Item
Board Voting
Recommendation

Votes Required for Approval
Abstentions
Uninstructed
Shares

1Election of DirectorsFORThe three nominees who receive the most FOR votes properly cast in person, electronically or by proxy and entitled to vote will be electedNo effectFor all board nominees
2Ratification of independent registered public accounting firmFORMajority of the directorsvoting power of each Class endingthe shares present in different years. Class I currently has two directorsperson, electronically or by proxy and Class IIentitled to voteCount as votes againstDiscretionary voting by broker permitted
3Stockholder proposal regarding greenhouse gas emissionsAGAINSTMajority of the voting power of the shares present in person, electronically or by proxy and Class III have four directors, respectively. The termsentitled to voteCount as votes againstAgainst the stockholder proposal

What do I need to show to attend the Annual Meeting in person?

          You must bring your admittance ticket (the Notice of Internet Availability of Proxy Materials that you received in the mail), proof of your share ownership as of March 17, 2015 (such as a brokerage statement or letter from your broker), and government-issued photo identification (such as a driver's license). If you do not have an admittance ticket, proof of ownership and valid photo identification, you may not be admitted to the Annual Meeting. Cameras and recording devices are not permitted at the meeting. All bags, briefcases and packages will be held at registration and will not be allowed in the meeting.

Can I receive future proxy materials and annual reports electronically?

          Yes. This proxy statement and our annual report on Form 10-K for our fiscal year ended February 1, 2015 are available by accessing the website located athttp://www.astproxyportal.com/ast/18392/. Instead of receiving paper copies in the mail, stockholders can elect to receive an email that provides a link to our future annual reports and proxy materials on the Internet. Opting to receive your proxy materials electronically will save us the cost of producing and mailing documents to your home


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GENERAL INFORMATION ABOUT THE 2015 ANNUAL MEETING (continued)

or business, will reduce the environmental impact of our annual meetings, and will give you an automatic link to the proxy voting site.

          If you are a stockholder of record and wish to enroll in the electronic proxy delivery service for future meetings, you may do so by going tohttp://www.astproxyportal.com/ast/18392/ and following the prompts. If you hold shares through a bank or broker, please refer to the notice and voting instruction form, or other information forwarded by your bank or broker, to see how you can enroll for electronic proxy delivery for future meetings.


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OUR EXECUTIVE OFFICERS

          The following table sets forth certain information concerning our executive officers. The respective age of each individual in the table below is as of March 31, 2015.

Name
Age
Position

Joseph J. DeAngelo

53Chairman of directors in Classes I, II,the Board, President and III end at the annual meetings in 2014,Chief Executive Officer

Anesa T Chaibi

48President and Chief Executive Officer, HD Supply Facilities Maintenance

Evan J. Levitt

45Senior Vice President, Chief Financial Officer

Dan S. McDevitt

47General Counsel and Corporate Secretary

Margaret M. Newman

46Senior Vice President, Human Resources

John A. Stegeman

54Executive President, HD Supply; President, HD Supply Construction and Industrial - White Cap

John M. Tisera

49President, HD Supply Power Solutions

Jerry L. Webb

57Chief Executive Officer, HD Supply Waterworks

Joseph J. DeAngelo has served asChairman of the Board, President and Chief Executive Officer since March 2015, President and Chief Executive Officer since January 2005, and has been a member of our board since August 2007. Mr. DeAngelo served as Executive Vice President and Chief Operating Officer of The Home Depot from January 2007 through August 2007. From August 2005 to December 2006, he served as Senior Vice President, HD Supply. From January 2005 to August 2005, Mr. DeAngelo served as Senior Vice President, Home Depot Supply, Pro Business and Tool Rental, and from April 2004 through January 2005, he served as Senior Vice President, Pro Business and Tool Rental. Mr. DeAngelo previously served as Executive Vice President of The Stanley Works, a tool manufacturing company, from March 2003 through April 2004. From 1986 until April 2003, Mr. DeAngelo held various positions with GE. His final position with GE was President and Chief Executive Officer of General Electric TIP/Modular Space, a division of General Electric Capital. Mr. DeAngelo holds a bachelor's degree in accounting and economics from the State University of New York at Albany.

Anesa T. Chaibi has served asPresident and Chief Executive Officer, HD Supply Facilities Maintenance since September 2005. Prior to joining HD Supply, Ms. Chaibi served as General Manager of Global Quality and Commercial Operations for GE Water & Process Technologies. Ms. Chaibi began her career in 1989 in the GE Chemical and Materials Leadership Program. She held roles of increasing responsibility in manufacturing, operations, production, marketing, corporate initiatives, global sourcing, Six Sigma Quality, and as a Business Leader within GE Silicones, Plastics, Power Systems, Industrial Systems, Water & Process Technologies and Infrastructure before leaving to join The Home Depot and then HD Supply. During her career, she also worked for CSC Index as a Strategic Management Consultant. Ms. Chaibi has a bachelor of science in chemical engineering from West Virginia University and an M.B.A. from the Fuqua School of Business at Duke University. Ms. Chaibi currently serves on the board of directors of Regal Beloit Corporation.

Evan J. Levitt has served asSenior Vice President, Chief Financial Officer since December 2013. Prior to his appointment as Chief Financial Officer, he served as Vice President and Corporate Controller of HD Supply since 2007 when he joined the Company from The Home Depot, where he was the assistant controller and director of financial reporting from 2004 to 2007. He also served in various management roles at Payless ShoeSource from 1999-2004, including Vice President of Accounting and Reporting. Prior to Payless ShoeSource, he held the role of Audit Manager with Arthur Andersen. Mr. Levitt has a bachelor of science in business administration from Washington University and is a Certified Public Accountant.

Dan S. McDevitt has served asGeneral Counsel and Corporate Secretary since January 2015, where he is responsible for managing the company's legal function and providing strategic leadership and


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OUR EXECUTIVE OFFICERS (continued)

coordination of legal matters. He joined HD Supply's legal department in 2010 and was promoted to Vice President in 2012. Prior to joining HD Supply, Mr. McDevitt was a partner at the law firm King & Spalding, where he practiced law for thirteen years, primarily focused on securities and corporate governance litigation and related investigations. Before joining King & Spalding, Mr. McDevitt served as a judicial clerk for the Honorable G. Ernest Tidwell on the United States District Court, Northern District of Georgia, and before then was an associate at Sullivan, Hall, Booth, & Smith. Mr. McDevitt received a B.B.A. degree in finance from the University of Notre Dame and a J.D. and LL.M. from the University of Notre Dame Law School.

Margaret M. Newman joined HD Supply in April 2007 and has served asSenior Vice President, Human Resources since July 2008. Prior to HD Supply, Ms. Newman held senior Human Resources leadership roles at Conseco Insurance Group from August 2005 to April 2007, and at Sears Roebuck and Company from September 1997 to August 2005. She has more than 19 years of business experience in the manufacturing industry, building her expertise in organizational effectiveness; acquisition and integration; benefits design; talent acquisition and management; leadership development and employee engagement. Ms. Newman holds a bachelor's degree in psychology from Coe College and a master's degree in sociology from the University of Wisconsin.

John A. Stegeman joinedHD Supply in April 2010 asExecutive President and focused on building the specialty construction and safety business as thePresident of HD Supply Construction and Industrial — White Cap. Prior to joining HD Supply, Mr. Stegeman was most recently President and Chief Executive Officer of Ferguson Enterprises, headquartered in Newport News, Virginia from 2005 to 2009. He began his career with Ferguson in 1985 as a management trainee and advanced through the company holding various management positions in three of Ferguson's five business groups: Waterworks, Plumbing, and Heating and Air Conditioning. As part of the Ferguson Waterworks business group, Mr. Stegeman served as Senior Vice President before being named Chief Operating Officer of Ferguson in May 2005. Mr. Stegeman received a bachelor's degree from Virginia Tech and has attended advanced management programs at Wharton School of Business, IMD, Duke University's Fuqua School of Business, University of Virginia Darden School of Business and Columbia University.

John M. Tisera has served asPresident, HD Supply Power Solutions since January 2015, after having served as its Southeast Region Vice President since October 2013. Prior to that, he was Vice President, Strategic Business Development for HD Supply. Mr. Tisera also served as Vice President, Sales for HD Supply Interior Solutions from 2008 to 2009; and President, HD Supply Hardware Solutions from to 2006 to 2008. Prior to joining HD Supply, Mr. Tisera worked for Stanley-Black and Decker as Vice President of the automotive and storage strategic business unit and Vice President, Consumer Sales in Atlanta, supporting The Home Depot. Prior to Stanley-Black and Decker, Tisera spent 15 years at General Electric, where he held several leadership positions in sales, operations, sourcing, quality and logistics in the aerospace, transportation, motors, appliances and capital business units. Tisera holds a bachelor of science degree in mechanical engineering from Drexel University and is a certified Six-Sigma Black Belt.

Jerry L. Webb has served asChief Executive Officer, HD Supply Waterworks since December 2011, and served as President, HD Supply Waterworks from March 2007 through November 2011. Mr. Webb joined the HD Supply team in connection with the acquisition of National Waterworks Holdings, Inc. by HD Supply in August 2005. Mr. Webb has spent his entire career in HD Supply Waterworks and its predecessor companies: National Waterworks, U.S. Filter Distribution Group, Inc. and Davis Water & Waste Industries ("Davis"). Mr. Webb previously served as Vice President of the Southeast Region of


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OUR EXECUTIVE OFFICERS (continued)

National Waterworks from November 2002 through March 2007. He began his career in 1981 with Davis and served in numerous capacities including Sales Representative, Operations Manager, Branch Manager, District Manager and National Sales Manager. Following the acquisition of Davis by U.S. Filter, Mr. Webb served as Vice President for the Southeast Region of U.S. Filter from 1996 until 2002. Mr. Webb holds a B.B.A. degree in accounting from Valdosta State University.


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OUR BOARD OF DIRECTORS

The Company's Certificate of Incorporation provides that the board of directors shall consist of not fewer than three nor more than 21 directors, with the exact number to be fixed by the board of directors. The board of directors has fixed the current number of directors at ten, and the Company currently has ten directors.

          The Certificate of Incorporation divides the board into three classes, as nearly equal in number as possible, with the terms of office of the directors of each class ending in different years. Class I and Class II each currently have three directors and Class III currently has four directors. The terms of directors in Classes I, II, and III end at the annual meetings in 2017, 2015, and 2016, respectively.

Director
Class
Brian A. BernasekClass I     –  Expiring 2014 Annual Meeting
Stephen M. Zide
Director
Class
Kathleen J. Affeldt Class I     –  Expiring 2014 Annual Meeting
Betsy S. AtkinsClass II   –  Expiring 2015 Annual Meeting
Paul B. EdgerleyClass II   –  Expiring 2015 Annual Meeting
Gregory S. LedfordClass II   –  Expiring 2015 Annual Meeting
Nathan K. SleeperClass II   –  Expiring 2015 Annual Meeting
James G. BergesClass III  –  Expiring 2016 Annual Meeting
Joseph J. DeAngeloClass III  –  Expiring 2016 Annual Meeting
Patrick R. McNameeClass III  –  Expiring 2016 Annual Meeting
Charles W. PefferClass III  –  Expiring 2016 Annual Meeting

          At each annual meeting of the shareholders, the successors of the directors whose term expires at that meeting are elected to hold office for a term expiring at the annual meeting of shareholders held in the third year following the year of their election. The board of directors is therefore asking you to elect the two nominees for director whose term expires at the Annual Meeting. Brian A. Bernasek and Stephen M. Zide, our Class I directors, have been nominated for reelection at the

– Expiring 2017 Annual Meeting. See "Proposal 1 — Election of Directors" on page 59.

          Directors are elected by a plurality. Therefore, the two nominees who receive the most "FOR" votes will be elected. Proxies cannot be voted for a greater number of persons than the number of nominees named. There is no cumulative voting. If you sign and return the accompanying proxy card or voting instruction card, your shares will be voted for the election of the two nominees recommended by the board of directors unless you choose to abstain from voting for either of the nominees. If either nominee for any reason is unable to serve or will not serve, proxies may be voted for such substitute nominee as the proxy holder may determine. The Company is not aware of any nominee who will be unable to or will not serve as a director.Meeting

John W. AldenClass I– Expiring 2017 Annual Meeting
Peter A. LeavClass I– Expiring 2017 Annual Meeting
Betsy S. AtkinsClass II– Expiring 2015 Annual Meeting
Paul B. EdgerleyClass II– Expiring 2015 Annual Meeting
James A. RubrightClass II– Expiring 2015 Annual Meeting
James G. BergesClass III– Expiring 2016 Annual Meeting
Joseph J. DeAngeloClass III– Expiring 2016 Annual Meeting
Patrick R. McNameeClass III– Expiring 2016 Annual Meeting
Charles W. PefferClass III– Expiring 2016 Annual Meeting

          At each annual meeting of the stockholders, the successors of the directors whose term expires at that meeting are elected to hold office for a term expiring at the annual meeting of stockholders held in the third year following the year of their election. The board of directors is therefore asking you to elect the three nominees for director whose term expires at the Annual Meeting. Betsy S. Atkins, Paul B. Edgerley and James A. Rubright, our Class II directors, have been nominated for reelection at the Annual Meeting. See "Proposal 1 — Election of Directors" on page 57.

          Directors are elected by a plurality. Therefore, the three nominees who receive the most "FOR" votes will be elected. Proxies cannot be voted for a greater number of persons than the number of nominees named. There is no cumulative voting. If you sign and return the accompanying proxy card or voting instruction card, your shares will be voted for the election of the three nominees recommended by the board of directors unless you choose to abstain from voting for any of the nominees. If a nominee is unable to serve or will not serve for any reason, proxies may be voted for such substitute nominee as the proxy holder may determine. The Company is not aware of any nominee who will be unable to or will not serve as a director.


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OUR BOARD OF DIRECTORS (continued)

Set forth below is biographical information as well as background information relating to each nominee's and continuing director's business experience, qualifications, attributes and skills, and why the board of directors and Nominating and Corporate Governance Committee believe each individual is a valuable member of the board of directors. The persons who have been nominated for election and are to be voted upon at the Annual Meeting are listed first, with continuing directors following thereafter.











Nominees









Betsy S. Atkins,Chairperson,
APX Labs, LLC


Age 61


Class II – term expiring at 2015 annual meeting
Committees: Compensation; N&CG


Director since 2013



Ms. Atkins currently serves as chairperson of APX Labs, LLC, a Google Glass/Smart Glass enterprise software company. She served as President and Chief Executive Officer of Baja Ventures, an independent venture capital firm focused on the technology, renewable energy and life sciences industry, from 1991 through 2008. From 2008 through 2009, Ms. Atkins served as Chief Executive Officer and Chairperson of Clear Standards, Inc., which developed SaaS enterprise level software monitoring carbon emissions, prior to its sale to SAP AG. She previously served as Chairperson and Chief Executive Officer of NCI, Inc., a food manufacturer creating Nutraceutical and Functional Food products, from 1991 through 1993. Ms. Atkins co-founded Ascend Communications, a manufacturer of communications equipment, in 1989, where she was also a member of the board of directors. The persons who have been nominated for electiondirectors until its acquisition by Lucent Technologies in 1999. Ms. Atkins currently serves on the board of directors of Darden Restaurants, Inc., Polycom, Inc. and are to be voted upon atSchneider Electric, SA. She has extensive public board experience, including most recently, Ciber, Inc. (2014), Wix.com Ltd. (2013-2014), Reynolds American, Inc. (2004-2010); Chico's FAS, Inc. (2004-2013); SunPower Corporation (2005-2012) and Towers Watson &��Co. (2010). She holds a B.A. from the Annual Meeting are listed first,University of Massachusetts.



Director Qualifications: Ms. Atkins has significant entrepreneurial and operational experience with continuing directors following thereafter.


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OUR BOARD OF DIRECTORS (continued)

Nominees












Brian A. Bernasek,Managing
Director, The Carlyle Group
Age 41Class I – term expiring at 2014 annual meeting
Committees: Compensation; Executive
Director since 2011



Mr. Bernasek is a Managing Director of Carlyle where he focuses on investment opportunities primarily in the industrial and transportation sectors. Since joining Carlyle in 2000, Mr. Bernasek has been actively involved in several of the firm's investments, including Accudyne Industries, Allison Transmission, AxleTech International, Rexnord Corporation and The Hertz Corporation. Prior to joining Carlyle, Mr. Bernasek held positions with Investcorp International, a private equity firm, and in the investment banking division of Morgan Stanley & Co. Mr. Bernasek is a graduate of the University of Notre Dame and received his M.B.A. from Harvard Business School. He is also a member of the Board of Directors of Accudyne Industries, Allison Transmission and previously served as a director of Hertz Global Holdings.



Director Qualifications: Mr. Benasek's demonstrated leadership skills as managing director of Carlyle and his extensive experience in investment banking and private equity bring to our board a deep knowledge of complex financial issues and valuable insights as a result of his service in the industrial and transportation sectors. Mr. Bernasek is a director nominee designated by Carlyle, one of our Equity Sponsors, pursuant to the terms of the amended and restated stockholders agreement described under "Related Party Transactions—Stockholders agreement and stockholder arrangements."



Stephen M. Zide,Managing
Director, Bain Capital


Age 54


Class I – term expiring at 2014 annual meeting
Committees: Compensation (Chair)


Director since 2007



Mr. Zide is a Managing Director of Bain, having joined the firm in 1997. He currently heads the firm's New York office and leads its North American Industrial Sector. Prior to joining Bain, Mr. Zide was a partner of the law firm of Kirkland & Ellis LLP. Mr. Zide received an M.B.A. from Harvard Business School, a J.D. from Boston University School of Law and a B.A. from the University of Rochester. He also serves as a director of Sensata Technologies B.V., Consolidated Container Corporation, Apex Tool Group, and Trinseo LLC.



Director Qualifications: Mr. Zide brings to the Board extensive negotiating and financing expertise gained from his training and experience as a legal advisor and then a private equity professional and financial advisor. In addition, Mr. Zide has had significant involvement with the Company since 2007, and has served as a director of numerous public and private companies during his career in private equity and law. Mr. Zide is a director nominee designated by Bain, one of our Equity Sponsors, pursuant to the terms of the amended and restated stockholders agreement described under "Related Party Transactions—Stockholders agreement and stockholder arrangements."

Continuing Directors









Betsy S. Atkins,Chairperson,
APX Labs, LLC


Age 60


Class II – term expiring at 2015 annual meeting
Committees: Compensation


Director since 2013



Ms. Atkins currently serves as chairperson of APX Labs, LLC a Google Glass/Smart Glass enterprise software company. She served as chief executive officer of Baja Ventures, an independent venture capital firm focused on the technology, renewable energy and life sciences industry from 1991 through 2008. In 2009, Ms. Atkins served as chief executive officer and chairman of Clear Standards, Inc., which developed SaaS enterprise level software monitoring carbon emissions, prior to its sale to SAP AG. She previously served as chairperson and chief executive officer of NCI, Inc., a food manufacturer creating Nutraceutical and Functional Food products, from 1991 through 1993. Ms. Atkins co-founded Ascend Communications, a manufacturer of communications equipment, in 1989, where she was also a member of the board of directors until its acquisition by Lucent Technologies in 1999. Ms. Atkins currently serves on the board of directors of Polycom, Inc. and Schneider Electric, SA. She has extensive public board experience, including most recently, SunPower Corporation (2005-2012); Reynolds American, Inc. (2004-2013); Chico's FAS, Inc. (2004-2013); and Towers Watson & Co. (2010). She holds a B.A. from the University of Massachusetts.



Director Qualifications: Ms. Atkins has significant entrepreneurial and operational experience with companies in a high growth phase,big data analytics, and she also brings to the board extensive knowledge in the areas of executive compensation and corporate governance.





HDS NoticePaul B. Edgerley,Managing Director, Bain Capital Investors, LLC


Age 59


Class II — term expiring at 2015 annual meeting Committees: N&CG (Chair); Corp. Development & Finance


Director since 2007



Mr. Edgerley joined Bain in 1988 and has been a Managing Director since 1990. He currently serves on the board of Annual Meetingdirectors of Apex Tool Group, FTE Automotive, Hero Motorcorp, Sensata Technologies, MYOB Group and 2014 Proxy Statement - Page 14Steel Dynamics. Prior to joining Bain, Mr. Edgerley spent five years at Bain & Company where he worked as a Consultant and Manager in the healthcare, information services, retail and automobile industries. Previously, he was a Certified Public Accountant working at Peat Marwick, Mitchell & Company. Mr. Edgerley holds an M.B.A. with distinction from Harvard Business School and a B.S. from Kansas State University.





TableDirector Qualifications: Mr. Edgerley brings to the board extensive experience in corporate strategy development in the industrial and consumer product sectors. He has served as a director of Contents

OUR BOARD OF DIRECTORS (continued)




Paul B. Edgerley,Managing
Director, Bain Capital


Age 58


Class II – term expiring at 2015 annual meeting
Committees: N&CG (Chair); Executive


Director since 2007



Mr. Edgerley joined Bain in 1988 and has been a Managing Director since 1990. Mr. Edgerley focuses on investment in the industrial and consumer product sectors. He currently serves on the Board of Directors of Apex Tool Group, FTE Automotive, Hero Motorcorp, Keystone Automotive Operations, Inc., Sensata Technologies, MYOB Group and Steel Dynamics. Prior to joining Bain, Mr. Edgerley spent five years at Bain & Company where he worked as a Consultant and Manager in the healthcare, information services, retail and automobile industries. Previously, he was a certified public accountant working at Peat Marwick, Mitchell & Company. Mr. Edgerley holds an M.B.A. with distinction from Harvard Business School and a B.S. from Kansas State University.



Director Qualifications: Mr. Edgerley brings to the board extensive experience in corporate strategy development in the industrial and consumer product sectors. He has served as a director of numerous public and private companies during his career in private equity, consulting and accounting. Mr. Edgerley is a director nominee designated by Bain, one of our Equity Sponsors, pursuant to the terms of the amended and restated stockholders agreement described under "Related Party Transactions—numerous public and private companies during his career in private equity, consulting and accounting. Mr. Edgerley is a director nominee designated by Bain pursuant to the terms of the amended and restated stockholders agreement described under "Related Person Transactions — Stockholders agreement and stockholder arrangements."



Gregory S. Ledford,Managing
Director, The Carlyle Group


Age 57


Class II – term expiring at 2015 annual meeting
Committees: N&CG


Director since 2011



Mr. Ledford is a Managing Director of Carlyle where he leads U.S. buyout opportunities in the Industrial and Transportation sectors. Since joining Carlyle in 1988, Mr. Ledford has led the firm's investments in Allison Transmission, AxleTech International, The Hertz Corporation, Horizon Lines, Grand Vehicle Works and Piedmont Holdings. From 1991 to 1997, he served as Chairman and Chief Executive Officer of The Reilly Corp., a former Carlyle portfolio company that was successfully sold in September 1997. Prior to joining Carlyle, Mr. Ledford was Director of Capital Leasing for MCI Telecommunications. Mr. Ledford is a graduate of the University of Virginia's McIntire School of Commerce, where he serves as the Vice President of the Fountain Board, and received his M.B.A. from Loyola College. Mr. Ledford is also a member of the Board of Directors of Allison Transmission, Axalta Coating Systems, Greater China Intermodel Investments, LLC and Veyance Technologies and previously served as a director of Hertz Global Holdings.



Director Qualifications: Mr. Ledford's demonstrated leadership and consensus building skills as Managing Director of Carlyle and his past and current service as a director on a number of commercial vehicle industry boards, as well as his years of experience in industrial-related positions provides our board with valuable insights and a unique perspective on industrial and transportation related issues. Mr. Ledford is a director nominee designated by Carlyle, one of our Equity Sponsors, pursuant to the terms of the amended and restated stockholders agreement described under "Related Party Transactions—Stockholders agreement and stockholder arrangements."



Nathan K. Sleeper,Partner,
Clayton, Dubilier & Rice, LLC


Age 40


Class II – term expiring at 2015 annual meeting
Committees: Compensation


Director since 2010



Mr. Sleeper is a partner of CD&R and has significant financial and investment experience from his involvement in its investment in numerous portfolio companies and has played active roles in overseeing those businesses. Prior to joining CD&R in 2000, he worked in the investment banking division of Goldman, Sachs & Co. and at investment firm Tiger Management Corp. Mr. Sleeper is a director of Wilsonart International Holdings,  LLC, Roofing Supply Group, Inc., Hussman International, Inc., Atkore International Group, Inc., NCI Building Systems, and U.S. Foods, Inc. and previously served as a director of Hertz Global Holdings and Culligan Ltd. Mr. Sleeper holds a B.A. from Williams College and an M.B.A. from Harvard Business School.



Director Qualifications: Mr. Sleeper's broad experience in the financial and investment communities brings to our board important insights into business strategy and areas to improve our financial performance. Mr. Sleeper is a director nominee designated by CD&R, one of our Equity Sponsors, pursuant to the terms of the amended and restated stockholders agreement described under "Related Party Transactions—


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OUR BOARD OF DIRECTORS (continued)




James A. Rubright,Principal, Privet Fund Management, LLC


Age 68


Class II — term expiring at 2015 annual meeting Committees: Corp. Development & Finance (Chair); N&CG


Director since 2014



Mr. Rubright has served as a principal and senior advisor at Privet Fund Management, LLC., a private investment fund management company, since October 2013. He served as Chief Executive Officer of Rock-Tenn Co. from 1999 until his retirement in October 2013, and served as an executive officer of Sonat, Inc. from 1994 to 1999 in various capacities, including head of Sonat's interstate natural gas pipeline group and energy marketing businesses. Prior to 1994, he was a partner in the law firm King & Spalding LLP. Mr. Rubright has served as a member of the board of directors of AGL Resources, Inc., an energy services holding company, since 2001, and Forestar Group, Inc., a real estate and natural resources company, since 2007. He previously served as a member of the board of directors of Avondale, Incorporated, the parent company of Avondale Mills, Inc., from 2003 to 2008, and as Chairman of Rock-Tenn's board from 2000 until his retirement in October 2013. He received a B.A. degree from Yale College and a J.D. degree from the University of Virginia Law School.



Director Qualifications:Mr. Rubright has significant experience in public company management and board leadership, and a deep understanding of operations, strategy and risk management that provides valuable insight to our board. Mr. Rubright is a director nominee designated by Bain pursuant to the terms of the amended and restated stockholders agreement described under "Related Person Transactions — Stockholders agreement and stockholder arrangements."

Continuing Directors


HDS Notice








Kathleen J. Affeldt,Retired, Former Vice President, Human Resources, Lexmark International


Age 66


Class I — term expiring at 2017 annual meeting Committees: Compensation (Chair)


Director since 2014



Ms. Affeldt began her career at IBM in 1969, specializing in sales of Annual Meetingsupply chain systems. She later held a number of human resources management positions at IBM and joined Lexmark as a director of human resources in 1991 when it was formed as a result of a buy-out from IBM. Ms. Affeldt previously served on the board, and as chair of the compensation committee, of SIRVA, Inc. from August 2002 to May 2007 and Sally Beauty Holdings, Inc. from November 2006 to November 2013. She also served on the board of Whole Health, Inc. from 2004 to 2006. Ms. Affeldt currently serves on the board, and as chair of the compensation committee, of NCI Building Systems, Inc. since November 2009, and of BTE Technologies, Inc. since May 2004. Other than SIRVA, Sally Beauty and NCI, she has not served as a director of any other public company in the last five years. Ms. Affeldt attended the State University of New York and Hunter College majoring in Business Administration. She has also participated in numerous technical and leadership development programs, as well as the executive education program at Williams College.



Director Qualifications: Ms. Affeldt's leadership and expertise in the human resources field, coupled with her operations history, strong business acumen and public company experience, provides insight to the board and is beneficial to the Company as we further evolve.



John W. Alden,Retired; Former Vice Chairman, UPS


Age 73


Class I — term expiring at 2017 annual meeting Committees: Compensation


Director since 2014



Mr. Alden served with United Parcel Service, Inc. ("UPS"), the largest express package carrier in the world, for 35 years, serving on UPS's board of directors from 1988 to 2000. His most recent role at UPS was as vice chairman of the board from 1996 until his retirement in 2000. Mr. Alden is also a director of the following public companies: Silgan Holdings Inc. since 2001 and Arkansas Best Corporation since 2005. He also served as director of Barnes Group Inc. from 2000 to 2014 Proxy Statement - Page 15and Dun and Bradstreet Corporation from 2002 through 2014.





Table of ContentsDirector Qualifications:

OUR BOARD OF DIRECTORS (continued)




James G. Berges,Partner, Clayton,
Dubilier & Rice, LLC


Age 66


Class III – term expiring at 2016 annual meeting
Committees: N&CG; Executive


Director since 2007Mr. Alden brings to the board extensive experience in strategic planning, worldwide marketing, sales, communications, public relations and logistics and a life-long career in industry.



James G. Berges has been the Chairman of the Board of Directors since August 2007. Mr. Berges has been an operating partner of CD&R since 2005. Mr. Berges was President of Emerson Electric Co. from 1999 and served as director of Emerson Electric Co. from 1997 until his retirement in 2005. Emerson Electric Co. is a global manufacturer of products, systems and services for industrial automation, process control, HVAC, electronics and communications, and appliances and tools. He is a director of PPG Industries, Inc., NCI Building Systems, Inc., and Atkore International and chairman of the board of Hussman International, Inc. He also served as director of MKS Instruments, Inc. from February 2002 to May 2007, Diversey, Inc. from 2009 to 2010 and as chairman of the board of Sally Beauty Holdings, Inc. from 2006 to 2012. Mr. Berges holds a B.S. in Electrical Engineering from the University of Notre Dame.



Director Qualifications: Mr. Berges' former leadership role at a global manufacturer provides our board of directors valuable insight into the numerous operational, financial, and strategic issues we face. Further, Mr. Berges' service on the boards of other public and private companies provides our board with the challenges currently faced by companies in a variety of markets. Mr. Berges is a director nominee designated by CD&R, one of our Equity Sponsors, pursuant to the terms of the amended and restated stockholders agreement described under "Related Party Transactions—Stockholders agreement and stockholder arrangements."



Joseph J. DeAngelo,President and
Chief Executive Officer, HD Supply


Age 52


Class III – term expiring at 2016 annual meeting


Director since 2007



Mr. DeAngelo has been President and Chief Executive Officer since January 2005 and has been a director since August 2007. Mr. DeAngelo served as Executive Vice President and Chief Operating Officer of Home Depot from January 2007 through August 2007. From August 2005 to December 2006, he served as Senior Vice President—HD Supply. From January 2005 to August 2005, Mr. DeAngelo served as Senior Vice President—Home Depot Supply, Pro Business and Tool Rental and from April 2004 through January 2005, he served as Senior Vice President—Pro Business and Tool Rental. Mr. DeAngelo previously served as Executive Vice President of The Stanley Works, a tool manufacturing company, from March 2003 through April 2004. From 1986 until April 2003, Mr. DeAngelo held various positions with GE. His final position with GE was as President and Chief Executive Officer of General Electric TIP/Modular Space, a division of General Electric Capital. Mr. DeAngelo holds a bachelor's degree in Accounting and Economics from the State University of New York at Albany.



Director Qualifications: Our CEO has over 30


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OUR BOARD OF DIRECTORS (continued)




Peter A. Leav,President & CEO, Polycom, Inc.


Age 44


Class I — term expiring at 2017 annual meeting Committees: Audit


Director since 2014



Mr. Leav is President and Chief Executive Officer of Polycom, Inc. Prior to joining Polycom in 2013, Mr. Leav served as Executive Vice President and President, Industry and Field Operations of NCR Corporation, a global technology company, from June 2012 to November 2013, as Executive Vice President, Global Sales, Professional Services and Consumables of NCR from November 2011 to June 2012, and as Senior Vice President, Worldwide Sales of NCR from January 2009 to October 2011. Prior to joining NCR, he served as Corporate Vice President and General Manager of Motorola, Inc., a provider of mobility products and solutions across broadband and wireless networks, from November 2008 to January 2009, as Vice President and General Manager from December 2007 to November 2008, and as Vice President of Sales from December 2006 to December 2007. From November 2004 to December 2006, Mr. Leav was Director of Sales for Symbol Technologies, Inc., an information technology company. Prior to this position, Mr. Leav was Regional Sales Manager at Cisco Systems, Inc., a manufacturer of communications and information technology networking products, from July 2000 to November 2004. Mr. Leav is currently a member of Polycom's board of directors since 2013. He has not served as a director of any other public company in the last five years. He holds a B.A. from Lehigh University.



Director Qualifications:Mr. Leav brings significant experience leading a global organization, as well as a strong background in operations, general management, sales, communications, and technology services that provides valuable insight to the board.



James G. Berges,Partner, Clayton, Dubilier & Rice, LLC


Age 67


Class III — term expiring at 2016 annual meeting Committees: Corp. Development & Finance; N&CG


Director since 2007



Mr. Berges has served as independent Lead Director of our board since March 2015, and served as Chairman of the board from August 2007 through March 2015. Mr. Berges has been an operating partner of CD&R since 2006. Mr. Berges was President of Emerson Electric Co. from 1999 and served as director of Emerson Electric Co. from 1997 until his retirement in 2005. Emerson Electric Co. is a global manufacturer of products, systems and services for industrial automation, process control, HVAC, electronics and communications, and appliances and tools. He is a director of PPG Industries, Inc., NCI Building Systems, Inc., and Atkore International and chairman of the board of Hussman International, Inc. He also served as director of Diversey, Inc. from 2009 to 2010 and as chairman of the board of Sally Beauty Holdings, Inc. from 2006 to 2012. Mr. Berges holds a B.S. in electrical engineering from the University of Notre Dame.



Director Qualifications: Mr. Berges' former leadership role at a global manufacturer provides our board valuable insight into the numerous operational, financial, and strategic issues we face. Further, Mr. Berges' service on the boards of other public and private companies provides our board insight into the challenges currently faced by companies in a variety of markets.



Joseph J. DeAngelo,Chairman of the Board, President and Chief Executive Officer, HD Supply


Age 53


Class III — term expiring at 2016 annual meeting


Director since 2007



Mr. DeAngelo has served as Chairman of the Board, President and Chief Executive Officer since March 2015, President and Chief Executive Officer since January 2005, and has been a member of our board since August 2007. Mr. DeAngelo served as Executive Vice President and Chief Operating Officer of The Home Depot from January 2007 through August 2007. From August 2005 to December 2006, he served as Senior Vice President, HD Supply. From January 2005 to August 2005, Mr. DeAngelo served as Senior Vice President, Home Depot Supply, Pro Business and Tool Rental and from April 2004 through January 2005, he served as Senior Vice President, Pro Business and Tool Rental. Mr. DeAngelo previously served as Executive Vice President of The Stanley Works, a tool manufacturing company, from March 2003 through April 2004. From 1986 until April 2003, Mr. DeAngelo held various positions with GE. His final position with GE was as President and Chief Executive Officer of General Electric TIP/Modular Space, a division of General Electric Capital. Mr. DeAngelo holds a bachelor's degree in accounting and economics from the State University of New York at Albany.



Director Qualifications:Our CEO has over 31 years of global operating experience, including over 17 years in various leadership roles at General Electric Company and The Home Depot,  Inc., including Chief Operating Officer.



Patrick R. McNamee,former EVP-Chief Operating Officer, Express Scripts


Age 54


Class III –


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OUR BOARD OF DIRECTORS (continued)




Patrick R. McNamee,Executive Advisor, Beecken Petty O'Keefe & Company


Age 55


Class III — term expiring at 2016 annual meeting
Committees: Audit


Director since 2013



Mr. McNamee served as executive vice president and chief operating officer of Express Scripts Holding Company, a pharmacy benefit management company until March 2014. He joined Express Scripts in 2005 as senior vice president and chief information officer, expanding his role to EVP-Chief Operating Officer in 2007. Prior to joining Express Scripts, Mr. McNamee worked for Misys Healthcare Systems, a healthcare technology company, as president and chief executive officer, Physician Systems, from September 2003 to February 2005. Mr. McNamee was employed by various subsidiaries of General Electric Corporation from July 1989 to September 2003, including as president and chief executive officer, GE Surgery, GE Medical Systems, from July 2002 to September 2003; chief information officer and chief quality officer, NBC, from March 2001 to July 2002; and chief information officer and general manager of e-Business, GE Transportation Systems, from March 1999 to March 2001.



Director Qualifications: Mr. McNamee brings to the Board strategic leadership and a unique combination of business savvy and information technology experience across a variety of industries. He attended Marquette University and holds a bachelor's degree and a master's degree in biomedical engineering.



Charles W. Peffer,Retired Partner
of KPMG LLP


Age 66


Class III – term expiring at 2016 annual meeting
Committees: Audit


Director since 2013



Mr. Peffer retired as a partner of KPMG LLP in 2002 after 32 years with KPMG in its Kansas City office. He served as Partner in Charge of Audit from 1986 to 1993 and Managing Partner of the Kansas City office from 1993 to 2000. He currently serves as Audit Committee Chairman on the board of directors of Garmin Ltd., Sensata Technologies, NPC International and the Commerce Funds, a family of eight mutual funds. Mr. Peffer holds a B.A. from the University of Kansas and an M.B.A. from Northwestern University.



Director Qualifications: Mr. Peffer brings to the board extensive practical and management in public accounting and corporate finance, including significant experience with KPMG and its predecessors firms. Mr. Peffer also brings leadership expertise through his directorship roles in other public companies, including service on audit committees.


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Table of Contents

GOVERNANCE OF OUR COMPANY

          The following sections provide an overview of our corporate governance structure and processes. Among other topics, we describe how we select directors, how we consider the independence of our directors and key aspects of our board operations.


Selecting Nominees for Director

          Our board has delegated to the Nominating and Corporate Governance Committee the responsibility for reviewing and recommending to the board nominees for director. In accordance with our Corporate Governance Guidelines, and on recommendation of the Nominating and Corporate Governance Committee, our board of directors has adopted criteria for the selection of new directors based on the strategic needs of the Company and the board. The Nominating and Corporate Governance Committee will periodically review the criteria adopted by the board and, if deemed desirable, recommend changes to such criteria.

          Pursuant to the criteria adopted by our board of directors, the board seeks members from diverse professional backgrounds who combine a broad spectrum of experience and expertise with a reputation for integrity. Individuals are considered for nomination to the board based on their business and professional experience, judgment, oversight roles held, age, skills and background. The board also considers the candidate's availability, absence of conflicts, and any applicable independence or experience requirements. The Nominating and Corporate Governance Committee considers diversity in identifying nominees for director, including personal characteristics such as race and gender, as well as diversity in experience and skills relevant to the board's performance of its responsibilities in the oversight of the business. For each of the nominees to the board, the biographies shown above highlight the experiences and qualifications that were among the most important to the Nominating and Corporate Governance Committee in concluding that the nominee should serve as a director of the Company.

          The Nominating and Corporate Governance Committee is responsible for recommending to the board nominees for election to the board at each annual meeting Committees: Audit; Compensation



Director since 2013



Mr. McNamee currently serves as Executive Advisor to Beecken Petty O'Keefe & Company, a Chicago-based private equity management firm. He served as Executive Vice President and Chief Operating Officer of shareholdersExpress Scripts Holding Company, a pharmacy benefit management company until March 2014. He joined Express Scripts in 2005 as senior vice president and chief information officer, expanding his role to EVP-Chief Operating Officer in 2007. Prior to joining Express Scripts, Mr. McNamee worked for identifying one or more candidatesMisys Healthcare Systems, a healthcare technology company, as president and chief executive officer, Physician Systems, from September 2003 to fill any vacancies that may occurFebruary 2005. Mr. McNamee was employed by various subsidiaries of General Electric Corporation from July 1989 to September 2003, including as president and chief executive officer, GE Surgery, GE Medical Systems, from July 2002 to September 2003; chief information officer and chief quality officer, NBC, from March 2001 to July 2002; and chief information officer and general manager of e-Business, GE Transportation Systems, from March 1999 to March 2001; chief information officer, GE Power Plants, from March 1997 to March 1999; and global product manager, radiology information systems, GE Medical, from 1993 through 1997. He currently serves on the board. New candidates may be identified through recommendations from independent directors or members of management, search firms, discussions with other persons who may know of suitable candidates to serve on the board, and shareholder recommendations. Evaluations of prospective candidates typically include a review of the candidate's background and qualifications by the Nominating and Corporate Governance Committee, interviews with the committee as a whole, one or more members of the committee, or one or more other board members, and discussions of the committee and the full board. The Committee then recommends candidates to the full board, with the full board selecting the candidates to be nominated for election by the shareholders or to be elected by the board to fill a vacancy.

          The Nominating and Corporate Governance Committee will consider director candidates proposed by shareholders on the same basis as recommendations from other sources. Any shareholder who wishes to recommend a prospective candidate for the board of directors for consideration by the Nominatingof Valitàs Health Services, Inc. He attended Marquette University and Corporate Governance Committee may do so by submitting the nameholds a bachelor's degree in biomedical engineering and qualifications of the prospective candidatea master's degree in writing to the following address: Corporate Secretary, HD Supply Holdings, Inc., 3100 Cumberland Boulevard, Atlanta, Georgia 30339. Any such submission should also describe the experience, qualifications, attributes and skills that make the prospective candidate a suitable nominee for the board of directors. Our Bylaws set forth the requirements for direct nomination by a shareholder of persons for electionelectrical engineering.




Director Qualifications:Mr. McNamee brings to the board strategic and operational expertise with a unique combination of directors. These


HDS Noticebusiness savvy, service and product development, information technology and distribution experience across a variety of Annual Meetingindustries.




Charles W. Peffer,Retired Partner of KPMG LLP


Age 67


Class III — term expiring at 2016 annual meeting Committees: Audit (Chair)


Director since 2013



Mr. Peffer retired as a partner of KPMG LLP in 2002 after 32 years with KPMG in its Kansas City office. He served as Partner in Charge of Audit from 1986 to 1993 and 2014 Proxy Statement - Page 17


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GOVERNANCE OF OUR COMPANY (continued)

requirements are described under "Other Information for Shareholders" at the end of this proxy statement.

          Our Equity Sponsors, pursuant to a stockholders agreement with the Company, are currently entitled to nominate (or cause to be nominated) nineManaging Partner of the Company's directors, which includes three designees of each Equity Sponsor. See "Related Party Transactions" on page 24 for additional information. Our Chief Executive Officer alsoKansas City office from 1993 to 2000. He currently serves as a director.


Director Independence

          Pursuant to the exemption provided to controlled companies by the NASDAQ rules, for such time that the Company qualifies as a controlled company, it is not required to have a majority of independent directors on the board. Our Corporate Governance Guidelines provide that once the Company ceases to qualify as a controlled company, and after any permissible phase-in period, the board will have a majority of independent directors who will satisfy the independence requirements of the NASDAQ. No director will be deemed independent unless the board has made an affirmative determination that such director has no relationship which would interfere with the exercise of independent judgment in carrying out the responsibility of a director.

          The board undertook an annual review of director independence in February 2014. As part of this review, the board considered whether there were any relationships between each director or any member of his or her immediate family and the Company. The board also examined whether there were any relationships between an organization of which a director is a partner, shareholder or executive officer and the Company. The purpose of this review was to determine whether any such relationships were inconsistent with a determination that a director is independent. As a result of this review, the board affirmatively determined that the following directors are independent directors: Betsy S. Atkins, Patrick R. McNamee and Charles W. Peffer. Accordingly, three of our ten directors are independent, and all directors serving on the Audit Committee satisfy the independence requirements of the NASDAQ and the U.S. Securities and Exchange Commission (the "SEC") relating to directors and Audit Committee members.


Executive Sessions of our Non-Management Directors

          The Chairman of the Board and the full board separately have authority to require the board to meet in executive sessions outside the presence of management. The independent directors will meet at regularly scheduled executive sessions without management not less frequently than twice per year. The Chairman of the Board or the presiding director, as applicable, shall act as chair at such meetings. If the Chairman of the Board is not an independent director, the Board will either designate an independent director to preside at the meetings of independent directors or a procedure by which a presiding director is selected for these meetings.


Board Leadership Structure

          As noted in our Corporate Governance Guidelines, the board has no policy with respect to the separation of the offices of Chairman of the Board and Chief Executive Officer. The board believes it is important to retain its flexibility to allocate the responsibilities of the offices of the Chairman and Chief Executive Officer in any way that is in the best interests of the Company at a given point in time. Since 2007, James G. Berges has served as chairman of the board and Joseph J. DeAngelo has served


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GOVERNANCE OF OUR COMPANY (continued)

as our President and Chief Executive Officer. The board believes this governance structure currently promotes a balance between the board's independent authority to oversee our business and the Chief Executive Officer and his management team who manage the business on a day-to-day basis. The board expects to periodically review its leadership structure to ensure that it continues to meet our needs.


Board's Role in Risk Oversight

          Our board is responsible for overseeing our risk management. Under its charter, the Audit Committee is responsible for reviewing and discussing the Company's risk management practices, including the effectiveness of the systems and policies for risk assessment and risk management, the Company's major financial risk exposures and the steps management has taken to monitor and control such exposures, any unusual material transactions and management, internal auditor and independent auditor reviews of the Company's Foreign Corrupt Practices Act policies, procedures and monitoring. The Audit Committee also oversees our corporate compliance and ethics programs, as well as the internal audit function. The board's other independent committees oversee risks associated with their respective areas of responsibility. For example, the Compensation Committee considers the risks associated with our compensation policies and practices, with respect to both executive compensation and compensation generally. In addition to the committees' work in overseeing risk management, our full board regularly engages in discussions of the most significant risks that the Company is facing and how these risks are being managed, and the board receives reports on risk management from senior officers of the Company and from the committee chairs. The board reviews periodic assessments from the Company's ongoing enterprise risk management process that are designed to identify potential events that may affect the achievement of the Company's objectives.

          The Company's Senior Vice President, General Counsel and Corporate Secretary reports directly to our Chief Executive Officer, providing him with visibility into the Company's risk profile. The Company's internal audit staff regularly reports to the Audit Committee, and the General Counsel and our Vice President, Internal Audit have regularly scheduled private sessions with the Audit Committee. The board of directors believes that the work undertaken by the committees of the board, together with the work of the full board of directors and our Chief Executive Officer, enables the board of directors to effectively overseeof Garmin Ltd., Sensata Technologies, NPC International and the Company's risk management function.Commerce Funds, a family of eight mutual funds. Mr. Peffer holds a B.A. from the University of Kansas and an M.B.A. from Northwestern University.





Director Qualifications:
Corporate Governance Guidelines, Committee Charters and Codes of Business Conduct and Ethics

          Our Corporate Governance Guidelines are available on the corporate governance section of our investor relations website athttp://ir.hdsupply.com/governance.cfm. The charters for each of the Audit, Compensation, Nominating and Corporate Governance and Executive Committees also are available on our investor relations website.

          We have a long-standing commitment to conduct our business in accordance with the highest ethical principles. Our code of business conduct and ethics is applicable to all the representatives of our enterprise, including our executive officers and all other employees and agents of our company and our subsidiary companies, as well as to our directors. A copy of our code is available on the corporate governance section of our investor relations website.

          Our code of ethics for senior executive and financial officers, also available on our investor relations website, applies to our CEO, CFO, Chief Accounting Officer, and any other senior executive or financial officer performing similar functions. Under this code of ethics, our executives are required,


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GOVERNANCE OF OUR COMPANY (continued)

among other things, to act with honesty and integrity, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships; to provide full, fair, accurate, timely and understandable disclosure in reports and documents that the company files with, or submitsMr. Peffer brings to the SEC,board extensive practical and management in public accounting and corporate finance, including significant experience with KPMG and its predecessors firms. Mr. Peffer also brings leadership expertise through his directorship roles in other public communications made by the company; to comply with applicable laws, governmental rules and regulations,companies, including insider trading laws; and to promote the prompt internal reporting of potential violations or other concerns related to this code of ethics to the Chair of the Audit Committee, and encourage associates to talk to supervisors, managers or other appropriate personnel when in doubt about the best course of action in a particular situation. Any violation will be subject to appropriate discipline, up to and including dismissal from the Company and prosecution under the law.

          We have also adopted a policy providing procedures by which our in-house and outside attorneys are to report material violations of applicable U.S. federal or state laws, or a material breach of a fiduciary duty, as required by SEC rules.


Committees of the Board of Directors

          Our board of directors has four committees: the Audit Committee, the Compensation Committee, the Nominating and Corporate Governance Committee and the Executive Committee. The following table shows the current members of each committee and the number of meetings held during fiscal 2013.

Director
 Audit
 Compensation
 N&CG
 Executive
 

Betsy S. Atkins

  ü    

James G. Berges

     ü ü*

Brian A. Bernasek

   ü   ü

Paul B. Edgerley

     ü* ü

Gregory S. Ledford

     ü  

Patrick R. McNamee

 ü      

Charles W. Peffer

 ü*      

Nathan K. Sleeper

   ü    

Stephen M. Zide

   ü*    

Number of Meetings

 8 5 3 0
 

ü = current committee member; * = chair

          Audit Committee.    The Audit Committee has the responsibility for, among other things, assisting the board of directors in reviewing our financial reporting and other internal control processes; our financial statements; the independent auditors' qualifications and independence; the performance of our internalservice on audit function and independent auditors; and our compliance with legal and regulatory requirements and our code of business conduct and ethics.committees.


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GOVERNANCE OF OUR COMPANY

          The following sections provide an overview of our corporate governance structure and processes. Among other topics, we describe how we select directors, how we consider the independence of our directors and key aspects of our board operations.

Selecting Nominees for Director

          Our board has delegated to the Nominating and Corporate Governance Committee the responsibility for reviewing and recommending to the board nominees for director. In accordance with our Corporate Governance Guidelines, and on recommendation of the Nominating and Corporate Governance Committee, our board of directors has adopted criteria for the selection of new directors based on the strategic needs of the Company and the board. The Nominating and Corporate Governance Committee will periodically review the criteria adopted by the board and, if deemed desirable, recommend changes to such criteria.

          Pursuant to the criteria adopted by our board of directors, the board seeks members from diverse professional backgrounds who combine a broad spectrum of experience and expertise with a reputation for integrity. Individuals are considered for nomination to the board based on their business and professional experience, judgment, oversight roles held, age, skills and background. The board also considers the candidate's availability, absence of conflicts, and any applicable independence or experience requirements. The Nominating and Corporate Governance Committee considers diversity in identifying nominees for director, including personal characteristics such as race and gender, as well as diversity in experience and skills relevant to the board's performance of its responsibilities in the oversight of the business. For each of the nominees to the board, the biographies shown above highlight the experiences and qualifications that were among the most important to the Nominating and Corporate Governance Committee in concluding that the nominee should serve as a director of the Company.

          The Nominating and Corporate Governance Committee is responsible for recommending to the board nominees for election to the board at each annual meeting of stockholders and for identifying one or more candidates to fill any vacancies that may occur on the board. New candidates may be identified through recommendations from independent directors or members of management, search firms, discussions with other persons who may know of suitable candidates to serve on the board, and stockholder recommendations. Evaluations of prospective candidates typically include a review of the candidate's background and qualifications by the Nominating and Corporate Governance Committee, interviews with the committee as a whole, one or more members of the committee, or one or more other board members, and discussions of the committee and the full board. The Committee then recommends candidates to the full board, with the full board selecting the candidates to be nominated for election by the stockholders or to be elected by the board to fill a vacancy.

          The Nominating and Corporate Governance Committee will consider director candidates proposed by stockholders on the same basis as recommendations from other sources. Any stockholder who wishes to recommend a prospective candidate for the board of directors for consideration by the Nominating and Corporate Governance Committee may do so by submitting the name and qualifications of the prospective candidate in writing to the following address: Dan S. McDevitt, General Counsel and Corporate Secretary, HD Supply Holdings, Inc., 3100 Cumberland Boulevard, Atlanta, Georgia 30339. Any such submission should also describe the experience, qualifications, attributes and skills that make the prospective candidate a suitable nominee for the board of directors. Our Bylaws set forth the requirements for direct nomination by a stockholder of persons for election to


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GOVERNANCE OF OUR COMPANY (continued)

the board of directors. These requirements are described under "Other Information for Stockholders" at the end of this proxy statement.

          Pursuant to a stockholders agreement with the Company, Bain Capital Partners, LLC ("Bain") is currently entitled to nominate (or cause to be nominated) three of the Company's directors. Pursuant to the stockholders agreement, the Company has agreed to use its best efforts to cause the election of such nominees to the board of directors, and Bain has agreed to vote in favor of the election of such nominees. Messrs. Edgerley and Rubright, both Class II nominees, are Bain designees, as well as Patrick McNamee, a Class III director whose term expires at the 2016 annual meeting of stockholders. As of March 17, 2015, an investor group consisting of funds affiliated with Bain held approximately 13.42% of our outstanding common stock. See "Related Person Transactions" on page 24 for additional information.

          Our Chief Executive Officer also serves as a director and as Chairman of the Board.

Director Independence

          The board reviewed director independence during fiscal 2014 and considered whether there were any relationships between each director or any member of his or her immediate family and the Company. The board also examined whether there were any relationships between an organization of which a director is a partner, stockholder or executive officer and the Company. The purpose of this review was to determine whether any such relationships were inconsistent with a determination that a director is independent. As a result of this review, the board affirmatively determined that all nine of its non-employee directors are independent, and all directors serving on the standing committees of the board satisfy the independence requirements of the NASDAQ and the U.S. Securities and Exchange Commission (the "SEC") relating to directors and Audit, Compensation and Nominating and Corporate Governance Committee members. No director will be deemed independent unless the board has made an affirmative determination that such director has no relationship which would interfere with the exercise of independent judgment in carrying out the responsibilities of a director.

Executive Sessions of our Non-Management Directors

          The Chairman of the Board, or the independent Lead Director if the Chairman is not independent, and the full board separately, have authority to require the board to meet in executive sessions outside the presence of management. The independent directors will meet at regularly scheduled executive sessions without management at least twice per year. In the absence of an independent Chairman, the independent Lead Director will act as chair at such meetings, and if no Lead Director has been appointed or if the Lead Director is not present, the Nominating and Corporate Governance Committee chairperson shall preside over executive sessions and other meetings of the independent directors.

Board Leadership Structure

          As noted in our Corporate Governance Guidelines, the board has no policy with respect to the separation of the offices of Chairman of the Board and Chief Executive Officer. The board believes that it is important to retain its flexibility to allocate the responsibilities of the offices of the Chairman and Chief Executive Officer in any way that is in the best interests of the Company at a given point in time. As part of its annual self-evaluation process, the board evaluates whether the board leadership


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GOVERNANCE OF OUR COMPANY (continued)

structure provides the optimal structure for the Company. Currently, our Chief Executive Officer, Joseph J. DeAngelo, serves as Chairman of the Board and James G. Berges serves as the independent Lead Director of the board. The respective roles and responsibilities of the Chairman of the Board and independent Lead Director are set forth in the Company's Corporate Governance Guidelines, available on the corporate governance section of our investor relations website athttp://ir.hdsupply.com/governance.cfm.

Board's Role in Risk Oversight

          Our board is responsible for overseeing our risk management. Under its charter, the Audit Committee is responsible for reviewing and discussing the Company's risk management practices, including the effectiveness of the systems and policies for risk assessment and risk management, the Company's major financial risk exposures and the steps management has taken to monitor and control such exposures, any unusual material transactions and management, internal auditor and independent auditor reviews of the Company's Foreign Corrupt Practices Act policies, procedures and monitoring. The Audit Committee also oversees our corporate compliance and ethics programs, as well as the internal audit function. The board's other committees oversee risks associated with their respective areas of responsibility. For example, the Compensation Committee oversees the potential risks associated with our compensation policies and practices.

          In addition to the committees' work in overseeing risk management, our full board regularly engages in discussions of the most significant risks that the Company is facing and how these risks are being managed, and the board receives reports on risk management from senior officers of the Company and from the committee chairs. The board reviews periodic assessments from the Company's ongoing enterprise risk management process that are designed to identify potential events that may affect the achievement of the Company's objectives.

          The Company's General Counsel and Corporate Secretary reports directly to our Chief Executive Officer, providing him with visibility into the Company's risk profile. The Company's internal audit staff regularly reports to the Audit Committee, and the General Counsel and our Vice President, Internal Audit have regularly scheduled private sessions with the Audit Committee. The board of directors believes that the work undertaken by the committees of the board, together with the work of the full board of directors and our Chief Executive Officer, enables the board of directors to effectively oversee the Company's risk management function.

Corporate Governance Guidelines, Committee Charters and Codes of Business Conduct and Ethics

          Our Corporate Governance Guidelines are available on the corporate governance section of our investor relations website athttp://ir.hdsupply.com/governance.cfm. The charters for each of the Audit, Compensation, Corporate Development and Finance and Nominating and Corporate Governance Committees are also available on our investor relations website.

          We have a long-standing commitment to conduct our business in accordance with the highest ethical principles. Our Code of Business Conduct and Ethics is applicable to all the representatives of our enterprise, including our executive officers and all other employees and agents of our Company and our subsidiary companies, as well as to our directors. A copy of our code is available on the corporate governance section of our investor relations website.


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GOVERNANCE OF OUR COMPANY (continued)

          Our Code of Ethics for Senior Executive and Financial Officers, also available on our investor relations website, applies to our CEO, CFO, Chief Accounting Officer, and any other senior executive or financial officer performing similar functions. Under this code of ethics, our executives are required, among other things, to act with honesty and integrity, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships; to provide full, fair, accurate, timely and understandable disclosure in reports and documents that the Company files with, or submits to, the SEC, and in other public communications made by the Company; to comply with applicable laws, governmental rules and regulations, including insider trading laws; and to promote the prompt internal reporting of potential violations or other concerns related to the code of ethics to the chair of the Audit Committee, and encourage associates to talk to supervisors, managers or other appropriate personnel when in doubt about the best course of action in a particular situation. Any violation will be subject to appropriate discipline, up to and including dismissal from the Company and prosecution under the law.

          We have also adopted a policy providing procedures by which our in-house and outside attorneys are to report material violations of applicable U.S. federal or state laws, or a material breach of a fiduciary duty, as required by SEC rules.

Committees of the Board of Directors

          Our board of directors has four committees: the Audit Committee, the Compensation Committee, the Corporate Development and Finance ("CD&F") Committee, and the Nominating and Corporate Governance ("N&CG") Committee. The Executive Committee was dissolved, and replaced by the Corporate Development and Finance Committee, effective March 12, 2015.

          The following table shows the current members of each committee and the number of meetings held during fiscal 2014. Mr. DeAngelo is a member of the board but does not serve on any board committee.

Director
 Audit
 Compensation
 N&CG
 Executive
(dissolved 03-12-2015)

 CD&F
(formed 03-12-2015)

Kathleen J. Affeldt

  ü*   

John W. Alden

   ü      

Betsy S. Atkins

  ü ü  

James G. Berges

     ü ü* ü

Paul B. Edgerley

   ü* ü ü

Peter A. Leav

 ü        

Patrick R. McNamee

 ü ü   

Charles W. Peffer

 ü*        

James A. Rubright

   ü  ü*

Number of Meetings

 8 5 6 0 n/a

ü = current committee member; * = chair

          Audit Committee.    The Audit Committee has oversight responsibility for, among other things, assisting the board of directors in reviewing our financial reporting and other internal control processes; our financial statements; the independent auditors' qualifications and independence; the performance of our internal audit function and independent auditors; and our compliance with legal and regulatory requirements and our code of business conduct and ethics.


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          During fiscal 2014, the Audit Committee held eight meetings. Each member of our Audit Committee meets the independence requirements of the NASDAQ and the SEC, and each is financially literate. Our board has determined that Charles W. Peffer is an audit committee financial expert as defined by the SEC.

          Compensation Committee.    The Compensation Committee has oversight responsibility for, among other things, executive succession planning, the compensation of our executive officers and directors, approving equity grants and other incentive arrangements and authorizing employment-related agreements for our executive officers.

          During fiscal 2014, the Compensation Committee held five meetings. All directors serving on the Compensation Committee meet the NASDAQ independence requirements and the "non-employee director" requirements of SEC Rule 16b-3, and are outside directors under Section 162(m) of the Internal Revenue Code. For additional information about the Compensation Committee's processes and the role of executive officers and compensation consultants in determining compensation, see "Compensation Discussion and Analysis" on page 36.

          Nominating and Corporate Governance Committee.    The Nominating and Corporate Governance Committee has the responsibility for identifying and recommending candidates to the board of directors for election to our board of directors, reviewing the composition of the board of directors and its committees, developing and recommending to the board of directors corporate governance guidelines that are applicable to us, and overseeing board of directors evaluations.

          During fiscal 2014, the Nominating and Corporate Governance Committee held six meetings. All directors serving on the Nominating and Corporate Governance Committee meet the NASDAQ independence requirements for nominating and corporate governance committees.

          Executive Committee.    The Executive Committee meets between meetings of the board of directors, as needed, and has the power to exercise all the powers and authority of the board of directors with respect to matters delegated to the Committee by the board of directors, except for the limitations under Section 144(c) of the General Corporation Law of the State of Delaware and any applicable limitations under the Company's organizational documents. The Executive Committee held no meetings during fiscal 2014. The Executive Committee was dissolved, and replaced by the Corporate Development and Finance Committee, effective March 12, 2015.

          Corporate Development and Finance Committee.    The Corporate Development and Finance Committee was formed on March 12, 2015 and replaces the Executive Committee. The Committee assists the board in discharging its oversight responsibilities of the Company's financial management and strategic planning, including, investment and transactional responsibilities.

Compensation Committee Interlocks and Insider Participation

          Kathleen J. Affeldt, John W. Alden, Betsy S. Atkins, Brian A. Bernasek, Patrick R. McNamee, Nathan K. Sleeper and Stephen M. Zide were members of the Compensation Committee of our board of directors during fiscal 2014. None of these current or former directors are employees or former employees of the Company. Mr. Bernasek's board service ended on August 27, 2014 and Messrs. Sleeper's and Zide's board service ended on September 5, 2014.


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          Messrs. Bernasek, Sleeper and Zide are employed by The Carlyle Group ("Carlyle"), Clayton, Dubilier & Rice, LLC ("CD&R") and Bain, respectively. Bain currently is our only equity sponsor. Carlyle and CD&R sold their remaining shares of the Company's common stock on December 16, 2014. Through December 16, 2014, Carlyle and CD&R had rights under a stockholders agreement, as well as a registration rights agreement. Bain continues to have rights under these agreements. See "Related Person Transactions" on page 24 for details regarding these arrangements.

          None of our executive officers serve as a member of a board of directors or compensation committee of any entity that has one or more executive officers who serve on our board of directors or Compensation Committee.

Compensation Practices and Risk Management

          During fiscal 2014, we performed an annual assessment for the Compensation Committee to determine whether the risks arising from any of our compensation policies or practices are reasonably likely to have a material adverse effect on the Company. Our assessment reviewed material elements of executive and non-executive employee compensation. We concluded that these policies and practices do not create any risk that is reasonably likely to have a material adverse effect on the Company.

          We believe that our compensation practices provide a balanced mix of cash and equity, annual and longer-term incentives, and performance metrics which mitigate excessive risk-taking that could harm our value.

    The financial metrics used to determine the amount of an executive's annual cash bonus are measures the Compensation Committee believes drive long-term stockholder value. The Committee sets ranges for these measures intended to encourage success without encouraging excessive risk taking to achieve short-term results. In addition, the overall bonus cannot exceed two times the target amount, no matter how much financial performance exceeds the ranges established at the beginning of the year.

    Vesting requirements over a minimum of three years for our equity awards ensures that our executives' interests align with those of our stockholders over the long term.

    Incentive awards, including stock-based compensation, to our executive officers are subject to clawback pursuant to the Company's clawback policy.

    All executive officers are subject to stock ownership guidelines.

Meetings of the Board of Directors and Attendance at the Annual Meeting

          Our board of directors held four meetings during fiscal 2014. Each of our directors, other than Messrs. Alden and Ledford, attended 100% of the total number of meetings of the board and any committees of which he or she was a member. Mr. Ledford attended 83% of the Nominating and corporate governance committee meetings through January 12, 2015 when his board service with the Company ended, and Mr. Alden attended 50% of the four audit committee meetings after his appointment in April 2014 through November 2014 when he was reassigned to the Compensation Committee. Directors are encouraged to attend our annual meetings and six of our then eleven directors attended the 2014 annual meeting.


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Plurality Voting for Election of Directors

          The Company's Bylaws provide for the election of directors by a plurality of the votes cast. This means that the three individuals nominated for election to the board of directors who receive the most "FOR" votes (among votes properly cast in person, electronically or by proxy) will be elected.

Succession Planning and Management Development

          We are focused on talent development at all levels within our organization. Among the Compensation Committee's key responsibilities is to ensure that management establishes and the committee oversees an effective executive succession plan. The board regularly reviews the succession plans that support our overall business strategy, with a focus on key positions at the senior officer level. The board recognizes that succession planning and talent management are closely connected to risk management. Potential leaders are given exposure and visibility to board members through formal presentations and informal events. More broadly, the board is regularly updated on key talent indicators for the overall workforce, including through diversity, recruiting and development programs.

Policies and Procedures for Related Person Transactions

          We have adopted a related person transactions policy pursuant to which related persons, namely our executives, directors and principal stockholders, and their immediate family members, are not permitted to enter into certain transactions, or materially modify or amend an ongoing transaction, with us, in which the amount involved exceeds $120,000, without the consent of our Audit Committee or any designated member of the Audit Committee. Any request for us to enter into or materially modify or amend such transactions is required to be presented to our Audit Committee for review, consideration and approval. All of our directors and executive officers are required to report to our Audit Committee any such related person transaction. In approving or rejecting the proposed transaction, our Audit Committee will take into account, among other factors it deems appropriate, whether the proposed related person transaction is on terms no less favorable than terms generally available to an unaffiliated third party under the same or similar circumstances, the extent of the related person's interest in the transaction and, if applicable, the impact on a director's independence. Under the policy, if we should discover related person transactions that have not been approved, our Audit Committee will be notified and will determine the appropriate action, including ratification, rescission or amendment of the transaction.

Related Person Transactions

Stockholders agreement and stockholder arrangements

          On August 30, 2007, investment funds associated with CD&R, Carlyle and Bain (together, the "Equity Sponsors") entered into a stock purchase agreement with The Home Depot, Inc. ("Home Depot") pursuant to which Home Depot agreed to sell to the Company or to a wholly owned subsidiary of the Company certain intellectual property and all of the outstanding common stock of HD Supply, Inc., our primary operating company and a wholly-owned subsidiary of the Company ("HDS") and a Canadian subsidiary, CND Holdings, Inc. On August 30, 2007, through a series of transactions, the Company's direct wholly-owned subsidiary, HDS Holding Corporation, acquired direct control of HDS and the Canadian subsidiary, CND Holdings, Inc. In connection with the closing of these transactions (the "2007 Transaction"), the Company, the Equity Sponsors and their affiliates and


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certain other stockholders of the Company entered into a stockholders agreement (as amended, the "Stockholders Agreement") that contains, among other things, provisions relating to our governance, the disposition of our common stock by the parties thereto and certain approval rights, including the right to remove or terminate our Chief Executive Officer and approve any replacement chief executive officer.

          Following the completion of the Company's initial public offering on July 2, 2013, the Equity Sponsors, as a group, continued to hold more than 50% of the Company's common stock, and Home Depot held less than 10% of the Company's common stock. Upon completion of secondary public offerings by certain of the Company's stockholders on (i) May 7, 2014, and the sale of additional shares to the underwriters pursuant to their option to purchase additional shares on June 4, 2014, and (ii) September 17, 2014, the Equity Sponsors, as a group, held approximately 32% of the Company's common stock and the Company ceased to be a controlled company. On December 16, 2014, Carlyle and CD&R sold their remaining shares of the Company's common stock and ceased to have rights under the Stockholders Agreement. Bain continues to hold approximately 13.42% of the Company's common stock and continues to have rights under the Stockholders Agreement.

          During fiscal 2013, the Audit Committee held eight meetings. Each member of our Audit Committee meets the independence requirements of the NASDAQ and the SEC, and each is financially literate. Our board has determined that Charles W. Peffer is an audit committee financial expert as defined by the SEC.

          Compensation Committee.    The Compensation Committee has the responsibility for reviewing and approving the compensation and benefits of our employees, directors and consultants, administering our employee benefits plans, authorizing and ratifying stock option grants and other incentive arrangements and authorizing employment- related agreements.


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          During fiscal 2013, the Compensation Committee held five meetings. As long as the Company remains a controlled company, the committee is exempt from the NASDAQ independence requirements for compensation committees. Betsy Atkins is a member of the Compensation Committee and meets the independence requirements of the NASDAQ and is an outside director under Section 162(m) of the Internal Revenue Code. All directors serving on the Compensation Committee meet the "non-employee director" requirements of SEC Rule 16b-3. For additional information about the Compensation Committee's processes and the role of executive officers and compensation consultants in determining compensation, see "Compensation Discussion and Analysis."

          Nominating and Corporate Governance Committee.    The Nominating and Corporate Governance Committee has the responsibility for identifying and recommending candidates to the board of directors for election to our board of directors, reviewing the composition of the board of directors and its committees, developing and recommending to the board of directors corporate governance guidelines that are applicable to us, and overseeing board of directors evaluations.

          During fiscal 2013, the Nominating and Corporate Governance Committee held three meetings. As long as the Company remains a controlled company, the committee is exempt from the NASDAQ independence requirements for nominating and corporate governance committees.

          Executive Committee.    The Executive Committee meets between meetings of the board of directors, as needed, and has the power to exercise all the powers and authority of the board of directors with respect to matters delegated to the Committee by the board of directors, except for the limitations under Section 144(c) of the Delaware General Corporation Law and any applicable limitations under the company's organizational documents.


Compensation Committee Interlocks and Insider Participation

          Betsy S. Atkins, Brian A. Bernasek, Nathan K. Sleeper and Stephen M. Zide were members of the Compensation Committee of our board of directors during fiscal 2013. None of these directors are employees or former employees of the Company.

          Messrs. Bernasek, Sleeper and Zide are employed by Carlyle, CD&R and Bain, respectively, who are our Equity Sponsors. The Equity Sponsors are parties to a stockholders agreement with the Company, as well as a registration rights agreement. The Equity Sponsors also received certain payments in connection with the termination of consulting agreements with the Company at the time of the consummation of the Company's initial public offering in fiscal 2013. See "Related Party Transactions" on page 24 for details regarding these arrangements.

          None of our executive officers serves as a member of a board of directors or compensation committee of any entity that has one or more executive officers who serves on our board of directors or Compensation Committee.


Compensation Practices and Risk Management

          We believe our compensation practices provide a balanced mix of cash and equity, annual and longer-term incentives, and performance metrics which mitigate excessive risk-taking that could harm our value.


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    Annual incentive awards to executive officers are limited to a fixed maximum;

    The performance measure considered under our annual incentive plan is based on company-wide metrics; we believe that the use of company-wide metrics encourages decision-making that is in the best long-term interests of our shareholders;

    Vesting requirements over a minimum of three years for our equity awards ensures that our executives' interests align with those of our shareholders over the long term;

    Incentive awards, including stock-based compensation, to our executive officers are subject to clawback pursuant to the company's clawback policy; and

    All executive officers are subject to stock ownership guidelines.


Meetings of the Board of Directors and Attendance at the Annual Meeting

          Our board of directors held five meetings during fiscal 2013. Each of our directors attended at least 75% of the total number of meetings of the board and any committees of which he or she was a member, other than Mr. Ledford who attended 60% of the board meetings, and Mr. McNamee who attended 66% of the audit committee meetings after his appointment in September 2013. Directors are strongly encouraged to attend our annual meetings. The Annual Meeting is the Company's first annual meeting after becoming a public company during fiscal 2013.


Plurality Voting for Election of Directors

          The Company's Bylaws provide for the election of directors by aplurality of the votes cast. This means that the two individuals nominated for election to the board of directors who receive the most "FOR" votes (among votes properly cast in person, electronically or by proxy) will be elected.


Succession Planning and Management Development

          We are focused on talent development at all levels within our organization. Among the Compensation Committee's key responsibilities is to ensure that management establishes and the committee oversees an effective executive succession plan. The board regularly reviews the succession plans that support our overall business strategy, with a focus on key positions at the senior officer level. The board recognizes that succession planning and talent management are closely connected to risk management. Potential leaders are given exposure and visibility to board members through formal presentations and informal events. More broadly, the board is regularly updated on key talent indicators for the overall workforce, including through diversity, recruiting and development programs.


Policies and Procedures for Related Person Transactions

          We adopted a written related person transactions policy pursuant to which related persons, namely our executives, directors and principal shareholders, and their immediate family members, are not permitted to enter into certain transactions, or materially modify or amend an ongoing transaction, with us, in which the amount involved exceeds $120,000, without the consent of our Audit Committee or any designated member of the Audit Committee. Any request for us to enter into or materially modify or amend certain such transactions is required to be presented to our Audit Committee for


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review, consideration and approval. All of our directors and executive officers are required to report to our Audit Committee any such related person transaction. In approving or rejecting the proposed transaction, our Audit Committee will take into account, among other factors it deems appropriate, whether the proposed related person transaction is on terms no less favorable than terms generally available to an unaffiliated third party under the same or similar circumstances, the extent of the related person's interest in the transaction and, if applicable, the impact on a director's independence. Under the policy, if we should discover related person transactions that have not been approved, our Audit Committee will be notified and will determine the appropriate action, including ratification, rescission or amendment of the transaction.


Related Person Transactions

Stockholders agreement and stockholder arrangements

          On August 30, 2007, investment funds associated with our Equity Sponsors entered into a stock purchase agreement with The Home Depot, Inc. ("Home Depot") pursuant to which Home Depot agreed to sell to the Company or to a wholly owned subsidiary of the Company certain intellectual property and all of the outstanding common stock of HD Supply, Inc., our primary operating company and a wholly-owned subsidiary of the Company ("HDS") and a Canadian subsidiary, CND Holdings, Inc. On August 30, 2007, through a series of transactions, the Company's direct wholly owned subsidiary, HDS Holding Corporation, acquired direct control of HDS and the Canadian subsidiary, CND Holdings, Inc. In connection with the closing of these transactions (the "2007 Acquisition"), the Company, the Equity Sponsors and their affiliates and certain other stockholders of the Company entered into a stockholders agreement (as amended, the "Stockholders Agreement") that contains, among other things, provisions relating to our governance, the disposition of our common stock by the parties thereto and certain approval rights. The Stockholders Agreement provides that affiliates of the Equity Sponsors who are stockholders of the Company are currently entitled to nominate (or cause to be nominated) nine of the Company's directors, which includes three designees (one of whom may be independent) of each Equity Sponsor. Our Chief Executive Officer also serves as a director. One of the directors designated by the Equity Sponsor associated with CD&R serves as the chairman.

Registration Rights Agreement

          We are a party to an amended and restated registration rights agreement (as amended, the "Registration Rights Agreement") with certain of our stockholders, including the Equity Sponsors.Bain. The Registration Rights Agreement grants to the Equity SponsorsBain the right to cause us, at our own expense, to use our reasonable best efforts to register securities held by the Equity SponsorsBain for public resale, subject to certain limitations. In the event we register any of our common stock, certain of our stockholders, including the Equity SponsorsBain, also have the right to require us to use our reasonable best efforts to include in such registration statement shares of our common stock held by them, subject to certain limitations, including as determined by the underwriters. The Registration Rights Agreement also provides for us to indemnify certain of our stockholders and their affiliates in connection with the registration of our common stock.

Consulting agreements

          Until our initial public offering, we were party to consulting agreements with the Equity Sponsors (or their respective affiliates), which we entered into in connection with the 2007 Acquisition, pursuant


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to which the Equity Sponsors provided us and our subsidiaries with financial advisory and management consulting services. Pursuant to the consulting agreements, we paid the Equity Sponsors an aggregate annual fee of $4.5 million for such services, plus out-of-pocket expenses and subject to approval by the Equity Sponsors, their permitted transferees or their designated affiliates who are our shareholders. Each consulting agreement was to expire by its terms in August 2017. As specified in the agreements, we paid the Equity Sponsors a transaction fee of approximately $11 million and an aggregate fee to terminate the consulting agreements of approximately $18 million in connection with the consummation of our initial public offering. The termination fee represented the estimated net present value of the payments over the then remaining term of the consulting agreements.

Indemnification agreements

          In connection with the 2007 Acquisition,Transaction, we entered into indemnification agreements with HDS and the Equity Sponsors pursuant to which, following the completion of the 2007 Acquisition,Transaction, we agreed to indemnify the Equity Sponsors, their respective managers, administrative members and the administrative members or general partners of any other investment vehicle that is our shareholderstockholder and is managed by such manager or its affiliates and their respective successors and assigns, and the respective directors, officers, shareholders,stockholders, partners, members, employees, agents, advisors, consultants, representatives and controlling persons of each of them, or of their partners, shareholdersstockholders or members in their capacity as such, against certain liabilities arising out of performance of the 2007 Acquisition,Transaction, the performance of the consulting agreements described above under "—Consulting agreements,"that were terminated in fiscal 2013, securities offerings by us and certain other claims and liabilities. We also entered into a similar indemnification agreement with Home Depot providing for indemnification of Home Depot, its affiliates, directors, officers, shareholders,stockholders, partners, members, employees, agents, representatives and controlling persons against certain liabilities arising from securities offerings by us.

          We have also entered into an indemnification agreement with each of our directors and executive officers.directors. The indemnification agreements provide our directors and executive officers with contractual rights to the indemnification and


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expense advancement rights provided under our Bylaws, as well as contractual rights to additional indemnification as provided in the indemnification agreement.

Tax sharing arrangements

          In connection with the 2007 Acquisition,Transaction, Home Depot has agreed to be responsible for and pay any taxes that were reportable in a tax return that included Home Depot or any subsidiary of Home Depot and also included HDS or any of its subsidiaries, except for taxes relating to a period before HDS or its subsidiary was acquired, directly or indirectly, by Home Depot. The Internal Revenue Service has disallowed certain deductions claimed by us and has issued a formal Revenue Agent's Report challenging certain of the cash refunds resulting from our carryback of NOLs to taxable years during which we were a member of Home Depot's U.S. federal consolidated tax group. The carryback of the NOLs was made in accordance with (and subject to the terms of) the Tax Cooperation Agreement. Pursuant to the Tax Cooperation Agreement, if the IRS is ultimately successful with respect to the proposed adjustments, we would be required to reimburse Home Depot an amount equal to the disallowed refunds plus related interest.


HDS Notice of          For additional information and recent developments with respect to the tax sharing arrangements, see Item 8, Financial Statements and Supplementary Data, Note 14, Commitments and Contingencies, and Note 18, Subsequent Event, to the Company's audited consolidated financial statements included in the Company's Annual Meeting and 2014 Proxy Statement - Page 24report on Form 10-K for the fiscal year ended February 1, 2015.


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Agreements with Home Depot

          Upon the closing of the 2007 Acquisition,Transaction, we entered into the following agreements with Home Depot and/or its affiliates:

    a Strategic Purchase Agreement, as subsequently amended effective February 4, 2013, pursuant to which the parties agreed to terms relating to (i) the purchase by Home Depot U.S.A., Inc. and its affiliates of certain products from Crown BoltHD Supply Hardware Solutions ("Hardware Solutions") for a term to end no later than January 31, 2020, (ii) related intellectual property matters and (iii) the provision of related services;

    a Supplier Buying Agreement, pursuant to which the parties agreeagreed to certain terms and conditions relating to (i) the purchase by Home Depot U.S.A., Inc. and its affiliates of products from Crown BoltHardware Solutions pursuant to the Strategic Purchase Agreement and (ii) the provision of related in-store services and displays; and

    a Trademark License granting Crown BoltHardware Solutions the royalty-free right to use a number of trademarks in connection with its activities under the Strategic Purchase Agreement.

          On January 12, 2015, Home Depot completed its acquisition of substantially all of the assets of Hardware Solutions. The Strategic Purchase Agreement, Supplier Buying Agreement and Trademark License terminated as of the effective date of the closing on the acquisition. For additional information on this transaction, see Note 4, Discontinued Operations, to the Company's audited consolidated financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended February 1, 2015.


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          In addition, certain guarantees, surety bonds and letters of credit that Home Depot and/or its affiliates (other than HDS, HD Supply Canada, Inc. and their respective affiliates) entered into prior to the closing of the 2007 AcquisitionTransaction relate to our and our subsidiaries' obligations to landlords, customers and suppliers, and remained in place immediately after the closing of the 2007 Acquisition.Transaction. The Company agreed in the purchase and sale agreement to fully indemnify Home Depot and its affiliates from any losses that arise out of these obligations. The Company also agreed to use its reasonable best efforts to cause itself and/or HDS to be substituted for Home Depot and/or its affiliates and to have Home Depot and its affiliates released in respect of certain such obligations.

Debt Securities of HDS

          On August 30, 2007, HDS issued $1,300 million aggregate principal amount of Senior Subordinated Notes due 2015 bearing interest at a rate of 13.5% (the "2007 Senior Subordinated Notes"). During fiscal 2013, HDS redeemed $889 million of the 2007 Senior Subordinate Notes at a redemption price equal to 103.375% of the principal amount thereof and paid accrued and unpaid interest thereon through the redemption date. Affiliates of certain of the Equity Sponsors owned approximately 39% of the 2007 Senior Subordinated Notes that were redeemed.Company

          As of February 2, 2014, affiliates of certain of the Equity Sponsors beneficially owned approximately $37 million aggregate principal amount of termsterm loans under HDS'the Company's senior secured credit facilityTerm Loan Facility issued on April 12, 2012, providing for term loans in an aggregate principal amount of $1,000 million ("Term(the "Term Loan Facility"). On February 6, 2014, HDSthe Company amended the agreement governing the Term Loan Facility and as a result of the amendment, the ownership of affiliates of certain of the Equity Sponsors was reduced to $30 million. Management of the Company has been informed that, as of February 1, 2015, affiliates of Bain, our only remaining Equity Sponsor, do not beneficially own any part of the Company's debt.

          SeeFor additional information on these transactions, see Note 6,7, Debt, to the Company's audited consolidated financial statements included in the Company's Annual reportReport on Form 10-K filed withfor the SEC on March 25, 2014 for additional information on these transactions.fiscal year ended February 1, 2015.


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Transactions with Other Related Parties

          In connection with our business, we procure products from thousands of suppliers, some of which may be affiliated with the Equity Sponsors. We estimate that we purchased product from affiliates of the Equity Sponsors or directors for approximately $55 million, $57 million and $60$85 million in fiscal 2013, fiscal 2012 and fiscal 2011, respectively.2014. Management believes these transactions were conducted on an arm's-length basis at prices that an unrelated third party would pay.

          Gail T. DeAngelo, who is the sister of Joseph J. DeAngelo, the Company's CEO,Chairman of the Board, President and Chief Executive Officer, has been a senior business manager for the Company since January 2008. During fiscal 2013,2014, Ms. DeAngelo received an aggregate of $141,039$144,330 in base and bonus compensation. She also receives customary employee benefits. As a senior manager, Ms. DeAngelo is not eligible to participate in our equity compensation plans. Ms. DeAngelo's compensation is within the established range paid to our senior managers.


Communicating with our Board of Directors

          Any shareholderstockholder or interested party who wishes to communicate directly with our board of directors, or with any individual director of our board of directors, may do so by writing to theDan S. McDevitt, General Counsel and Corporate Secretary, HD Supply Holdings, Inc., 3100 Cumberland Boulevard, Atlanta, Georgia 30339 or by email atboardcommunications@hdsupply.com. Please specify to whom your letter should be directed. Once the communication is received and reviewed by the General Counsel and Corporate Secretary, it will be promptly forwarded to the addressee.addressee, as


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appropriate. Advertisements, solicitations for business, requests for employment, requests for contributions or other inappropriate material will not be forwarded to our directors.

Policies Regarding Certain Transactions in Company Securities

          We strongly discourage, but do not prohibit, our directors and executive officers from engaging in short-term trading of Company securities or from hedging their ownership of Company stock. Any such transaction must be pre-cleared with the Company's General Counsel and, to date, no such transactions have been approved.


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OWNERSHIP OF SECURITIES


Securities Ownership of Certain Beneficial Owners and Management

          The following tables set forth information as of March 14, 201417, 2015 with respect to the beneficial ownership of our common stock by (i) each person known to own beneficially more than 5%five percent of our common stock; (ii) each director; (iii) each of the named executive officers; and (iv) all directors and executive officers as a group.

          The amounts and percentages of shares beneficially owned are reported on the basis of SEC regulations governing the determination of beneficial ownership of securities. Under SEC rules, a person is deemed to be a "beneficial owner" of a security if that person has or shares voting power or investment power, which includes the power to dispose of or to direct the disposition of such security. A person is also deemed to be a beneficial owner of any securities of which that person has a right to acquire beneficial ownership within 60 days of the determination date, which in the case of the following table is March 14, 2014.17, 2015. Securities that can be so acquired are deemed to be outstanding for purposes of computing such person's ownership percentage, but not for purposes of computing any other person's percentage. Under these rules, more than one person may be deemed to be a beneficial owner of the same securities and a person may be deemed to be a beneficial owner of securities as to which such person has no economic interest.

          The percentage of beneficial ownership is based on 194,102,859197,256,618 shares of our common stock outstanding as of March 14, 2014.17, 2015.

          Except as otherwise indicated in the footnotes to this table, each of the beneficial owners listed has, to our knowledge, sole voting and investment power with respect to the indicated shares of common stock. Unless otherwise indicated, the address for each individual listed below is c/o HD Supply Holdings, Inc., 3100 Cumberland Boulevard, Atlanta, Georgia 30339.

          The following table sets forth information as to any person known to us to be the beneficial owner of more than five percent of our common stock.

Name and Address
 Number of Shares
Beneficially Owned

 Percent
 

Bain Capital Integral Investors 2006, LLC(1)(2)

36,471,875 18.79%

Carlyle Partners V, L.P. and related funds(2)(3)

 36,471,872 18.79%

Clayton, Dubilier & Rice Fund VII, L.P. and related funds(2)(4)

 36,461,875 18.78%

THD Holdings, LLC(2)(5)

 16,250,000 8.37%

Wellington Management Co LLP(6)

 14,503,832 7.47%
 
Name and Address
 Number of Shares
Beneficially Owned

 Percent

Bain Capital Integral Investors 2006, LLC(1)

 26,463,850 13.42%

JANA Partners LLC(2)

 15,712,748 7.97%

Wellington Management Co LLP(3)

 13,734,070 6.96%

The VanGuard Group Inc.(4)

 9,899,093 5.02%
(1)
Bain Capital Investors, LLC ("BCI") is the administrative member of Bain Capital Integral Investors 2006, LLC ("Integral"). Excludes shares of common stock owned by other parties to the Second Amended and Restated Stockholders Agreement of which Integral may be deemed to share beneficial ownership. Integral disclaims beneficial ownership of such shares. The governance, investment strategy and decision-making process with respect to investments held by Integral is directed by BCI's Global Private Equity Board ("GPEB"), which is comprised of the following individuals: Steven Barnes, Joshua Bekenstein, John Connaughton, Paul Edgerley, Stephen Pagliuca, Michel Plantevin, Dwight Poler and Jonathan Zhu and Stephen Zide.Zhu. By virtue of the relationships described in this footnote, GPEB may be deemed to exercise voting and dispositive power with respect to the shares held by Integral. Each of the members of GPEB disclaims beneficial ownership of such shares to the extent attributed to such member solely by virtue of serving on GPEB. The address of each of


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OWNERSHIP OF SECURITIES (continued)

(2)
Excludes shares of common stock owned by other parties to the Second AmendedJANA Partners LLC ("JANA"), in its capacity as investment adviser, beneficially owns, and Restated Stockholders Agreement of which they may be deemed to share beneficial ownership. Each person disclaims beneficial ownership of such shares.

(3)
Represents shares held by the following investment funds associated with Carlyle: Carlyle Partners V, L.P., Carlyle Partners V-A, L.P., CP V Coinvestment A, L.P.,has sole voting and CP V Coinvestment B, L.P., which are together referred to as the "Carlyle Funds." Carlyle Partners, V, L.P. holds 34,290,383 shares, Carlyle Partners V-A, L.P. holds 689,531 shares, CP V Coinvestment A, L.P. holds 1,320,767 shares, and CP V Coinvestment B, L.P. holds 171,191 shares. Carlyle Group Management L.L.C. is the general partner of The Carlyle Group L.P., which is a publicly traded entity listed on NASDAQ. The Carlyle Group L.P. is the managing member of Carlyle Holdings II GP L.L.C., which is the general partner of Carlyle Holdings II L.P., which is the general partner of TC Group Cayman Investment Holdings, L.P., which is the general partner of TC Group Cayman Investment Holdings Sub L.P., which is the managing member of TC Group V, L.L.C., which is the general partner of TC Group V, L.P., which is the general partner of each of the Carlyle Funds. Voting and investment determinationsdisposition power, with respect to the shares held by the Carlyle Funds are made by an investment committee of TC Group V, L.P. comprised of the following persons: Daniel D'Aniello, William Conway, David Rubenstein, Gregory Summe, Louis Gerstner, Allan Holt, Peter Clare and Thomas Mayrhofer. Each member of the investment committee of TC Group V, L.P. disclaims beneficial ownership of such shares. The address of TC Group Cayman Investment Holdings, L.P. and TC Group Cayman Investment Holdings Sub L.P. is c/o Walkers Corporate Services Limited, 190 Elgin Avenue, George Town, Grand Cayman KY1-9001, Cayman Islands. The address of each of the other persons or entities named in this footnote is c/o The Carlyle Group, 1001 Pennsylvania Ave., N.W., Suite 220 South, Washington, DC 20004.

(4)
Represents shares held by the following group of investment funds associated with Clayton, Dubilier & Rice, LLC ("CD&R"): (i) 30,000,000 shares of common stock held by Clayton, Dubilier & Rice Fund VII, L.P., whose general partner is CD&R Associates VII, Ltd., whose sole stockholder is CD&R Associates VII, L.P., whose general partner is CD&R Investment Associates VII, Ltd.; (ii) 213,604 shares of common stock held by CD&R Parallel Fund VII, L.P., whose general partner is CD&R Parallel Fund Associates VII, Ltd.; and (iii) 6,248,271 shares of common stock held by Clayton, Dubilier & Rice Fund VII (Co-Investment), L.P., whose general partner is CD&R Associates VII (Co-Investment), Ltd., whose sole stockholder is CD&R Associates VII, L.P., whose general partner is CD&R Investment Associates VII, Ltd. CD&R Investment Associates VII, Ltd. and CD&R Parallel Fund Associates VII, Ltd. are each managed by a two-person board of directors. Donald J. Gogel and Kevin J. Conway, as the directors of each of CD&R Investment Associates VII, Ltd. and CD&R Parallel Fund Associates VII, Ltd., may be deemed to share beneficial ownership of the shares shown as beneficially owned by Clayton, Dubilier & Rice Fund VII, L.P., CD&R Parallel Fund VII, L.P. and Clayton, Dubilier & Rice Fund VII (Co-Investment), L.P. Such persons expressly disclaim such beneficial ownership. Investment and voting decisions with respect to shares held by each of Clayton, Dubilier & Rice Fund VII, L.P., CD&R Parallel Fund VII, L.P. and Clayton, Dubilier & Rice Fund VII (Co-Investment), L.P. are made by an investment committee of limited partners of CD&R Associates VII, L.P., currently consisting of the following individuals: Michael G. Babiarz, Manvinder Singh Banga, James G. Berges, Kevin J. Conway, Thomas C. Franco, Kenneth A. Giuriceo, Donald J. Gogel, Theresa A. Gore, Marco Herbst, George K. Jaquette, Sarah Kim, Manfred Kindle, John Krenicki, Jr., Gregory Lai, Edward M. Liddy, John Malfettone , David A. Novak, Paul S. Pressler, Roberto Quarta, Eric Rahe, Christian P. Rochat, Eric Rouzier, Richard J.


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OWNERSHIP OF SECURITIES (continued)

(5)
THD Holdings, LLC, is a wholly-owned subsidiary of Home Depot. Home Depot shares voting and investment power with regard to the shares held by THD Holdings, LLC. The address of THD Holdings, LLC and Home Depot is 2455 Paces Ferry Road, N.W., Atlanta, Georgia 30339.10153.

(6)(3)
Wellington Management Company,Group LLP, in its capacity as investment adviser, beneficially owns 14,503,83213,734,070 shares which are held of record by clients of Wellington Management. Wellington Management has shared voting power with regard to 9,913,5009,992,348 shares and has shared dispositive power of 14,503,832with regard to 13,734,070 shares. The address of Wellington Management Group LLP is c/o Wellington Management Company LLP is 280 Congress Street Boston, MA 02210.

(4)
The VanGuard Group, Inc. ("VanGuard"), in its capacity as investment adviser, beneficially owns 9,899,093 shares. It has sole power to vote or direct to vote 96,510 shares, sole power to dispose of or to direct the disposition of 9,815,683 shares and shared power to dispose or to direct the disposition of 83,410 shares. Vanguard Fiduciary Trust Company, a VanGuard wholly-owned subsidiary, is the beneficial owner of 83,410 shares as a result of its serving as investment manager of collective trust accounts. Vanguard Investments Australia, Ltd., a VanGuard wholly-owned subsidiary, is the beneficial owner of 13,100 shares as a result of its serving as investment manager of Australian investment offerings. VanGuard's address is 100 Vanguard Blvd., Malvern, PA 19355.


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OWNERSHIP OF SECURITIES (continued)

          The following table sets forth the beneficial ownership of our common stock as of March 14, 201417, 2015 by our current directors and nominees our Chief Executive Officer, current and former Chief Financial Officer and three othernamed executive officers, who had the highest total compensation for fiscal 2013, calculated in accordance with SEC rules and regulations, and all of our directors and executive officers as a group. Unless otherwise indicated, the address for each individual listed below is c/o HD Supply Holdings, Inc., 3100 Cumberland Boulevard, Atlanta, Georgia 30339.

Directors and Executive Officers
 Shares
Owned
Directly

 Stock Options
Exercisable
Within 60 Days

 Restricted Stock
Units Vesting
Within 60 Days(1)

 Vested Deferred
Stock Units(2)

 Total Shares
Beneficially
Owned

 Percent
 
Betsy S. Atkins- - 3,096 - 3,096 *
James G. Berges(3) - - 4,559 - 4,559 *
Brian A. Bernasek(4) - - 4,559 1,973 6,532 *
Paul B. Edgerley(5) - - 4,559 2,192 6,751 *
Gregory S. Ledford(4) - - 4,559 1,795 6,354 *
Patrick R. McNamee - - 3,096 - 3,096 *
Charles W. Peffer 2,000 - 4,559 - 6,559 *
Nathan K. Sleeper(3) - - 4,559 1,973 6,532 *
Stephen M. Zide(5) - - 4,559 2,192 6,751 *
Joseph J. DeAngelo(6) 200,000 1,787,996 - - 1,987,996 1%
Evan Levitt 500 77,895 - - 78,395 *
Ronald J. Domanico 25,000 470,414 - - 495,414 *
Anesa Chaibi 10,000 701,653 - - 711,653 *
John A. Stegeman 37,000 371,082 - - 408,082 *
Ricardo J. Nuñez 10,000 274,957 - - 284,957 *
 
Shares held by all directors and executive officers as a group (15 persons) 284,500 3,683,997 38,105 10,125 4,016,727 2.07%
 
 Directors and Executive Officers
 Shares
Owned
Directly

 Stock Options
Exercisable
Within 60 Days

 Restricted Stock
Units Vesting
Within 60 Days(1)

 Vested Deferred
Stock Units(2)

 Total Shares
Beneficially
Owned

 Percent
 
 Kathleen J. Affeldt   2,496  2,496 *
 John W. Alden 6,727  3,868  10,595 *
 Betsy S. Atkins 3,096  3,868  6,964 *
 James G. Berges(3) 35,350  1,583  36,933 *
 Paul B. Edgerley(4)   3,868 8,176 12,044 *
 Peter A. Leav   2,106  2,106 *
 Patrick R. McNamee 10,596  3,868  14,464 *
 Charles W. Peffer 6,559  3,868  10,427 *
 James A. Rubright   2,106  2,106 *
 Joseph J. DeAngelo(5) 186,236 1,745,595   1,931,831 1%
 Evan J. Levitt 4,213 78,729   82,942 *
 Anesa T. Chaibi 17,484 688,275   705,759 *
 John A. Stegeman 34,657 322,159   356,816 *
 Jerry L. Webb 8,007 353,082   361,089 *
 Ricardo J. Nuñez 14,168 343,616   357,784 *
 
 Shares held by all directors and executive officers as a group (18 persons) 337,162 3,801,574 27,631 8,176 4,174,543 2.12%
 
*
Less than 1%

(1)
Each restricted stock unit represents the contingent right to receive one share of the Company's common stock, par value $0.01 per share. The units will vest on May 15, 201414, 2015 and will be settled in shares of Company common stock at the time of vesting, for Ms. Atkins and Messrs. Ledford, McNamee and Peffer. Settlementexcept that settlement of the units for Messrs. Berges, Bernasek,Ms. Affeldt and Mr. Edgerley Sleeper and Zide is delayed, pursuant to the director's election, until termination of the director's board service. Messrs. Berges and Sleeper are employees of our Equity Sponsor, CD&R, and have assigned their compensation for board service to CD&R.

(2)
Each deferred stock unit represents the right to receive one share of the Company's common stock, par value $0.01 per share. The deferred stock units are fully vested and will be settled upon termination of the director's board service. Messrs. Berges and Sleeper are employees of our Equity Sponsor, CD&R, and have assigned their compensation for board service to CD&R.

(3)
Does not include 36,461,875 shares of common stock held by investment funds associated with CD&R. Messrs. Berges and Sleeper are directors of the Company and executives of CD&R. They disclaim any beneficial ownership of the shares held by investment funds associated with CD&R.

(4)
Does not include 36,471,872 shares of common stock held by investment funds associated with or designated by Carlyle. Messrs. Bernasek and Ledford are directors of the Company and executives of Carlyle. They disclaim any beneficial ownership of the shares held by investment funds associated with or designated by The Carlyle Group.

(5)
Does not include shares of common stock held by Integral. Messrs. Edgerley and Zide are members of GPEB and Managing Directors of BCI. By virtue of the relationships described in


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OWNERSHIP OF SECURITIES (continued)

(6)
On or about December 27, 2012, the 200,000 shares of common stock attributed to Mr. DeAngelo in "Shares Owned Directly" were transferred by Mr. DeAngelo to a trust, with respect to which Mr. DeAngelo's wife serves as trustee. Mr. DeAngelo disclaims any beneficial ownership of such shares held by the trust.


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DIRECTOR COMPENSATION


2013 Director Compensation

          The following table sets forth the compensation earned or paid to our non-employee directors in fiscal 2013.

Name(1)
 Fees earned or
paid in cash
($)(2)

 Stock
Awards
($)(3)

 All Other
Compensation
($)(4)

 Total
($)

 
  

Betsy S. Atkins(5)

$27,932 $70,403     98,335 

James G. Berges

 $39,074 $87,122     126,196 

Brian A. Bernasek

 $39,074 $87,122     126,196 

Paul B. Edgerley

 $43,416 $87,122     130,538 

Mitchell Jacobson(6)

 $34,688 $87,122 $25,823  147,634 

Lew Klessel(6)

 $8,438 $87,122     95,560 

Gregory S. Ledford

 $39,074 $87,122     126,196 

Patrick R. McNamee(5)

 $28,967 $70,403     99,370 

Charles W. Peffer(7)

 $46,322 $87,122     133,444 

Nathan K. Sleeper

 $39,074 $87,122     126,196 

Stephen M. Zide

 $43,416 $87,122     130,538 
  
(1)
Vipul Amin served as a director during fiscal 2013 but resigned from board service upon the consummation of our initial public offering and effectiveness of our Board of Director Compensation Policy on July 2, 2013 and, therefore, received no director compensation during fiscal 2013.

(2)
Messrs. Bernasek, Edgerley, Sleeper and Zide elected to convert all 2013 cash fees into deferred stock units under the Company's 2013 Omnibus Incentive Plan. Mr. Ledford converted his cash board retainer fees into deferred stock units but received committee fees in cash. Each deferred stock unit represents the right to receive one share of the Company's common stock, par value $0.01 per share. The deferred stock units are fully vested and will be settled upon termination of the director's board service.

(3)
The 35,350 shares are held by the James G. Berges Revocable Trust.

(4)
Does not include shares of common stock held by Integral. Mr. Edgerley is a Managing Director of Bain Capital Investors, LLC. By virtue of the relationships described in these footnotes, Mr. Edgerley may be deemed to share voting and dispositive power with respect to the shares held by Integral. Mr. Edgerley disclaims beneficial ownership of such securities to the extent of his pecuniary interest therein. Mr. Edgerley's address is c/o Bain Capital Partners, LLC, John Hancock Tower, 200 Clarendon Street, Boston, MA 02116.

(5)
160,000 shares of common stock attributed to Mr. DeAngelo in "Shares Owned Directly" were transferred in December 2012 by Mr. DeAngelo to a trust, with respect to which Mr. DeAngelo's wife serves as trustee. Mr. DeAngelo disclaims any beneficial ownership of such shares held by the trust.


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DIRECTOR COMPENSATION

2014 Director Compensation

          The following table sets forth the compensation earned or paid to our non-employee directors in fiscal 2014.

Name
 Fees earned or
paid in cash
($)(1)

 Stock
Awards
($)(2)

 Total
($)

 

Kathleen J. Affeldt(3)

 13,281 68,940 82,221 

John W. Alden(4)

  43,125  111,492  154,617 

Betsy S. Atkins

 69,375 99,988 169,363 

James G. Berges(5)

  67,500  99,988  167,488 

Brian A. Bernasek(3)

 54,844 99,988 154,832 

Paul B. Edgerley

  75,000  99,988  174,988 

Peter A. Leav(3)

 4,375 56,041 60,416 

Gregory S. Ledford(3)

  67,500  99,988  167,488 

Patrick R. McNamee

 71,875 99,988 171,863 

Charles W. Peffer

  80,000  99,988  179,988 

Nathan K. Sleeper(3)(5)

 61,875 99,988 161,863 

James G. Rubright(3)

  3,750  56,041  59,791 

Stephen M. Zide(3)

 70,313 99,988 170,300 
(1)
Messrs. Bernasek, Edgerley, Ledford, Sleeper and Zide elected to convert 2014 cash fees into deferred stock units under the Company's 2013 Omnibus Incentive Plan. Each deferred stock unit represents the right to receive one share of the Company's common stock, par value $0.01 per share. The deferred stock units are fully vested and are settled upon termination of the director's board service.

(2)
The values for stock awards in this column represent the grant date fair value of the restricted stock units granted in fiscal 2013,2014, computed in accordance with FASB ASC Topic 718. Information about the assumptions used to value these awards can be found in Part I, Item 7, Management's Discussion And Analysis Of Financial Condition And Results Of Operations, Critical Accounting Policies, Stock-Based Compensation, and Note 910 "Stock-Based Compensation"Compensation and Employee Benefit Plans" to our audited consolidated financial statements included in our fiscal 2013 Annual Report on Form 10-K.10-K for the fiscal year ended February 1, 2015. The stock awards vest on the earlierearliest of the one-year anniversary of the May 15, 2014 grant date, the next annual meeting after the grant date, or a change in control. Messrs. Bernasek, Edgerley,Ledford, Sleeper and Zide forfeited their 2014 stock awards on termination of board service before the awards had vested. Ms. Affeldt and Mr. Edgerley elected to defer settlement of their 20132014 stock awards until termination of their board service.

(4)
This column represents reimbursement for private aircraft expenses paid in connection with travel to and from company board meetings in 2013.

(5)(3)
Ms. AtkinsAffeldt was appointed to the board, and Mr. McNameeBernasek's board service ended, on September 5, 2014. Messrs. Leav and Rubright were appointed to the board, and Messrs. Sleeper's and Zide's board service ended, on September 1, 2013.October 22, 2014. Mr. Ledford's board service ended on January 12, 2015.

(6)(4)
Mr. Klessel resigned from the board effective August 27, 2013; Mr. Jacobson resigned from the board effective December 31, 2013. Messrs. Jacobson and Klessel forfeited 100% of their fiscal 2013The stock awards upon terminationamount for Mr. Alden includes two grants: (i) a grant of their board service.

(7)
Mr. Peffer432 restricted stock units ($11,504 FASB ASC Topic 718 grant date fair value) on his appointment in April 2014 which is the prorated annual grant for the 2013 compensation year, which grant vested and was appointed tosettled in Company common stock in May 2014; and (ii) a grant of 3,868 restricted stock units ($99,988 FASB ASC Topic 718 grant date fair value) which is the board effective July 2, 2013.annual grant for the 2014 compensation


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DIRECTOR COMPENSATION (continued)

(5)
Mr. Sleeper assigned his board compensation to CD&R through the date his board service ended on October 22, 2014. Mr. Berges assigned his compensation to CD&R for board service through the date CD&R sold its remaining shares of the Company's common stock on December 16, 2014.

2014 Stock Awards

          The aggregate number of stock awards made under our Board of Directors Compensation Policy and outstanding as of February 2, 20141, 2015 for each of our non-employee directors in fiscal 2014 are set forth below.

Name
 Restricted Stock Units
(#)

 

Kathleen J. Affeldt

2,496

John W. Alden

3,868 

Betsy S. Atkins

3,0963,868 

James G. Berges(1)

  4,5593,868 

Brian A. Bernasek

 4,559 

Paul B. Edgerley

  4,5593,868 

Mitchell JacobsonPeter A. Leav

 02,106 

Lew Klessel

0

Gregory S. Ledford

  4,559 

Patrick R. McNamee

 3,0963,868 

Charles W. Peffer

  4,5593,868

James A. Rubright

2,106 

Nathan K. Sleeper

  4,559 

Stephen M. Zide

 4,559 
(1)
Pursuant to the Assignment Termination Agreement between Mr. Berges and CD&R dated January 21, 2015, 2,285 of the restricted stock units will be settled to CD&R and the remaining 1,583 restricted stock units will be settled to Mr. Berges.

Narrative Discussion

          The following is a narrative discussion of the material factors which we believe are necessary to understand the information disclosed in the director compensation table.

          Director compensation is provided pursuant to our Board of Directors Compensation Policy. The director compensation year runs from the date of each annual shareholdersstockholders meeting. Equity and cash compensation for fiscal 2013 was prorated from the effective date of our Board of Directors Compensation Policy on July 2, 2013, and2014 was prorated for newly appointed directors from the date of their appointment. The directors appointed by our Equity Sponsor, CD&R have assigned their compensation to CD&R for board service tothrough the date CD&R.&R sold its stock investment in the Company on December 16, 2014. Mr. DeAngelo does not receive any compensation for service as a director.

          Based upon a review of peer group data, and the significant amount of time that our directors spend in fulfilling their duties as directors, the board voted to make the following changes to our Board of Directors Compensation Policy since our 2014 proxy statement: increase the annual equity retainer from $100,000 to $120,000 ($180,000 for the independent Lead Director); increase the annual cash retainer from $60,000 to $85,000; increase the annual Audit Committee chair retainer from $20,000 to $25,000 and annual Audit Committee member retainer from $10,000 to $12,500; increase the annual Compensation Committee chair retainer from $15,000 to $20,000 and the annual Compensation


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DIRECTOR COMPENSATION (continued)

Committee member retainer from $7,500 to $10,000; added a $25,000 annual cash retainer for any non-employee board chairman, and $75,000 annual cash retainer for any independent lead director, that is in addition to other board retainers, and added retainers for the Corporate Development and Finance Committee formed in March 2015. The elements of our director compensation program are discussed in more detail below.

Equity Compensation

          Each non-employee director receives an annual equity award in the form of restricted stock units under the Company's 2013 Omnibus Incentive Plan. The number of restricted stock units is determined by dividing $100,000 ($180,000 for the independent lead director and $120,000 for other directors effective May 14, 2015) by the closing stock price of a share of Company common stock on the grant date, which is the date of our annual shareholdersstockholders meeting. Each restricted stock unit represents the contingent right to receive one share of the Company's common stock, par value $0.01 per share. The restricted stock units vest on the earliest of: (1) the one yearone-year anniversary of the grant date, (2) the Company's next annual shareholdersstockholders meeting, or (3) a change in control, and will be settled upon vesting unless the director elects to defer settlement until termination of board service. A pro rata portion of the award vests upon termination of the director's service due to death, disability or age-75 retirement based on the number of days of service during the year of termination. Equity compensation is prorated for newly appointed directors.directors who serve less than the full compensation year. Except as described above for terminations due to death, disability or age 75 retirement, restricted stock units are forfeited on termination of board service before the awards have vested.

Cash Compensation

          Each non-employee director is paid an annual cash fee for board service of $60,000 ($85,000 effective November 25, 2014), payable in installments at each quarterly board meeting. In addition, each non-employee director appointed to serve as a member of a standing board committee other than the Audit Committee receives an annual cash retainer of $7,500 ($10,000 for service on each such committee.Compensation Committee members effective November 25, 2014), other than Audit Committee members, who receive an annual cash committee retainer of $10,000.$10,000 ($12,500 for Audit Committee members effective November 25, 2014). Committee chairs are not eligible to receive the committee retainer, but instead receive a committee chair retainer of $20,000$15,000 ($20,000 for the chair of the Compensation Committee effective November 25, 2014), other than the Audit Committee


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DIRECTOR COMPENSATION (continued)

and $15,000$20,000 ($25,000 for the chairschair of the CompensationAudit Committee effective November 25, 2014). Any non-employee board chairman receives an annual cash retainer of $25,000, and Nominating and Corporate Governance Committees. No committee fees are paid for service onany independent lead director receives an annual cash retainer of $75,000, that is in addition to the Executive Committee.other cash retainers. Cash fees are prorated for newly appointed directors.directors who serve less than the full compensation year.

          Directors may elect to convert their cash fees into companyCompany stock in the form of deferred stock units. Each deferred stock unit represents the right to receive one share of the Company's common stock, par value $0.01 per share. The deferred stock units are fully vested and will be settled upon termination of the director's board service.

Travel Expense Reimbursements

          Directors are reimbursed for their reasonable expenses related to board membership, including in certain instances private airfirst-class airfare on a commercial airline for travel expenses. Pursuant to the consulting agreements with our Equity Sponsors, we paid $2.2 million to the Equity Sponsors in fiscal 2013board meetings or for out-of-pocket expenses relating to employees designated by the Equity Sponsors to serve on our board, including reimbursement for actual private air travel expenses. The consulting agreements were terminated in connection with the consummationother Company business.


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DIRECTOR COMPENSATION (continued)

Stock Ownership Guidelines

          Our independent directors are expected to own shares of Company common stock valued at three times the annual cash board retainer (or $180,000)$255,000) within five years of their appointment or election to the board, pursuant to the terms of the Stock Ownership Guidelines adopted by the Compensation Committee. Directors whoSome directors have elected to defer settlement of their vested restricted stock units and deferred stock units until termination of board service. These deferred vested stock units are employeesdeemed owned for purposes of our Equity Sponsors are not subject tothe stock ownership guidelines. As of March 17, 2015, Messrs. Berges and McNamee satisfy the stock ownership guidelines. As of the date of the Annual Meeting, assuming a stock price of $25 or more, all directors will satisfy the stock ownership guidelines so long asother than the Equity Sponsors own controlling interests in the Companyfollowing recently appointed directors: Mss. Affeldt and their interests are aligned with the long-term interests of our shareholders.Atkins and Messrs. Leav and Rubright.


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EXECUTIVE COMPENSATION

Compensation Discussion and Analysis

          The following Compensation Discussion and Analysis provides information regarding the material elements of our fiscal 20132014 compensation program for our "named executive officers," also referred to as the "NEOs." The named executive officers for fiscal 20132014 are our Chief Executive Officer, our Chief Financial Officer, our former Chief Financial Officer and the three other most highly compensated executive officers.officers at the end of fiscal 2014, and a former executive officer. The Compensation Committee (for purposes of this Compensation Discussion and Analysis, the Company (the "Committee"), pursuant to its charters,charter, is responsible for establishing, implementing and reviewing on an annual basis our compensation programs and actual compensation paid to our NEOs, exceptNEOs.

Results of 2014 Say-on-Pay and Frequency of Say-on-Pay Votes

          At our 2014 annual meeting of stockholders, we conducted a non-binding advisory vote on the compensation of our named executive officers, commonly referred to as a "say-on-pay" vote, as well as a non-binding advisory vote on the frequency of the say-on-pay vote. Our stockholders approved the compensation of the named executive officers, with 96.64% of the votes cast on the proposal voting in favor of our executive compensation program. Our stockholders approved a frequency of every three years for the say-on-pay vote, with 76.18% of the votes cast on the proposal voting in favor of every three years. The next say-on-pay vote will be conducted at our 2017 annual meeting of stockholders. As the Committee evaluated our executive compensation policies and practices throughout fiscal 2014, it was mindful of the support our stockholders expressed for our Chief Executive Officer, with respectphilosophy of linking compensation to whomour overall profitability and the Committee's decisions are subject to review and final approval by our Board.enhancement of stockholder value.

Executive Summary

          Improving market conditions, the Company's execution of key initiatives and cost saving strategies, and the Company's overall financial performance for fiscal 2013,2014, resulted in the following compensation decisions:


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Determining Executive Compensation

          At HD Supply, our Human Resources team, in partnership with the Committee, drives the design and implementation of all executive compensation programs. Our finance team heavily supports the process by providing financial analysis and input and review of program design. Except with respect to his own compensation, our Chief Executive Officer has final management-level review of any compensation program before it is sent to the Committee for consideration and approval. The Committee has the task of evaluating and approving our material compensation programs, including our equity compensation program. Management frequently consults with the Committee during the design process to obtain their direction and feedback on how the design of our executive compensation programs support the overall strategy of the Company. As described below, data from outside consultants are also used during the design process to obtain further insight into the features of our compensation program.


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Philosophy and Objectives

          Our Company and our aspiration to be the "First Choice" is built on the mission of "One Team, Driving Customer Success and Value Creation," a philosophy we believe is best embodied by our SPIRIT values:

Service: Help our customers succeed by delivering exceptional service and the best total value experience
Performance: Exceed our commitments everyday to our team, customers, suppliers, Equity Sponsorsstockholders and communities
Integrity:Always do the right thing and always take the high road
Respect: Treat team members the way you would like you and your family to be treated
Respect:Always do the right thing and always take the high road
Innovation: Seek new ways to build a reliable, effective and efficient chain of execution for our customers
Teamwork: Win together by creating an environment where every individual puts the team first


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          The Committee and our management believe that fostering these values requires a performance culture geared toward customer success and sustainable, long-term profitability. The Company's compensation programs are designed to reward achievement of these goals, thereby attracting and retaining talent that will contribute to such a culture. In particular, our executive compensation programs are intended to meet the following objectives:

          In addition, we intend that our compensation programs will be aligned with:


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Compensation Consultant and Use of Comparator Data

          Since 2009, the Company has engaged Pearl Meyer & Partners to provide input with respect to our executive compensation programs, including a market review of the competitiveness of total compensation of our executives and a review of our equity program. A representative from Pearl Meyer & Partners attends our Committee meetings.

          In light of new SEC rules, the Company requested and received information from Pearl Meyer & Partners with respect to potential conflicts of interest, including the following factors: (1) other services provided to us by the consultant; (2) fees paid by us as a percentage of the consulting firm's total revenue; (3) policies and procedures maintained by the consulting firm that are designed to prevent a conflict of interest; (4) any business or personal relationships between the individual consultants involved in the engagement and a member of the Committee; (5) any Company stock owned by the individual consultants involved in the engagement; (6) any business or personal relationships between our executive officers and the consulting firm or the individual consultants involved in the engagement. Based on an assessment of these factors, including information gathered from directors and executive


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officers addressing business or personal relationships with the consulting firm or the individual consultants, the Committee concluded that the work of Pearl Meyer & Partners did not raise any conflict of interest.

          In general, neither the Company nor the Committee has exclusively relied on any of the data or advice received from Pearl Meyer & Partners as to the amount of any particular item of compensation. Pearl Meyer & Partners provides input which the Company and Committee take into consideration, as the case may be, on the particular element of compensation under consideration.

Comparator Data

          The Committee reviews compensation levels and practices at comparator companies in setting the compensation of our NEOs and when reviewing or establishing the Company's compensation programs for other associates. The information is used to help the Committee better understand the competitive market and how executives are compensated at other companies that are similar in size or industry, and companies with whom we compete for talent.

          Our breadth of specialty business units makes finding direct comparators challenging. We seek comparators that share a similar industrial distribution model or are a direct competitor to a specific line of business.

business unit. Companies are therefore included in the comparator group because they (1) operate in the same business as the Company or one of our business units (industrial distribution of building supplies), (2) operate in a similar business (distribution of any product), or (3) operate in a similar business model (business to business). The comparator group was developed by management and the Committee, with input from Pearl Meyer & Partners, and has been used to provide input into both the value of total compensation for executives as well as the relative value of each component of compensation. We do not rely on percentile rankings of compensation within the comparator group to determine specific compensation amounts for the NEOs; rather, the comparator group is used to identify programs and levels of pay which management and the Committee consider when evaluating our own programs.

          In fiscal 2013, we used the following comparator group consisting of companies in the same or similar business or having a similar business model:

Arrow Electronics Inc.Masco Corp
Coca-Cola EnterprisesOffice Depot
Conagra FoodsOwens & Minor
Danaher, CorpPepsi Bottling Group
Fastenal Co.Staples, Inc.
Genuine PartsWatsco, Inc.
Interline Brands Inc.WESCO International, Inc.
MSC Industrial DirectW.W. Grainger, Inc.

          The comparator group is reviewed and updated each year as appropriate. No changes were made to the fiscal 2013 comparator group as compared to fiscal 2012.



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          The comparator group is reviewed and updated each year as appropriate. For fiscal 2014 compensation decisions, after our initial public offering, we evaluated the composition of our comparator group to ensure that our comparison criteria continues to be appropriate based on our new public company status, which resulted in the following comparator group, being expanded by adding severalconsisting of companies in the same or similar business or having a similar business model:

Applied Industrial Technologies, Inc. Newell Rubbermaid, Inc.
Anixter International, Inc. Owens & Minor, Inc.
AutoZone, Inc. Owens Corning
Ball Corp. Ryder System, Inc.
Dover Corp. Stanley Black & Decker, Inc.
EMCOR Group, Inc. Sherwin-Williams Co.
Fastenal Co. SPX Corp.
Flowserve Corp. Terex Corp.
Genuine Parts Co. Watsco, Inc.
Grainger (WW), Inc. Waste Management, Inc.
Masco Corp. WESTCOWESCO International, Inc.
MSC Industrial Direct Co., Inc. United Stationers, Inc.
  Vulcan Materials Co.

Components of Compensation

          The Company believes that the compensation programs it maintains are important in achieving the compensation goals described above. For fiscal 2013,2014, the principal components of compensation for the named executive officers were:

          EachWhile our NEOs do not have employment agreements with the Company, each of our NEOs is party to an at-will employment offer letter which contains certain employment and severance arrangements. These severance arrangements are discussed more fully below under "Potential Payments upon Termination or Change in Control."


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          The design of each component of compensation fits into the overall executive pay program and supports the philosophy and objectives previously discussed in the following manner:

Pay component
 Objective of pay component Key measures

Base salary

 

Provides competitive pay while managing fixed costs

 

Individual performance and contribution

Scope of responsibilities

Experience

     

Annual cash incentives

 

Focuses on short-term operational metrics that drive and support our long-term strategy

 

Achievement of agreed upon operating plan goals in profitability

     
  

Where applicable, creates incentives for performance based on performance of individual NEOs'NEO's business unit

  
     
  

To reward an executive for exemplary achievements against non-financial goals

 

Achievement of non-financial goals

     

Equity awards granted in the form of stock options

 

Aligns executive interests to shareholdersstockholders by rewarding long-term focus on profitability and value creation for the enterprise

 

Growth in stock value

Employment retention through the vesting period of the stock optionsequity awards

     
  

Assists in the retention of key talent

  
     
  

Creates an "ownership culture"

  
     

Benefits and perquisites

 

Benefits provide a safety net of protection in the case of illness, disability or death

 

Benefits are provided to executives on the same basis as provided to our salaried associates

     
  

Perquisites generally enable the executive to perform their duties efficiently and minimize distractions

 

Perquisites are valued by our executives at minimal cost to us

          A discussion of each of the components of compensation for the NEOs is below, including a discussion of the factors considered in determining the applicable amount payable or achievable under each component.


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Base Salary

          Base salaries are set to attract and retain top executive talent while managing fixed costs at an appropriate level. The determination of any particular executive's base salary is based on personal performance and contribution, experience in the role, changes to the scope of responsibilities, market rates of pay and internal equity. Each year, the Chief Executive Officer, with input from Human Resources, proposes base salary increases, if any, for all NEOs, excluding himself, based on performance and the Company's merit increase budget prepared by management. His proposal is subject to review and approval (with or without modifications) by the Committee. Changes to Mr. DeAngelo's base rate of pay are initiated and approved by the Committee directly.

          In order to ensure that the base pay amounts remain competitive for key leaders for fiscal 2013,2014, Mr. DeAngeloLevitt received a 14% merit increase, Mr. Domanico received ansalary increase of 2%4.5%, Ms. Chaibi received ana salary increase of 5%4%, Mr. Stegeman received a salary increase of 3%, Mr. Webb received a salary increase of 2%, and Mr. Nuñez received a 3.5% increase.salary increase of 5.5%. Mr. Stegeman received a $15,000DeAngelo waived his merit bonus in lieu of a base salary increase for fiscal 2013. Mr. Levitt received a 24%2014. The merit increase atis effective for the time12-month period beginning in March of his promotion to Senior Vice President and Chief Financial Officer. Duringeach year; the prior foursalary reported in the Summary Compensation Table on page 47 is salary earned for the relevant fiscal years, Mr. DeAngelo waived merit increases.year.

Annual Cash Incentives

          Annual cash incentives are designed to focus the NEOs on producing superior results against key financial metrics relevant to the Company as a whole or to the individual business units that the NEO leads. By tying a significant portion of the executive's total annual cash compensation to annual variable pay, we reinforce our "pay for performance" culture and focus our executives on critical short-term financial and operational objectives which also support our long-term financial goals.

Annual Incentive Plan

          All of our NEOs participate in the Annual Incentive Plan ("AIP"), which provides cash-based incentives dependent on annual results against the key financial metric described below. A committee which includes Human Resources personnel, the CFO and the Controller (the "AIP Committee") monitors the AIP to ensure compliance with its intent and terms.

AIP target payouts to our NEOs are expressed as a percentage of base salary. Annually, these percentage targets are reviewed against comparator data and adjusted, if necessary, based on the Committee's estimation of what level of targeted payouts is necessary to retain and motivate our executives.

          For fiscal 2013,2014, AIP performance targets were based on AIP-adjusted earnings before interest, taxes, depreciation, and amortization ("AIP-adjusted EBITDA"). For purposes of the AIP, management fees and related expenses paid to our Equity Sponsors and stock-based compensation costs for stock options are excluded from AIP-adjusted EBITDA, both as to the targets and as to AIP-adjusted EBITDA as ultimately determined. The measures utilized in establishing performance goals under the AIP are determined in accordance with generally accepted accounting principles ("GAAP") and in a manner consistent with the methods used in the company's audited consolidated financial statements, but exclude extraordinary or other nonrecurring or unusual items, or restructuring or impairment charges as determined by the company's independent public accountants in accordance with GAAP, orand changes in accounting.


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EXECUTIVE COMPENSATION (continued)

          For fiscal 2013,2014, we viewed AIP-adjusted EBITDA as the key operating metric that would drive business profitability. The AIP provides a threshold level (at which 25% of the target percentage of base salary is earned, except for Facilities Maintenance where threshold level performance earns 50% of the target percentage), a target (or "plan") level (at which 100% of the target percentage of base salary is earned), a 150% level (at which 150% of the target percentage of base salary may be earned), and a maximum level for superior results (at which 200% of the target percentage of base salary may be earned).


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EXECUTIVE COMPENSATION (continued)

          For the NEOs participation in the AIP, the following percentages applied:

 
 AIP-Adjusted EBITDA
Facilities Maintenance
 AIP-Adjusted EBITDA
White Cap
 AIP-Adjusted EBITDA
Global Support Center
 
 
 Performance
Required
 Payout %
Earned
 Performance
Required
 Payout %
Earned
 Performance
Required
 Payout %
Earned
 

Threshold

 95% of Plan  50% 90% of Plan  25% 90% of Plan  25% 

Plan

 100% of Plan  100% 100% of Plan  100% 100% of Plan  100% 

150% Payout

 104% of Plan  150% 110% of Plan  150% 108% of Plan  150% 

200% Payout

 107% of Plan  200% 117% of Plan  200% 116% of Plan  200% 
  
 AIP-Adjusted EBITDA
Facilities Maintenance
 AIP-Adjusted EBITDA
Construction and Industrial
 AIP-Adjusted EBITDA
Waterworks
 AIP-Adjusted EBITDA
Global Support Center
 
  
 Performance
Required

 Payout %
Earned

 Performance
Required

 Payout %
Earned

 Performance
Required

 Payout %
Earned

 Performance
Required

 Payout %
Earned

 
 
 

Threshold

 95% of Plan 50% 80% of Plan 25% 90% of Plan 25% 90% of Plan 25% 
 

Plan

 100% of Plan  100% 100% of Plan  100% 100% of Plan  100% 100% of Plan  100% 
 

150% Payout

 104% of Plan 150% 110% of Plan 150% 110% of Plan 150% 107% of Plan 150% 
 

200% Payout

 107% of Plan  200% 117% of Plan  200% 117% of Plan  200% 116.8% of Plan  200% 
 

Payout = Salary × Target % of Salary × Payout % Earned

          For fiscal 2013,2014, the AIP goal for the Global Support Center was an AIP-adjusted EBITDA of $773.7$888.5 million. The Committee, in approving the plan goals in February 2013,2014, viewed this level as appropriate in order to keep the primary focus on adjusted EBITDA. Our AIP-adjusted EBITDA for fiscal 2014 was $760.2 million.$890.7 million, which includes EBITDA results for the HD Supply Hardware Solutions business that was owned for approximately 49 of 52 weeks during fiscal 2014. As a result, each of our NEOsMessrs. DeAngelo, Levitt and Nuñez earned an incentive award of 87%101.69% of the target award.

          As President of HD Supply Facilities Maintenance, Ms. Chaibi's AIP payout is based on the financial performance of Facilities Maintenance. For fiscal 2013,2014, Facilities Maintenance's financial goal was a AIP-adjusted EBITDA of $433.4$492.9 million. Facilities Maintenance exceeded its goal with anMaintenance's AIP-adjusted EBITDA of $434for fiscal 2014 was $490.8 million. As a result, Ms. Chaibi earned an incentive award of 101.7%95.71% of the target award.

          As President of HD Supply Construction and Industrial — White Cap, Mr. Stegeman's AIP payout is based on the financial performance of Construction and Industrial — White Cap. For fiscal 2013,2014, Constructional and Industrial — White Cap's financial goal was an AIP-adjusted EBITDA of $85.6$105.5 million. Construction and Industrial — White Cap's AIP-adjusted EBITDA was $78.5$111.1 million. As a result, Mr. Stegeman earned an incentive award of 38.1%126.32% of the target award.

          As Chief Executive Officer of HD Supply Waterworks, Mr. Webb's AIP payout is based on the financial performance of HD Supply Waterworks. For fiscal 2014, HD Supply Waterworks' financial goal was an AIP-adjusted EBITDA of $204.8 million. HD Supply Waterworks' AIP-adjusted EBITDA was $198 million. As a result, Mr. Webb earned an incentive award of 75.20% of the target award.


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          Fiscal 20132014 performance resulted in the following payments being made to our NEOs under the AIP:

 
 Target %
(expressed as a
% of base salary)
 AIP-Adjusted
EBITDA
payout % earned
 Aggregate AIP
payment ($)
 

Joseph J. DeAngelo

 150% 87%  1,304,539 

Evan Levitt(1)

 40%, 60% 87%  108,256 

Ronald J. Domanico

 75% 87%  374,160 

John A. Stegeman

 100% 38.1%  276,105 

Anesa Chaibi

 100% 101.7%  560,801 

Ricardo J. Nuñez

 60% 87%  216,032 

(1)
Mr. Levitt's AIP payment reflects the prorated award levels applicable to him during fiscal 2013. As Controller, Mr. Levitt's target percent was 40% and his target percent as Chief Financial Officer is 60%.See the Grants of Plan-Based Awards Table on page 50 for details.
 
 Target %
(expressed as a
% of base salary)

 AIP-Adjusted
EBITDA
payout % earned

 Aggregate AIP
payment ($)

 

Joseph J. DeAngelo

 150% 101.69% 1,525,350 

Evan J. Levitt

 60% 101.69%  216,783 

Anesa T. Chaibi

 100% 95.71% 549,145 

John A. Stegeman

 100% 126.32%  943,295 

Jerry L. Webb

 60% 75.20% 173,460 

Ricardo J. Nuñez

 60% 100.00%  262,062 

          We expect no material changesFor fiscal 2015, the Committee has approved adding a performance goal to the AIP for average working capital as AIP-adjusteda percent of sales, with an 80% EBITDA will continueand 20% average working capital target payout weighting. The average working capital measure is intended to beincrease the sole performance measure to ensure singular focus on cash management across the metric that drives company value most directly.Company, to avoid creating disincentives for investment in growth, and to reward teams for incremental annual improvements in working capital while continuing to grow EBITDA. Average working capital as a percent of sales will be computed by averaging the ending gross working capital at the end of each fiscal month divided by the fiscal year sales. Gross working capital was selected to focus on operational working capital and mitigate any incentive to alter results through adjustments to accruals or reserves.

Equity Incentive Compensation

          Our NEOs participate in the Company's 2013 Omnibus Stock Incentive Plan (the "Omnibus Stock Plan"). The Omnibus Stock Plan was approved by the Company's Board of Directorsboard and shareholdersstockholders on June 26, 2013 and replacesreplaced and succeedssucceeded the HDS Investment Holding, Inc. Stock Incentive Plan ("Pre-IPO Stock Plan") that was adopted by our Board of Directorsthe board shortly following our separation from Home Depot (collectively, the Omnibus Stock Plan and the Pre-IPO Stock Plan are referred to as the "Stock Plan"). Upon adoption of the Omnibus Stock Plan, the Pre-IPO Stock Plan terminated and no future awards will be made under that plan. However, awards previously granted under the Pre-IPO Stock Plan are unaffected by the termination of Pre-IPO Stock Plan.

          The Company believes that granting equity awards under the Stock Plan is the most effective way to align executive performance to our key goal of increasing value for the Company's shareholders.stockholders. The view of our board is that, assuming that our management is successful in increasing the value of the Company, equity awards under the Stock Plan will have the highest potential value for all participants as a percentage of total compensation.

          Historically, our board has believed the best way to accomplish these goals was to provide one up-front grant of stock options with a significant vesting period and, at the same time, provide the opportunity to purchase additional shares of our common stock. Therefore, our NEOs were granted options to purchase shares of the Company common stock and were also offered the opportunity to purchase additional shares of Company common stock. The program makes "founding owners" of our NEOs and is intended to motivate them to increase the value of the Company, and therefore our share price, over time. The vesting component is intended to maximize the retentive effect of the option grants. The up-front nature of the option grants was intended to position our executives for the highest


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EXECUTIVE COMPENSATION (continued)

possible return (because, if the share value of the Company increases over time, annual or other periodic grants would have higher strike prices and, therefore, less intrinsic value to our executives).


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EXECUTIVE COMPENSATION (continued)

          For fiscal 2013, the NEOs other than Mr. Levitt were granted options to purchase shares of Company common stock in connection with the consummation of the Company's initial public offering. Mr. DeAngelo received a grant of 148,800 stock options and the other NEOs, other than Mr. Levitt, received a grant of 57,200 stock options. The exercise price for the options is the initial public offering price of $18 per share. These options vest in full on the third anniversary of the initial public offering, subject to continued employment through such date. Mr. Levitt received a grant of 41,322 shares of restricted stock on March 6, 2014 in connection with his promotion to Senior Vice President and Chief Financial Officer in fiscal 2013. The restricted shares vest in four equal annual installments on each of the first through fourth anniversaries of the grant date, subject to continued employment through the vesting dates. Mr. Levitt's grant will be reported in our 2015 proxy statement.

          While the Committee hasdid not historically mademake routine annual equity grants to any of our NEOs or other executives, the Committee has determined that it willin fiscal 2014 to move to routine annual equity grants going forward in order to more closely align our compensation practices with those of comparable post-IPO companies. The Committee made the first routine annual equity grant to our NEOs in March 2014 as set forth below, in the form of restricted stock awards that vest in four equal annual installments on each of the first through fourth anniversaries of the grant date, subject to continued employment through the vesting dates. In March 2015, the Committee approved the following restricted stock grants for the NEOs. These grants will be reported in our 20152016 proxy statement.

Name
 Restricted
Stock
(#)

Joseph J. DeAngelo

165,289139,178

Evan J. Levitt(1)

 62,39624,725

Ronald J. Domanico

Anesa T. Chaibi

 45,59449,909

John A. Stegeman

 29,95838,974

Jerry L. Webb

13,376

Ricardo J. Nuñez

 25,661

(1)
Mr. Levitt's restricted stock award a grant of 41,322 shares in connection with his promotion to Chief Financial Officer in fiscal 2013 and a fiscal 2014 annual grant of 21,074 shares.

Benefits and Perquisites

          The benefits provided to our NEOs are the same as those generally provided to our other salaried associates and include medical, visiondental and dentalvision insurance, basic life insurance and accidental death and dismemberment insurance, short and long-term disability insurance and a 401(k) plan. Our NEOs are also eligible to participate in the Company's broad-based employee stock purchase plan, which provides a 5% discount off the market price of Company stock at the time of purchase.

          Our executives participate in a limited number of perquisite programs. We maintain these programs because they are valued by our NEOs but impose relatively little cost to us.

          All of the NEOs participate in the Executive Basic Life Insurance Plan. Under this plan, the beneficiary of a participant who dies while employed by us is entitled to a lump sum payment of $500,000. The participant owns the insurance policy, and the Company pays the premium on his or her behalf. The value of the premium ranges from $900 to $2,580 and is fully taxable. At the end of the year, each participant receives an additional payment equal to the gross amount of taxes paid on the benefit. This additional payment is also fully taxable and is grossed up.


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EXECUTIVE COMPENSATION (continued)

          Other benefits provided to our NEOs include use of a companyCompany car, the purchase of a companyCompany car for less than market value and reimbursement for financial planning services. The value of providing companyCompany cars and reimbursement for financial planning services is taxable and is grossed up to avoid reducing the value of the benefits. Each of our NEOs received a $15,000 financial planning services benefit for fiscal 2013,2014, other than Mr. DeAngelo who received an $18,000 benefit and Mr. Levitt who did not receive any financial planning benefit for fiscal 2013.benefit. Our NEOs received a companyCompany car benefit for fiscal 20132014 ranging from $5,423$7,849 to $96,474.$19,068.


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EXECUTIVE COMPENSATION (continued)

          Because the Company's business continuity is best facilitated by avoiding any prolonged or unexpected absences by members of its senior management team, all NEOs are strongly encouraged to take advantage of comprehensive executive physical examinations paid for by the Company. The value of executive physical examinations for our NEOs for fiscal 20132014 ranged from $2,051$0 to $2,382.$3,099.

Deductibility of Compensation

          Section 162(m) of the Internal Revenue Code imposes a limit on the amount of compensation that we may deduct in any one year with respect to certain "covered employees," unless certain specific and detailed criteria are satisfied. Performance-based compensation, as defined in the Internal Revenue Code, is fully deductible if the programs are approved by shareholdersstockholders and meet other requirements. Pursuant to applicable Treasury regulations, Section 162(m) does not apply to compensation paid or stock options or restricted stock granted under the compensation agreements and plans described in our initial public offering prospectus during the reliance transition period ending on the earlier of the date the agreement or plan is materially modified or the first shareholdersstockholders meeting at which directors are elected during 2017. While we will continue to monitor our compensation programs in light of Section 162(m), our Compensationthe Committee considers it important to retain the flexibility to design compensation programs that are in the best long-term interests of our companyCompany and our shareholders,stockholders, particularly as we continue our transition from a private to a public company. As a result, we have not adopted a policy requiring that all compensation be deductible and our Compensationthe Committee may conclude that paying compensation at levels that are subject to limits under Section 162(m) is nevertheless in the best interests of our companyCompany and our shareholders.stockholders.

Risk Assessment

          ManagementDuring fiscal 2014, management and the Compensation Committee conducted a riskcomprehensive assessment and evaluation of the potential risks associated with our Company'scompensation policies and practices, with respect to both executive compensation program.and compensation generally. Based on our approach of compensating our executivesassociates for the financial success of the Company as a whole and other elements of our compensation system, we concluded that our executive compensation program doespolicies and practices, do not encourage undue risk-taking.risk-taking and do not create any risk that is reasonably likely to have a material adverse effect on the Company.

Policy on Recovering Incentive Compensation in the Event of a Restatement

          The board adopted a clawback policy in fiscal 2013 that provides us with the ability to require reimbursement or cancellation of any bonus or other incentive-based compensation, including stock-based compensation, awarded or paid to any current or former executive officer of the Company during the three-year period prior to a restatement if the incentive compensation was predicated upon the achievement of financial results that were subsequently the subject of restatement, the executive officer engaged in fraud or intentional misconduct that was a substantial contributing cause to the need for the restatement, and a lower award would have been made to the executive officer based upon the restated financial results. The policy applies to incentive compensation awarded, vesting or paid to an executive officer after the effective date of the policy on July 2, 2013. The policy is in addition to the requirements of applicable law and other legal remedies available to the Company.


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Executive compensation

Summary Compensation Table for fiscal 2013Fiscal 2014

          The following table sets forth the compensation of our Chief Executive Officer, PrincipalChief Financial Officer, former Principal Financial Officer and the three other most highly compensated executive officers.officers, and a former executive officer.

Name and Principal Position
 Year
 Salary
($)

 Bonus
($)(1)

 Option
Awards
($)(2)

 Non-Equity
Incentive Plan
Compensation
($)(3)

 All Other
Compensation
($)(4)

 Total
($)

 
  

Joseph J. DeAngelo

 2013  975,961  -  1,525,200  1,304,539  44,589  3,850,289 

Chief Executive Officer

  2012  875,000  -  -  1,462,344  38,127  2,375,471 

 

  2011  875,000  -  2,267,282  1,640,625  47,170  4,830,077 

Evan Levitt

  2013  283,269  160,000  -  108,256  4,503  556,028 

Principal Financial Officer

  2012  271,115  28,000  -  118,551  15,967  433,633 

  2011  264,593  17,000  141,704  159,600  10,808  593,705 

Ronald J. Domanico

  2013  571,465  -  586,300  374,160  63,630  1,595,555 

Former Principal Financial Officer

  2012  558,600  -  -  469,939  52,835  1,081,374 

 

  2011  541,200  -  944,699  614,250  40,594  2,140,743 

Anesa Chaibi

  2013  546,639  -  889,700  560,801  197,648  2,194,788 

President, Facilities Maintenance

  2012  549,959  -  -  901,679  50,284  1,501,922 

  2011  509,100  -  1,889,401  414,927  43,546  2,856,974 

John A. Stegeman

  2013  725,000  160,000  586,300  276,105  127,296  1,874,701 

President, White Cap

  2012  725,000  -  -  1,184,807  35,209  1,945,016 

 

  2011  725,000  -  188,940  552,864  34,465  1,501,269 

Ricardo J. Nuñez

  2013  411,308  100,000  586,300  216,032  65,816  1,379,456 

General Counsel, Corporate Secretary

  2012  402,404  68,613  -  267,400  191,599  930,016 

  2011  360,188  200,000  283,410  337,500  113,633  1,294,731 
  

 Name and Principal Position
 Year
 Salary
($)

 Bonus
($)(1)

 Stock
Awards
($)(2)

 Option
Awards
($)

 Non-Equity
Incentive Plan
Compensation
($)(3)

 All Other
Compensation
($)(4)

 Total
($)

 
 
 

Joseph J. DeAngelo

 2014 1,000,000  3,999,994  1,525,350 50,161 6,575,505 
 

Chief Executive Officer

 2013 975,961   1,525,200 1,304,539 44,589 3,850,289 
 

 2012 875,000    1,462,344 38,127 2,375,471 
 

Evan J. Levitt

  2014  352,946  120,000  1,509,983    216,783  51,873  2,251,585 
 

Chief Financial Officer

  2013  283,269  160,000      108,256  4,503  556,028 
 

  2012  271,115  28,000      118,551  15,967  433,633 
 

Anesa T. Chaibi

 2014 570,364  1,103,375  549,145 54,664 2,277,548 
 

President, Facilities Maintenance

 2013 546,639   889,700 560,801 197,648 2,194,788 
 

 2012 549,959    901,679 50,284 1,501,922 
 

John A. Stegeman

  2014  743,404    724,984    943,295  45,364  2,457,047 
 

President, Construction and Industrial

  2013  725,000  160,000    586,300  276,105  127,296  1,874,701 
 

  2012  725,000        1,184,807  35,209  1,945,016 
 

Jerry L. Webb

 2014 383,281 71,000 565,336  173,460 104,604 1,297,681 
 

Chief Executive Officer, Waterworks

 2013 365,135 100,000  586,300 152,153 47,758 1,251,346 
 

 2012 371,077    140,404 30,680 542,161 
 

Ricardo J. Nuñez

  2014  433,267    620,996    262,062  1,431,706  2,748,031 
 

Former General Counsel

  2013  411,308  100,000    586,300  216,032  65,816  1,379,456 
 

  2012  402,404  68,613      267,400  191,599  930,016 
 
(1)
A discretionary retention bonus in the amount of $60,000$120,000 was provided to Mr. Levitt in connection with his prior role as Vice President—President, Controller pursuant to his August 14, 2013 retention agreement with the Company. The August 14, 2013 retention agreement provided for total payments of $180,000, payable in three equal annual installments in December 2013, 2014 and 2015. OnThe reported $120,000 bonus represents the acceleration and payment to Mr. Levitt in March 21, 2014 the Company acceleratedof the remaining December 2014 and 2015two installment payments and these amounts will be reported in our 2015 proxy statement. Mr. Stegeman received a $15,000 bonus in lieu of a merit increase.due under the retention agreement. A $100,000 discretionary bonus was awarded to Messrs. Levitt and Nuñez, and a $145,000$71,000 discretionary bonus was awarded to Mr. Stegeman, for exemplary non-financial achievements.Webb in lieu of providing the Company car benefit available to the other NEOs.

(2)
Amounts set forth in the OptionStock Awards column representrepresents the aggregate grant date fair value of the awards computed in accordance with the Financial Accounting Standards Board Accounting Standards Codification Topic 718 ("FASB ASC Topic 718"). TheInformation about the assumptions madeused to value these awards can be found in the valuation of the awards are set forth inPart I, Item 7, Management's Discussion And Analysis Of Financial Condition And Results Of Operations, Critical Accounting Policies, Stock-Based Compensation, and Note 910 "Stock-Based Compensation and Employee Benefit Plans" to the Company'sour audited consolidated financial statements included in the Company'sour Annual Report on Form 10-K as filed withfor the SEC on March 25, 2014.fiscal year ended February 1, 2015. There were no equity award forfeitures by the named executive officers during fiscal 2013.2014. Mr. Levitt's stock award is comprised of: (1) $1 million promotional award granted in connection with his appointment as Chief Financial Officer in December 2013, and (2) $509,983 annual stock award grant.

(3)
Non-equity incentive plan compensation reflects amounts earned for fiscal 20132014 under the AIP to all NEOs for the applicable year.AIP. See "—"Compensation Discussion and Analysis — Components of Compensation—Compensation — Annual Cash Incentives" for a discussion of the AIP in fiscal 2013.

2014.


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(4)
The All Other Compensation column for fiscal 20132014 is made up of a matching contribution under our 401(k) plan, executive physical, life insurance, use of a companyCompany car, purchase of a company


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EXECUTIVE COMPENSATION (continued)

    car for less than market value and financial planning assistance perquisites, and tax gross-ups on perquisites.perquisites and bonus paid in lieu of car benefit, and severance payments with respect to Mr. Nuñez. The incremental cost of personal use of a companyCompany car or purchase for less than market value is based on the taxable value used to impute taxable income to the named executive officers in accordance with Internal Revenue Service regulations. The incremental cost of other perquisites is based on actual cost to the Company. The following identifies the perquisites for fiscal 20132014 that are required to be quantified by SEC rules.

Name
Tax Gross-Up
Perquisites

Joseph J. DeAngelo

16,062

Evan J. Levitt

16,098

Anesa T. Chaibi

19,469

John A. Stegeman

15,939

Jerry L. Webb

73,636

Ricardo J. Nuñez

19,057

    The All Other Compensation amount for Mr. Nuñez includes compensation the Company is obligated to make to Mr. Nuñez in connection with his employment separation on April 1, 2015, which expenses were accrued by the Company during fiscal 2014. The following table identifies his separation-related All Other Compensation:

Name
 Tax Gross Up
Perquisites

 Company Car
Benefit

 

Joseph J. DeAngelo

12,812 

Evan Levitt

  

Ronald J. Domanico

 22,542 

Anesa Chaibi

 79,208 96,474

John A. Stegeman

 48,537 55,733

Ricardo J. Nuñez

 22,569 
 
Separation-Related All Other Compensation 
Name
 Options(1)
 Severance(2)
 Employee Benefits(3)
 Company Car(4)
 Tax Gross-Ups(5)
 

Ricardo J. Nuñez

 407,726 873,540 18,955 35,110 34,607 
(1)
Represents equity compensation expense accrued, in accordance with FASB ASC Topic 718, for the accelerated vesting of option awards on employment separation and extension of the exercise period with respect to such options.

(2)
Represents two years of salary continuation payments pursuant to Mr. Nuñez's employment offer letter with the Company, as more fully described below in the section of this proxy statement entitled "Potential Payments Upon Termination or Change in Control"

(3)
Represents health insurance continuation coverage, outplacement benefit, laptop and cell phone; $18,455 was accrued in FY2014.

(4)
Represents the purchase of a Company car for less than market value; $35,110 is the cost to the Company to break the lease on the car.

(5)
Represents tax gross-ups on employee benefits and purchase of the Company car; $20,950 was accrued in FY2014.


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    EXECUTIVE COMPENSATION (continued)

    Grants of Plan-Based Awards for Fiscal 20132014

              The following table provides information concerning awards granted to our NEOs in fiscal 20132014 under any plan.

 
  
 Estimated Future Payouts Under
Non-Equity Incentive Plan Awards
  
  
  
 
 
  
 All other option awards:
Number of securities
underlying options
(#)

 Exercise or base
price of option
awards
($/Sh)

 Grant date fair
value of stock
and option
awards

 
Name
 Grant
Date

 Threshold
($)

 Target
($)

 150%
($)

 Maximum
($)

 
  

Joseph J. DeAngelo

                     

2013 AIP

  02/07/13  375,000  1,500,000  2,250,000  3,000,000 - - - 

Omnibus Incentive Plan

  06/26/13  -  -     - 148,800 18.00 1,525,200 

Evan Levitt

                      

2013 AIP

  02/07/13  23,265  93,060  139,590  186,120 - - - 

2013 AIP

  12/11/13  7,854  31,416  47,124  62,832       

Ronald J. Domanico

                      

2013 AIP

  02/07/13  107,555  430,221  645,331  860,441 - - - 

Omnibus Incentive Plan

  06/26/13  -  -     - 57,200 18.00 586,300 

Anesa Chaibi

                      

2013 AIP

  02/07/13  275,846  551,691  827,537  1,103,382 - - - 

Omnibus Incentive Plan

  06/26/13  -  -     - 86,800 18.00 889,700 

John A. Stegeman

                      

2013 AIP

  02/07/13  181,250  725,000  1,087,500  1,450,000 - - - 

Omnibus Incentive Plan

  06/26/13  -  -     - 57,200 18.00 586,300 

Ricardo J. Nuñez

                      

2013 AIP

  02/07/13  62,100  248,400  372,600  496,800 - - - 

Omnibus Incentive Plan

  06/26/13  -  -     - 57,200 18.00 586,300 
  

  
  
 Estimated Future Payouts Under
Non-Equity Incentive Plan Awards(1)
  
 
  
  
 All other stock awards:
Number of shares of
stock or units(2)
(#)

 
 Name
 Grant
Date

 Threshold
($)

 Target
($)

 150%
($)

 Maximum
($)

 
 
 

Joseph J. DeAngelo

             
 

2014 AIP

 02/20/14 375,000 1,500,000 2,250,000 3,000,000  
 

Omnibus Incentive Plan

 03/06/14     165,289 
 

Evan J. Levitt

                  
 

2014 AIP

  02/20/14  53,295  213,180  319,770  426,360  
 

Omnibus Incentive Plan

  03/06/14             62,396 
 

Anesa T. Chaibi

             
 

2014 AIP

 02/20/14 286,880 573,759 860,639 1,147,518  
 

Omnibus Incentive Plan

 03/06/14     45,594 
 

John A. Stegeman

                  
 

2014 AIP

  02/20/14  186,688  746,750  1,120,125  1,493,500  
 

Omnibus Incentive Plan

  03/06/14          29,958 
 

Jerry L. Webb

             
 

2014 AIP

 02/20/14 57,666 230,665 345,998 461,330  
 

Omnibus Incentive Plan

 03/06/14     23,361 
 

Ricardo J. Nuñez

                  
 

2014 AIP

  02/20/14  65,516  262,062  393,093  524,124  
 

Omnibus Incentive Plan

  03/06/14          25,661 
 
(1)
The AIP sets the threshold payout at 25% of the target payout, except with respect to Ms. Chaibi whose threshold payout is 50% of the target payout. There is a payout of 150% of the target payout for above-target performance. The maximum payout is 200% of the target payout. A discussion of the AIP in fiscal 20132014 is under "Compensation Discussion and Analysis—Analysis — Components and Compensation—Compensation — Annual Cash Incentives."

(2)
$18Mr. Levitt's 2014 stock award is the per share initial public offer pricecomprised of the commonfollowing FASB ASC Topic 718 grant date fair values: (1) $1 million promotional award granted in connection with his appointment as Chief Financial Officer in December 2013, and (2) $509,983 annual stock set forth as the "price to public" on the cover page of the prospectus for the Company's initial public offering on June 26, 2013. The Company's common stock was not publicly traded until July 2, 2013.award grant.


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Narrative disclosure to summary compensation table and grant plan basedgrants of plan-based awards table

Stock Plan

          The Stock Plan and a restricted stock option agreement govern each optionrestricted stock award and provide, among other things, the vesting provisions of the options and the option term. Prior to the exerciseaward. The holder of an option, the holdera restricted stock award has no rights as a shareholderstockholder with respect to the shares subject to such option,award, including voting rights and the right to receive dividends or dividend equivalents. The Company does not currently pay dividends on its common stock. The restricted stock option grant on June 26, 2013March 6, 2014 vests in four equal annual installments on each of the third anniversaryfirst through fourth anniversaries of the grant date, subject to continued employment through such date. See "Potential Payments uponUpon Termination or Change in Control" on page 51 for information regarding the cancellation or acceleration of vesting of restricted stock optionsawards upon an option holder's termination of employment or a change in control of the Company.

Employment Offer Letters

          Each of our named executive officers has received an at-will employment offer letter from the Company. See "Potential Payments uponUpon Termination or Change in Control" on page 51 for a summary of the material provisions of these offer letters.


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EXECUTIVE COMPENSATION (continued)

Outstanding Equity Awards at Fiscal 20132014 Year End

          The following table sets forth the unexercised and unvested option and stock optionsawards held by named executive officers at fiscal 20132014 year end. Each equity grant is shown separately for each named executive officer. No named executive officer held any stock awards at fiscal 2013 year end.

 
 Option Awards 
Name
 Number of securities
underlying
unexercised options
(#)
exercisable

 Number of securities
underlying
unexercised options
(#)
unexercisable

 Option
exercise
price
($)

 Option
expiration
date

 
  

Joseph J. DeAngelo

 -  148,800 $18.00  06/26/2023 

 

  -  552,995 $8.30  04/10/2021 

 

  370,500  247,000 $8.30  02/03/2020 

 

  555,750  370,500 $20.00  02/03/2020 

Evan Levitt

  -  34,562 $8.30  04/10/2021 

  13,000  8,667 $8.30  02/03/2020 

  19,500  13,000 $20.00  02/03/2020 

Ronald J. Domanico

  -  57,200 $18.00  06/26/2023 

 

  -  230,414 $8.30  04/10/2021 

 

  96,000  64,000 $8.30  06/07/2020 

 

  144,000  96,000 $20.00  06/07/2020 

Anesa Chaibi

  -  86,800 $18.00  06/26/2023 

  -  460,829 $8.30  04/10/2021 

  53,517  53,517 $8.30  02/03/2020 

  120,412  80,275 $20.00  02/03/2020 

John A. Stegeman

  -  57,200 $18.00  06/26/2023 

 

  -  46,083 $8.30  04/10/2021 

 

  129,999  86,667 $8.30  06/07/2020 

 

  195,000  130,000 $20.00  06/07/2020 

Ricardo J. Nuñez

  -  57,200 $18.00  06/26/2023 

  -  69,124 $8.30  04/10/2021 

  61,750  41,167 $8.30  02/03/2020 

  92,625  61,750 $20.00  02/03/2020 
  
  
 Option Awards(1)  
  
 
  
 Number of
securities
underlying
unexercised
options
(#)
exercisable

 Number of
securities
underlying
unexercised
options
(#)
unexercisable

  
  
 Stock Awards(2) 
 Name
 Option
exercise
price
($)

 Option
expiration
date

 Number of shares
or units of stock
that have not
vested
(#)

 Market value of
shares or units
of stock that
have not vested
($)

 
 
 

Joseph J. DeAngelo

  148,800 $18.00 06/26/2023 165,289 4,765,282 
 

 387,095  $8.30 04/10/2021   
 

 308,750 123,500 $8.30 02/03/2020   
 

 741,000 185,250 $20.00 02/03/2020   
 

Evan J. Levitt

  34,562   $8.30  04/10/2021  62,396  1,798,877 
 

  7,333  4,334 $8.30  02/03/2020       
 

  26,000  6,500 $20.00  02/03/2020       
 

Anesa T. Chaibi

  86,800 $18.00 06/26/2023 45,594 1,314,475 
 

 460,829  $8.30 04/10/2021   
 

 26,758 26,759 $8.30 02/03/2020   
 

 160,549 40,138 $20.00 02/03/2020   
 

John A. Stegeman

    57,200 $18.00  06/26/2023  29,958  863,689 
 

  23,044   $8.30  04/10/2021       
 

  55,115  43,334 $8.30  06/07/2020       
 

  260,000  65,000 $20.00  06/07/2020       
 

Jerry L. Webb

  57,200 $18.00 06/26/2023 23,361 673,498 
 

 143,132  $8.30 04/10/2021   
 

 148,200 37,050 $20.00 02/03/2020   
 

  24,700 $8.30 02/03/2020   
 

Ricardo J. Nuñez

    57,200 $18.00  06/26/2023  25,661  739,807 
 

  69,124   $8.30  04/10/2021       
 

  42,333  20,584 $8.30  02/03/2020       
 

  123,500  30,875 $20.00  02/03/2020       
 

    (1)
    Unexercisable stock options as of the end of fiscal 20132014 vest as follows, subject to continued employment through such date: (1) options with a 6/26/2023 expiration date vest in full on June 26, 2016; (2) $8.30 options with a 4/10/2021 expiration date vest in full on April 11, 2014; (3) options with a 2/3/2020 expiration date vest 20% per yearvested in full on February 3, 2014 and 2015; and (4)(3) options with a 2/6/7/2020 expiration date vest 20% per yearin full on FebruaryJune 8, 2015.

    (2)
    Unvested stock awards as of the end of fiscal 2014 vest in four equal annual installments on each of the first through fourth anniversaries of the March 6, 2014 grant date, subject to continued employment through the vesting dates. Mr. Levitt's 2014 stock award is comprised of the following FASB ASC Topic 718 grant date fair values: (1) $1 million promotional award granted in connection with his appointment as Chief Financial Officer in December 2013, and 2015.(2) $509,983 annual stock award grant.


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    EXECUTIVE COMPENSATION (continued)

    Option Exercises and Stock Vested for Fiscal 20132014

              The following table sets forth the options exercised by the named executive officers during fiscal 2013.2014. No stock awards were granted or vested during fiscal 2013.2014.


     Option Awards  Option Awards 
    Name
     Number of
    shares
    acquired on
    exercise
    (#)

     Value
    realized on
    exercise
    ($)

      Number of
    shares
    acquired on
    exercise
    (#)

     Value
    realized on
    exercise
    ($)

     
     

    Anesa Chaibi

     26,758 421,509 
     

    Joseph J. DeAngelo

     351,150 7,502,905 

    Evan J. Levitt

     10,000 214,500 

    Anesa T. Chaibi

     53,517 894,530 

    John A. Stegeman

     141,256 2,909,499 

    Jerry L. Webb

     140,000 2,696,489 

    Ricardo J. Nuñez

     40,000 858,629 

    Pension Benefits and Nonqualified Deferred Compensation for Fiscal 20132014

              We do not provide any defined benefit plans or nonqualified deferred compensation plans to our named executive officers.

    Potential Payments uponUpon Termination or Change in Control

              Pursuant to either their employment offer letters or the Company's current practice, in the event of involuntary termination without cause on February 2, 2014,1, 2015, the last day of fiscal 2013,2014, and contingent upon execution of a release, non-competition and non-solicitation agreement, alleach of our NEOs would receive up to 24 months of base pay continuation. For Mr. DeAngelo, Mr. Levitt, Ms. Chaibi, Mr. Stegeman and Mr. Nuñez, these amounts would be up to $2,000,000, $680,000, $1,103,382, $1,450,000$710,600, $1,147,518, $1,493,500 and $828,000,$873,540, respectively. The employment offer letters do not provide for any payout upon termination as a result of death, retirement, disability, or termination for cause.

              Upon his retirementseparation in April 2014, contingent upon execution of a release, non-competition and non-solicitation agreement,2015, Mr. DomanicoNuñez will receive one yeartwo years of salary continuation ($573,628)873,540), a $10,000 cash payment in lieu of continued benefits in the amount of $18,455, and will retain his companyCompany car, laptop and cell phone. In connection with his separation, Mr. Nuñez executed a release, non-competition and non-solicitation agreement and all post-termination payments will be subject to continued compliance with the terms of this agreement. The valueCompany accrued expense of the$35,110 with respect to his car, at the end of fiscal 2013 was $36,425, which is the value usedcost to impute taxable incomethe Company of breaking the lease on the car. Tax gross-ups in the amount of $34,607 will be paid by the Company with respect to employees in accordance with Internal Revenue Service regulations.the employee benefits and Company car. The laptop and cell phone hashave a nominal value of $100$500 or less. In addition, the Company accrued $407,726 of compensation expense in fiscal 2014 with respect to the accelerated vesting of stock options and extension of the exercise period with respect to such options. These amounts are reported in the "All Other Compensation" column of the Summary Compensation Table on page 47 and further explained by footnote to the table.


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    EXECUTIVE COMPENSATION (continued)

    Stock Plan

              Under the Stock Plan, an executive's unvested stock options are cancelled upon termination of his or her employment, except for terminations due to death or disability. Upon death or disability, unvested stock options vest and remain exercisable. In the case of a termination for cause (as defined in the Stock Plan), the executive's unvested and vested stock options are cancelled as of the effective date of the termination. Following a termination of employment other than for cause, vested options are cancelled unless the executive exercises them within 90 days (180 days if the termination was due to death, disability or retirement) or, if sooner, prior to the options' normal expiration date). Equity awards granted under the Omnibus Stock Plan may provide for continued vesting of the award in the event of retirement at or after age 62 with at least five years of continuous service with the Company, contingent upon the executive: (i) not competing with the Company and its subsidiaries for the one-year period after retirement; and (ii) not engaging in activities that would constitute cause had the


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    EXECUTIVE COMPENSATION (continued)

    executive continued employment with the Company. The executive has 180 days to exercise options vested at the time of such retirement and 90 days to exercise options vesting after such retirement.

              If there isUnder the Stock Plan, upon a change in control of the Company, all outstanding awards may be assumed and/or replaced with substitute awards having the same or better terms and conditions, provided that any substitute awards under the Omnibus Stock Plan generally providesmust fully vest on a participant's involuntary termination of employment without "cause" or constructive termination of employment, in each case occurring within two years following the date of the change in control. In the event such awards are not assumed and/or replaced in connection with the change in control, the awards will vest and be cancelled for accelerated vestingthe same per share amount paid to the stockholders in the change in control (less, in the case of unvested stock options unless our boardand SARs, the applicable exercise or base price). The administrator has the ability to prescribe different treatment of directors elects to provide for alternative awards in lieuthe award agreements.

              We believe this structure is fair to both our associates and to our stockholders, as the awards may represent compensation for the loss of accelerationan executive's job after a lifetime career and payment.for the appreciation of stock granted many years before. Had a change in control occurred at the end of fiscal 2013,2014 and the awards were not assumed or replaced with new rights with similar terms, based on a closing stock price of $21.47$28.83 at the end of fiscal 2013, and assuming the board accelerated vesting rather than providing alternative awards,2014, our NEOs would have received a benefit from the accelerated vesting of unvested stock optionsequity in the following amounts:

    Name
     Accelerated
    Vesting of Equity
    on Change in
    Control
    ($)

     

    Joseph DeAngelo

    11,596,90510,547,998 

    Evan J. Levitt

      588,4361,945,249 

    Ronald DomanicoAnesa T. Chaibi

     4,217,0363,158,300 

    Anesa Chaibi

    7,193,137

    John A. Stegeman

      2,137,9022,946,762

    Jerry L. Webb

    2,127,216 

    Ricardo J. Nuñez

      1,741,7892,054,498 

              Under the Pre-IPO Stock Plan a "change in control" is defined as:

      the acquisition by any person, entity or "group" (as defined in Section 13(d) of the Exchange Act) of 50% or more of the combined voting power of the Company's then outstanding voting securities, other than any such acquisition by the Company, any of its


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    EXECUTIVE COMPENSATION (continued)

          subsidiaries, any associate benefit plan of the Company or any of its subsidiaries, or by the Equity Sponsors, or any affiliates of any of the foregoing;

      the merger, consolidation or other similar transaction involving the Company, as a result of which persons who were shareholdersstockholders of the Company immediately prior to such merger, consolidation, or other similar transaction do not, immediately thereafter, own, directly or indirectly, more than 50% of the combined voting power entitled to vote generally in the election of directors of the merged or consolidated Company; or

      the sale, transfer or other disposition of all or substantially all of the assets of the Company to one or more persons or entities that are not, immediately prior to such sale, transfer or other disposition, affiliates of the Company.

              Under the Omnibus Stock Plan, a "change in control" also includes the following events:

      within any 24-month period, the persons who were directors of the Company at the beginning of such period (the "Incumbent Directors") cease to constitute at least a majority of the board, provided that any director elected or nominated for election to the board by any Equity Sponsor or a majority of the Incumbent Directors still in office are treated as an Incumbent Director;

      the approval by the Company's shareholdersstockholders of the liquidation or dissolution of the Company other than a liquidation of the Company into any Company subsidiary or a


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    EXECUTIVE COMPENSATION (continued)

          liquidation as a result of which persons who were holders of voting securities of the Company immediately prior to such liquidation, or any or all of the Equity Sponsors, won, directly or indirectly, more than 50% of the combined voting power entitled to vote generally in the election of directors of the entity that holds substantially all of the assets of the Company following such event.

              Under the Omnibus Stock Plan, upon a future change in control of the Company, all outstanding awards will fully vest and be cancelled for the same per share amount paid to the shareholders in the change in control (less, in the case of options and SARs, the applicable exercise or base price). The administrator has the ability to prescribe different treatment of awards in the award agreements. In addition, unless prohibited by applicable law (including if such action would trigger adverse tax treatment under Section 409A of the Code), no vesting or cancellation of awards will occur if awards are assumed and/or replaced in the change in control with substitute awards having the same or better terms and conditions, provided that any substitute awards must fully vest on a participant's involuntary termination of employment without "cause" or constructive termination of employment, in each case occurring within two years following the date of the change in control.


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      COMPENSATION COMMITTEE REPORT


      Report of the Compensation Committee

                The Compensation Committee has reviewed the foregoing Compensation Discussion and Analysis and discussed it with management. Based on such review and discussion, the Compensation Committee recommended to the board of directors that the Compensation Discussion and Analysis be included in this proxy statement and incorporated by reference in the Annual Report on Form 10-K for the fiscal year ended February 2, 20141, 2015 filed with the U.S. Securities and Exchange Commission.

           The Compensation Committee:

       

       

              Stephen M. Zide,Kathleen J. Affeldt, Chair
              John W. Alden
              Betsy S. Atkins
              Brian A. Bernasek
              Nathan K. SleeperPatrick R. McNamee


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      AUDIT MATTERSCOMMITTEE REPORT


      Report of the Audit Committee

                The Audit Committee of our board of directors is responsible for, among other things, reviewing with PricewaterhouseCoopers LLP, our independent registered public accounting firm, the scope and results of their audit engagement. In connection with the 20132014 audit, the Audit Committee has:

        Reviewed and discussed with management the Company's audited financial statements includingand management's report on internal controlscontrol over financial reporting included in our Annual Report on Form 10-K for the fiscal year ended February 2, 2014;1, 2015;

        Discussed with PricewaterhouseCoopers LLP the matters required to be discussed by Statement on Auditing Standards No. 61, as amended (AICPA, Professional Standards, Vol. 1, AU Section 380), as adopted by the Public Company Accounting Oversight Board (the "PCAOB") in Rule 3200T; and

        Received from and discussed with PricewaterhouseCoopers LLP the communications from PricewaterhouseCoopers LLP required by the Public Company Accounting Oversight Board regardingPCAOB their independence.

                Based on the review and the discussions described in the preceding bullet points, the Audit Committee recommended to the board of directors that the audited financial statements and management's report on internal controlscontrol over financial reporting be included in our Annual Report on Form 10-K for the fiscal year ended February 2, 20141, 2015 for filing with the Securities and Exchange Commission.

                The Audit Committee has adopted a charter and a process for pre-approving services to be provided by PricewaterhouseCoopers LLP.

                The members of the Audit Committee have been determined to be independent in accordance with the requirements of Section 5605(c) of the NASDAQ Stock Market listing standards and the requirements of Section 10A(m)(3) of the Exchange Act.

               The Audit Committee:

       

       

          Charles W. Peffer, Chair
          Peter A. Leav
      Patrick R. McNamee


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      AUDIT MATTERS


      Principal Accounting Firm Fees

                Aggregate fees billed to us for the fiscal years ended February 2, 20141, 2015 and February 3, 20132, 2014 by our independent registered public accountants, PricewaterhouseCoopers LLP and its respective affiliates, were:


      FYE2015
      FYE2015
      Fees Billed
       FYE2013(Fiscal 2014)
       FYE2012(Fiscal 2013)

      Audit Fees(1)

      $    3.4 million $    3.33.4 million

      Audited-Related Fees(2)

             N/A $    0.5 million      N/A

      Tax Fees(3)(2)

       $    0.80.9 million $    0.60.8 million

      All Other Fees

             N/A       N/A

      Total

       $    4.24.3 million $    4.44.2 million
        (1)
        Includes fees for the audit of our annual financial statements, review of our quarterly financial statements, statutory audits of foreign subsidiary financial statements and services associated with securities filings.

        (2)
        Includes fees for attestation services and consultations related to our information systems.
        (3)
        Includes fees for tax compliance work and advice services.

                The Audit Committee's policy is to pre-approve all audit and permissible non-audit services (including the fees and terms thereof) to be performed for us by the independent registered certified public accounting firm, subject to the de minimis exceptions for non-audit services described in the Exchange Act and the rules and regulations thereunder which are approved by the Audit Committee prior to the completion of the audit. The Audit Committee approved all services provided by PricewaterhouseCoopers LLP during fiscal 20122014 and 2013.


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      PROPOSAL 1 — ELECTION OF DIRECTORS

                The board has nominated the twothree persons named below for election as directors at the Annual Meeting to serve until the 20172018 annual meeting and until their respective successors are elected.elected and qualify. Each of the nominees for director is currently serving on the board. If any nominee is unable to serve as a director, which we do not anticipate, the board by resolution may reduce the number of directors or choose a substitute nominee.

      Nominees for Director

        Brian A. BernasekBetsy S. Atkins
        Stephen M. ZidePaul B. Edgerley
        James A. Rubright

                For biographical information about the nominees for director, including information about their qualifications to serve as a director, see "Our Board of Directors" beginning on page 15.14.

      THE BOARD OF DIRECTORS RECOMMENDS THAT
      SHAREHOLDERSSTOCKHOLDERS VOTE FOR THE ELECTION TO THE BOARD
      OF EACH OF THE TWOTHREE NOMINEES FOR DIRECTOR.


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      PROPOSAL 2 — RATIFICATION OF APPOINTMENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

                PricewaterhouseCoopers LLP audited our consolidated financial statements and internal control over financial reporting for the year ended February 2, 2014.1, 2015. Our Audit Committee has appointed PricewaterhouseCoopers LLP, independent registered public accounting firm, to audit our consolidated financial statements and internal control over financial reporting for the year ending February 1, 2015January 31, 2016 and to prepare a report on this audit, subject to ratification by our shareholders.stockholders.

                This proposal asks you to ratify the selection of PricewaterhouseCoopers LLP as our independent registered public accounting firm. Although we are not required to obtain such ratification from our shareholders,stockholders, the board of directors believes it is good practice to do so. If the appointment of PricewaterhouseCoopers LLP is not ratified, the Audit Committee may reconsider the appointment.

                A representative of PricewaterhouseCoopers LLP will be present at the Annual Meeting, of shareholders, will have the opportunity to make a statement and will be available to respond to appropriate questions by shareholders.stockholders.

      THE BOARD OF DIRECTORS RECOMMENDS THAT
      SHAREHOLDERSSTOCKHOLDERS VOTE FOR THE RATIFICATION OF THE
      APPOINTMENT OF PRICEWATERHOUSECOOPERS LLP
      AS OUR INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM.


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      PROPOSAL 3 — ADVISORY VOTESTOCKHOLDER PROPOSAL ON EXECUTIVE COMPENSATIONGREENHOUSE GAS EMISSIONS

                The Compensation Discussion and Analysis begins on page 36. As discussed there,Calvert Investment Management, Inc. ("Calvert") has given notice that a representative from Calvert intends to present for action at the board of directors believes thatAnnual Meeting the Company's long-term success depends in large measure on the talents of our associates. The Company's compensation system plays a significant role in our ability to attract, retain and motivate the highest quality workforce. The board believes that its current compensation program directly links executive compensation to performance, aligning the interestsfollowing proposal, which was co-filed with Sonen Capital ("Sonen"). Calvert Global Water Fund owns 1,334,891 shares of the Company's executive officers with those of its shareholders.

                This proposal provides shareholders with the opportunity to cast an advisory vote on the Company's executive compensation program.

                The Board invites you to review carefully the Compensation Discussion and Analysis beginning on page 36Common Stock, having held 307,780 shares since November 19, 2013 and the tabular and other disclosures on compensation under executive compensation beginning on page 48, and cast a vote either to endorse or not endorse the Company's executive compensation programs through the following resolution:

        "RESOLVED, that shareholders approve the compensationremaining shares since November 24, 2014. Sonen owns 14,326 shares of the Company's executive officers, includingCommon Stock, having held such shares for one or more years.

                  RESOLVED:    Stockholders request that HD Supply Holdings adopt quantitative company-wide goals for reducing GHG emissions from operations and products and report on its plans to achieve these goals by September 2015.

                  SUPPORTING STATEMENT:    In 2013, the Company's compensation practicesIntergovernmental Panel on Climate Change (IPCC), the world's leading scientific authority on climate change, released its fifth assessment report concluding that human-caused warming of the climate system is unequivocal," with many of the impacts of warming already "unprecedented over decades to millennia."

                  PWC states that to mitigate climate change the G20 needs to reduce its carbon intensity 6 percent per year and principlesthe global economy needs to decarbonize 6 percent per dollar GDP.

                  In 2012, the US experienced 11 such events resulting in an estimated $100 billion dollars in total damages and their implementation, as discussed and disclosed377 fatalities. Drought in the Compensation DiscussionU.S. Midwest in 2012 affected 80 percent of agricultural land, particularly corn and soybean production, costing approximately $30 billion dollars.

        Analysis by McKinsey & Co., Deloitte Consulting, and Point380 found that U.S. companies could reduce emissions 3 percent annually between now and 2020 and realize savings up to $780 billion dollars.

                  Further analysis by Calvert, Ceres, WWF, and David Gardiner and Associates demonstrated that 53 Fortune 100 companies in 2012 alone reported that they are conservatively saving $1.1 billion dollars annually by decreasing their GHG emissions.

                  In Climate Action and Profitability: CDP S&P 500 Climate Change Report 2014, industry leaders in the compensation tables,S&P 500 that are actively managing and any narrative executive compensation disclosure contained in this Proxy Statement."planning for climate change report:

          18 percent higher return-on-equity than peers and 67 percent higher return-on-equity than companies who do not disclose on climate change.
          50 percent lower earnings volatility over past decade than low-ranking peers.
          21 percent stronger dividend growth than low-ranking peers.

        While over 500 businesses, including General Motors, Microsoft, and Nike signed the vote does not bind the board to any particular action, the board values the inputClimate Declaration that states, "Tackling climate change is one of America's greatest economic opportunities of the shareholders,21st century," HD Supply is largely silent on emissions reductions.

                  The economic, business and willsocietal impacts of climate change are of paramount importance to investors. 767 institutional investors with $92 trillion dollars in assets under management have supported CDP's request to over 6,000 companies for disclosure of carbon emissions, reduction goals and climate change strategies to address these risks.

                  We recommend HD Supply take into accountconsideration the outcome of this vote in considering future compensation arrangements.

        THE BOARD OF DIRECTORS RECOMMENDS THAT
        SHAREHOLDERS VOTE FOR THE ADVISORY APPROVAL
        OF THE COMPENSATION PAID TO OUR NAMED EXECUTIVE OFFICERS.
        IPCC analysis and identified emission reduction targets as it sets its own scientific-based goal. We also recommend that HD Supply consider renewable energy procurement as a strategy to achieve its emission reduction goals.


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        PROPOSAL 43 — ADVISORY VOTESTOCKHOLDER PROPOSAL ON FREQUENCY OF EXECUTIVE COMPENSATION VOTEGREENHOUSE GAS EMISSIONS (continued)

                  As discussed in Proposal 3, the board values the input of shareholders regarding the Company's executive compensation practices. Shareholders are also invited to express their views on how frequently advisory votes on executive compensation, such as Proposal 3, will occur. Shareholders can advise the Board on whether such votes should occur every year, every two years or every three years or may abstain from voting.

                  This is an advisory vote, and as such is not binding on the board. However, the board will take the results of the vote into account when deciding when to call for the next advisory vote on executive compensation. A scheduling vote similar to this will occur at least once every six years.

                  The board of directors recommends that the advisory vote on executive compensation be held EVERY THREE YEARS.

                  Shareholders are not being asked to approve or disapprove of the board's recommendation, but rather to indicate their own choice as among the frequency options.

                  Please mark on the Proxy Card your preference as to the frequency of holding shareholder advisory votes on executive compensation, as either every year, every two years, or every three years or you may mark "abstain" on this proposal.

        THE BOARD OF DIRECTORS RECOMMENDS THAT
        SHAREHOLDERS STOCKHOLDERS VOTE "EVERY THREE YEARS" ONAGAINST THIS PROPOSAL FOR THE ADVISORY PROPOSAL
        ONFOLLOWING REASONS:

                  The board believes that it is premature at this time, and would not be an efficient use of the Company's resources, to adopt quantitative goals for the reduction of greenhouse gas emissions ("GHG emissions") and publish a report to stockholders on the goals and plans to achieve such goals. The subject of GHG emissions, especially potential future legislation and regulation, is currently unsettled. We believe it would be prudent to have a better understanding of the details of future legislative and regulatory programs and technologies before establishing and committing to GHG emissions reduction goals.

                  Notwithstanding the evolving regulatory environment, the Company is committed to reducing GHG emissions from its products and operations, and reducing our carbon footprint, by improving our internal efficiencies and providing environmentally preferred products.

                  During 2013, our largest business unit, HD Supply Facilities Maintenance, had approximately 8% fewer truck emissions per delivery because of its efficient delivery routing system. HD Supply Facilities Maintenance, in addition, has engaged in other environmentally sound practices. For example, it collected and reused more than 15,000 delivery boxes under its Box Reuse Program. Its more than 3,500 ideallygreenSM products offer customers solutions to increase the efficiency of their facilities by reducing energy costs, lowering water consumption, improving indoor air quality, reducing waste or properly disposing of hazardous materials. HD Supply Facilities Maintenance helps customers decrease their environmental impact by offering comprehensive lighting and water audits, and by working with utilities throughout the country to maximize utility rebate dollars for the customer's project. It delivers a comprehensive solution for customers looking to take advantage of utility incentives from simple retrofits to major property renovations. It performed more than 450 lighting audits for customers through November 2014. Through November 2014, HD Supply Facilities Maintenance customers have received approximately $1.3 million in utility rebates for converting to LED lighting. Over the useful life of the ideallygreenSM products purchased by customers in 2012 and 2013, there will be an estimated collective savings of $1 billion dollars in utility costs, a reduction of water consumption by an estimated 36 billion gallons, and a reduction of carbon emissions by an estimated 9 million metric tons.

                  The Company recognizes that GHG emissions are an important issue, and we are committed to reducing GHG emissions in our operations and products and to assisting our customers in decreasing their environmental impact. We will continue to take responsibility for assuring that the Company is a good steward of the environment and complies with the laws and regulations where it does business. However, establishing reduction goals and publishing a report at this time as environmental regulation and legislation remains uncertain would not be an efficient use of Company resources and would be contrary to the responsibilities of the Company to our stockholders and customers.

        ACCORDINGLY, THE FREQUENCYBOARD OF FUTURE ADVISORY VOTES ON THEDIRECTORS
        COMPENSATION PAID TO OUR NAMED EXECUTIVE OFFICERS.RECOMMENDS THAT STOCKHOLDERS
        VOTE "AGAINST" THIS PROPOSAL.


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        OTHER INFORMATION FOR SHAREHOLDERSSTOCKHOLDERS


        Section 16(a) Beneficial Ownership Reporting Compliance

                  Section 16(a) of the Exchange Act requires our directors, executive officers and persons who own beneficially more than 10% of either our common stock to file reports of ownership and changes in ownership of such stock with the Securities and Exchange Commission. These persons are required by SEC regulations to furnish us with copies of all Section 16(a) forms they file with the SEC. To our knowledge, each of our directors and executive officers complied during fiscal 20132014 with all applicable Section 16(a) filing requirements, other than a late295 shares that were not reported on Mr. Alden's Form 3 filed on behalf of Mr. Margolius reporting his share holdings when he became subject to Section 16(a).April 7, 2014 and were reported on Form 3/A filed on February 24, 2015.


        Solicitation of Proxies

                  We will pay our costs of soliciting proxies. Directors, officers and other employees, acting without special compensation, may solicit proxies by mail, email, in person or by telephone. We will reimburse brokers, fiduciaries, custodians and other nominees for out-of-pocket expenses incurred in sending our proxy materials to, and obtaining instructions relating to the proxy materials from, beneficial owners. In addition, we have retained AST Phoenix AdvisorsD.F. King & Co. to assist in the solicitation of proxies for the Annual Meeting at a fee of $6,000, plus associated costs and expenses.


        ShareholderStockholder Proposals or ShareholderStockholder Nominations for Director at 20152016 Annual Meeting

                  Shareholders who, in accordance with Rule 14a-8 of the Exchange Act wish to present proposalsTo be considered for inclusion in thenext year's proxy materialsstatement and form of proxy, proposals by stockholders for business to be distributed in connection withconsidered at the 20152016 annual meeting of shareholdersstockholders must submit their proposalsbe submitted in writing so that they are received by ourthe Company no later than December 2, 2015 and must comply with the requirements of SEC Rule 14a-8. Proposals should be submitted to: Dan S. McDevitt, General Counsel and Corporate Secretary, HD Supply Holdings, Inc., 3100 Cumberland Boulevard, Atlanta, Georgia 30339 no later than the close of business on December 1, 2014. Any proposal also will need to comply with SEC regulations regarding the inclusion of shareholder proposals in company-sponsored material.30339.

                  ShareholdersStockholders who wish to propose business or nominate persons for election to the board of directors at the 20152016 annual meeting of shareholdersstockholders, and the proposal or nomination is not intended to be included in our proxy statement, must provide aadvance notice to us of shareholderstockholder business or nomination in accordance with Section 1.12 of our Bylaws. In order to be properly brought before the 20152016 annual meeting of shareholders,stockholders, Section 1.12 of our Bylaws requires that a notice of a matter the shareholderstockholder wishes to present (other than a matter brought pursuant to Rule 14a-8), or the person or persons the shareholderstockholder wishes to nominate as a director, must be received by our Corporate Secretary not less than 90 days nor more than 120 days before the first anniversary of the preceding year's annual shareholderstockholder meeting. Therefore, any notice intended to be given by a shareholderstockholder with respect to the 20152016 annual meeting of shareholdersstockholders pursuant to our Bylaws must be received ourby Dan S. McDevitt, General Counsel and Corporate Secretary, HD Supply Holdings, Inc., 3100 Cumberland Boulevard, Atlanta, Georgia 30339 no later than the close of business on February 13, 2015.2016. However, if the date of our 20152016 annual meeting occurs more than 30 days before or 70 days after May 15, 2015,14, 2016, the anniversary of the Annual Meeting, a shareholderstockholder notice will be timely if it is received by our General Counsel and Corporate Secretary by the later of (a) the close of business on the 90th day before the date of the 20152016 annual meeting and (b) 10 days after public announcement of the date of meeting. Our Bylaws are available on the governance page of our investor relations website athttp://ir.hdsupply.com/index.cfm.


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        OTHER INFORMATION FOR SHAREHOLDERSSTOCKHOLDERS (continued)



        20132014 Annual Report on Form 10-Kto Stockholders

                  A copy of our fiscal 2013 annual reportAnnual Report on Form 10-K including financial statements, as filed withfor the SEC,fiscal year ended February 1, 2015 is enclosed with this proxy statement. It is also available on our investor relations websitefree of charge atwww.ir.hdsupply.comhttp://www.astproxyportal.com/ast/18392/.


        Other Business

                  Our board of directors is not aware of any business to be conducted at the Annual Meeting of shareholders other than the proposals described in this proxy statement. Should any other matter requiring a vote of the shareholdersstockholders arise, Joseph J. DeAngelo and Dan S. McDevitt (with full power of substitution) are your appointed representatives at the persons named in the accompanying proxy cardAnnual Meeting and will vote in accordance with their best judgment.


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        GRAPHIC

        GRAPHIC

           


        0 14475Important Notice Regarding the Availability of Proxy Materials for the Stockholders To Be Held on May 14, 2015 Annual Meeting of Stockholders to be held on: Thursday, May 14, 2015 - 12:30 p.m. (Eastern Time) 3100 Cumberland Boulevard Atlanta, Georgia 30339 COMPANY NUMBER ACCOUNT NUMBER CONTROL NUMBER JOHN SMITH 1234 MAIN STREET APT. 203 NEW YORK, NY 10038 The HD Supply Holdings, Inc. 2015 Annual Meeting of Stockholders will be held on May 14, 2015 at Cumberland Center II, 3100 Cumberland Boulevard, Atlanta, Georgia 30339, at 12:30 p.m. Eastern Time (“Annual Meeting”). The proxy materials for the Annual Meeting are available on the Internet or by mail. Follow the instructions below to view the proxy materials and vote online or request a paper or email copy. The items to be voted on and location of the meeting are provided below. Directions on attending the Annual Meeting to vote in person are on the reverse side. Your vote is important! This communication is not a form for voting and presents only an overview of the more complete proxy materials, which contain important information and are available to you on the Internet, by mail or by e-mail. We encourage you to access and review all of the proxy materials before voting. If you want to receive a paper or e-mail copy of the proxy materials, you must request one. There is no charge to you to receive a paper or e-mail copy. To facilitate timely delivery, please make the request as instructed below on or before April 30, 2015. Proposals to be voted on at the meeting are listed below along with the Board of Directors’ recommendations: The Board of Directors recommends that you vote FOR the following proposals: 1. The election to the Board of Directors of the three nominees: Betsy S. Atkins, Paul B. Edgerley and James A. Rubright. 2. Ratification of the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for fiscal year ending January 31, 2016. The Board of Directors recommends that you vote AGAINST the following proposal: 3. A stockholder proposal regarding greenhouse gas emissions. PLEASE NOTE – YOU CANNOT VOTE BY RETURNING THIS NOTICE. To vote your shares, you must vote online or request a paper copy of the proxy materials to receive a proxy card. If you wish to attend and vote at the meeting, please bring this notice with you as your admittance ticket. TO VIEW PROXY MATERIALS ONLINE: When you go online, you can also help the environment by consenting to receive electronic delivery of future materials. Please visit http://www.astproxyportal.com/ast/18392/ where the following materials are available for viewing: • Notice of Annual Meeting of Stockholders • Proxy Statement • Form of Proxy Card • 2014 Annual Report on Form 10-K • Directions on attending the Annual Meeting to vote in person TO REQUEST PAPER OR ELECTRONIC MATERIALS: Telephone: 888-proxy-NA (888-776-9962) or 718-921-8562 (for international callers) E-Mail: info@amstock.com Website: http://www.amstock.com/proxyservices/requestmaterials.asp TO VOTE: Online: To view the proxy materials and to access your online proxy card, please visit www.voteproxy.com or scan the QR code with your smartphone and follow the on-screen instructions. You may enter your voting instructions at www.voteproxy.com Until 5:00 p.m. Eastern Time the day before the meeting date. Mail: You may request a proxy card by following the instructions above under "TO REQUEST PAPER OR ELECTRONIC PROXY MATERIALS." In Person: You may vote your shares in person by attending the Annual Meeting.

        Directions to the 2015 Annual Meeting of Stockholders Cumberland Center II, 3100 Cumberland Blvd., Atlanta, GA 30339 Visit Google Maps/Driving Directions for more detailed directions. Traveling North on I-75, take Exit 258 to Cumberland Boulevard Turn left on Cumberland Boulevard Destination will be on the left Traveling South on I-75, take Exit 258 to Cumberland Boulevard Turn right on Cumberland Boulevard Destination will be on the left Traveling West on I-285, take Cobb Parkway exit Turn right on Cobb Parkway Turn left on Spring Road Turn left on Cumberland Boulevard Destination will be on the right Traveling East on I-285, take Exit 18/Paces Ferry Road toward Vinings Turn right on Paces Ferry Road Turn left on Cumberland Parkway Turn right on Cumberland Boulevard Destination will be on the right Cumberland Center II, 3100 Cumberland Boulevard, is the office building behind Marriott Courtyard Parking: Complimentary visitor parking is available. The visitor parking entrance is on the right immediately when you turn into the building driveway from Cumberland Boulevard.

        014475 HD SUPPLY HOLDINGS, INC. Proxyproxy for Annual Meetingannual meeting of Shareholdersstockholders on May 15, 2014 Solicitedmay 14, 2015 solicited on Behalf of the Board of Directorsdirectors The undersigned hereby appoints Joseph J. DeAngelo and Ricardo J. Nunez,Dan S. McDevitt, and each of them, with full power of substitution and power to act alone, as proxies to vote all the shares of Common Stock which the undersigned would be entitled to vote if personally present and acting at the Annual Meeting of ShareholdersStockholders of HD Supply Holdings, Inc., to be held at Cumberland Center II, 3100 Cumberland Boulevard, Atlanta, Georgia 30339, on Thursday, May 15, 2014,14, 2015, at 12:30 p.m. (Eastern Time), and at any adjournments or postponements thereof, as follows: (Continued(continued and to be signed on the reverse side.) 1.1

         

         

        ANNUAL MEETING OF SHAREHOLDERS OF HD SUPPLY HOLDINGS, INC. May 15, 2014 Important Notice Regardingannual meeting of stockholders of hd supply holdings, inc. may 14, 2015 important notice regarding the Availabilityavailability of Proxy Materialsproxy materials for the Annual Meetingannual meeting to be Heldheld on May 15, 2014: Themay 14, 2015: the proxy statement and fiscal 20132014 annual report on Form 10-Kform 10-k are available at http://www.astproxyportal.com/ast/18392/. Pleaseplease sign, date and mail your proxy card in the envelope provided as soon as possible. Signaturesignature of Shareholder Date: Signaturestockholder date: signature of Shareholder Date: Note: Pleasestockholder date: note: please sign exactly as your name or names appear on this Proxy. Whenproxy. when shares are held jointly, each holder should sign. Whenwhen signing as executor, administrator, attorney, trustee or guardian, please give full title as such. Ifif the signer is a corporation, please sign full corporate name by duly authorized officer, giving full title as such. Ifif signer is a partnership, please sign in partnership name by authorized person. Toto change the address on your account, please check the box at right and indicate your new address in the address space above. Pleaseplease note that changes to the registered name(s) on the account may not be submitted via this method. 1. Toto elect twothree directors nominated by the board of directors and named in the proxy statement to serve until our 20172018 annual meeting of shareholders; O Brian A. Bernasek O Stephen M. Zidestockholders; o betsy s. atkins o paul b. edgerley o james a. rubright 2. Toto ratify the appointment of PricewaterhouseCoopers LLPpricewaterhousecoopers llp as our independent registered public accounting firm for the Company’s 2014 fiscal year ending on February 1, 2015;january 31, 2016; the board of directors recommends a vote "against" proposal 3 3. To conduct an advisory vote on the compensation of our named executive officers ("say on pay");stockholder proposal regarding greenhouse gas emissions; 4. To conduct an advisory vote on the frequency of future say on pay advisory votes; and 5. Toto transact any other business as may properly come before the meeting. Inin their discretion, the proxies are authorized to vote upon such other business as may properly come before the Annual Meeting. Thisannual meeting. this proxy when properly executed will be voted as directed herein by the undersigned shareholder. Ifstockholder. if no direction is made, this proxy will be voted FOR ALL NOMINEESfor all nominees in Proposalproposal 1, FOR Proposalsfor proposal 2 and 3, and"against" proposal 3. for "3 YEARS" on Proposal 4. FOR AGAINST ABSTAIN FOR ALL NOMINEES WITHHOLD AUTHORITY FOR ALL NOMINEES FOR ALL EXCEPT (Seeagainst abstain for all nominees withhold authority for all nominees for all except (see instructions below) INSTRUCTIONS: Toinstructions: to withhold authority to vote for any individual nominee(s), mark “FOR ALL EXCEPT”“for all except” and fill in the circle next to each nominee you wish to withhold, as shown here: NOMINEES: THE BOARD OF DIRECTORS RECOMMENDS A VOTE "FOR" THE ELECTION OF DIRECTORS, "FOR" PROPOSALSnominees: the board of directors recommends a vote "for" the election of directors, "for" proposal 2 AND 3, AND FOR "3 YEARS" ON PROPOSAL 4. PLEASE SIGN, DATE AND RETURN PROMPTLY IN THE ENCLOSED ENVELOPE. PLEASE MARK YOUR VOTE IN BLUE OR BLACK INK AS SHOWN HEREand "against" proposal 3. please sign, date and return promptly in the enclosed envelope. please mark your vote in blue or black ink as shown here x Pleaseplease detach along perforated line and mail in the envelope provided. 20230304000000000000------------------ ---------------- 20330030000000000000 6 051514 GO GREEN e-Consent051415 go green e-consent makes it easy to go paperless. With e-Consent,with e-consent, you can quickly access your proxy material, statements and other eligible documents online, while reducing costs, clutter and paper waste. Enrollenroll today via www.amstock.com to enjoy online access. FOR AGAINST ABSTAIN 2 years 3 years ABSTAIN 1 yearfor against abstain

         

         

        Signaturesignature of Shareholder Date: Signaturestockholder date: signature of Shareholder Date: Note: Pleasestockholder date: note: please sign exactly as your name or names appear on this Proxy. Whenproxy. when shares are held jointly, each holder should sign. Whenwhen signing as executor, administrator, attorney, trustee or guardian, please give full title as such. Ifif the signer is a corporation, please sign full corporate name by duly authorized officer, giving full title as such. Ifif signer is a partnership, please sign in partnership name by authorized person. Toto change the address on your account, please check the box at right and indicate your new address in the address space above. Pleaseplease note that changes to the registered name(s) on the account may not be submitted via this method. 1. Toto elect twothree directors nominated by the board of directors and named in the proxy statement to serve until our 20172018 annual meeting of shareholders; O Brian A. Bernasek O Stephen M. Zidestockholders; o betsy s. atkins o paul b. edgerley o james a. rubright 2. Toto ratify the appointment of PricewaterhouseCoopers LLPpricewaterhousecoopers llp as our independent registered public accounting firm for the Company’s 2014 fiscal year ending on February 1, 2015;january 31, 2016; the board of directors recommends a vote "against" proposal 3 3. To conduct an advisory vote on the compensation of our named executive officers ("say on pay");stockholder proposal regarding greenhouse gas emissions; 4. To conduct an advisory vote on the frequency of future say on pay advisory votes; and 5. Toto transact any other business as may properly come before the meeting. Inin their discretion, the proxies are authorized to vote upon such other business as may properly come before the Annual Meeting. Thisannual meeting. this proxy when properly executed will be voted as directed herein by the undersigned shareholder. Ifstockholder. if no direction is made, this proxy will be voted FOR ALL NOMINEESfor all nominees in Proposalproposal 1, FOR Proposalsfor proposal 2 and 3, and"against" proposal 3. for "3 YEARS" on Proposal 4. FOR AGAINST ABSTAIN FOR ALL NOMINEES WITHHOLD AUTHORITY FOR ALL NOMINEES FOR ALL EXCEPT (Seeagainst abstain for all nominees withhold authority for all nominees for all except (see instructions below) INSTRUCTIONS: Toinstructions: to withhold authority to vote for any individual nominee(s), mark “FOR ALL EXCEPT”“for all except” and fill in the circle next to each nominee you wish to withhold, as shown here: JOHN SMITHjohn smith 1234 MAIN STREET APT.main street apt. 203 NEW YORK, NYnew york, ny 10038 NOMINEES: ANNUAL MEETING OF SHAREHOLDERS OF HD SUPPLY HOLDINGS, INC. May 15, 2014 INTERNETnominees: annual meeting of stockholders of hd supply holdings, inc. may 14, 2015 internet - Access .www.voteproxy.com.access “www.voteproxy.com” and follow the on-screen instructions or scan the QRqr code with your smartphone. Havehave your proxy card available when you access the web page. Votevote online until 11:59 PM EST5:00 pm est the day before the meeting. MAILmail - Sign,sign, date and mail your proxy card in the envelope provided as soon as possible. IN PERSONin person - Youyou may vote your shares in person by attending the Annual Meeting. GO GREENannual meeting. go green - e-Consente-consent makes it easy to go paperless. With e-Consent,with e-consent, you can quickly access your proxy material, statements and other eligible documents online, while reducing costs, clutter and paper waste. Enrollenroll today via www.amstock.com to enjoy online access. PROXY VOTING INSTRUCTIONS Pleaseproxy voting instructions please detach along perforated line and mail in the envelope provided IFif you are not voting via the Internet. THE BOARDinternet. the board of directors recommends a vote "for" the election of directors, "for" proposal 2 and "against" proposal 3. please sign, date and return promptly in the enclosed envelope. please mark your vote in blue or black ink as shown here x ------------------ ---------------- 20330030000000000000 6 051415 company number account number important notice regarding the availability of proxy materials for the annual meeting to be held on may 14, 2015: the proxy statement and fiscal 2014 annual report on form 10-k are available at http://www.astproxyportal.com/ast/18392/. for against abstain

        BARCODE See the reverse side of this notice to obtain proxy materials and voting instructions. BROKER LOGO HERE 1 OF DIRECTORS RECOMMENDS A VOTE "FOR" THE ELECTION OF DIRECTORS, "FOR" PROPOSALS 2 AND 3, AND FOR "3 YEARS" ON PROPOSAL 4. PLEASE SIGN, DATE AND RETURN PROMPTLY IN THE ENCLOSED ENVELOPE. PLEASE MARK YOUR VOTE IN BLUE OR BLACK INK AS SHOWN HERE x 20230304000000000000 6 051514 COMPANY NUMBER ACCOUNT NUMBER12 15 1234567 1234567 1234567 1234567 1234567 1234567 1234567 Broadridge Internal Use Only Job # Envelope # Sequence # # of # Sequence # *** Exercise Your Right to Vote *** Important Notice Regarding the Availability of Proxy Materials for the Shareholder Meeting to Be Held on <mtgdate>. You are receiving this communication because you hold shares in the above named company. This is not a ballot. You cannot use this notice to vote these shares. This communication presents only an overview of the more complete proxy materials that are available to you on the Internet. You may view the proxy materials online at www.proxyvote.com or easily request a paper copy (see reverse side). We encourage you to access and review all of the important information contained in the proxy materials before voting. Meeting Information Meeting Type: <mtgtype> For holders as of: <recdate> Date: Time: <mtgtime> Location: 0000238557_1 R1.0.0.51160 HD SUPPLY HOLDINGS, INC. Annual Meeting May 14, 2015 May 14, 2015 12:30 PM EDT March 17, 2015 Cumberland Center II 3100 Cumberland Boulevard Atlanta, GA 30339 Return Address Line 1 Return Address Line 2 Return Address Line 3 51 MERCEDES WAY EDGEWOOD NY 11717 Investor Address Line 1 Investor Address Line 2 Investor Address Line 3 Investor Address Line 4 Investor Address Line 5 John Sample 1234 ANYWHERE STREET ANY CITY, ON A1A 1A1


        How To Vote Please Choose One of the Following Voting Methods Internal Use Only Before You Vote How to be HeldAccess the Proxy Materials Proxy Materials Available to VIEW or RECEIVE: How to View Online: Have the information that is printed in the box marked by the arrow (located on May 15, 2014: The proxy statementthe following page) and fiscal 2013 annual reportvisit: www.proxyvote.com. How to Request and Receive a PAPER or E-MAIL Copy: If you want to receive a paper or e-mail copy of these documents, you must request one. There is NO charge for requesting a copy. Please choose one of the following methods to make your request: 1) BY INTERNET: www.proxyvote.com 2) BY TELEPHONE: 1-800-579-1639 3) BY E-MAIL*: sendmaterial@proxyvote.com * If requesting materials by e-mail, please send a blank e-mail with the information that is printed in the box marked by the arrow (located on the following page) in the subject line. . . Vote In Person: If you choose to vote these shares in person at the meeting, you must request a "legal proxy." To do so, please follow the instructions at www.proxyvote.com or request a paper copy of the materials, which will contain the appropriate instructions. Many shareholder meetings have attendance requirements including, but not limited to, the possession of an attendance ticket issued by the entity holding the meeting. Please check the meeting materials for any special requirements for meeting attendance. Vote By Internet: To vote now by Internet, go to www.proxyvote.com. Have the information that is printed in the box marked by the arrow available and follow the instructions. Vote By Mail: You can vote by mail by requesting a paper copy of the materials, which will include a voting instruction form. . 0000238557_2 R1.0.0.51160 1. Notice, 2015 Proxy Statement and FY2014 Annual Report on Form 10-K Requests, instructions and other inquiries sent to this e-mail address will NOT be forwarded to your investment advisor. Please make the request as instructed above on or before April 30, 2015 to facilitate timely delivery.


        BARCODE 123456789012 123456789012 123456789012 123456789012 123456789012 123456789012 123456789012 123456789012 123456789012 123456789012 123456789012 123456789012 Broadridge Internal Use Only xxxxxxxxxx xxxxxxxxxx Cusip Job # Envelope # Sequence # # of # Sequence # Voting items 0000238557_3 R1.0.0.51160 The Board of Directors recommends that you vote FOR the following: 1. Election of Directors Nominees 01 Betsy S. Atkins 02 Paul B. Edgerley 03 James A. Rubright The Board of Directors recommends you vote FOR the following proposal(s): 2 To ratify the appointment of PricewaterhouseCoopers LLP as our independent registered public accounting firm for the fiscal year ending on January 31, 2016 The Board of Directors recommends you vote AGAINST the following proposal(s): 3 Shareholder proposal on greenhouse gas emissions NOTE: Such other business as may properly come before the meeting or any adjournment thereof. *Directions to the Annual meeting are available at http://www.astproxyportal.com/ast/18392/. 2 years 3 years ABSTAIN 1 year


        THIS SPACE RESERVED FOR AGAINST ABSTAINLANGUAGE PERTAINING TO BANKS AND BROKERS AS REQUIRED BY THE NEW YORK STOCK EXCHANGE Voting Instructions THIS SPACE RESERVED FOR SIGNATURES IF APPLICABLE P99999-010 12 15 # OF # Broadridge Internal Use Only Job # Envelope # Sequence # # of # Sequence # Reserved for Broadridge Internal Control Information 0000238557_4 R1.0.0.51160

         

         

        HD SUPPLY HOLDINGS, INC. ANNUAL MEETING TO BE HELD ON 05/14/15 AT 12:30 P.M. EDT FOR HOLDERS AS OF 03/17/15 * ISSUER CONFIRMATION COPY - INFO ONLY* 4 1-0001 THIS FORM IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY. PLEASE DO NOT USE IT FOR VOTING PURPOSES. 40416M105 DIRECTORS DIRECTORS RECOMMEND: A VOTE FOR ELECTION OF THE FOLLOWING NOMINEES 0010100 1. - 01-BETSY S. ATKINS, 02-PAUL-B. EDGERLEY, 03-JAMES A. RUBRIGHT PROPOSAL(S) DIRECTORS RECOMMEND FOR 0010200 2. - TO RATIFY THE APPOINTMENT OF PRICEWATERHOUSECOOPERS LLP AS OUR INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM FOR THE FISCAL YEAR ENDING ON JANUARY 31, 2016. 3. *- STOCKHOLDER PROPOAL REGARDING GREENHOUSE GAS EMISSIONS. AGN 0065003 * NOTE* SUCH OTHER BUSINESS AS MAY PROPERLY COME BEFORE THE MEETING OR ANY ADJOURMENT THEREOF. MATERIALS ELECTION As of July 1, 2007, SEC rules permit companies to send you a Notice indicating that their proxy materials are available on the Internet and how you can request a mailed copy. Check the box to the right if you want to receive future proxy materials by mail at no cost to you. Even if you do not check the box, you will still have the right to request a free set of proxy materials upon receipt of a Notice. VIF11H FOLD AND DETACH HERE IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR THE SHAREHOLDER MEETING TO BE HELD ON 05/14/15 FOR HD SUPPLY HOLDINGS, INC. THE FOLLOWING MATERIAL IS AVAILABLE AT WWW.PROXYVOTE.COM **i** 2 -i -S DIRECTORS (MARK "X" FOR ONLY ONE BOX) FOR ALL NOMINEES WITHHOLD ALL NOMINEES WITHHOLD AUTHORITY TO VOTE FOR ANY INDIVIDUAL NOMINEE. WRITE NUMBER(S) OF Nominee. WRITE NUMBER(S) BELOW. USE NUMBER ONLY FOR AGN ABS PLEASE INDICATE YOUR PROPOSAL SELECTION BY FIRMLY PLACING AN "X" IN THE APPROPRIATE NUMBERED BOX WITH BLUE OR BLACK INK SEE VOTING INSTRUCTION NO. 2 ON REVERSE A/C FOR AGN ABS 40416M105 PLACE "X" HERE IF YOU PLAN TO ATTEND AND VOTE YOUR SHARES AT THE MEETING X 000 P58664 51 MERCEDES WAY EDGEWOOD NY 11717 HD SUPPLY HOLDINGS, INC. 3100 CUMBERLAND BOULEVARD, SUITE 148 ATLANTA, GA 30339 FOR FOLD AND DETACH HERE SIGNATURE(S) DATE / / PSG 12-10 4 4


        VOTING INSTRUCTIONS TO OUR CLIENTS: WE HAVE BEEN REQUESTED TO FORWARD TO YOU THE ENCLOSED PROXY MATERIAL RELATIVE TO SECURITIES HELD BY US IN YOUR ACCOUNT BUT NOT REGISTERED IN YOUR NAME. ONLY WE AS THE HOLDER OF RECORD CAN VOTE SUCH SECURITIES. WE SHALL BE PLEASED TO VOTE YOUR SECURITIES IN ACCORDANCE WITH YOUR WISHES, IF YOU WILL EXECUTE THE FORM AND RETURN IT TO US PROMPTLY IN THE ENCLOSED BUSINESS REPLY ENVELOPE. IT IS UNDERSTOOD THAT IF YOU SIGN WITHOUT OTHERWISE MARKING THE FORM YOUR SECURITIES WILL BE VOTED AS RECOMMENDED BY THE BOARD OF DIRECTORS ON ALL MATTERS TO BE CONSIDERED AT THE MEETING. FOR THIS MEETING, THE EXTENT OF OUR AUTHORITY TO VOTE YOUR SECURITIES IN THE ABSENCE OF YOUR INSTRUCTIONS CAN BE DETERMINED BY REFERRING TO THE APPLICABLE VOTING INSTRUCTION NUMBER INDICATED ON THE FACE OF YOUR FORM. FOR MARGIN ACCOUNTS, IN THE EVENT YOUR SECURITIES HAVE BEEN LOANED OVER RECORD DATE, THE NUMBER OF SECURITIES WE VOTE ON YOUR BEHALF HAS BEEN OR CAN BE ADJUSTED DOWNWARD. PLEASE NOTE THAT UNDER A RULE AMENDMENT ADOPTED BY THE NEW YORK STOCK EXCHANGE FOR SHAREHOLDER MEETINGS HELD ON OR AFTER JANUARY 1, 2010, BROKERS ARE NO LONGER ALLOWED TO VOTE SECURITIES HELD IN THEIR CLIENTS’ ACCOUNTS ON UNCONTESTED ELECTIONS OF DIRECTORS UNLESS THE CLIENT HAS PROVIDED VOTING INSTRUCTIONS (IT WILL CONTINUE TO BE THE CASE THAT BROKERS CANNOT VOTE THEIR CLIENTS’ SECURITIES IN CONTESTED DIRECTOR ELECTIONS). CONSEQUENTLY, IF YOU WANT US TO VOTE YOUR SECURITIES ON YOUR BEHALF ON THE ELECTION OF DIRECTORS, YOU MUST PROVIDE VOTING INSTRUCTIONS TO US. VOTING ON MATTERS PRESENTED AT SHAREHOLDER MEETINGS, PARTICULARLY THE ELECTION OF DIRECTORS IS THE PRIMARY METHOD FOR SHAREHOLDERS TO INFLUENCE THE DIRECTION TAKEN BY A PUBLICLY-TRADED COMPANY. WE URGE YOU TO PARTICIPATE IN THE ELECTION BY RETURNING THE ENCLOSED VOTING INSTRUCTION FORM TO US WITH INSTRUCTIONS AS TO HOW TO VOTE YOUR SECURITIES IN THIS ELECTION. IF YOUR SECURITIES ARE HELD BY A BROKER WHO IS A MEMBER OF THE NEW YORK STOCK EXCHANGE (NYSE), THE RULES OF THE NYSE WILL GUIDE THE VOTING PROCEDURES. THESE RULES PROVIDE THAT IF INSTRUCTIONS ARE NOT RECEIVED FROM YOU PRIOR TO THE ISSUANCE OF THE FIRST VOTE, THE PROXY MAY BE GIVEN AT DISCRETION OF YOUR BROKER (ON THE TENTH DAY, IF THE MATERIAL WAS MAILED AT LEAST 15 DAYS PRIOR TO THE MEETING DATE OR ON THE FIFTEENTH DAY, IF THE PROXY MATERIAL WAS MAILED 25 DAYS OR MORE PRIOR TO THE MEETING DATE). IN ORDER FOR YOUR BROKER TO EXERCISE THIS DISCRETIONARY AUTHORITY, PROXY MATERIAL WOULD NEED TO HAVE BEEN MAILED AT LEAST 15 DAYS PRIOR TO THE MEETING DATE, AND ONE OR MORE OF THE MATTERS BEFORE THE MEETING MUST BE DEEMED “ROUTINE” IN NATURE ACCORDING TO NYSE GUIDELINES. IF THESE TWO REQUIREMENTS ARE MET AND YOU HAVE NOT COMMUNICATED TO US PRIOR TO THE FIRST VOTE BEING ISSUED, WE MAY VOTE YOUR SECURITIES AT OUR DISCRETION ON ANY MATTERS DEEMED TO BE ROUTINE. WE WILL NEVERTHELESS FOLLOW YOUR INSTRUCTIONS, EVEN IF OUR DISCRETIONARY VOTE HAS ALREADY BEEN GIVEN, PROVIDED YOUR INSTRUCTIONS ARE RECEIVED PRIOR TO THE MEETING DATE. THE FOLLOWING INSTRUCTIONS PROVIDE SPECIFICS REGARDING THE MEETING FOR WHICH THIS VOTING FORM APPLIES. INSTRUCTION 1 ALL PROPOSALS FOR THIS MEETING ARE CONSIDERED “ROUTINE”. WE WILL VOTE IN OUR DISCRETION ON ALL PROPOSALS, IF YOUR INSTRUCTIONS ARE NOT RECEIVED. IF YOUR SECURITIES ARE HELD BY A BANK, YOUR SECURITIES CANNOT BE VOTED WITHOUT YOUR SPECIFIC INSTRUCTIONS. INSTRUCTION 2 IN ORDER FOR YOUR SECURITIES TO BE REPRESENTED AT THE MEETING ON ONE OR MORE MATTERS BEFORE THE MEETING, IT WILL BE NECESSARY FOR US TO HAVE YOUR SPECIFIC VOTING INSTRUCTIONS. IF YOUR SECURITIES ARE HELD BY A BANK, YOUR SECURITIES CANNOT BE VOTED WITHOUT YOUR SPECIFIC INSTRUCTIONS. INSTRUCTION 3 IN ORDER FOR YOUR SECURITIES TO BE REPRESENTED AT THE MEETING, IT WILL BE NECESSARY FOR US TO HAVE YOUR SPECIFIC VOTING INSTRUCTIONS. INSTRUCTION 4 WE HAVE PREVIOUSLY SENT YOU PROXY SOLICITING MATERIAL PERTAINING TO THE MEETING OF SHAREHOLDERS OF THE COMPANY INDICATED. ACCORDING TO OUR LATEST RECORDS, WE HAVE NOT AS OF YET RECEIVED YOUR VOTING INSTRUCTION ON THE MATTERS(S) TO BE CONSIDERED AT THIS MEETING AND THE COMPANY HAS REQUESTED US TO COMMUNICATE WITH YOU IN AN ENDEAVOR TO HAVE YOUR SECURITIES VOTED. **IF YOU HOLD YOUR SECURITIES THROUGH A CANADIAN BROKER OR BANK, PLEASE BE ADVISED THAT YOU ARE RECEIVING THE VOTING INSTRUCTION FORM AND MEETING MATERIALS, AT THE DIRECTION OF THE ISSUER. EVEN IF YOU HAVE DECLINED TO RECEIVE SECURITY- HOLDER MATERIALS, A REPORTING ISSUER IS REQUIRED TO DELIVER THESE MATERIALS TO YOU. IF YOU HAVE ADVISED YOUR INTERMEDIARY THAT YOU OBJECT TO THE DISCLOSURE OF YOUR BENEFICIAL OWNERSHIP INFORMATION TO THE REPORTING ISSUER, IT IS OUR RESPONSIBILITY TO DELIVER THESE MATERIALS TO YOU ON BEHALF OF THE REPORTING ISSUER. THESE MATERIALS ARE BEING SENT AT NO COST TO YOU. Proxy Services P.O. Box 9175 Farmingdale NY 11735-9852 P.O. Box 9175 Please ensure you fold then detach and retain this portion of the Voting Instruction Form WRONG WAY Fold and Detach Here Fold and Detach Here


        HD SUPPLY HOLDINGS, INC.

        3100 Cumberland Boulevard

        Atlanta, Georgia 30339

        SUPPLEMENT TO THE PROXY STATEMENT DATED MARCH 31, 2015

        FOR THE ANNUAL MEETING OF STOCKHOLDERS

        TO BE HELD ON MAY 14, 2015

        This Supplement supplements and amends the Proxy Statement dated March 31, 2015 (the “Proxy Statement”) of HD Supply Holdings, Inc. (the “Company”) furnished to holders of the Company’s common stock in connection with the solicitation of proxies on behalf of the board of directors of the Company for use at the Annual Meeting of Stockholders to be held on May 14, 2015 (the “Annual Meeting”), or any adjournment or postponement thereof. This Supplement, which should be read in conjunction with the Proxy Statement, is first being distributed to stockholders on or about March 31, 2015. Except as specifically supplemented or amended by the information contained in this Supplement, all information set forth in the Proxy Statement continues to apply and should be considered in voting your shares.

        THE PROXY STATEMENT CONTAINS IMPORTANT INFORMATION AND THIS SUPPLEMENT SHOULD BE READ IN CONJUNCTION WITH THE PROXY STATEMENT.

        Executive Compensation—Tax Gross-Ups

        The amount included in the Tax Gross-Up table for Jerry L. Webb in footnote 4 to the Summary Compensation Table on page 48 of the Proxy Statement was incorrectly reported as $10,217. The correct amount of tax gross-up for Mr. Webb is $73,636 and includes a tax gross-up on the bonus paid in lieu of a car benefit.

        Executive Compensation—Summary Compensation Table

        As a result of the Tax Gross-Up table change discussed above, the Summary Compensation Table on page 47 of the Proxy Statement is corrected as follows with respect to Jerry L. Webb: the corrected fiscal 2014 “All Other Compensation” for Mr. Webb is $104,604 and the corrected “Total” compensation for Mr. Webb is $1,297,681.

        OTHER MATTERS

        Other than as set forth above, no items presented in the Proxy Statement are affected by this Supplement, and you should carefully review the Proxy Statement prior to voting your shares. The Company knows of no matters to be submitted to the Annual Meeting other than those presented in the Proxy Statement, as amended and supplemented by this Supplement.

        /s/ DAN S. MCDEVITT

        Dan S. McDevitt

        General Counsel and Corporate Secretary

        Atlanta, Georgia

        March 31, 2015