<SEC-DOCUMENT>0001020859-20-000180.txt : 20201223
<SEC-HEADER>0001020859-20-000180.hdr.sgml : 20201223
<ACCEPTANCE-DATETIME>20201223115829
ACCESSION NUMBER:		0001020859-20-000180
CONFORMED SUBMISSION TYPE:	DEFA14A
PUBLIC DOCUMENT COUNT:		2
FILED AS OF DATE:		20201223
DATE AS OF CHANGE:		20201223
EFFECTIVENESS DATE:		20201223

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			UNITED NATURAL FOODS INC
		CENTRAL INDEX KEY:			0001020859
		STANDARD INDUSTRIAL CLASSIFICATION:	WHOLESALE-GROCERIES & GENERAL LINE [5141]
		IRS NUMBER:				050376157
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0731

	FILING VALUES:
		FORM TYPE:		DEFA14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-15723
		FILM NUMBER:		201410930

	BUSINESS ADDRESS:	
		STREET 1:		313 IRON HORSE WAY
		CITY:			PROVIDENCE
		STATE:			RI
		ZIP:			02908
		BUSINESS PHONE:		401-528-8634

	MAIL ADDRESS:	
		STREET 1:		313 IRON HORSE WAY
		CITY:			PROVIDENCE
		STATE:			RI
		ZIP:			02908
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEFA14A
<SEQUENCE>1
<FILENAME>formdefa14a2020shareholder.htm
<DESCRIPTION>DEFA14A
<TEXT>
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<title>Document</title></head><body><div id="i68b4d486d9f24a6bab50cc4e16318a97_1"></div><div style="min-height:42.75pt;width:100%"><div><font><br></font></div></div><div style="margin-top:5pt;text-align:center"><table style="border-collapse:collapse;display:inline-table;margin-bottom:5pt;vertical-align:text-bottom;width:100.000%"><tr><td style="width:1.0%"></td><td style="width:18.430%"></td><td style="width:0.1%"></td><td style="width:1.0%"></td><td style="width:18.430%"></td><td style="width:0.1%"></td><td style="width:1.0%"></td><td style="width:18.430%"></td><td style="width:0.1%"></td><td style="width:1.0%"></td><td style="width:18.430%"></td><td style="width:0.1%"></td><td style="width:1.0%"></td><td style="width:20.780%"></td><td style="width:0.1%"></td></tr><tr style="height:3pt"><td colspan="15" style="border-bottom:1pt solid #000000;border-top:2pt solid #000000;padding:0 1pt"></td></tr></table></div><div style="margin-top:6pt;text-align:center"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">UNITED STATES</font></div><div style="text-align:center"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">SECURITIES AND EXCHANGE COMMISSION</font></div><div style="margin-bottom:6pt;text-align:center"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Washington, D.C. 20549</font></div><div style="margin-bottom:6pt;text-align:center"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:700;line-height:120%">SCHEDULE 14A</font></div><div style="text-align:center"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Proxy Statement Pursuant to Section&#160;14(a) of</font></div><div style="text-align:center"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">the Securities Exchange Act of 1934 (Amendment No.     )</font></div><div style="margin-top:5pt;text-align:center"><table style="border-collapse:collapse;display:inline-table;margin-bottom:5pt;vertical-align:text-bottom;width:100.000%"><tr><td style="width:1.0%"></td><td style="width:5.927%"></td><td style="width:0.1%"></td><td style="width:1.0%"></td><td style="width:49.266%"></td><td style="width:0.1%"></td><td style="width:1.0%"></td><td style="width:41.507%"></td><td style="width:0.1%"></td></tr><tr><td colspan="6" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><div><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">Filed by the Registrant  </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:100%">&#9746;</font></div></td><td colspan="3" style="padding:0 1pt"></td></tr><tr><td colspan="6" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><div><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">Filed by a Party other than the Registrant  </font><font style="color:#000000;font-family:'Wingdings',sans-serif;font-size:10pt;font-weight:400;line-height:100%">o</font></div></td><td colspan="3" style="padding:0 1pt"></td></tr><tr><td colspan="6" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">Check the appropriate box&#58;</font></td><td colspan="3" style="padding:0 1pt"></td></tr><tr><td colspan="3" style="padding:2px 1pt;text-align:center;vertical-align:middle"><font style="color:#000000;font-family:'Wingdings',sans-serif;font-size:10pt;font-weight:400;line-height:100%">o</font></td><td colspan="6" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">Preliminary Proxy Statement</font></td></tr><tr><td colspan="3" style="padding:2px 1pt;text-align:center;vertical-align:middle"><font style="color:#000000;font-family:'Wingdings',sans-serif;font-size:10pt;font-weight:400;line-height:100%">o</font></td><td colspan="6" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:100%">Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))</font></td></tr><tr><td colspan="3" style="padding:2px 1pt;text-align:center;vertical-align:middle"><font style="color:#000000;font-family:'Wingdings',sans-serif;font-size:10pt;font-weight:400;line-height:100%">o</font></td><td colspan="6" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">Definitive Proxy Statement</font></td></tr><tr><td colspan="3" style="padding:2px 1pt;text-align:center;vertical-align:middle"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:100%">&#9746;</font></td><td colspan="6" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">Definitive Additional Materials</font></td></tr><tr><td colspan="3" style="padding:2px 1pt;text-align:center;vertical-align:middle"><font style="color:#000000;font-family:'Wingdings',sans-serif;font-size:10pt;font-weight:400;line-height:100%">o</font></td><td colspan="6" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">Soliciting Material Pursuant to Rule&#160;14a-11(c) or Rule&#160;14a-12</font></td></tr><tr><td colspan="3" style="padding:2px 1pt;text-align:center;vertical-align:middle"><font style="color:#000000;font-family:'Wingdings',sans-serif;font-size:10pt;font-weight:400;line-height:100%">o</font></td><td colspan="6" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">Confidential, for Use of the Commission Only (as permitted by Rule&#160;14a-6(e)(2))</font></td></tr></table></div><div style="text-align:center"><table style="border-collapse:collapse;display:inline-table;margin-bottom:5pt;vertical-align:text-bottom;width:100.000%"><tr><td style="width:1.0%"></td><td style="width:7.684%"></td><td style="width:0.1%"></td><td style="width:1.0%"></td><td style="width:5.195%"></td><td style="width:0.1%"></td><td style="width:1.0%"></td><td style="width:83.821%"></td><td style="width:0.1%"></td></tr><tr><td colspan="9" style="padding:2px 1pt;text-align:center;vertical-align:middle"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:16pt;font-weight:700;line-height:100%">United Natural Foods,&#160;Inc.</font></td></tr><tr><td colspan="9" style="padding:2px 1pt;text-align:center;vertical-align:bottom"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">(Name of Registrant as Specified in its Charter)</font></td></tr><tr style="height:14pt"><td colspan="9" style="padding:0 1pt"></td></tr><tr><td colspan="9" style="padding:2px 1pt;text-align:center;vertical-align:bottom"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">(Name of Person(s) Filing Proxy Statement, if other than the Registrant)</font></td></tr><tr><td colspan="9" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">Payment of Filing Fee (Check the appropriate box)&#58;</font></td></tr><tr><td colspan="3" style="padding:2px 1pt;text-align:center;vertical-align:middle"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:100%">&#9746;</font></td><td colspan="6" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">No fee required.</font></td></tr><tr style="height:9pt"><td colspan="3" style="padding:0 1pt"></td><td colspan="6" style="padding:0 1pt"></td></tr><tr><td colspan="3" style="padding:2px 1pt;text-align:center;vertical-align:middle"><font style="color:#000000;font-family:'Wingdings',sans-serif;font-size:10pt;font-weight:400;line-height:100%">o</font></td><td colspan="6" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">Fee computed on table below per Exchange Act Rules&#160;14a-6(i)(1) and 0-11.</font></td></tr><tr><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">(1)</font></td><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><div style="margin-bottom:1pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">Title of each class of securities to which transaction applies&#58; </font></div></td></tr><tr style="height:9pt"><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:0 1pt"></td></tr><tr><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">(2)</font></td><td colspan="3" style="border-top:1pt solid #000000;padding:2px 1pt;text-align:left;vertical-align:bottom"><div style="margin-bottom:1pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">Aggregate number of securities to which transaction applies&#58; </font></div></td></tr><tr style="height:9pt"><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:0 1pt"></td></tr><tr><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">(3)</font></td><td colspan="3" style="border-top:1pt solid #000000;padding:2px 1pt;text-align:left;vertical-align:bottom"><div style="margin-bottom:1pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule&#160;0-11 (Set forth the amount on which the filing fee is calculated and state how it was determined)&#58; </font></div></td></tr><tr style="height:9pt"><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:0 1pt"></td></tr><tr><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">(4)</font></td><td colspan="3" style="border-top:1pt solid #000000;padding:2px 1pt;text-align:left;vertical-align:bottom"><div style="margin-bottom:1pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">Proposed maximum aggregate value of transaction&#58; </font></div></td></tr><tr style="height:9pt"><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:0 1pt"></td></tr><tr><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">(5)</font></td><td colspan="3" style="border-top:1pt solid #000000;padding:2px 1pt;text-align:left;vertical-align:bottom"><div style="margin-bottom:1pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">Total fee paid&#58; </font></div></td></tr><tr style="height:9pt"><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:0 1pt"></td></tr><tr style="height:9pt"><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="border-top:1pt solid #000000;padding:0 1pt"></td></tr><tr><td colspan="3" style="padding:2px 1pt;text-align:center;vertical-align:middle"><font style="color:#000000;font-family:'Wingdings',sans-serif;font-size:10pt;font-weight:400;line-height:100%">o</font></td><td colspan="6" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">Fee paid previously with preliminary materials.</font></td></tr><tr style="height:9pt"><td colspan="3" style="padding:0 1pt"></td><td colspan="6" style="padding:0 1pt"></td></tr><tr><td colspan="3" style="padding:2px 1pt;text-align:center;vertical-align:middle"><font style="color:#000000;font-family:'Wingdings',sans-serif;font-size:10pt;font-weight:400;line-height:100%">o</font></td><td colspan="6" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">Check box if any part of the fee is offset as provided by Exchange Act Rule&#160;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.</font></td></tr><tr><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">(1)</font></td><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><div style="margin-bottom:1pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">Amount Previously Paid&#58; </font></div></td></tr><tr style="height:9pt"><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:0 1pt"></td></tr><tr><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">(2)</font></td><td colspan="3" style="border-top:1pt solid #000000;padding:2px 1pt;text-align:left;vertical-align:bottom"><div style="margin-bottom:1pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">Form, Schedule or Registration Statement No.&#58;     </font></div></td></tr><tr style="height:9pt"><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:0 1pt"></td></tr><tr><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">(3)</font></td><td colspan="3" style="border-top:1pt solid #000000;padding:2px 1pt;text-align:left;vertical-align:bottom"><div style="margin-bottom:1pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">Filing Party&#58; </font></div></td></tr><tr style="height:9pt"><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:0 1pt"></td></tr><tr><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">(4)</font></td><td colspan="3" style="border-top:1pt solid #000000;padding:2px 1pt;text-align:left;vertical-align:bottom"><div style="margin-bottom:1pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">Date Filed&#58; </font></div></td></tr><tr style="height:9pt"><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="border-bottom:1pt solid #000000;padding:0 1pt"></td></tr></table></div><div style="margin-top:5pt;text-align:center"><table style="border-collapse:collapse;display:inline-table;margin-bottom:5pt;vertical-align:text-bottom;width:100.000%"><tr><td style="width:1.0%"></td><td style="width:18.430%"></td><td style="width:0.1%"></td><td style="width:1.0%"></td><td style="width:18.430%"></td><td style="width:0.1%"></td><td style="width:1.0%"></td><td style="width:18.430%"></td><td style="width:0.1%"></td><td style="width:1.0%"></td><td style="width:18.430%"></td><td style="width:0.1%"></td><td style="width:1.0%"></td><td style="width:20.780%"></td><td style="width:0.1%"></td></tr><tr style="height:3pt"><td colspan="15" style="border-bottom:1pt solid #000000;border-top:2pt solid #000000;padding:0 1pt"></td></tr></table></div><div style="text-align:center"><font><br></font></div><div style="height:42.75pt;position:relative;width:100%"><div style="bottom:0;position:absolute;width:100%"><div><font><br></font></div></div></div><div id="i68b4d486d9f24a6bab50cc4e16318a97_50"></div><hr style="page-break-after:always"><div style="min-height:42.75pt;width:100%"><div><font><br></font></div></div><div><font><br></font></div><div style="margin-bottom:8pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">Dear Fellow Stockholders,</font></div><div style="margin-bottom:8pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">Before you cast your vote on </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-style:italic;font-weight:400;line-height:130%">Proposal 3 &#8211; Advisory Approval of Our Executive Compensation</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%"> and </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-style:italic;font-weight:400;line-height:130%">Proposal 4 &#8211; Approval of an Amendment to the 2020 Equity Incentive Plan</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">, the members of the Board of Directors encourage you to review this supplement, as well as the detailed information provided in the Compensation Discussion and Analysis and compensation tables, the explanatory discussion included with Proposal 4 &#8211;</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-style:italic;font-weight:400;line-height:130%"> </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">Approval of the Amendment to the 2020 Equity Incentive Plan, and our letters to stockholders, all included in the UNFI 2020 Proxy Statement. </font></div><div style="margin-bottom:8pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">In light of third-party reports and statements offering differing opinions and conflicting assessments about UNFI and its compensation plans, the Board of Directors believes UNFI stockholders should hear directly from us about how we view executive compensation and how that fits into our long-term strategic plan, especially in the context of the unique operational challenges we faced in the rapidly evolving macro-economic environment of 2020.  We have asked stockholders to vote in favor of proposals that we believe are in the best interests of UNFI and all of its stockholders.  </font></div><div style="margin-bottom:8pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">Highlights include&#58;  </font></div><div style="padding-left:36pt;text-indent:-18pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">&#8226;</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%;padding-left:14.15pt">Our compensation structure and targets reflected the challenging business environment of the first half of fiscal 2020</font></div><div style="padding-left:36pt;text-indent:-18pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">&#8226;</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%;padding-left:14.15pt">The Board of Directors provided for executive officer continuity in its decision-making, based on its business judgment as to the best interests of all stockholders </font></div><div style="padding-left:36pt;text-indent:-18pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">&#8226;</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%;padding-left:14.15pt">Through our robust, ongoing stockholder engagement program, we solicited views on our compensation program and arrangements, and received positive feedback without an indication of concerns raised regarding our compensation program structure</font></div><div style="margin-bottom:8pt;padding-left:36pt;text-indent:-18pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">&#8226;</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%;padding-left:14.15pt">The Board of Directors prioritized critical elements of human capital management and succession planning in response to the global pandemic</font></div><div style="margin-bottom:8pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">We ask that you vote &#8220;</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:700;line-height:130%">FOR</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">&#8221; Proposal 3 &#8211; Advisory Approval of Our Executive Compensation and &#8220;</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:700;line-height:130%">FOR</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">&#8221; Proposal 4 &#8211; Approval of an Amendment to the 2020 Equity Incentive Plan.</font></div><div style="margin-bottom:8pt;margin-top:5pt;text-align:justify"><table style="border-collapse:collapse;display:inline-table;margin-bottom:5pt;vertical-align:text-bottom;width:100.000%"><tr><td style="width:1.0%"></td><td style="width:48.900%"></td><td style="width:0.1%"></td><td style="width:1.0%"></td><td style="width:48.900%"></td><td style="width:0.1%"></td></tr><tr><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">&#160;</font></td><td colspan="3" style="padding:0 1pt"><div><img alt="sig_peterroy1.jpg" src="sig_peterroy1.jpg" style="height:54px;margin-bottom:5pt;vertical-align:text-bottom;width:69px"></div></td></tr><tr><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><div><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">Peter A. Roy, Lead Independent Director, on behalf of the Board of Directors of United Natural Foods, Inc.</font></div></td></tr></table></div><div style="margin-bottom:8pt"><font><br></font></div><div style="height:42.75pt;position:relative;width:100%"><div style="bottom:0;position:absolute;width:100%"><div><font><br></font></div></div></div><hr style="page-break-after:always"><div style="min-height:42.75pt;width:100%"><div><font><br></font></div></div><div style="margin-bottom:8pt;padding-left:13.5pt;text-indent:-13.5pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">1. Our Compensation Structure and Targets Reflected the Challenging Business Environment of the First Half of Fiscal 2020.</font></div><div style="padding-left:22.5pt;text-indent:-18pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">&#8226;</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%;padding-left:14.15pt">The first half of fiscal 2020 was challenging for UNFI&#58;  we experienced a difficult operating environment in which changing consumer patterns resulted in lower retail grocery demand, and  several of our significant grocery retailers filed for bankruptcy.  Accordingly, we lowered our fiscal 2020 guidance in early March 2020 in recognition of the negative pressures from the macro-environment at that time. </font></div><div style="padding-left:22.5pt;text-indent:-18pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">&#8226;</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%;padding-left:14.15pt">Many of our decisions for fiscal 2020, including decisions on how to compensate and incentivize our associates, were made at the beginning of our fiscal year (in September of 2019), and were based on the then-current operating environment and expectations for fiscal 2020, which at that time reflected lower overall retail grocery demand. </font></div><div style="padding-left:40.5pt;text-indent:-18pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">&#9702;</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%;padding-left:14.11pt">Our fiscal 2020 cash incentive targets were lower than our fiscal 2019 targets and actual performance due to our lowered business expectations for fiscal 2020 compared to fiscal year 2019.  </font></div><div style="padding-left:40.5pt;text-indent:-18pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">&#9702;</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%;padding-left:14.11pt">In 2019, expectations were not met and bonuses for all of our associates, including our executives were reduced by more than half (paid out at 43% of target).</font></div><div style="padding-left:40.5pt;text-indent:-18pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">&#9702;</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%;padding-left:14.11pt">Based on our performance in the first half of fiscal year 2020, the 2020 targets continued to be challenging.</font></div><div style="padding-left:40.5pt;text-indent:-18pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">&#9702;</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%;padding-left:14.11pt">We were able to outperform fiscal 2020 targets in the second half of 2020 given the unique circumstances around the COVID-19 pandemic through our ability to capitalize on the foundation that our integration efforts provided and meet the unprecedented surge in demand, while incurring approximately $56 million of incremental operating costs to prioritize the health and safety of our associates, customers and communities. </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:130%"> </font></div><div style="padding-left:40.5pt;text-indent:-18pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">&#9702;</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%;padding-left:14.11pt">Separately, our fiscal 2019 performance-based restricted stock units (PSUs), which were granted September 2018, included targets that assumed higher Supervalu performance than materialized and which projections were publicly revised in September 2019.  Despite this change in expectations in the early stages of the two-year performance cycle, the Compensation Committee nevertheless chose to avoid short-term resets and did not adjust the PSU targets (at that time or prior to the vesting in the fall of 2020).  It was anticipated clearly by that time that these targets would be challenging (if not impossible) ones to meet, </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%;text-decoration:underline">and in fact resulted in payouts at only 24.07% of target, despite the extraordinary performance in the second year (2020)</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">.</font></div><div style="padding-left:22.5pt;text-indent:-18pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">&#8226;</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%;padding-left:14.15pt">The governmental and other measures taken as a result of COVID-19 in March of 2020, resulting in lockdowns and recommendations to avoid public places, dramatically changed the landscape for the retail grocery business and companies like ours. The Board of Directors met frequently during this time to oversee management&#8217;s risk and response efforts.  </font></div><div style="margin-bottom:8pt;padding-left:40.5pt;text-indent:-18pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">&#9702;</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%;padding-left:14.11pt">As the pandemic began to unfold, we saw an extraordinary increase in demand, which we sought to meet while making investments we believed were necessary to keep our associates safe and invest in other health and wellness measures and initiatives.  Over the last half of the fiscal year, changing consumer patterns and our integration efforts mitigated the pressures our business faced in the first half of the fiscal year, where food away from home was exceedingly strong and outperforming food at home.  </font></div><div style="height:42.75pt;position:relative;width:100%"><div style="bottom:0;position:absolute;width:100%"><div><font><br></font></div></div></div><hr style="page-break-after:always"><div style="min-height:42.75pt;width:100%"><div><font><br></font></div></div><div style="margin-bottom:8pt;padding-left:13.5pt;text-indent:-13.5pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">2.  The Board of Directors Prioritized Executive Officer Continuity in its Decision-making, Based on its Business Judgment as to the Best Interests of all Stockholders.</font></div><div style="padding-left:22.5pt;text-indent:-18pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">&#8226;</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%;padding-left:14.15pt">In early 2020, our former COO, Sean Griffin, indicated he was ready to retire and was retirement eligible, which meant that his equity would have accelerated under his existing agreement, entered into in 2018 (based on actual performance with respect to PSUs and with awards granted in the year of retirement pro-rated).  Moreover, even in the absence of an agreement, Mr. Griffin would have been entitled to the equity payments set forth in his agreement, like every other UNFI equity participant.  In benchmarking Mr. Griffin&#8217;s amended agreement against similar agreements within our compensation peer group, the Compensation Committee noted that severance is a typical component of an executive retention plan.  We prioritized ensuring Mr. Griffin&#8217;s retention for additional service in what had been a challenging environment and in circumstances where we believed that his knowledge and experience would continue to benefit our business. </font></div><div style="padding-left:22.5pt;text-indent:-18pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">&#8226;</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%;padding-left:14.15pt">Similarly, our current CEO, Steven L. Spinner, indicated he was also ready to retire and was retirement eligible, which meant that his equity would have accelerated under his existing agreement, entered into in 2018 (based on actual performance with respect to PSUs and with awards granted in the year of retirement pro-rated).  Like Mr. Griffin, Mr. Spinner would also have been entitled to the equity payments contained in his agreement and a severance component was benchmarked against compensation peer group executive retention plans.  With Mr. Griffin&#8217;s announcement, the Board of Directors believed that having continuity in our leadership team was a critical priority, making Mr. Spinner&#8217;s continued leadership that much more important.  In addition, the Board of Directors believed in February 2020, that it was in UNFI&#8217;s interest to avoid a potential CEO and COO transition at the same time when the Company was still focused on operational improvement in a challenging macro-environment, which included several customer bankruptcies. </font></div><div style="margin-bottom:8pt;padding-left:22.5pt;text-indent:-18pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">&#8226;</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%;padding-left:14.15pt">Had the Board not secured the continued service of Mr. Griffin (from February through November of 2020) and Mr. Spinner (from February 2020 through July 31, 2021), it is likely that those departures and two most senior executive transitions would have occurred during the COVID-19 pandemic.  Had that occurred, the lack of key leadership stability would have severely impacted our ability to perform well in the rapidly changing environment.</font></div><div style="margin-bottom:8pt;padding-left:13.5pt;text-indent:-13.5pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">3.  UNFI Solicited Views on its Compensation Program and Agreements from its Stockholders and Received Overall Positive Feedback Without Indication of Concerns Regarding Program Structure. </font></div><div style="padding-left:22.5pt;text-indent:-18pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">&#8226;</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%;padding-left:14.15pt">UNFI has a robust, ongoing stockholder engagement program and throughout fiscal 2020 spoke regularly with stockholders representing approximately half of its outstanding equity, as well as proxy advisory firms, about our compensation structure and other compensation and governance issues.</font></div><div style="padding-left:40.5pt;text-indent:-18pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">&#9702;</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%;padding-left:14.11pt">Stockholders articulated minor suggestions regarding compensation plans, and those were taken into account in the changes described in the proxy statement and re-stated as an annex to this letter, but no concerns were raised regarding our compensation structure, and stockholders expressed approval of our responsiveness to prior engagement efforts.</font></div><div style="padding-left:40.5pt;text-indent:-18pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">&#9702;</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:700;line-height:130%;padding-left:14.11pt;text-decoration:underline">None</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%"> of the stockholders we engaged with or ISS expressed concerns about our COO or CEO employment agreement terms, including the separation provisions of their respective agreements.</font></div><div style="margin-bottom:8pt;padding-left:22.5pt;text-indent:-18pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">&#8226;</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%;padding-left:14.15pt">You may have seen recent information criticizing UNFI&#8217;s compensation program.  The Board of Directors believes that these critiques, many of which come from stockholders with interests that may well be different from the interests of stockholders generally, should not impact your decision on these proposals.   </font></div><div style="height:42.75pt;position:relative;width:100%"><div style="bottom:0;position:absolute;width:100%"><div><font><br></font></div></div></div><hr style="page-break-after:always"><div style="min-height:42.75pt;width:100%"><div><font><br></font></div></div><div style="margin-bottom:8pt;padding-left:13.5pt;text-indent:-13.5pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">4. CEO 2020 Compensation was Reasonable and Below the Median for our ISS-Selected Peer Group. </font></div><div style="padding-left:22.5pt;text-indent:-18pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">&#8226;</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%;padding-left:14.15pt">Although we do not agree with much of ISS&#8217; characterization of our employment plans, ISS has acknowledged that, under its quantitative screen, CEO compensation rated as one of their &#8220;low concerns&#8221; and that our CEO total compensation is below the median among the ISS-chosen compensation peer group.</font></div><div style="margin-bottom:8pt;padding-left:22.5pt;text-indent:-18pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">&#8226;</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%;padding-left:14.15pt">In addition, ISS analysis compares CEO granted pay trends and the value of a $100 investment made on the first day of the five-year period.  ISS&#8217; analysis revealed that our CEO&#8217;s total compensation over the past five years is aligned with our absolute TSR performance. </font></div><div style="margin-bottom:8pt;padding-left:13.5pt;text-indent:-13.5pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">5. UNFI Has Less Outstanding Stock Compared to its Peer Companies Resulting in a Relatively High Burn Rate and Greater Dilution Compared to Peer Companies with More Outstanding Stock.</font></div><div style="padding-left:22.5pt;text-indent:-18pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">&#8226;</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%;padding-left:14.15pt">In fiscal 2019, we acquired Supervalu, which significantly increased the pool of equity participants (by 210 associates) and thus the number of grants beginning in fiscal 2020, even though we did not deepen the pool below director level and did not increase grant sizes. </font></div><div style="padding-left:40.5pt;text-indent:-18pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">&#9702;</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%;padding-left:14.11pt">When compared to the two legacy companies each on a standalone basis, there was a 22% reduction in the amount of long-term equity granted to equity participants after the Supervalu merger, due, in part, to workforce efficiencies and alignment of the incentive programs.</font></div><div style="padding-left:22.5pt;text-indent:-18pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">&#8226;</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%;padding-left:14.15pt">The Compensation Committee regularly assesses the equity compensation plans against our peer group and believes that the current equity grant levels are consistent with (or in some cases below) those of our peer group. </font></div><div style="margin-bottom:8pt;padding-left:22.5pt;text-indent:-18pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">&#8226;</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%;padding-left:14.15pt">Only 118,785 shares remained as of November 16, 2020 available under our existing equity plan, and without additional equity available, we may be forced to use other cash-based incentives and it may impact our ability to attract and retain our best-performing associates without a customary equity incentive plan for our size and scale.</font></div><div style="margin-bottom:8pt;padding-left:13.5pt;text-indent:-13.5pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">6.  We Believe Criticism of the Compensation Program and the Equity Incentive Plan Unduly Emphasizes Historical Considerations, Ignores our Efforts to Forge Strong Alignment Between Pay and Performance and Takes Inadequate Account of the Benefits of UNFI&#8217;s Human Capital Management Plan and the Need to Attract, Retain, Develop and Incentivize Associates at All Levels.</font></div><div style="padding-left:22.5pt;text-indent:-18pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">&#8226;</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%;padding-left:14.15pt">At a time when employers are making difficult employment decisions, including mass layoffs, furloughs and pay cuts, UNFI has prioritized its most valuable asset &#8211; its associates &#8211; and believes that efforts to attract and retain high-performing associates is in alignment with stockholder interests.</font></div><div style="padding-left:40.5pt;text-indent:-18pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">&#9702;</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%;padding-left:14.11pt">UNFI was a net job provider in an economy that was decreasing jobs overall and provided temporary pay increases to some of its associates for pandemic-related costs. </font></div><div style="padding-left:40.5pt;text-indent:-18pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">&#9702;</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%;padding-left:14.11pt">UNFI significantly increased its investment in associates, through temporarily increased pay, safety measures and associate benefits.  Our efforts and investments in workplace safety through the pandemic were recognized as a gold winner in the 2020 Golden Bridge Business and Innovation Awards.</font></div><div style="padding-left:22.5pt;text-indent:-18pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">&#8226;</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%;padding-left:14.15pt">In providing equity compensation, UNFI is aligning the interests of its associates with its stockholders.</font></div><div style="margin-bottom:8pt;padding-left:22.5pt;text-indent:-18pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">&#8226;</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%;padding-left:14.15pt">UNFI has successfully closed dozens of high-quality labor contracts since our acquisition of Supervalu, delivering stability and support to our associates. </font></div><div style="margin-bottom:8pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">As we have indicated previously, the objections that have been raised are not reflective of input or feedback from our robust stockholder engagement and outreach.  We remain committed to continuing stockholder engagement efforts now and in the future.  We welcome stockholder feedback about our executive compensation practices and welcome your views on these and other important considerations.  </font></div><div style="margin-bottom:8pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">The Board of Directors urges our stockholders to cast their votes &#8220;</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:700;line-height:130%">FOR</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">&#8221; our say-on-pay proposal and &#8220;</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:700;line-height:130%">FOR</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:130%">&#8221; an amendment to the 2020 Equity Incentive Plan.</font></div><div style="height:42.75pt;position:relative;width:100%"><div style="bottom:0;position:absolute;width:100%"><div><font><br></font></div></div></div><div id="i68b4d486d9f24a6bab50cc4e16318a97_74"></div><hr style="page-break-after:always"><div style="min-height:42.75pt;width:100%"><div><font><br></font></div></div><div style="text-align:center"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:16pt;font-weight:700;line-height:107%;text-decoration:underline">Annex</font></div><div style="text-align:center"><font><br></font></div><div style="text-align:center"><table style="border-collapse:collapse;display:inline-table;margin-bottom:5pt;vertical-align:text-bottom;width:99.853%"><tr><td style="width:1.0%"></td><td style="width:46.923%"></td><td style="width:0.1%"></td><td style="width:1.0%"></td><td style="width:2.853%"></td><td style="width:0.1%"></td><td style="width:1.0%"></td><td style="width:46.924%"></td><td style="width:0.1%"></td></tr><tr><td colspan="9" style="background-color:#00497f;padding:2px 1pt;text-align:center;vertical-align:top"><font style="color:#ffffff;font-family:'Times New Roman',sans-serif;font-size:14pt;font-weight:700;line-height:100%">Our Response to Stockholder Feedback</font></td></tr><tr style="height:20pt"><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:0 1pt"></td></tr><tr><td colspan="3" style="background-color:#dbdbdb;padding:2px 1pt;text-align:left;vertical-align:top"><div style="margin-bottom:3pt;margin-top:3pt;text-align:justify"><font style="color:#00497f;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:100%">Enhanced our recoupment policy</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%"> to permit the Board to require forfeiture of incentive compensation in the event of certain misconduct causing reputational harm, and to provide for reporting of any required recoupment or forfeiture thereunder in certain circumstances&#59; </font></div></td><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="background-color:#dbdbdb;padding:2px 1pt;text-align:left;vertical-align:top"><div style="margin-bottom:3pt;margin-top:3pt;text-align:justify"><font style="color:#00497f;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:100%">Implemented the use of tally sheets</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%"> (showing all forms of compensation for each officer) and </font><font style="color:#00497f;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:100%">measurements of internal pay equity</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">, beginning in fiscal 2019 and expanding the use of these tools and measurements into fiscal 2020&#59;</font></div></td></tr><tr style="height:20pt"><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:0 1pt"></td></tr><tr><td colspan="3" style="background-color:#dbdbdb;padding:2px 1pt;text-align:left;vertical-align:top"><div style="margin-bottom:3pt;margin-top:3pt;text-align:justify"><font style="color:#00497f;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:100%">Removed duplicative performance metrics from short- and long- term incentive plans</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%"> and </font><font style="color:#00497f;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:100%">revised payout levels at threshold and maximum to 50% and 150%</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">, respectively, from 35% and 200%, respectively, to </font><font style="color:#00497f;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:100%">limit potential maximum payments</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">, and </font><font style="color:#00497f;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:100%">further align our program to market practice</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%"> at both the threshold and maximum payout&#59;</font></div></td><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="background-color:#dbdbdb;padding:2px 1pt;text-align:left;vertical-align:top"><div style="margin-bottom:3pt;margin-top:3pt"><font style="color:#00497f;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:100%">Removed subjective personal goals</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%"> from our annual cash incentive program and </font><font style="color:#00497f;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:100%">tied all payouts under this program to pre-established financial goals</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%"> that are aligned with strategic initiatives&#59;</font></div></td></tr><tr style="height:20pt"><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:0 1pt"></td></tr><tr><td colspan="3" style="background-color:#dbdbdb;padding:2px 1pt;text-align:left;vertical-align:top"><div style="margin-bottom:3pt;margin-top:3pt;text-align:justify"><font style="color:#00497f;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:100%">Aligned all executives</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">, including the CEO, to </font><font style="color:#00497f;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:100%">adjusted EBITDA as the single metric for the annual cash incentive program</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%"> to </font><font style="color:#00497f;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:100%">support a unified focus on growth in core operational performance</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%"> and to </font><font style="color:#00497f;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:100%">reward achievement of this most important driver of our overall financial performance&#59;</font></div></td><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="background-color:#dbdbdb;padding:2px 1pt;text-align:left;vertical-align:top"><div style="margin-bottom:3pt;margin-top:3pt;text-align:justify"><font style="color:#00497f;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:100%">Aligned long-term incentive awards to market</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%"> by moving to </font><font style="color:#00497f;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:100%">3-year cliff-vesting</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%"> from 2 years for performance share units, or PSUs, and moved to </font><font style="color:#00497f;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:100%">3-year ratable annual vesting</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%"> from 4-year ratable annual vesting for time-based restricted share units, or RSUs, to align with focus on long-term goals and market expectations&#59;</font></div></td></tr><tr style="height:20pt"><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:0 1pt"></td></tr><tr><td colspan="3" style="background-color:#dbdbdb;padding:2px 1pt;text-align:left;vertical-align:top"><div style="margin-bottom:3pt;margin-top:3pt;text-align:justify"><font style="color:#00497f;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:100%">Implemented a provision for equity awards to continue vesting in retirement</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">, to keep executives focused on long-term performance through their retirement date, and to create a universal approach to all equity participants&#59;</font></div></td><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="background-color:#dbdbdb;padding:2px 1pt;text-align:left;vertical-align:top"><div style="margin-bottom:3pt;margin-top:3pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">Implemented a </font><font style="color:#00497f;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:100%">new stock plan</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%"> that includes the addition of robust restrictive covenants, payment of dividends only upon vesting, one-year minimum vesting period and better defined death, disability and retirement treatment to create a universal approach for equity participants&#59;</font></div></td></tr><tr style="height:20pt"><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:0 1pt"></td></tr><tr><td colspan="3" style="background-color:#dbdbdb;padding:2px 1pt;text-align:left;vertical-align:top"><div style="margin-bottom:3pt;margin-top:3pt;text-align:justify"><font style="color:#00497f;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:100%">Reduced the multiples in our change in control and severance agreements, clarified the definition of change in control</font><font style="color:#828282;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:100%"> </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">and</font><font style="color:#828282;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:100%"> </font><font style="color:#00497f;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:100%">limited the number of executives who are covered</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%"> by these arrangements, which we intend to maintain going forward&#59;</font></div></td><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="background-color:#dbdbdb;padding:2px 1pt;text-align:left;vertical-align:top"><div style="margin-bottom:3pt;margin-top:3pt;text-align:justify"><font style="color:#00497f;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:100%">Aligned pay programs competitively</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">, both internally and externally with the market&#59; and</font></div></td></tr><tr style="height:20pt"><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:0 1pt"></td><td colspan="3" style="padding:0 1pt"></td></tr><tr><td colspan="9" style="background-color:#dbdbdb;padding:2px 1pt;text-align:left;vertical-align:middle"><div style="margin-bottom:3pt;margin-top:3pt;text-align:justify"><font style="color:#00497f;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:100%">Revised the metrics in the long-term incentive program to base awards on adjusted EPS</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%"> (60% of the award potential), </font><font style="color:#00497f;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:100%">adjusted ROIC</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%"> (20% of the award potential), and</font><font style="color:#00497f;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:100%"> leverage ratio</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%"> (net debt to adjusted EBITDA) (20% of the award potential), which are the most important drivers of the Company&#8217;s long-term success.</font></div></td></tr></table></div><div style="height:42.75pt;position:relative;width:100%"><div style="bottom:0;position:absolute;width:100%"><div><font><br></font></div></div></div></body></html>
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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
