Document:

Form of FY11 Stock Option

  
 Exhibit 10.6

 SARA LEE CORPORATION 
 1998 Long-Term Incentive Stock Plan 
 Stock Option Grant Notice and
Agreement 
 [INSERT PARTICIPANT NAME] 
 Sara Lee Corporation (the “Company”) is pleased to confirm that you have been granted a stock option (an “Option”), effective as of August 26, 2010 (the “Grant Date”),
as provided in this Stock Option Grant Notice and Agreement (the “Grant Notice and Agreement”): 
 1. Option
Right. Your Option is to purchase, on the terms and conditions set forth below, the following number of shares (the “Option Shares”) of the Company’s Common Stock, par value $.01 per share (the “Common Stock”) at the
exercise price specified below (the “Exercise Price”). 
  

			
	 Number of Option Shares
	 	 Exercise Price Per Option

which vests as follows: 
 100% on August 31, 2013 
 2. Acceptance of Terms and Conditions.
By acknowledging and accepting this Option, you agree to be bound by the terms and conditions contained in this Grant Notice and Agreement, the Plan and any and all conditions established by the Company in connection with Options issued under
the Plan, and understand that this Option neither confers any legal or equitable right (other than those rights constituting the Option itself) against the Company directly or indirectly, nor does it give rise to any cause of action at law or in
equity against the Company. In order to vest in the Option described in this Grant Notice and Agreement, you must accept this Option. 
 3. Option. This Option is a non-qualified stock option that is intended to conform in all respects with the 1998 Long-Term Incentive Stock Plan (the “Plan”), a copy of which has been
provided to you, and the provisions of which are incorporated herein by reference. This Option is not intended to qualify as an incentive stock option within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended.

 4. Expiration Date. This Option expires on the tenth anniversary of the Grant Date (the “Expiration
Date”), subject to earlier expiration upon your death, disability or other termination of employment, as provided below. 
 5. Vesting. This Option may be exercised only to the extent it has vested. Subject to paragraphs 6 and 7 below, if you are continuously employed by the Company or any of its subsidiaries
(collectively, the “Sara Lee Companies”) from the Grant Date until the Vesting Date, this Option will vest as indicated above on that Vesting Date. 
 6. Death, Total Disability or Retirement. If you cease active employment (i.e., cease to be coded as active on the payroll system) with the Sara Lee Companies, because of your death or because you
become Totally Disabled (as defined under the appropriate long term disability benefit plan if applicable), your Option Shares will vest immediately and the last date on which your Option Shares may be exercised will be the earlier of five years
from the date of death or disability or the expiration date of 

 
this award. In the case of your attaining age 55 or older and, if you have at least 10 years of service with the Sara Lee Companies when your employment terminates or attain age 65 regardless of
service, the Option will continue to vest after your termination and the last date on which your Option Shares may be exercised will be the Expiration Date. These provisions apply only to the awards granted herein; other types of awards may have
different provisions. 
 7. Involuntary Termination, Voluntary Termination and Non-Severance Event Termination.

 (a) Involuntary Termination. If your employment with the Sara Lee Companies is terminated and you are eligible to
receive severance benefits under the Sara Lee Corporation Severance Plan for Corporate Officers, the Severance Pay Plan, the Severance Pay Plan for Executives, the Severance Pay Plan for Certain Events or any other written severance plan of the
Company (collectively, a “Severance Event Termination”), the last day on which this Option may be exercised is the earlier of (i) the Expiration Date or (ii) 90 days following your employment termination date. This Option will
not continue to vest through your severance period. 
 In the event that the division, business unit or business segment of the
Company to which at least 80% of your time is dedicated or from which you are on leave of absence is sold, closed, spun off or otherwise divested and, as a result of such transaction, your employment with the Sara Lee Companies is terminated, all
Option Shares will vest as of the closing date of the transaction and be exercisable for six months following the closing date of the transaction, subject to the provisions of paragraph 6, unless otherwise determined by the Company. This provision
does not apply with respect to any transaction that would be considered a Change of Control as defined in Article X of the Plan. 
 (b) Voluntary Termination and Non-Severance Event Termination. If your employment terminates for reasons other than those described in 6 and 7(a), (i.e., you voluntarily terminate your employment
with the Sara Lee Companies or your employment is terminated by the Sara Lee Companies and you are not eligible for severance pay under the Company’s severance plans), then this Option shall terminate 90 days after the date of your termination
of employment. Vesting of this Option ends on the date of your termination of employment. 
 8.
Non-Competition/Non-Solicitation/Confidentiality. In order to receive your Stock Option grants, you must sign a Non-Competition/Non-Solicitation/Confidentiality Agreement as a condition of your continuing employment. Signing the agreement is
also a condition of your receipt of the Stock Option grant. Please carefully read the attached Non-Competition/Non-Solicitation/Confidentiality Agreement in its entirety and feel free to have your lawyer review it prior to signing it. 

9. Exercise. This Option may be exercised in whole or in part for the number of shares specified with the Company’s
designated agent by remitting full payment of the Exercise Price for such number of Option Shares. A number of exercise alternatives are available through the Company’s agent. This Option will be considered exercised on the date that
(a) your execution of the exercise with the Agent and (b) your payment of the Exercise Price have both been received by the Agent. Your written acceptance of the grant as well as the exercise of any portion of this Option will be
considered your acceptance of all terms and conditions specified in this Grant Notice and Agreement. 
 10. Forfeiture.
Notwithstanding anything contained in this Grant Notice and Agreement to the contrary, if you engage in any activity inimical, contrary or harmful to the interests of the Company, including but not limited to: (a) competing, directly or
indirectly (either as owner, employee or agent), with any of the businesses of the Company, (b) violating any Company policies, (c) soliciting any present 

  
 2 

 
or future employees or customers of the Company to terminate such employment or business relationship(s) with the Company, (d) disclosing or misusing any confidential information regarding
the Company, or (e) participating in any activity not approved by the Board of Directors of the Company which could reasonably be foreseen as contributing to or resulting in a Change of Control of the Company (as defined in the Plan) (such
activities to be collectively referred to as “wrongful conduct”), then (i) this Option, to the extent it remains unexercised, shall terminate automatically on the date on which you first engaged in such wrongful conduct and
(ii) you shall pay to the Company in cash any financial gain you realized from exercising all or a portion of this Option within the six month period immediately preceding such wrongful conduct. For purposes of this section, financial gain
shall equal, on each date of exercise during the six month period immediately preceding such wrongful conduct, the difference between the fair market value of the Common Stock on the date of exercise and the Exercise Price, multiplied by the number
of shares of Common Stock purchased pursuant to that exercise (without reduction for any shares of Common Stock surrendered or attested to) reduced by any taxes paid in countries other than the United States to acquire and or exercise and which
taxes are not otherwise eligible for refund from the taxing authorities. By accepting this Option, you consent to and authorize the Company to deduct from any amounts payable by the Company to you, any amounts you owe to the Company under this
section. This right of set-off is in addition to any other remedies the Company may have against you for your breach of this Grant Notice and Agreement. 
 11. Rights as a Stockholder. You will have no rights as a stockholder with respect to any Option Shares until and unless ownership of such Option Shares has been transferred to you.

 12. Transferability of Option Shares. You may not offer, sell or otherwise dispose of any Common Stock covered by
the Option in a way which would: (i) require the Company to file any registration statement with the Securities and Exchange Commission (or any similar filing under state law or the laws of any other country) or to amend or supplement any such
filing or (ii) violate or cause the Company to violate the Securities Act of 1933, as amended, the Securities Act of 1934, as amended, the rules and regulations promulgated thereunder, any other state or federal law, or the laws of any other
country. The Company reserves the right to place restrictions on Common Stock received by you pursuant to this Option. 

13. Conformity with the Plan. This Option is intended to conform in all respects with, and is subject to, all applicable
provisions of the Plan. Any inconsistencies between this Grant Notice and Agreement and the Plan shall be resolved in accordance with the terms of the Plan. By your acceptance of this Grant Notice and Agreement, you agree to be bound by all of the
terms of this Grant Notice and Agreement and the Plan. 
 14. Interpretations. Any dispute, disagreement or
question which arises under, or as a result of, or in any way relates to the interpretation, construction or application of the Plan or this Grant Notice and Agreement will be determined and resolved by the Compensation and Employee Benefits
Committee of the Company’s Board of Directors (“Committee”) or its authorized delegate. Such determination or resolution by the Committee or its authorized delegate will be final, binding and conclusive for all purposes. 

15. Employment Rights. Nothing in the Plan or this Grant Notice and Agreement confers on any Participant any right to continue in
the employ of the Sara Lee Companies or in any way affects a Sara Lee Company’s right to terminate your employment without prior written notice any time for any reason. 

  
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 16. Consent to
Transfer Personal Data. By accepting this Award, you voluntarily acknowledge and consent to the collection, use, processing and transfer of personal data as described in this paragraph. You are not obliged to consent to such collection, use,
processing and transfer of personal data. The Company holds certain personal information about you, that may include your name, home address and telephone number, fax number, email address, sex, beneficiary information, age, date of birth, social
security number or other employee identification number, job title, employment or severance contract, current wage and benefit information, tax-related information, plan or benefit enrollment forms and elections, option or benefit statements, any
shares of stock or directorships in the Company, details of all options or any other entitlements to shares of stock awarded, canceled, purchased, vested, unvested or outstanding in your favor, for the purpose of managing and administering the Plan
(“Data”). The Company and/or its Subsidiaries will transfer Data amongst themselves as necessary for the purpose of implementation, administration and management of your participation in the Plan, and the Company may further transfer Data
to any third parties assisting the Company in the implementation, administration and management of the Plan. These recipients may be located throughout the world, including the United States. You authorize them to receive, possess, use, retain and
transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing your participation in the Plan, including any requisite transfer of such Data as may be required for the administration of the Plan and/or
the subsequent holding of shares of stock on your behalf to a broker or other third party with whom you may elect to deposit any shares of stock acquired pursuant to the Plan. You may, at any time, review Data, require any necessary amendments to it
or withdraw the consents herein in writing by contacting the Company. 
 17. Miscellaneous.  

(a) Modification. The grant of this Option is documented by the minutes of the Committee and or as approved by the CEO for
non-corporate officers, which records are the final determinant of the number of Option Shares granted and the conditions of this grant. The Committee may amend or modify this Option in any manner to the extent that the Committee would have had the
authority under the Plan initially to grant such Option, provided that no such amendment or modification shall impair your rights under this Grant Notice and Agreement without your consent. Except as in accordance with the two immediately preceding
sentences and paragraph 18, this Agreement may be amended, modified or supplemented only by an instrument in writing signed by both parties hereto. 
 (b) Governing Law. All matters regarding or affecting the relationship of the Company and its stockholders shall be governed by the General Corporation Law of the State of Maryland. All other
matters arising under this Grant Notice and Agreement shall be governed by the internal laws of the State of Illinois, including matters of validity, construction and interpretation. You and the Company agree that all claims in respect of any action
or proceeding arising out of or relating to this Grant Notice and Agreement shall be heard or determined in any state or federal court sitting in Chicago, Illinois, and you agree to submit to the jurisdiction of such courts, to bring all such
actions or proceedings in such courts and to waive any defense of inconvenient forum to such actions or proceedings. A final judgment in any action or proceeding so brought shall be conclusive and may be enforced in any manner provided by law.

 (c) Successors and Assigns. Except as otherwise provided herein, this Grant Notice and Agreement will bind and inure
to the benefit of the respective successors and permitted assigns of the parties hereto whether so expressed or not. 
 (d)
Severability. Whenever feasible, each provision of this Grant Notice and Agreement will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Grant Notice and Agreement is held to be
prohibited by or invalid under applicable law, such provision will be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of this Grant Notice and Agreement. 

  
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 17.
Confidentiality. You agree that you will not disclose the existence or terms of this Grant Notice and Agreement to any other employees of the Company or third parties with the exception of your accountants, attorneys, or spouse, and shall ensure
that none of them discloses such existence or terms to any other person, except as required to comply with legal process. 

18. Amendment. Notwithstanding anything in the Plan or this Grant Notice and Agreement to the contrary, this Option may be
amended by the Company without your consent, including but not limited to modifications to any of the rights granted to you under this Option, at such time and in such manner as the Company may consider necessary or desirable to reflect changes in
law. 
 SARA LEE CORPORATION 

  
 5FY11 Annual Incentive Program

  
 Exhibit 10.7

 SARA LEE CORPORATION 
 CORPORATE ANNUAL INCENTIVE PLAN 
 PROGRAM DESCRIPTION 

FISCAL YEAR 2011 

Capitalized terms used but not defined are defined in Attachment 2. 
 Purpose 
 The objective of the Annual Incentive Plan (the “AIP”) is to advance the
interests of Sara Lee Corporation (“SLC”) by: 
  

	a)	Rewarding financial performance that contributes to increased shareholder value; 

 

	b)	Measuring the effectiveness of SLC operating performance and capital management; 

 

	c)	Continuing to provide significant rewards for exceptional performance. 

 Incentive Opportunity & Performance Objectives 
 Attachment 1 shows the FY11 AIP
Target and Maximum payout levels at the various salary grades. 
 The following applies to the Plan goals: 

 

	 	•	 	 Financial objectives are established at the beginning of the Incentive Plan Year. The financial objectives for Corporate Staff Participants and the
Plan parameters applicable to all Plan Participants are approved by the Compensation and Employee Benefits Committee of the SLC Board of Directors (“the Committee”). 

 

	 	•	 	 Business Segment executive management will develop the financial objectives within their respective business. The Chief Executive Officer (CEO) of SLC
will approve the Business Segment financial objectives for each business. 

  

	 	•	 	 The FY11 Performance Measures are: 

  

	 	•	 	 Operating Income/Profit – (Operating Income will be used for Corporate Staff positions) 55% of target bonus opportunity

  

	 	•	 	 The permissible spread is 40% - 65% 

  

	 	•	 	 If Gross Profit is added, the standard weighting will be 20% for Gross Profit and 35% for Operating Profit (the permissible spread for Gross Profit is
0% - 30%) 

  

	 	•	 	 Net Sales – 25% of target bonus opportunity 

  

	 	•	 	 The permissible spread is 15% - 35% 

  

	 	•	 	 Cash Flow – (Average Working Capital will be used as a measure of Cash Flow for Corporate and Segment positions) 20% of target bonus opportunity

  

	 	•	 	 The permissible spread is 10% - 30% 

  
 1 

  

	 	•	 	 In FY11, Business Segment CEOs will continue to have a range of flexibility to approve different weightings of the financial Performance Measures to
allow better alignment and line of sight to those measures with certain employees’ responsibilities, e.g. executives in a Sales function may have an increased weighting of the Sales Performance Measure and a reduced weighting of the Cash Flow
Performance Measure. However, there is no flexibility to change any of the Plan Financial Performance Measures. So, for example, Cash Flow cannot be replaced by Continuous Improvement Initiatives (see attachment 2 for Performance Measure
definitions). 

  

	 	•	 	 When expressed as a percentage of target bonus opportunity, the weighting of each performance measure is the same for each salary grade. A summary of
FY11 Performance Measures and the corresponding incentive opportunities for Participants are shown in Attachment 3. If Business Segment CEOs approve different weightings within their groups, multiply the target bonus opportunity by the revised
weightings to determine the weighting of each performance measure. 

  

	 	•	 	 Financial performance within a Business Segment may be measured at different levels, ranging from a geographic or customer level, or a business
unit/Division level, to the total Business Segment level. Business Segment CEOs are responsible for setting guidelines regarding the assignment of appropriate levels for performance measurement for the functions within their Business Segment.
Business Segment CEOs are also responsible for setting guidelines for split weightings within their segments. 

  

	 	•	 	 When an employee reporting into a single Business Segment also supports another Business Segment, a split weighting between the two Business Segments
may be applied. The Business Segment CEO managing the employee is responsible for determining the appropriate split after consulting with the CEO of the other supported business. 

 

	 	•	 	 As a general rule, corporate and enterprise-wide employees should be assigned financial performance measures at the total SLC level. However, corporate
and enterprise-wide employees who primarily support a specific Business Segment may have financial performance measures split based on the areas they support. Splits for these employees will be determined by the corporate function leader, working in
conjunction with his or her HR and Compensation business partners, and consulting with the leaders of the business segments supported. 

  

	 	•	 	 Whether within or across Business Segments, split weightings should only be applied to employees who dedicate a majority of their resources/time to
directly supporting another business entity. As a general rule, an employee’s incentive opportunity should be split to a maximum of three (3) entities. 

 

	 	•	 	 Maximum payout opportunity is 150% of target bonus opportunity, and minimum payout opportunity is 0% of target bonus opportunity.

 Performance Period 
 All objectives are measured over a one-year performance period, i.e. the Incentive Plan Year which is July 4, 2010 to July 2, 2011. 

  
 2 

  
 Performance Levels 

Threshold performance for each of the financial measures is defined as the prior fiscal year actual result for Operating Income, 95% of the Target
performance level for Net Sales and 110% of the Target performance level for Cash Flow (Working Capital). The Level 2 - Below Target performance level (62.5% of target bonus opportunity) is the midpoint between the Threshold and Target performance
levels. Similarly, the Level 4 - Above Target performance level (125% of target bonus opportunity) is the midpoint between the Target and Maximum performance levels. 
 Level 5 - Maximum – An unusually high level of performance far exceeding targeted performance requiring significant “stretch” to achieve. 

Level 4 – Above Target – A high level of performance exceeding targeted performance requiring “stretch” to achieve.

 Level 3 - Target –Target level of performance typically equivalent to the Annual Operating Plan (“AOP”). 

Level 2 - Below Target – The level of performance at which attainment of goals is below the Target level but above the Threshold level,
mid-way between Threshold and Target. 
 Level 1 - Threshold – Performance that just achieves an acceptable level of results
warranting incentive recognition. 
 Incentive Award Payout Levels  
 The following table is to be used in setting the performance goals at the various payout levels. 
 Performance Measure 
  

									
	 Performance Level
	 	 Performance Goal

(Operating Profit )
	 	 Performance Goal

(Net Sales)
	 	 Performance Goal

(Cash Flow/Working
 Capital)
	 	 Payout Level

as a % of

Target Bonus Opportunity

	Level 5 – Maximum	 	110% of Target	 	105% of Target	 	90% of Target	 	150%
	Level 4 – Above Target	 	105% of Target	 	102.5% of Target	 	95% of Target	 	125%
	Level 3 – Target	 	Target	 	100% of Target	 	100% of Target	 	100%
	Level 2 – Below Target	 	 Midpoint between Threshold and
 Target
	 	 Midpoint between Threshold and
 Target
	 	 Midpoint between Threshold and
 Target
	 	62.5%
	Level 1 – Threshold (1)	 	FY10 Actual	 	95% of Target	 	110% of Target	 	25%

 Attachment 4 graphically displays the
payout curve for all three performance measures. 
 Straight-line interpolation is used for calculating results between
performance levels. 
  

	(1)	 Business Segment leaders are expected to use appropriate discretion in applying the revised Threshold definition in practice. For example, for Business
Segments with low growth targets (prior year results are above or equal to the Incentive Plan Year’s Target, or are greater than 90% of Target), Business Segment CEOs should consider setting the Threshold at 90% of Target, or an alternatively
appropriate level. Similar discretion should be used in setting the Maximum 

  
 3 

	 	 
performance level. If, for example, business conditions have changed significantly since the formulation of the FY11 AOP, and 10% improvement no longer provides an appropriate level of stretch,
or if a 10% performance improvement reflects too narrow a range of improvement relative to incremental payout, then Business Segment CEOs and CFOs should work with their Compensation business partner to set appropriate Maximum targets.

 Incentive Award Payments 
 Incentive award payments are distributed after the Incentive Plan Year results have been publicly announced and the individual awards requiring the review and approval of the Committee have been approved
at its August 2011 meeting. Generally, a Participant must be an employee on the last day of the fiscal year in order to be eligible to receive any incentive award. 
 Administrative Provisions 
 The Committee and the Chief Executive Officer of SLC shall
administer the Plan jointly and their decisions are final. The Executive Vice President Human Resources and Chief Financial Officer will be responsible for the administrative procedures governing the Plan, including ensuring the existence of
approved Performance Measures and Goals and the presentation of the performance results under the Plan to the Committee for its approval. The following administrative procedures shall govern: 

 

	 	a)	The Committee will approve individual incentive awards for all corporate officers and those executives in salary grade 38 and above. For individuals who participate in
the SLC Performance-Based Incentive Plan (the “PBIP”), individual incentive awards are coordinated with and subject to the terms, conditions, maximums and limitations of the PBIP (which, for those individuals, is incorporated into this
FY11 AIP by reference), with the AIP incentive award being one factor to be considered by the Committee in exercising its negative discretion to reduce the maximum award under the PBIP. The SLC CEO and his or her direct reports may approve all other
incentive awards. 

  

	 	b)	Any awards earned under the FY11 AIP will be paid in cash. Participants paid in the U.S. and subject to taxation in the U.S. may elect to defer part or all of their
incentive awards pursuant to the terms and conditions of the SLC Executive Deferred Compensation Plan. 

  

	 	c)	A new Participant who begins participation during the Incentive Plan Year may be eligible for a pro-rata incentive award from the date of entry into the Plan.
Typically, a new Participant should have been actively employed in a bonus-eligible role for at least one calendar quarter of the Incentive Plan Year in order to receive consideration for a pro-rata incentive award. 

 

	 	d)	In the case of death, Disability, Total Disability, or retirement under a SLC retirement plan during the Incentive Plan Year, a Participant or the Participant’s
estate is eligible for a pro-rata incentive award based upon the Participant’s period of active service (i.e., coded as active on the payroll system) during the Incentive Plan Year and an assessment of all actual performance
measures. The award will be distributed at the same time as those of active Participants. 

  

	 	e)	A Participant who is involuntarily terminated and who subsequently receives severance pay under a SLC severance plan may be eligible for a pro-rata incentive award
based on active service through the date of the Participant’s termination of employment. The amount of any pro-rata incentive award will be determined based upon the facts and circumstances related to the Participant’s termination as
well as the amount of time the Participant was actively employed during the Incentive Plan Year and an assessment of all actual performance measures. 

  
 4 

  

	 	f)	Unless otherwise approved by the Committee or Chief Executive Officer of SLC, any Participant who voluntarily terminates, or who is involuntarily terminated and does
not receive severance pay, regardless of the Participant’s eligibility for retirement status, during the Incentive Plan Year will not be entitled to any incentive award attributable to the Incentive Plan Year. 

 

	 	g)	Notwithstanding anything contained in this document to the contrary, a Participant may be entitled to receive either an increased or reduced incentive award payment, or
no incentive award payment whatsoever, attributable to the Incentive Plan Year upon the occurrence of any of the following events: 

 (A) If any Participant engages in any activity contrary or harmful to the interests of the Company, including but not limited to: (1) competing, directly or indirectly (either as owner, employee or
agent), with any of the businesses of the Company, (2) violating any Company policies, (3) soliciting any present or future employees or customers of the Company to terminate such employment or business relationships(s) with the Company,
(4) disclosing or misusing any confidential information regarding the Company, or (5) participating in any activity not approved by the Board of Directors of the Company which could reasonably be foreseen as contributing to or resulting in
a Change of Control of the Company (as defined in the 1998 and 2002 Long-Term Incentive Stock Plan), then the Participant will not be entitled to any incentive award attributable to the Incentive Plan Year. 

(B) This paragraph (g)(B) applies only to those Participants who are “officers” of the Company, as defined in
Rule 16a-1(f) under the Securities Exchange Act of 1934 during the Incentive Plan Year and who participate in any SLC Executive Management Long-Term Incentive Program (each such Participant, an “Officer Participant”). If an Officer
Participant receives an incentive award payment that was predicated upon the Company achieving certain Performance Measures (the “Original Payout”) and, within two years after the date of such Original Payout, the Company restates its
financial statements due to material noncompliance with the financial reporting requirements under the securities laws (such restated financial statements, the “Restated Financials”), then the amount of the incentive award payment for such
Officer Participant shall be recalculated based on the Restated Financials (such recalculated amount, the “Restated Amount”). If the Original Payout is greater than the Restated Amount, then the Company shall be entitled to recoup from
such Officer Participant, and such Officer Participant shall pay to the Company, in cash, an amount equal to (1) the Original Payout, less (2) the Restated Amount. If the Restated Amount is greater than the Original Payout, then the
Company shall pay to the Officer Participant an amount equal to (i) the Restated Amount, less (ii) the Original Payout. Any such payment or recoupment shall be due and payable within 90 days after the date on which the Company files the
Restated Financials with the Securities and Exchange Commission. If an Officer Participant elected to defer part or all of their Original Payout pursuant to the SLC Executive Deferred Compensation Plan, then the Officer Participant’s account
under the Plan automatically shall be credited or charged so that the amount deferred in connection with such incentive award payment equals the Restated Amount. No interest will be due to or paid by the Company or you to the other with respect to
any true up payment. Notwithstanding the foregoing, the Committee may determine, in its discretion and based on the circumstances leading to the filing of the Restated Financials, that recoupment or payment under this paragraph (g)(B) of the
Restated Amount is not practical and may elect to forego the application of this paragraph (g)(B). 

  
 5 

  

	 	h)	Performance results under the Plan will be measured in accordance with the Definitions in Attachment 2. 

 

	 	i)	Performance results and Eligible Earnings will be used to determine the incentive award payment. 

 

	 	j)	Any Participant who is employed as of the end of the Incentive Plan Year shall be entitled to receive an incentive award payment regardless of whether the Participant
resigns or is terminated between the end of the Incentive Plan Year and the date the incentive awards are distributed. 

  

	 	k)	Except with respect to Participants who elect to defer their incentive awards pursuant to the SLC Executive Deferred Compensation Plan, incentive award payments shall
be distributed no later than the 15th day of the third month following the close of the Incentive Plan Year. 

  

	 	l)	SLC reserves the right to offset against any incentive award payment due to a terminating or terminated Participant any amounts to which SLC has a “claim of
right.” 

  

	 	m)	Except for participant deferral elections made under the SLC Executive Deferred Compensation Plan (which shall be construed to comply with Section 409A of the
Internal Revenue Code and the Treasury Regulation guidance thereunder), the terms of the AIP shall be construed and paid in such manner as to satisfy the short-term deferral exception to the application of Section 409A as set forth in
Subsections (a)(4) and (b)(4) of Treasury Regulations Section 1.409A-1. 

  

	 	n)	Nothing herein shall be construed as an agreement or commitment to employ any Participant or to employ a Participant for any fixed period of time or constitute a
commitment by SLC that any Participant will continue to receive an incentive award or will continue as a Participant in the Plan. 

  

	 	o)	The Committee reserves the right to amend, modify, interpret or terminate the Plan or awards to be paid under the Plan at any time for any reason. Specifically, the
performance criteria may be adjusted by the Committee for extraordinary and similar items that prevent undue and/or unintended gain or loss; provided that, for any incentive awards under the AIP to individuals participating in the PBIP, any
adjustments will be subject to the terms, conditions, maximums and limitations under the PBIP. 

  

	 	p)	The Committee may delegate certain administrative responsibilities to the Chief Executive Officer except for the following: 

 

	 	1)	Any actions affecting the Chief Executive Officer, and other elected officers of SLC, 

 

	 	2)	Approval of corporate Financial Standards of Performance and certification of performance results relative to such standards following the end of the Incentive Plan
Year, 

  

	 	3)	Approval of any substantive changes or amendments to the Plan. 

  
 6 

 Attachment 1 
 SARA LEE CORPORATION 
 FY11 ANNUAL INCENTIVE PLAN 

TARGETS AND MAXIMUMS 
  

					
	 Salary

Grades
	 	Target %	 	Maximum %
			
	50	 	200.00%	 	300.00%
	49	 	200.00%	 	300.00%
	48	 	165.00%	 	247.50%
	47	 	160.00%	 	240.00%
	46	 	150.00%	 	225.00%
	45	 	145.00%	 	217.50%
	44	 	135.00%	 	202.50%
	43	 	130.00%	 	195.00%
	42	 	125.00%	 	187.50%
	41	 	125.00%	 	187.50%
	40	 	120.00%	 	180.00%
	39	 	120.00%	 	180.00%
	38	 	115.00%	 	172.50%
	37	 	115.00%	 	172.50%
	36	 	115.00%	 	172.50%
	35	 	95.00%	 	142.50%
	34	 	75.00%	 	112.50%
	33	 	65.00%	 	97.50%
	32	 	55.00%	 	82.50%
	31	 	45.00%	 	67.50%
	30	 	40.00%	 	60.00%
	29	 	30.00%	 	45.00%
	28	 	30.00%	 	45.00%
	27	 	15.00%	 	22.50%
	26	 	15.00%	 	22.50%
	25	 	15.00%	 	22.50%
	24	 	7.50%	 	11.25%
	23	 	7.50%	 	11.25%
	22	 	7.50%	 	11.25%

  
 7 

  
 Attachment 2

 Definitions 
  

	a)	Board means the SLC Board of Directors. 

  

	b)	Business Segment means one of the following Sara Lee business units, i.e. North American Fresh Bakery, North American Retail, North American Foodservice,
International Beverage and International Bakery. For FY11, also includes discontinued operations, International Household & Body Care. 

  

	c)	Committee is the Compensation and Employee Benefits Committee of the Board. 

 

	d)	Cost of Sales is the sum of direct material(s), direct labor and factory overheads in manufacturing a product. Also known as cost of goods sold
(“COGS”). 

  

	e)	Disability is as defined under the applicable SLC Long Term Disability Plan or the specific Sara Lee sponsored long-term disability plan under which the
Participant is covered 

  

	f)	Division means an operating profit center of SLC. 

  

	g)	Eligible Earnings mean regular salary or wages paid to the Participant from July 1, 2010 through June 30, 2011. It does not include allowances,
reimbursements, commissions, other incentives, severance, lump sums, awards, deferred compensation and compensation attributable to the exercise of stock options or other forms of long-term incentive compensation. 

 

	h)	Gross Profit means Net Sales less Cost of Sales. 

  

	i)	Incentive Plan Year is the fiscal year starting July 4, 2010 and ending July 2, 2011. 

 

	j)	Net Sales means net outside sales, as shown on Line 5 of the EO-200 income statement, with the following adjustment(s): 

 

	 	1.	Actual Net Sales shall be measured using plan currency rates 

  

	 	2.	Net Sales of businesses acquired during the year and not included in the Annual Operating Plan shall be excluded. 

 

	 	3.	Net Sales of businesses divested and not included in the Annual Operating Plan as divestments will only be included through the date of divestment, and targets will be
adjusted accordingly. 

  

	 	4.	Significant Items should be excluded, subject to the Committee’s use of negative discretion. 

k) Operating Income means pre-tax income, before interest, and tobacco proceeds, with the following adjustment(s): 

 

	 	1.	Actual Operating Income shall be measured using plan currency rates 

  

	 	2.	Operating Income of businesses acquired during the year and not included in the Annual Operating Plan shall be excluded. 

 

	 	3.	Operating Income of businesses divested and not included in the Annual Operating Plan as divestments will only be included through the date of divestment, and targets
will be adjusted accordingly. 

  

	 	4.	Significant Items should be excluded, subject to the Committee’s use of negative discretion. 

  
 8 

  

	l)	Operating Profit means Line 16 of the EO-200 income statement, using FY11 peg currency rates, with the following exceptions: 

 

	 	1.	Operating Profit of businesses acquired during the year and not included in the Annual Operating Plan shall be excluded. 

 

	 	2.	Operating Profit of businesses divested and not included in the Annual Operating Plan as divestments will only be included through the date of divestment.

  

	m)	Participant means a Sara Lee employee in salary grades 22 through and including 50. (Employees in grades 22 through 27 eligible for Sales Incentive Plans are
excluded from the Plan.) 

  

	n)	Significant Items mean those items that are reported by the Corporation in its annual report in the table entitled “Impact of Significant Items on Income
from Continuing Operations and Net Income” and that meet the Controller’s criteria for materiality. 

  

	o)	Total Disability is as defined under the SLC Key Executive Long Term Disability Plan under which the Participant is covered. 

 

	p)	Working Capital means current assets minus current liabilities excluding cash, cash equivalents, restructuring accrual reserves, intracompany accounts, income
tax accounts, accrued dividends, and interest receivables/payables. Average Working Capital is the average of Working Capital over a 13-month period. 

 

	 	1.	Adjustments will be made based on fluctuations in commodity market costs and/or sales levels. 

 

	 	2.	All adjustments will be reviewed by the Business Segment CEOs and CFOs and approved by the Committee. 

  
 9 

 Attachment 3 
 SARA LEE CORPORATION 
 FY11 ANNUAL INCENTIVE PLAN 

PERFORMANCE MEASURES AND WEIGHTINGS 
  

									
	 	 	
Performance Measures as a % of Target Annual Incentive Opportunity

	 	 	 Operating

Profit/Income
	 	 Net Sales
	 	 Cash Flow

(Working Capital)
	 	 Target Annual

Incentive

Opportunity

		 	55%	 	25%	 	20%	 	100%
					
	 Salary

Grades
	 	 Operating Income
	 	 Sales
	 	 Cash Flow
	 	 Target

	 50
	 	110.00%	 	50.00%	 	40.00%	 	200.00%
	 49
	 	110.00%	 	50.00%	 	40.00%	 	200.00%
	 48
	 	90.75%	 	41.25%	 	33.00%	 	165.00%
	 47
	 	88.00%	 	40.00%	 	32.00%	 	160.00%
	 46
	 	82.50%	 	37.50%	 	30.00%	 	150.00%
	 45
	 	79.75%	 	36.25%	 	29.00%	 	145.00%
	 44
	 	74.25%	 	33.75%	 	27.00%	 	135.00%
	 43
	 	71.50%	 	32.50%	 	26.00%	 	130.00%
	 42
	 	68.75%	 	31.25%	 	25.00%	 	125.00%
	 41
	 	68.75%	 	31.25%	 	25.00%	 	125.00%
	 40
	 	66.00%	 	30.00%	 	24.00%	 	120.00%
	 39
	 	66.00%	 	30.00%	 	24.00%	 	120.00%
	 38
	 	63.25%	 	28.75%	 	23.00%	 	115.00%
	 37
	 	63.25%	 	28.75%	 	23.00%	 	115.00%
	 36
	 	63.25%	 	28.75%	 	23.00%	 	115.00%
	 35
	 	52.25%	 	23.75%	 	19.00%	 	95.00%
	 34
	 	41.25%	 	18.75%	 	15.00%	 	75.00%
	 33
	 	35.75%	 	16.25%	 	13.00%	 	65.00%
	 32
	 	30.25%	 	13.75%	 	11.00%	 	55.00%
	 31
	 	24.75%	 	11.25%	 	9.00%	 	45.00%
	 30
	 	22.00%	 	10.00%	 	8.00%	 	40.00%
	 29
	 	16.50%	 	7.50%	 	6.00%	 	30.00%
	 28
	 	16.50%	 	7.50%	 	6.00%	 	30.00%
	 27
	 	8.25%	 	3.75%	 	3.00%	 	15.00%
	 26
	 	8.25%	 	3.75%	 	3.00%	 	15.00%
	 25
	 	8.25%	 	3.75%	 	3.00%	 	15.00%
	 24
	 	4.13%	 	1.88%	 	1.50%	 	7.50%
	 23
	 	4.13%	 	1.88%	 	1.50%	 	7.50%
	 22
	 	4.13%	 	1.88%	 	1.50%	 	7.50%

  
 10 

 Attachment 4 
 FY11 AIP PAYOUT CURVE FOR ALL PERFORMANCE MEASURES 

 

 

  
 11

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