Document:

exv10w45

 

Exhibit 10.45

[Form Agreement for Senior Vice Presidents of Operations]

FISCAL YEAR 2007

2005 MANAGEMENT INCENTIVE PLAN

BONUS AGREEMENT

     This SYSCO CORPORATION FISCAL YEAR 2007 MANAGEMENT INCENTIVE PLAN BONUS AGREEMENT (this
“Agreement”) was adopted by the Plan Committee pursuant to the Sysco Corporation 2005 Management
Incentive Plan (the “Plan”) (a copy of which is attached as Exhibit 1) and agreed to by the
Company and __________(“Executive”) effective __________, 2006. This Agreement is effective
for the fiscal year ending June 30, 2007 (the “Plan Year”). Capitalized terms used but not
otherwise defined herein shall have the meanings given them in the Plan.

     1. Calculation of Bonus. Subject to the further adjustments, limitations and additions
provided for in the Plan and this Agreement, Executive’s bonus under the Plan for the Plan Year
shall be based on a combination of the performance of (a) the Company as a whole (a “Company
Performance Bonus”); (b) aggregate performance of the Operating Companies supervised by Executive
(“Supervised Operations”) (a “Supervised Operations Performance Bonus”), and (c) one or more
Operating Companies as designated by the Plan Committee (an “OpCo Performance Bonus”). Executive’s
bonus under this Agreement shall be equal to the sum of Executive’s Company Performance Bonus,
Supervised Operations Performance Bonus and OpCo Performance Bonus calculated as follows:

          (a) Calculation of Company Performance Bonus. Subject to the further adjustments and
additions provided for in the Plan and this Agreement Executive’s Company Performance Bonus for the
2007 fiscal year shall be equal to the sum of the following: (i) the product of: (A) 50% of
Executive’s annual base salary in effect at the fiscal year end; and (B) 70% of the Table B
Percentage; and (ii) the product of: (A) Executive’s MIP Salary; and (B) 20% of the Table B
Percentage; provided that Executive will not be entitled to the portion of Executive’s Company
Performance Bonus calculated as provided in clause (ii) above unless Executive receives a
Supervised Operations Performance Bonus calculated as provided in Section 1(b); provided further
that Executive will not be entitled to a Company Performance Bonus (calculated under either clause
(i) or (ii) above) unless the Company achieves an Increase in Earnings Per Share of at least ___%
and a Return on Stockholder’s Equity of at least ___%.

          (b) Calculation of Supervised Operations Performance Bonus. Subject to the further
adjustments and additions provided for in the Plan and this Agreement Executive’s Supervised
Operations Performance Bonus shall be calculated based on the aggregate performance of Executive’s
Supervised Operations as if such Supervised Operations were a single Operating Company which has
achieved such aggregated financial results. Executive’s Supervised Operations Performance Bonus
shall equal the product of: (i) the sum of: (A) 70% of the Table A Operating Pretax Earnings
Percentage with respect to the Supervised Operations; and (B) 30% of the Table A Pretax Earnings
Percentage with respect to the Supervised Operations; and (ii) 70% of Executive’s MIP Salary.
Notwithstanding the foregoing, Executive will be entitled to a Supervised Operations Performance
Bonus only if Executive’s Supervised Operations achieves (on an aggregate basis) a Return on
Capital of at least 20% and either (i) an Increase in Operating Pretax Earnings of at least ___% or
(ii) an Increase in Pretax Earnings of at least ___%.

          (c) Calculation of OpCo Performance Bonus. Subject to the further adjustments and
additions provided for in the Plan and this Agreement Executive’s OpCo Performance Bonus will be
calculated by determining the number of Operating Companies of the Company that have attained a
Return on Capital of at least ___% (the “ROC Target”). If at least 20 Operating Companies have
attained or exceeded the ROC Target, and all Operating Companies which have obtained or exceeded
the ROC Target employ at least 50% or more of the aggregate of the Total Capital of all Operating
Companies, then Executive will be entitled to receive an OpCo Performance Bonus equal to the
product of: (i) the sum of (A) 9% for the first 20 Operating Companies which obtain or exceed the
ROC Target; and (B) 11/2% of for each additional Operating Company which obtains or exceeds the ROC
Target; and (ii) 50% of Executive’s annual base salary in effect at the fiscal year end. By way of
example, if 23 Operating Companies (which, in the aggregate, employ 51% of the Total
Capital of all Operating Companies) obtain or exceed the
ROC Target, Executive will receive an OpCo Performance Bonus equal to the product of (i) 50% of
Executive’s base salary in effect at the fiscal year end and (ii) 13.5 % (the sum of 9% for the
first 20 Operating Companies obtaining or exceeding the ROC Target, and 4.5% for the performance of
the additional three

 

 

Operating Companies in excess of 20 obtaining or exceeding the ROC Target).
Notwithstanding the foregoing, Executive will be entitled to an OpCo Performance Bonus only if the
Company achieves a minimum Increase in Earnings Per Share of ___% and a minimum Return on
Stockholder’s Equity of ___%.

          (d) General Rules Regarding Bonus Calculation.

               (i) Consistent Accounting. In determining whether or not Executive is entitled to a
bonus under this Agreement, the Company’s accounting practice and generally accepted accounting
principles shall be applied on a basis consistent with prior periods, and such determination shall
be based on the calculations made by the Company, approved by the Plan Compensation Committee and
binding on Executive. Notwithstanding the foregoing, if there is any material change in GAAP during
the Plan Year that results in a material change in accounting for the revenues or expenses of the
Company the calculations of the Table A and Table B Percentages for the Plan Year (the “GAAP Change
Year”) shall be made as if such change in GAAP had not occurred during the GAAP Change Year. In
determining the Table A and Table B Percentages for Executive in the year following the GAAP Change
Year, the calculation shall be made after taking into account such change in GAAP.

               (ii) No Limit on Bonus. Except as otherwise provided in this Section 1(d)(ii), there
is no limit to the bonus that can be obtained under the Plan or this Agreement. Although Tables A
and B have only been calculated to 370% and 172%, respectively, the “grids” shall be deemed to
continue to increase in the same ratios as set forth. However, notwithstanding the foregoing and
any other provision in this Agreement to the contrary, Executive’s bonus amount for the Plan Year
including, if applicable, the value of any Additional Shares and Additional Cash Bonus) cannot
exceed 1% of the Company’s earnings before income taxes as publicly disclosed in the “Consolidated
Results of Operations” section of the Company’s annual report to the Securities and Exchange
Commission on Form 10-K for the Plan Year.

               (iii) Tax Law Changes. If the Internal Revenue Code is amended during the fiscal year
and, as a result of such amendment(s), the effective tax rate applicable to the earnings of the
Company (as described in the “Summary of Accounting Policies” section of the Company’s annual
report to the Securities and Exchange Commission on Form 10-K) changes during the year, the
calculation of the net after-tax earnings per share of the Company for the Plan Year shall be made
as if such rate change had not occurred during the Plan Year.

     2. Extraordinary Events. If, during the Plan Year, the Company experiences an
Extraordinary Event or Events that results in the Company recognizing a net-after tax gain with
respect to such Extraordinary Event or Events (an “Extraordinary Gain”), the Plan Committee may
reduce the Company Performance Bonus payable to Executive under this Agreement in its sole and
absolute discretion; provided however, that the Plan Committee may not reduce the Company
Performance Bonus payable to Executive to an amount less than the Company Performance Bonus
Executive would have earned if the Company did not include the Extraordinary Gain in the
calculation of the Company Performance Bonus for the Plan Year.

     3. Payment. Within 90 days following the end of each fiscal year, the Company shall
determine and the Plan Committee shall approve the amount of any bonus earned by Executive under
this Agreement. Such bonus shall be payable in the manner, at the times and in the amounts
provided in the Plan.

     4. Definitions

          (a) For Calculations Regarding Table A (attached hereto as Exhibit 2)

               (i) Total Capital — with respect to an Operating Company (including Supervised
Operations), the sum of the following components:

               (A) Stockholders’ equity — the average of the amounts outstanding for the
Supervised Operations at the end of each quarter for which the computation is being made
(quarterly average basis).

 

 

               (B) Long-term debt — the average of the long-term portion of debt of the Supervised
Operations outstanding at the end of each quarter for which the computation is being
made (quarterly average basis).

               (C) Intercompany borrowings — the average of the amount outstanding at the end of
each day during the period for which the computation is being made (daily average
basis).

               (D) Average patronage dividend receivable — the average of the amount outstanding
at the end of each period for which the computation is being made (monthly average
basis).

               (E) Adjustments — amounts allocated to capital with respect to (i) fixed rate
intercompany loans, (ii) capitalized leases, and (iii) below market plant and equipment
costs.

               (ii). Return on Capital — the Return on Capital for an Operating Company (including
Supervised Operations) is expressed as a percentage and is computed by dividing the Operating
Company’s pretax earnings (the calculation of which does not include gain on the sale of fixed
assets and intercompany interest income and is subject to adjustment to include taxes that would
have been included but for the timing of any tax deferrals so that results are consistent with
fiscal 2006) by the Operating Company’s Total Capital.

               (iii) Increase in Pretax Earnings — the Increase in Pretax Earnings is expressed as a
percentage increase of the Supervised Operations’ pretax earnings for the Plan Year (the
calculation of which does not include gain on the sale of fixed assets) compared to the greater of
(a) the Supervised Operations’ actual pretax earnings for fiscal 2006 or (b) those pretax earnings
which would have been required to have been earned by the Supervised Operations in fiscal 2006 in
order to have achieved the ROC Target.

               (iv). Increase in Operating Pretax Earnings — the Increase in Operating Pretax
Earnings is expressed as a percentage increase of the Supervised Operations’ operating pretax
earnings for the Plan Year (the calculation of which does not include gain on the sale of fixed
assets) compared to the Supervised Operations’ operating pretax earnings for fiscal 2006.

               (v) Table A Operating Pretax Earnings Percentage — the percentage determined from
Table AB, attached hereto as Exhibit 2, which coincides with the Increase in Operating
Pretax Earnings and the Return on Capital of the Supervised Operations for the Plan Year.

               (vi) Table A Pretax Earnings Percentage — the percentage determined from Table A,
attached hereto as Exhibit 2, which coincides with the Increase in Pretax Earnings and
Return on Capital of the Supervised Operations for the Plan Year.

          (b) For Calculations Regarding Table B (attached hereto as Exhibit 3):

               (i) Return on Stockholders’ Equity — expressed as a percentage and computed by
dividing the Company’s net after-tax earnings for the Plan Year by the Company’s average
stockholders’ equity at the end of each quarter during the year.

               (ii) Increase in Earnings Per Share — expressed as a percentage increase of the net
after-tax earnings per share for the Plan Year over the net after-tax earnings per share for fiscal
2006.

               (iii) Table B Percentage — the percentage determined from Table B, attached hereto as
Exhibit 1, which coincides with the Return on Stockholder’s Equity and Increase in Earnings
Per Share for the Plan Year for the Company as a whole.

          (c) Extraordinary Event. The sale or exchange of an operating division or subsidiary
of the Company. 

          (d) Method of Calculating Quarterly Averages — In determining the average amount
outstanding of stockholders’ equity, long-term debt and adjustments above, and the quarterly
average stockholders’ equity, such averages shall be determined by dividing five (5) into the sum
of the amounts outstanding of the relevant category at the end of each of the four quarters of the
fiscal year plus the amount outstanding of the relevant category at the beginning of the fiscal
year.

 

 

          (e) MIP Percentage — the percentage of Executive’s base salary (as of the end of the
Plan Year) that shall be used to calculate such Executive’s bonus for the Plan Year. For purposes
of this Agreement, Executive’s MIP Percentage for the Plan Year shall be 100%.

          (f) MIP Salary — Executive’s base salary (as of the end of the Plan Year) multiplied
by Executive’s MIP Percentage.

          (g) Operating Company — an operating division or a subsidiary of the Company.

     5. Term of Agreement. This Agreement shall be effective only for the Plan Year (i.e.,
the fiscal year ending June 30, 2007).

     6. No Employment Arrangement Implied. Nothing in this Agreement or the Plan shall
imply any right of employment for Executive, and except as set forth in Section 9 of the Plan with
respect to a Change of Control or as otherwise determined by the Committee, in its discretion, if
Executive is terminated, voluntarily or involuntarily, with or without cause, prior to the end of
the Plan Year, Executive shall not be entitled to any bonus for the Plan Year regardless of whether
or not such bonus had been or would have been earned in whole or in part, but any unpaid bonus
earned with respect to a prior fiscal year shall not be affected.

     7. Plan Provisions shall Govern. This Agreement is subject to and governed by the
Plan and in the case of any conflict between the terms of this Agreement and the contents of the
Plan, the terms of the Plan will control.

     8. Governing Law. The interpretation, construction and performance of this Agreement
shall be governed by and construed and enforced in accordance with the internal laws of the State
of Delaware without regard to the principle of conflict of laws.

     9. Counterparts. This Agreement may be executed in counterparts, each of which shall
be deemed to be an original and all of which together shall constitute one and the same instrument.

     10. Severability. Provided the other provisions of this Agreement do not frustrate the
purpose and intent of the law, in the event that any portion of this Agreement shall be determined
to be invalid or unenforceable to any extent, the same shall to that extent be deemed severable
from this Agreement, and the invalidity or unenforceability thereof shall not affect the validity
and enforceability of the remaining portion of this Agreement.

     11. Amendment and Termination. The Company may amend this Agreement at any time up to
and until the day that is ninety (90) days after the beginning of the Plan Year without the
approval of Executive. No amendments may be made to this Agreement after the date that is ninety
(90) days after the beginning of the Plan Year. Notwithstanding anything to the contrary contained
in this Agreement, the Company may terminate this Agreement at any time during the Plan Year and
Executive shall not be entitled to any bonus under this Agreement for the Plan Year regardless of
when during the Plan Year this Agreement is terminated.

     IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by a duly authorized
officer of the Company and Executive has executed this Agreement as of the day and year first
written above.

	 	 	 	 	 	 
	 
	 	 	 	 	 
	SYSCO CORPORATION	 	EXECUTIVE	 
	 
	 	 	 	 	 
	By: 
	 	 	 	 	 
	 

	 
	 	 	 
	 
	Title: 	 	 	 	 
	 

	 	 

	 	 	 

 

 

EXHIBIT 1

“PLAN”

 

 

EXHIBIT 2

TABLE A

PERFORMANCE OF SUPERVISED OPERATIONS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PERCENT	 	 
	RETURN	 	 
	ON	 	PERCENTAGE INCREASE IN OPERATING PRETAX EARNINGS AND PRETAX EARNINGS
	CAPITAL	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%
	___%
	 	10	 	12	 	 	15	 	 	 	20	 	 	 	30	 	 	 	32	 	 	 	35	 	 	 	37	 	 	 	40	 	 	 	42	 	 	 	45	 	 	 	47	 	 	 	50	 	 	 	52	 	 	 	55	 	 	 	57	 	 	 	60	 	 	 	61	 	 	 	63	 	 	 	65	 	 	 	67	 	 	 	70	 
	___%
	 	15	 	17	 	 	20	 	 	 	25	 	 	 	40	 	 	 	42	 	 	 	45	 	 	 	47	 	 	 	50	 	 	 	52	 	 	 	55	 	 	 	57	 	 	 	60	 	 	 	62	 	 	 	65	 	 	 	67	 	 	 	70	 	 	 	71	 	 	 	73	 	 	 	75	 	 	 	77	 	 	 	80	 
	___%
	 	20	 	22	 	 	25	 	 	 	30	 	 	 	50	 	 	 	52	 	 	 	55	 	 	 	57	 	 	 	60	 	 	 	62	 	 	 	65	 	 	 	67	 	 	 	70	 	 	 	72	 	 	 	75	 	 	 	77	 	 	 	80	 	 	 	81	 	 	 	83	 	 	 	85	 	 	 	87	 	 	 	90	 
	___%
	 	25	 	27	 	 	30	 	 	 	35	 	 	 	60	 	 	 	62	 	 	 	65	 	 	 	67	 	 	 	70	 	 	 	72	 	 	 	75	 	 	 	77	 	 	 	80	 	 	 	82	 	 	 	85	 	 	 	87	 	 	 	90	 	 	 	91	 	 	 	93	 	 	 	95	 	 	 	97	 	 	 	100	 
	___%
	 	30	 	32	 	 	35	 	 	 	45	 	 	 	70	 	 	 	72	 	 	 	75	 	 	 	77	 	 	 	80	 	 	 	82	 	 	 	85	 	 	 	87	 	 	 	90	 	 	 	92	 	 	 	95	 	 	 	97	 	 	 	100	 	 	 	101	 	 	 	102	 	 	 	103	 	 	 	104	 	 	 	105	 
	___%
	 	35	 	37	 	 	40	 	 	 	50	 	 	 	80	 	 	 	82	 	 	 	85	 	 	 	87	 	 	 	90	 	 	 	92	 	 	 	95	 	 	 	97	 	 	 	100	 	 	 	101	 	 	 	102	 	 	 	103	 	 	 	105	 	 	 	106	 	 	 	107	 	 	 	108	 	 	 	109	 	 	 	110	 
	___%
	 	40	 	42	 	 	45	 	 	 	55	 	 	 	90	 	 	 	92	 	 	 	95	 	 	 	97	 	 	 	100	 	 	 	101	 	 	 	102	 	 	 	103	 	 	 	105	 	 	 	106	 	 	 	107	 	 	 	108	 	 	 	110	 	 	 	111	 	 	 	112	 	 	 	113	 	 	 	114	 	 	 	115	 
	___%
	 	45	 	47	 	 	50	 	 	 	65	 	 	 	100	 	 	 	101	 	 	 	102	 	 	 	103	 	 	 	105	 	 	 	106	 	 	 	107	 	 	 	108	 	 	 	110	 	 	 	111	 	 	 	112	 	 	 	113	 	 	 	115	 	 	 	116	 	 	 	117	 	 	 	118	 	 	 	119	 	 	 	120	 
	___%
	 	50	 	52	 	 	55	 	 	 	70	 	 	 	105	 	 	 	106	 	 	 	107	 	 	 	108	 	 	 	110	 	 	 	111	 	 	 	112	 	 	 	113	 	 	 	115	 	 	 	116	 	 	 	117	 	 	 	118	 	 	 	120	 	 	 	121	 	 	 	122	 	 	 	123	 	 	 	124	 	 	 	125	 
	___%
	 	52	 	55	 	 	60	 	 	 	75	 	 	 	110	 	 	 	111	 	 	 	112	 	 	 	113	 	 	 	115	 	 	 	116	 	 	 	117	 	 	 	118	 	 	 	120	 	 	 	121	 	 	 	122	 	 	 	123	 	 	 	125	 	 	 	126	 	 	 	127	 	 	 	128	 	 	 	129	 	 	 	130	 
	___%
	 	52	 	60	 	 	65	 	 	 	80	 	 	 	115	 	 	 	116	 	 	 	117	 	 	 	118	 	 	 	120	 	 	 	121	 	 	 	122	 	 	 	123	 	 	 	125	 	 	 	126	 	 	 	127	 	 	 	128	 	 	 	130	 	 	 	131	 	 	 	132	 	 	 	133	 	 	 	134	 	 	 	135	 
	___%
	 	54	 	62	 	 	70	 	 	 	85	 	 	 	120	 	 	 	121	 	 	 	122	 	 	 	123	 	 	 	125	 	 	 	126	 	 	 	127	 	 	 	128	 	 	 	130	 	 	 	131	 	 	 	132	 	 	 	133	 	 	 	135	 	 	 	136	 	 	 	137	 	 	 	138	 	 	 	139	 	 	 	140	 
	___%
	 	54	 	62	 	 	70	 	 	 	85	 	 	 	125	 	 	 	126	 	 	 	127	 	 	 	128	 	 	 	130	 	 	 	131	 	 	 	132	 	 	 	133	 	 	 	135	 	 	 	136	 	 	 	137	 	 	 	138	 	 	 	140	 	 	 	141	 	 	 	142	 	 	 	143	 	 	 	144	 	 	 	145	 
	___%
	 	56	 	64	 	 	75	 	 	 	90	 	 	 	130	 	 	 	131	 	 	 	132	 	 	 	133	 	 	 	135	 	 	 	136	 	 	 	137	 	 	 	138	 	 	 	140	 	 	 	141	 	 	 	142	 	 	 	143	 	 	 	145	 	 	 	146	 	 	 	147	 	 	 	148	 	 	 	149	 	 	 	150	 

 

 

TABLE A, Continued

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PERCENT	 	 
	RETURN	 	 
	ON	 	PERCENTAGE INCREASE IN OPERATING PRETAX EARNINGS AND PRETAX EARNINGS
	CAPITAL	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%
	___%
	 	 	71	 	 	 	73	 	 	 	75	 	 	 	77	 	 	 	80	 	 	 	81	 	 	 	83	 	 	 	85	 	 	 	87	 	 	 	90	 	 	 	91	 	 	 	93	 	 	 	95	 	 	 	97	 	 	 	100	 	 	 	101	 	 	 	102	 	 	 	103	 	 	 	104	 	 	 	105	 	 	 	106	 	 	 	107	 
	___%
	 	 	81	 	 	 	83	 	 	 	85	 	 	 	87	 	 	 	90	 	 	 	91	 	 	 	93	 	 	 	95	 	 	 	97	 	 	 	100	 	 	 	101	 	 	 	102	 	 	 	103	 	 	 	104	 	 	 	105	 	 	 	106	 	 	 	107	 	 	 	108	 	 	 	109	 	 	 	110	 	 	 	111	 	 	 	112	 
	___%
	 	 	91	 	 	 	93	 	 	 	95	 	 	 	97	 	 	 	100	 	 	 	101	 	 	 	102	 	 	 	103	 	 	 	104	 	 	 	105	 	 	 	106	 	 	 	107	 	 	 	108	 	 	 	109	 	 	 	110	 	 	 	111	 	 	 	112	 	 	 	113	 	 	 	114	 	 	 	115	 	 	 	116	 	 	 	117	 
	___%
	 	 	101	 	 	 	102	 	 	 	103	 	 	 	104	 	 	 	105	 	 	 	106	 	 	 	107	 	 	 	108	 	 	 	109	 	 	 	110	 	 	 	111	 	 	 	112	 	 	 	113	 	 	 	114	 	 	 	115	 	 	 	116	 	 	 	117	 	 	 	118	 	 	 	119	 	 	 	120	 	 	 	121	 	 	 	122	 
	___%
	 	 	106	 	 	 	107	 	 	 	108	 	 	 	109	 	 	 	110	 	 	 	111	 	 	 	112	 	 	 	113	 	 	 	114	 	 	 	115	 	 	 	116	 	 	 	117	 	 	 	118	 	 	 	119	 	 	 	120	 	 	 	121	 	 	 	122	 	 	 	123	 	 	 	124	 	 	 	125	 	 	 	126	 	 	 	127	 
	___%
	 	 	111	 	 	 	112	 	 	 	113	 	 	 	114	 	 	 	115	 	 	 	116	 	 	 	117	 	 	 	118	 	 	 	119	 	 	 	120	 	 	 	121	 	 	 	122	 	 	 	123	 	 	 	124	 	 	 	125	 	 	 	126	 	 	 	127	 	 	 	128	 	 	 	129	 	 	 	130	 	 	 	131	 	 	 	132	 
	___%
	 	 	116	 	 	 	117	 	 	 	118	 	 	 	119	 	 	 	120	 	 	 	121	 	 	 	122	 	 	 	123	 	 	 	124	 	 	 	125	 	 	 	126	 	 	 	127	 	 	 	128	 	 	 	129	 	 	 	130	 	 	 	131	 	 	 	132	 	 	 	133	 	 	 	134	 	 	 	135	 	 	 	136	 	 	 	137	 
	___%
	 	 	121	 	 	 	122	 	 	 	123	 	 	 	124	 	 	 	125	 	 	 	126	 	 	 	127	 	 	 	128	 	 	 	129	 	 	 	130	 	 	 	131	 	 	 	132	 	 	 	133	 	 	 	134	 	 	 	135	 	 	 	136	 	 	 	137	 	 	 	138	 	 	 	139	 	 	 	140	 	 	 	141	 	 	 	142	 
	___%
	 	 	126	 	 	 	127	 	 	 	128	 	 	 	129	 	 	 	130	 	 	 	131	 	 	 	132	 	 	 	133	 	 	 	134	 	 	 	135	 	 	 	136	 	 	 	137	 	 	 	138	 	 	 	139	 	 	 	140	 	 	 	141	 	 	 	142	 	 	 	143	 	 	 	144	 	 	 	145	 	 	 	146	 	 	 	147	 
	___%
	 	 	131	 	 	 	132	 	 	 	133	 	 	 	134	 	 	 	135	 	 	 	136	 	 	 	137	 	 	 	138	 	 	 	139	 	 	 	140	 	 	 	141	 	 	 	142	 	 	 	143	 	 	 	144	 	 	 	145	 	 	 	146	 	 	 	147	 	 	 	148	 	 	 	149	 	 	 	150	 	 	 	151	 	 	 	152	 
	___%
	 	 	136	 	 	 	137	 	 	 	138	 	 	 	139	 	 	 	140	 	 	 	141	 	 	 	142	 	 	 	143	 	 	 	144	 	 	 	145	 	 	 	146	 	 	 	147	 	 	 	148	 	 	 	149	 	 	 	150	 	 	 	151	 	 	 	152	 	 	 	153	 	 	 	154	 	 	 	155	 	 	 	156	 	 	 	157	 
	___%
	 	 	141	 	 	 	142	 	 	 	143	 	 	 	144	 	 	 	145	 	 	 	146	 	 	 	147	 	 	 	148	 	 	 	149	 	 	 	150	 	 	 	151	 	 	 	152	 	 	 	153	 	 	 	154	 	 	 	155	 	 	 	156	 	 	 	157	 	 	 	158	 	 	 	159	 	 	 	160	 	 	 	161	 	 	 	162	 
	___%
	 	 	146	 	 	 	147	 	 	 	148	 	 	 	149	 	 	 	150	 	 	 	151	 	 	 	152	 	 	 	153	 	 	 	154	 	 	 	155	 	 	 	156	 	 	 	157	 	 	 	158	 	 	 	159	 	 	 	160	 	 	 	161	 	 	 	162	 	 	 	163	 	 	 	164	 	 	 	165	 	 	 	166	 	 	 	167	 
	___%
	 	 	151	 	 	 	152	 	 	 	153	 	 	 	154	 	 	 	155	 	 	 	156	 	 	 	157	 	 	 	158	 	 	 	159	 	 	 	160	 	 	 	161	 	 	 	162	 	 	 	163	 	 	 	164	 	 	 	165	 	 	 	166	 	 	 	167	 	 	 	168	 	 	 	169	 	 	 	170	 	 	 	171	 	 	 	172	 

 

EXHIBIT 3

TABLE B

OVERALL COMPANY PERFORMANCE

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Return	 	 
	on	 	PERCENTAGE INCREASE IN EARNINGS PER SHARE:
	Equity:	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%	 	__%
	___%
	 	 	20	 	 	 	24	 	 	 	28	 	 	 	45	 	 	 	50	 	 	 	55	 	 	 	60	 	 	 	65	 	 	 	70	 	 	 	75	 	 	 	80	 	 	 	85	 	 	 	90	 	 	 	100	 	 	 	110	 	 	 	120	 	 	 	130	 	 	 	140	 	 	 	150	 	 	 	160	 	 	 	170	 	 	 	180	 	 	 	190	 	 	 	200	 
	___%
	 	 	27	 	 	 	31	 	 	 	35	 	 	 	55	 	 	 	60	 	 	 	65	 	 	 	70	 	 	 	75	 	 	 	80	 	 	 	85	 	 	 	90	 	 	 	95	 	 	 	100	 	 	 	110	 	 	 	120	 	 	 	130	 	 	 	140	 	 	 	150	 	 	 	160	 	 	 	170	 	 	 	180	 	 	 	190	 	 	 	200	 	 	 	210	 
	___%
	 	 	34	 	 	 	38	 	 	 	42	 	 	 	65	 	 	 	70	 	 	 	75	 	 	 	80	 	 	 	85	 	 	 	90	 	 	 	95	 	 	 	100	 	 	 	105	 	 	 	110	 	 	 	120	 	 	 	130	 	 	 	140	 	 	 	150	 	 	 	160	 	 	 	170	 	 	 	180	 	 	 	190	 	 	 	200	 	 	 	210	 	 	 	220	 
	___%
	 	 	41	 	 	 	45	 	 	 	49	 	 	 	75	 	 	 	80	 	 	 	85	 	 	 	90	 	 	 	95	 	 	 	100	 	 	 	105	 	 	 	110	 	 	 	115	 	 	 	120	 	 	 	130	 	 	 	140	 	 	 	150	 	 	 	160	 	 	 	170	 	 	 	180	 	 	 	190	 	 	 	200	 	 	 	210	 	 	 	220	 	 	 	230	 
	___%
	 	 	48	 	 	 	52	 	 	 	56	 	 	 	85	 	 	 	90	 	 	 	95	 	 	 	100	 	 	 	105	 	 	 	110	 	 	 	115	 	 	 	120	 	 	 	125	 	 	 	130	 	 	 	140	 	 	 	150	 	 	 	160	 	 	 	170	 	 	 	180	 	 	 	190	 	 	 	200	 	 	 	210	 	 	 	220	 	 	 	230	 	 	 	240	 
	___%
	 	 	55	 	 	 	59	 	 	 	63	 	 	 	95	 	 	 	100	 	 	 	105	 	 	 	110	 	 	 	115	 	 	 	120	 	 	 	125	 	 	 	130	 	 	 	135	 	 	 	140	 	 	 	150	 	 	 	160	 	 	 	170	 	 	 	180	 	 	 	190	 	 	 	200	 	 	 	210	 	 	 	220	 	 	 	230	 	 	 	240	 	 	 	250	 
	___%
	 	 	62	 	 	 	66	 	 	 	70	 	 	 	105	 	 	 	110	 	 	 	115	 	 	 	120	 	 	 	125	 	 	 	130	 	 	 	135	 	 	 	140	 	 	 	145	 	 	 	150	 	 	 	160	 	 	 	170	 	 	 	180	 	 	 	190	 	 	 	200	 	 	 	210	 	 	 	220	 	 	 	230	 	 	 	240	 	 	 	250	 	 	 	260	 
	___%
	 	 	69	 	 	 	73	 	 	 	77	 	 	 	115	 	 	 	120	 	 	 	125	 	 	 	130	 	 	 	135	 	 	 	140	 	 	 	145	 	 	 	150	 	 	 	155	 	 	 	160	 	 	 	170	 	 	 	180	 	 	 	190	 	 	 	200	 	 	 	210	 	 	 	220	 	 	 	230	 	 	 	240	 	 	 	250	 	 	 	260	 	 	 	270	 
	___%
	 	 	76	 	 	 	80	 	 	 	84	 	 	 	125	 	 	 	130	 	 	 	135	 	 	 	140	 	 	 	145	 	 	 	150	 	 	 	155	 	 	 	160	 	 	 	165	 	 	 	170	 	 	 	180	 	 	 	190	 	 	 	200	 	 	 	210	 	 	 	220	 	 	 	230	 	 	 	240	 	 	 	250	 	 	 	260	 	 	 	270	 	 	 	280	 
	___%
	 	 	83	 	 	 	87	 	 	 	91	 	 	 	135	 	 	 	140	 	 	 	145	 	 	 	150	 	 	 	155	 	 	 	160	 	 	 	165	 	 	 	170	 	 	 	175	 	 	 	180	 	 	 	190	 	 	 	200	 	 	 	210	 	 	 	220	 	 	 	230	 	 	 	240	 	 	 	250	 	 	 	260	 	 	 	270	 	 	 	280	 	 	 	290	 
	___%
	 	 	90	 	 	 	94	 	 	 	98	 	 	 	145	 	 	 	150	 	 	 	155	 	 	 	160	 	 	 	165	 	 	 	170	 	 	 	175	 	 	 	180	 	 	 	185	 	 	 	190	 	 	 	200	 	 	 	210	 	 	 	220	 	 	 	230	 	 	 	240	 	 	 	250	 	 	 	260	 	 	 	270	 	 	 	280	 	 	 	290	 	 	 	300	 
	___%
	 	 	97	 	 	 	101	 	 	 	105	 	 	 	155	 	 	 	160	 	 	 	165	 	 	 	170	 	 	 	175	 	 	 	180	 	 	 	185	 	 	 	190	 	 	 	195	 	 	 	200	 	 	 	210	 	 	 	220	 	 	 	230	 	 	 	240	 	 	 	250	 	 	 	260	 	 	 	270	 	 	 	280	 	 	 	290	 	 	 	300	 	 	 	310	 
	___%
	 	 	104	 	 	 	108	 	 	 	112	 	 	 	165	 	 	 	170	 	 	 	175	 	 	 	180	 	 	 	185	 	 	 	190	 	 	 	195	 	 	 	200	 	 	 	205	 	 	 	210	 	 	 	220	 	 	 	230	 	 	 	240	 	 	 	250	 	 	 	260	 	 	 	270	 	 	 	280	 	 	 	290	 	 	 	300	 	 	 	310	 	 	 	320	 
	___%
	 	 	111	 	 	 	115	 	 	 	119	 	 	 	175	 	 	 	180	 	 	 	185	 	 	 	190	 	 	 	195	 	 	 	200	 	 	 	205	 	 	 	210	 	 	 	215	 	 	 	220	 	 	 	230	 	 	 	240	 	 	 	250	 	 	 	260	 	 	 	270	 	 	 	280	 	 	 	290	 	 	 	300	 	 	 	310	 	 	 	320	 	 	 	330	 
	___%
	 	 	118	 	 	 	122	 	 	 	126	 	 	 	185	 	 	 	190	 	 	 	195	 	 	 	200	 	 	 	205	 	 	 	210	 	 	 	215	 	 	 	220	 	 	 	225	 	 	 	230	 	 	 	240	 	 	 	250	 	 	 	260	 	 	 	270	 	 	 	280	 	 	 	290	 	 	 	300	 	 	 	310	 	 	 	320	 	 	 	330	 	 	 	340	 
	___%
	 	 	125	 	 	 	129	 	 	 	133	 	 	 	195	 	 	 	200	 	 	 	205	 	 	 	210	 	 	 	215	 	 	 	220	 	 	 	225	 	 	 	230	 	 	 	235	 	 	 	240	 	 	 	250	 	 	 	260	 	 	 	270	 	 	 	280	 	 	 	290	 	 	 	300	 	 	 	310	 	 	 	320	 	 	 	330	 	 	 	340	 	 	 	350	 
	___%
	 	 	132	 	 	 	136	 	 	 	140	 	 	 	205	 	 	 	210	 	 	 	215	 	 	 	220	 	 	 	225	 	 	 	230	 	 	 	235	 	 	 	240	 	 	 	245	 	 	 	250	 	 	 	260	 	 	 	270	 	 	 	280	 	 	 	290	 	 	 	300	 	 	 	310	 	 	 	320	 	 	 	330	 	 	 	340	 	 	 	350	 	 	 	360	 
	___%
	 	 	139	 	 	 	143	 	 	 	147	 	 	 	215	 	 	 	220	 	 	 	225	 	 	 	230	 	 	 	235	 	 	 	240	 	 	 	245	 	 	 	250	 	 	 	255	 	 	 	260	 	 	 	270	 	 	 	280	 	 	 	290	 	 	 	300	 	 	 	310	 	 	 	320	 	 	 	330	 	 	 	340	 	 	 	350	 	 	 	360	 	 	 	370exv10w49

 

Exhibit 10.49

SYSCO CORPORATION

2006 Supplemental Performance Based Bonus Plan

     This SYSCO CORPORATION 2006 SUPPLEMENTAL PERFORMANCE BASED BONUS PLAN (the “Plan”) was adopted
by unanimous action of the Committee (as hereinafter defined) of Sysco Corporation (the “Company”)
on June 9, 2006, and by the Board of Directors of the Company (the “Board of Directors”) on June 9,
2006. This Plan shall be effective on June 9, 2006.

1. Statement of Principle

     The purpose of this Plan is to increase stockholder value and to advance the interests of the
Company and its subsidiaries by aligning a portion of certain key management personnel’s overall
compensation package to their individual performance, or in certain cases participation in team
performance, by making adjustments to such key management personnel’s compensation as set forth in
the Plan, in order to provide financial incentives for performance that “exceeds expectations,” and
disincentives for performance that is “below expectations.” All references to “Fiscal Year” in the
Plan mean the fiscal year of the Company, unless otherwise specifically noted.

2. Plan Compensation Committee

     The Compensation and Stock Option Committee (the “Committee”) of the Board of Directors is
charged with structuring, proposing the implementation of, and implementing the terms and
conditions of, the Plan. The Committee shall have the authority to adopt, alter and repeal such
rules, guidelines and practices governing the Plan as it shall, from time to time, deem advisable;
to interpret the terms and provisions of the Plan and any award issued under the Plan (and any
agreements relating thereto) including without limitation the manner of determining and applying
the financial and accounting concepts discussed in the Plan; to otherwise supervise the
administration of the Plan; and, except as to the application of the Plan to executive officers, to
delegate such authority provided to it hereunder as it may deem necessary or appropriate to the
Chairman of the Board, Chief Executive Officer, President, Chief Operating Officer and any
Executive Vice President, and any of them individually. All decisions made by the Committee
pursuant to the provisions of the Plan shall be made in the Committee’s sole discretion and shall
be final and binding on all persons, including the Company and Participants (hereinafter defined).

3. Participants

     The participants in the Plan for a fiscal year shall be designated by the Committee from the
persons who are employed by the Company, in the following capacities (EVP/SVP Participants and
Chief Executive Officer are referred to collectively as “Participants” or individually as a
“Participant”):

	 	 	EVP/SVP Participants — Persons who serve as either an Executive Vice President of the
Company or Senior Vice President of the Company (including Senior Vice Presidents of
Operations) who are also employees of the Company.
	 
	 	 	Chief Executive Officer — Person who serves as the Chief Executive Officer of the Company.

4. Method of Operation

     (A) Establishment of Performance Goals. The Committee shall from time to time
establish certain performance goals by which to measure the performance of the Participants (the
“Performance Goals”).

 

 

     (B) Evaluation of Performance. After the end of the Fiscal Year, the Committee, or
such person or persons designated by the Committee, shall complete an evaluation of the
Participant’s performance for such Fiscal Year, which may include an evaluation of the
Participant’s individual performance against the Performance Goals as well as an evaluation of the
collective performance of certain designated Participants under the Plan based on the collective
Participants’ alignment with the strategy initiatives of the Company and the Company’s fiscal year
goals. Based on the evaluation with respect to the Performance Goals, the compensation of the
Participant will be adjusted, in the sole discretion of the Committee, as follows:

          (i) If the Participant’s performance “exceeds expectations,” the Participant will be entitled
to receive a cash bonus under the Plan of up to 25% (as determined by the Plan Committee in its
sole and absolute discretion) of the bonus earned by the Participant under the Sysco Corporation
Management Incentive Plan, as may be amended (the, “MIP Bonus”) with respect to that Fiscal Year
(the “Performance Bonus”);

          (ii) If the Participant’s performance is “below expectations,” the Participant’s MIP Bonus
will be reduced by up to 25% of such MIP Bonus; and

          (iii) If the Participant’s performance “meets expectations,” the Participant will neither
receive a Performance Bonus nor have his or her MIP Bonus reduced.

5. No Employment Arrangements Implied

     The existence of this Plan, as in effect at any time or from time to time, shall not be deemed
to constitute a contract of employment between the Company and Participant, nor shall it constitute
a right to remain in the employ of the Company.

6. Amendments and Termination

     The Plan may be amended at any time by the Board of Directors and any such amendment shall be
effective as of commencement of the fiscal year during which the Plan is amended, regardless of the
date of the amendment, unless otherwise stated by the Board of Directors. This Plan shall continue
indefinitely until terminated by the Board of Directors, provided, however, that the Committee may,
in its sole discretion, choose not to establish performance goals or establish a bonus program with
respect to any fiscal year in which the Plan is in effect. The Plan may be terminated at any time
by the Board of Directors and termination will be effective as of the commencement of the fiscal
year in which such action to terminate the Plan is taken.

7. Miscellaneous.

     (a) Plan Funding. The Plan shall at all times be unfunded and no provision shall at
any time be made with respect to segregating any assets of the Company or its subsidiaries for
payment of any benefits under the Plan.

     (b) Governing Law. The interpretation, construction and performance of this Plan
shall be governed by and construed and enforced in accordance with the internal laws of the state
of Delaware without regard to the principle of conflicts of laws.

     (c) Successors. All obligations of the Company under the Plan shall be binding and
inure to the benefit of any successor to the Company, whether the existence of such successor is
the result of a direct or indirect purchase, merger, consolidation or otherwise.

2

 

     (d) Third Parties. Nothing express or implied in this Plan is intended or may be
construed to give any person other than a Participant any rights or remedies under this Plan.

8. Prior Plan

     As of its effective date, June 9, 2006, this Plan shall supersede the Company’s 2004
Supplemental Performance Based Bonus Plan (the “Prior Plan”). No further awards will be granted
under the Prior Plan following such date, but any awards granted under the Prior Plan prior to June
9, 2006 that have not yet been paid as of that date will continue to remain outstanding and will be
payable in accordance with and to the extent provided in the Prior Plan and the applicable grant
agreements or programs.

3

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