Document:

a10b.htm

Exhibit 10(b)

First Amendment to

The Entergy Corporation Outside Director Stock Program

Established under the 2011 Equity Ownership and Long Term Cash Incentive Plan

of Entergy Corporation and Subsidiaries

	
1.  

	
General

This First Amendment (the “Amended Program”) hereby amends and restates the Entergy Corporation Outside Director Stock Program established pursuant to Article X of the 2011 Equity Ownership and Long Term Cash Incentive Plan of Entergy Corporation and Subsidiaries, as effective May 6, 2011  (the “Plan”), the terms of which are incorporated into the Amended Program.  References in this Amended Program to any specific Plan provision do not limit the applicability of any other Plan provision. This Amended Program shall be effective as of June 1, 2012 (the “Effective Date”) and shall, along with the terms of the Plan, govern Awards granted after the Effective Date.  Capitalized terms used in this Amended Program have the meanings assigned to them in the Plan.  As of the Effective Date, this Amended Program shall supersede and replace the Entergy Corporation Outside Director Stock Program established under the Plan.

	
2.  

	
Purpose

The purpose of the Amended Program is to promote the interests of Entergy and its shareholders by attracting and retaining Outside Directors of outstanding ability and enabling Outside Directors to participate in the long-term growth and financial success of Entergy.

 

	
3.  

	
Eligibility

 

The only persons eligible to participate in the Amended Program are Outside Directors.

 

	
4.  

	
Administration

 

Pursuant to Article IV of the Plan, the Board shall administer the Plan with respect to any Award granted to an Outside Director; provided, however, that the Board may delegate its authority to administer the Amended Program to any committee or subcommittee of the Board that is comprised solely of Outside Directors.

 

5.           Quarterly Stock Awards

 

	
  

	
5.1.

	
Quarterly Stock Awards.  Subject to the provisions of Section 3.2 of the Plan and Sections 6 and 7 of the Amended Program, each Outside Director shall receive on an Award Date (as defined in Section 5.3 below) a quarterly grant of shares of Common Stock equal in value to $11,250 (the “Quarterly Stock Award”) as of such Award Date, for serving as an Outside Director during the entire calendar quarter ending on, or immediately prior to, such Award Date.  The number of shares of Common Stock granted on an Award Date shall be determined by dividing (a) $11,250 by (b) the closing price of Common Stock on the New York Stock Exchange (“NYSE”) on such Award Date.  Any fractional share that results from this determination shall be rounded up to the next whole share and shall be included in the applicable Quarterly Stock Award.

 

	
  

	
5.2.

	
Consideration.  Each Quarterly Stock Award is granted in exchange for services rendered during the calendar quarter ending on, or immediately prior to, the Award Date and does not require the payment of consideration.

 

	
  

	
5.3.

	
Award Dates.  Quarterly Stock Awards will be granted on the last day of May, August, November and February of each year or, if such date is a day on which the NYSE is not open for trading, the next succeeding NYSE trading day (each an “Award Date”):

 

	
  

	
5.4.

	
Proration.  If an Outside Director serves as an Outside Director for less than the full calendar quarter ending on, or immediately prior to, an Award Date, the number of shares of Common Stock awarded to the Outside Director on such Award Date shall be determined by multiplying the number of shares (including fractional shares) of Common Stock such Outside Director would have received on such Award Date had he or she served as an Outside Director for the full calendar quarter (as determined under Section 5.1, but without regard to the last sentence thereof) by a fraction, the numerator of which is the actual  number of days (up to 90) the individual served as an Outside Director during the applicable calendar quarter and the denominator of which is 90 days.  Any fractional share that results from this determination shall be rounded up to the next whole share and shall be included in the pro-rated Award to the Outside Director.

 

	
  

	
5.5.

	
Employment by System Company.  If an Outside Director subsequently becomes an employee of a System Company while remaining a member of the Board, the former Outside Director’s participation in the Amended Program will be terminated effective immediately upon his or her employment by the System Company.  The change in the Outside Director’s employment status shall have no effect on Quarterly Stock Awards granted prior to his or her employment by a System Company; provided that the former Outside Director shall be entitled to a pro-rated Award for such calendar quarter in accordance with Section 5.4 of the Amended Program.

 

	
  

	
5.6.

	
Taxes.  If required by applicable law, the Outside Director shall pay to Entergy any amount necessary to satisfy applicable federal, state or local tax withholding requirements attributable to the Quarterly Stock Awards promptly upon notification of the amounts due. If required to pay withholding taxes, the Outside Director may, to the extent consistent with the requirements of Section 409A of the Internal Revenue Code (“Code”) and regulations thereunder, elect to pay such taxes from the shares of Common Stock that otherwise would be distributed to such Outside Director, or from a combination of cash and shares of Common Stock.  As provided in Section 12.2 of the Plan, Common Stock related to that portion of an Award utilized for the payment of withholding taxes shall not again be available for Awards under the Plan.

 

	
  

	
5.7.

	
Delivery.  Entergy may deliver shares of Common Stock representing a Quarterly Stock Award by book-entry credit to the account of the Outside Director or by the delivery of certificated shares.  Entergy may affix to these shares any legend that Entergy determines to be necessary or advisable.

 

6.           Deferral

 

In lieu of taking delivery of shares of Common Stock on an Award Date, an Outside Director may elect to defer the receipt of such Quarterly Stock Award to a subsequent calendar year provided that he or she files an irrevocable written deferral election with the Board of Directors no later than the 31st day of December of the calendar year immediately preceding the calendar year in which commence the services to which the Award Date relates.  Accordingly, for those Quarterly Stock Awards granted with respect to the quarters ending on the last day of May, August and November, such deferral election must be filed by December 31 of the calendar year immediately preceding such Award Dates and, for those Quarterly Stock Awards granted with respect to quarters ending on the last day of February, such deferral election must be filed by December 31 of the second calendar year immediately preceding such Award Dates.  Quarterly Stock Awards deferred pursuant to this Section 6 shall be deferred as equity units, each of which shall have the value equivalent of one (1) share of Common Stock.  Equity units do not represent actual shares of Common Stock and no shares of Common Stock will be purchased or acquired for the payout of any Quarterly Stock Award deferred under this Amended Program.  Each Outside Director’s deferred equity units shall be credited to a bookkeeping account maintained by Entergy with respect to such Outside Director’s deferrals.

The Outside Director’s written deferral election must specify the date on which the deferred equity units will be paid (“Payment Date”), which Payment Date must be no earlier than January 2nd of the third calendar year immediately following the calendar year in which the applicable Award Date occurs.  Quarterly Stock Awards deferred pursuant to this Section shall accrue dividend equivalents, which dividend equivalents will be paid on the Payment Date together with interest calculated at an annual rate based upon the 52-week U.S. Treasury Bill Rate as in effect on the first business day of each year. On each Payment Date, equity units deferred and elected to be paid out on such date shall be paid in cash based upon the closing price of Common Stock on the NYSE as of the close of business on the Payment Date plus accrued dividend equivalent rights and interest; or if such Payment Date is a day on which the NYSE is not open for trading, the closing price of Common Stock on the next succeeding NYSE trading day.

All deferral rights or provisions contained in this Amended Program shall be subject to all conditions, restraints and limitations as may from time to time be imposed by the Plan, including, without limitation, any amendments to such Plan made pursuant to Code Section 409A and any and all regulations and guidance released thereunder.  Such limitation will restrict the ability of an Outside Director to accelerate the distribution of any deferred Quarterly Stock Awards together with other restrictions.

 

	
7.  

	
Miscellaneous

 

The Board reserves the right at any time to amend the terms and conditions set forth in this Amended Program to the extent permitted under the Plan.  Further, the Amended Program is intended to comply with the amended applicable requirements of Code Section 409A and the regulations thereunder and shall be administered in accordance with Code Section 409A and the regulations thereunder to the extent the Amended Program is subject thereto.  To the extent that any provision of the Amended Program would conflict with the requirements of Code Section 409A and the regulations thereunder or would cause the administration of the Amended Program to fail to satisfy such requirements, such provision shall be deemed null and void to the extent permitted by applicable law.10.1 Sysco - FY 13 Umbrella Pool MIB Bonus Agreement

		

			Exhibit 10.1

		

		

			 

		

		

			 [Umbrella Bonus Pool Form Agreement]

		

		
			 
		

		
			FISCAL YEAR 2013
		

		
			MANAGEMENT INCENTIVE PLAN
		

		
			UMBRELLA BONUS POOL BONUS AGREEMENT
		

		
			 
		

		
			            This Sysco Corporation Fiscal Year 2013 Management Incentive Plan UMBRELLA BONUS POOL Bonus Agreement (this “Agreement”) was adopted by the Committee pursuant to the Sysco Corporation 2009 Management Incentive Plan (the “Plan”) (a copy of which is attached as Exhibit 1) and agreed to by the Company and __________ (“Executive”) effective August 23, 2012. This Agreement is effective for the fiscal year ending June 29, 2013  (the “Plan Year”). Capitalized terms used but not otherwise defined herein shall have the meanings given them in the Plan. 
		

		
			 
		

		
			1.Calculation of Bonus.  
		

		
			                        (a)            Notwithstanding anything to the contrary contained herein, and subject to the further adjustments and limitations provided for in the Plan and Section 1(c) of this Agreement, the bonus Executive may earn under this Agreement shall equal up to ___ percent (____%) of two percent (2%) of the Company’s Net Earnings for the Plan Year (the “Maximum Bonus”).  “Net Earnings” means, for the Plan Year, the net earnings of the Company as reported in the Company’s audited consolidated financial statements for the Plan Year. The bonus payout for the Plan Year shall be determined under Subsection 1(b) and adjusted under Subsection 1(c).
		

		
			 
		

		
			(b)                    Objective Performance Bonus.  The Objective Performance Bonus shall equal the sum of the following:
		

		
			 
		

		
			                        (i)  Company Earnings Bonus – 
		

			
					
						Bonus Target

					
						Amount

					
					
						X

					
					
						Company Earnings Bonus Percentage

					
					
						X

					
					
						50%

					
					
						=

					
					
						Company Earnings Bonus

				

		
			 
		

		
			                        (ii)  Company Sales Growth Bonus  –
		

			
					
						Bonus Target Amount

					
					
						X

					
					
						Company Sales Growth Bonus Percentage

					
					
						X

					
					
						30%

					
					
						=

					
					
						Company Sales Growth Bonus

				

		
			 
		

		
			                                    (iii)  Company Capital Efficiency Bonus – 
		

			
					
						Bonus Target Amount

					
					
						X

					
					
						Company Capital Efficiency  Bonus Percentage

					
					
						X

					
					
						20%

					
					
						=

					
					
						Company Capital Efficiency Bonus

				

		
			 
		

		
			Each of the above components of Executive’s bonus shall be calculated independently.  Executive will not receive a component of the bonus set forth in this Section 1(b) if the 
		

		 

 

		

			 

		

		

			 

		

		Company does not achieve the “Threshold” level of performance as set forth in the applicable Table B attached hereto for that component.  For purposes of illustration, if the Company achieves the threshold Increase in Sales and Return on Invested Capital but does not achieve the threshold fully diluted earnings per share, each as set forth in the applicable Table B attached hereto, Executive will receive a Company Sales Growth Bonus and Company Capital Efficiency Bonus but will not receive a Company Earnings Bonus for the Plan Year.    
		

		
			            (c)            Adjustment to Bonus.   The Committee shall have the discretion to reduce the bonus calculated pursuant to Section 1(a) above as set forth in this Section 1(c).  Using the amount of the Objective Performance Bonus as a baseline, the Committee may adjust 20% of the Objective Performance Bonus based on the Committee’s evaluation of Executive’s achievement of the strategic business objectives set forth on Exhibit 2, attached hereto.  In calculating the amount of the adjusted Objective Performance Bonus,  the Committee may increase 20% of the Objective Performance Bonus by up to 150% or reduce 20% of the Objective Performance Bonus by up to 100% (to zero dollars ($0)) pursuant to this Section 1(c), but in no event shall the amount payable to Executive pursuant to this Section 1(c) exceed the Maximum Bonus set forth in Section 1(a) above for the year in which the bonus was earned.   
		

		
			 
		

		
			(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 (“GAAP”) shall be applied on a basis consistent with prior periods, and such determination shall be based on the calculations made by the Company, certified by the Committee and binding on Executive. Notwithstanding the foregoing, if there is any material change in GAAP during a Plan Year that results in a material change in accounting for the revenues or expenses of the Company the calculations of the relevant Table B percentage 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 Increase in Earnings Per Share for the Company in the year following the GAAP Change Year, the calculation shall be made after taking into account such change in GAAP. 
		

		
			                                    (ii)            Tax Law Changes.  If the Internal Revenue Code is amended during the Plan Year and, as a result of such amendment(s), the effective tax rate applicable to the earnings of the Company (as described in the Income Taxes footnote to the financial statements contained in the Company’s annual report to the Securities and Exchange Commission on Form 10-K for the Plan Year) changes during the year, the calculation of the relevant Table B percentages for such Plan Year (the “Rate Change Year”) shall be made as if such rate change had not occurred during the Rate Change Year.  In determining the Increase in Earnings Per Share for the Company in the year following the Rate Change Year, the calculation shall be made after taking into account such rate change. 
		

		
			 
		

		
			                        2.            Performance Metric Adjustments.    Certain items of revenue, expense, gain, losses or other adjustments resulting from extraordinary or non-recurring items, will be taken into account in the application of the relevant performance metrics used to determine the amount of the Executive’s bonus under Section 1(b) of this Agreement in accordance with the following:
		

		
			 
		

		
			                        (a)            Multi-Employer Pension Adjustments: - Adjustments resulting from the Company’s or an Operating Company’s complete or partial withdrawal from a multi-employer pension plan sponsored by a third party in which the Company or one of its Operating Companies participates (“Pension Adjustments”).  The amount of any such adjustments shall be determined in accordance with GAAP. Pension Adjustments shall initially be excluded from the calculation of the performance metrics used to determine Executive’s bonus under this Agreement;  provided however, the Committee may include all or any portion of such Pension Adjustments in the determination of Executive’s bonus hereunder in 
		

		 

 

		

			 

		

		

			 

		

		its discretion, if the Committee determines that the inclusion of all or any portion of such Pension Adjustments will not impact the Company’s ability to deduct all or any portion of the bonus payable to Executive under this Agreement under Section 162(m) of the Code.
		

		
			                        (b)            Acquisitions and Divestitures:  - All or a portion of operating results, acquisition and divestiture expenses (including any applicable break up fees), acquisition debt, if any, and any gains or losses relating to or resulting from (i)  an acquisition by the Company of stock (or other equity interest) or substantially all of the assets of a corporation, partnership, limited liability company or other entity for a purchase price in excess of $40 million;  and  (ii)  a  divestiture of an Operating Company or operating division of the Company (including a sale of all or substantially all of the assets thereof) for a sale price in excess of $40 million may be excluded from the determination of Executive’s bonus under this Agreement;  provided however, the Committee shall not make such an adjustment unless the Committee determines that the exclusion of all or any portion of such adjustments will not impact the Company’s ability to deduct the bonus payable to Executive under this Agreement under Section 162(m) of the Code.
		

		
			                        (c)            Certain Other Events.  Notwithstanding the foregoing, the Committee may, in its sole discretion, include or exclude from the determination of the relevant performance metrics the results of certain extraordinary items not otherwise contemplated by this Section 2, and expenses related to restructuring of the Company and its subsidiaries (whether or not such expenses are extraordinary or non-recurring), if the Committee determines that the inclusion or exclusion of such items will not impact the Company’s ability to deduct all or any portion of the bonus payable to Executive under this Agreement under Section 162(m) of the Code.
		

		
			            3.            Payment.  Within ninety (90) days following the end of the Plan Year,  the Company shall determine and the Committee shall certify 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.            Clawback of Bonus. In accordance with the Company’s incentive payment clawback policy, in the event of a restatement of financial results (other than a restatement due to a change in accounting policy) within thirty-six (36) months of the payment of a bonus under this Agreement, and in connection with such restatement the Committee determines in its sole and absolute discretion, that the bonus paid to Executive under this Agreement for the Plan Year would have been lower had it been calculated based on such restated results (the “Adjusted MIP Bonus”), then the Company shall have the right, subject to applicable governing law, to recoup from Executive, in such form and at such time as the Committee determines in its sole and absolute discretion, the excess of the amount of the incentive payment previously paid to Executive pursuant to this Agreement (without regard to amounts deferred by Executive under the Company’s executive benefit plans) over the Adjusted MIP Bonus (the “Excess Payment”).  Executive hereby agrees that Executive shall promptly repay to the Company the amount of any Excess Payment received by Executive pursuant to this Agreement at the time or times and in the form determined by the Committee.  
		

		
			 
		

		
			            5.            Confidentiality.  Executive hereby acknowledges and agrees that the target performance levels set forth on Table B, attached hereto, constitute confidential information of the Company, subject to the prohibition on disclosure of confidential information under Sysco’s Code of Conduct. Any disclosure of the target performance levels by Executive prior to the time such target performance levels are disclosed to or known by the public, as determined by the Committee, will result in the forfeiture (which may include a clawback) by Executive of any bonus paid or otherwise payable to Executive under this Agreement for the Plan Year.  
		

		
			 
		

		

		

		 

 

		

			 

		

		

			 

		

		6.         Definitions.
		

		
			
		

		
			            (a)        For Calculations Regarding Table B:
		

		
			            (i)        Total Invested Capital: – for any given fiscal year, and with respect to the Company, the sum of the following:
		

		
			            (AA)         Stockholder’s Equity: – the average of the amounts outstanding for the Company (determined in accordance with Section 6(b) hereof) at the end of each fiscal quarter for which the computation is being made (quarterly average basis).
		

		
			            (BB)        Long-Term Debt: – the average of the long-term portion of the debt of the Company (determined in accordance with Section 6(b) hereof) outstanding at the end of each fiscal quarter for which the computation is being made (quarterly average basis).
		

		
			            (ii)        Return on Invested Capital: – the Return on Invested Capital for the Company is expressed as a percentage and is computed by dividing the Company’s net after-tax earnings, as it may be adjusted pursuant to Section 2, for the Plan Year by the Company’s Total Invested Capital for the Plan Year, as it may be adjusted pursuant to Section 2.   
		

		
			            (iii)            Percentage Increase in Sales: - the Percentage Increase in Sales, with respect to the Company, is expressed as a percentage and is computed by comparing the Company’s sales, as they may be adjusted pursuant to Section 2, for the Plan year to the Company’s sales for the prior fiscal year, as they may be adjusted pursuant to Section 2.  
		

		
			            (iv)          Company Earnings Bonus Percentage: - the percentage determined from Table B-Fully Diluted EPS, attached hereto, which coincides with the Company’s fully diluted earnings per share for the Plan Year.
		

		
			            (v)        Company Sales Growth Bonus Percentage: - the percentage determined from Table B-Sales Growth, attached hereto, which coincides with the Company’s Percentage Increase in Sales for the Plan Year.
		

		
			            (vi)         Company  Capital Efficiency Bonus Percentage: - the percentage determined from Table B – Return on Invested Capital, attached hereto, which coincides with the Company’s Return on Invested Capital for the Plan Year.
		

		
			(b)                        Method of Calculating Quarterly Averages: -- In determining the average amount outstanding of stockholders’ equity, and long-term debt under paragraphs 6(a)(i)(AA) and 6(a)(i)(BB), above, 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 relevant fiscal year plus the amount outstanding of the relevant category at the beginning of the relevant fiscal year.
		

		
			(c)                        Bonus Target Amount:  – Executive’s Target Bonus Percentage for the Plan Year multiplied by the Executive’s base salary as of the end of the relevant Plan Year.
		

		
			(d)                        Target Bonus Percentage: -- ____%
		

		
			            7.            Term of Agreement.  This Agreement shall remain effective for the Plan Year (i.e., the fiscal year ending June 29, 2013) and until any amounts due and payable to the Executive pursuant to this Agreement are paid; provided however, that Section 4 of this Agreement shall survive the termination of this Agreement until such time the Committee 
		

		 

 

		

			 

		

		

			 

		

		determines whether there is any Excess Payment due from Executive and the payment of any such Excess Payment pursuant to Section 4 of this Agreement is paid to the Company.
		

		
			 
		

		
			            8.            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. 
		

		
			 
		

		
			            9.            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.
		

		
			 
		

		
			            10.            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.
		

		
			 
		

		
			            11.            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.
		

		
			 
		

		
			            12.            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. 
		

		
			
		

		
			            13.            Amendment and Termination.   The Company may amend this Agreement at any time without the approval of Executive up to and until the day that is ninety (90) days after the beginning of the Plan Year. The Company may amend this Agreement at any time that is more than ninety (90) days after the beginning of the Plan Year without the approval of the Executive; provided however no amendments will be permitted to this Agreement that would directly or indirectly cause the compensation under this Agreement to fail to qualify as “performance based compensation” as that term is defined in Section 162(m) of the Code. 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: ___________________________                                    __________________________
		

		
			Russell Libby                                                                        [Name of Executive]
		

		
			Senior Vice President, General Counsel
		

		
			and Corporate Secretary 
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

 

		

			

		

		EXHIBIT 1
		

		
			“PLAN”
		

		
			 
		

		

		

		 

 

		

			 

		

		

			 

		

		EXHIBIT 2A
		

		
			Strategic Business Objectives – Mr. DeLaney
		

		
			 
		

			 1)	
			Effectively Carry Out All Key Aspects of Business Transformation 

			 ·	
			Timely and Cost Effective Deployment of Technology Platform 

			 ·	
			Achieve Targeted Operating Cost Savings

			 ·	
			Achieve Product Cost Savings

			 ·	
			Reduce SKU’s at the Opco Level

		
			 
		

			 2)	
			Reduce Lost Business For Ex-CMU Customers and Increase the Ratio of New/Lost For the Same Customer Base 

		
			 
		

			 3)	
			Successfully Execute Board Approved Strategic Acquisitions and Continue to Achieve Growth Through Smaller Acquisitions

		
			 
		

			 4)	
			Make Significant Progress Towards Our Strategic Goals For Leveraging Customer Insight, Enhancing and Expanding Channels, Growing Sysco Ventures and Implementing Category Management

		
			 
		

			 5)	
			Make Continued Strides Toward Implementing an Effective Human Capital Plan – Including Enhanced Talent Management, Performance Management, Diversity Management and Filling Key New Leadership Positions 

		
			 
		

			 6)	
			Communicate Broadly the Strategic Direction of the Corporation to All Key Stakeholders (Shareholders, Board, Customers, Suppliers, Associates)

		
			 
		

		
			 
		

		

		

		 

 

		

			 

		

		

			 

		

		EXHIBIT 2A
		

		
			Strategic Business Objectives – Mr. Kreidler
		

		
			 
		

			 1)	
			Effectively Carry Out All Key Aspects of Business Transformation 

			 ·	
			Timely and Cost Effective Deployment of Technology Platform 

			 ·	
			Achieve Targeted Operating Cost Savings

			 ·	
			Achieve Product Cost Savings

			 ·	
			Reduce SKU’s at the Opco Level 

		
			 
		

			 2)	
			Reduce Lost Business For Ex-CMU Customers and Increase the Ratio of New/Lost For the Same Customer Base 

		
			 
		

			 3)	
			Successfully Execute Board Approved Strategic Acquisitions and Continue to Achieve Growth Through Smaller Acquisitions

		
			 
		

			 4)	
			Make Continued Strides toward Implementing an Effective Human Capital Plan – Including Enhanced Talent Management, Performance Management, Diversity Management and Filling Key New Leadership Positions

		
			 
		

			 5)	
			Communicate Broadly the Strategic Direction of the Corporation to All Key Stakeholders (Shareholders, Board, Customers, Suppliers, Associates)

		
			 
		

			 6)	
			Effectively Carry Out All Key Aspects of Financial Transformation

			 ·	
			Timely and Cost Effective Deployment of Strategy Through Substantially All of the US Broadline Operating Companies

			 ·	
			Achieve Targeted Headcount Reductions

		

		

		 

 

		

			 

		

		

			 

		

		EXHIBIT 2A
		

		
			Strategic Business Objectives – Mr. Green
		

		
			 
		

			 1)	
			Effectively Carry Out All Key Aspects of Business Transformation:

			 ·	
			Timely and Cost Effective Deployment of Technology Platform 

			 ·	
			Achieve Targeted Operating Cost Savings

			 ·	
			Achieve Product Cost Savings

			 ·	
			Reduce SKU’s at the Opco Level 

		
			 
		

			 2)	
			Reduce Lost Business For Ex-CMU Customers and Increase the Ratio of New/Lost For the Same Customer Base 

		
			 
		

			 3)	
			Successfully Execute Board Approved Strategic Acquisitions and Continue to Achieve Growth Through Smaller Acquisitions

		
			 
		

			 4)	
			Make Significant Progress Towards Our Strategic Goals For Leveraging Customer Insight, Enhancing and Expanding Channels, Growing Sysco Ventures and Implementing Category Management

		
			 
		

			 5)	
			Make Continued Strides Toward Implementing an Effective Human Capital Plan – Including Enhanced Talent Management, Performance Management, Diversity Management and Filling Key New Leadership Positions

		
			 
		

		

		

		 

 

		

			CONFIDENTIAL

		

		

			TABLE B

		

		

			 

		

		

			COMPANY PERFORMANCE BONUS

		

		 
		

		
			Attached
		

		 

		

			THE PERFORMANCE TARGETS SET FORTH ON THIS TABLE B CONSTITUTE “CONFIDENTIAL INFORMATION” AND ANY DISCLOSURE OF SUCH PERFORMANCE TARGETS BY A PARTICIPANT PRIOR TO THE TIME SUCH PERFORMANCE TARGETS BECOME PUBLIC INFORMATION WILL RESULT IN SUCH PARTICIPANT FORFEITING HIS OR HER RIGHTS TO A BONUS UNDER THIS PROGRAM.

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