Document:

Executive Management Long-Term Incentive Program

  
 Exhibit 10.1

  
 SARA LEE CORPORATION 
  
 EXECUTIVE MANAGEMENT LONG-TERM INCENTIVE PROGRAM 
  
 FISCAL YEARS 2005- 2007 
  
 PROGRAM DESCRIPTION 
  
 Highlights 
  
 This booklet explains the Program provisions of the Sara Lee Corporation (“SLC”) Executive Management Long-Term Incentive Program
(the “Program”) covering fiscal years 2005 through 2007 (the “Performance Cycle”). The following pages provide detailed information relating to the grant of Performance Stock Units (“PSUs”) that you have received under
the Program. 
  
 The key features of this Program are summarized below. In some
countries other than the United States, variations in Program design may occur in order to comply with local laws and tax provisions. 
  
 Purpose 
  
 SLC has created the Executive Management Long-Term Incentive Program (“EMLTIP” or the “Program”) for Fiscal Years 05-07 to: 
  

	 	•	Focus executive management’s attention on the long-term performance results of Sara Lee Corporation 

  

	 	•	Provide incentive compensation opportunities commensurate with the achievement of specific EPS and VAE results 

  

	 	•	Provide a competitive long-term compensation opportunity to Program Participants and assist in attracting and retaining highly qualified and motivated executive talent

  
 Participation 
  
 Participation in the Program is limited to Senior Corporate Officers, i.e. those at or above
the SLC Senior Vice President level, and any additional Participants as named by the Compensation and Employee Benefits Committee of the Board of Directors (the “Committee”). 
  
 Performance Stock Units 
  
 EMLTIP awards are authorized under both the Sara Lee Corporation 1998 and 2002 Long-Term Incentive Stock Plans (“Stock Plans”). EMLTIP awards are initially
granted in the form of PSUs at the beginning of the Performance Cycle. At the end of the Performance Cycle, any PSUs that are earned will be converted to shares of Sara Lee common stock. Dividend Equivalents are credited on PSUs during the
Performance Cycle. 
  

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 PSUs have special restrictions that are based upon both the continued service of Program Participants and SLC’s
performance against the established financial performance goals. These restrictions include a prohibition against the transfer of the PSUs during the Performance Cycle. The financial goals and their respective weightings were approved by the
Committee and are contained in the minutes of the meeting at which the Program was approved. Any shares not earned at the end of the Performance Cycle are forfeited and returned to the Stock Plans. 
  
 SLC may substitute or offer alternative forms of incentive compensation in the event it
either determines that tax or legal regulations in a country provides more favorable treatment for those alternative forms of incentive compensation or as a voluntary alternative to PSUs. 
  

	 	•	PSUs are granted only during the first fiscal year of a Performance Cycle. At the end of the Performance Cycle, based upon the actual performance results, the appropriate number of
PSUs are converted to shares of Sara Lee stock, on a one-for-one basis, and issued to Program Participants. 

  

	 	•	The number of shares, if any, which will be released to Participants is dependent upon the extent to which the pre-established performance goals are achieved during the Performance
Cycle. 

  

	 	•	An opportunity to earn additional shares is possible if performance results exceed the specified performance levels. 

  

	 	•	Participants do not have voting rights on PSUs during the Performance Cycle. 

  

Dividend Equivalents 
  
 During the Performance Cycle, Dividend Equivalents that are payable on the PSUs will be accrued on behalf of the Participants. No Dividend Equivalents are paid in arrears on any additional shares issued for
performance above the Mid-level performance level. 
  
 Accrued dividend
equivalents are distributed in the same proportion as the restrictions on the PSUs lapse. For example, if 75% of the PSUs are earned, then 75% of the balance of the accrued dividend equivalents will be paid at the same time the PSUs/Sara Lee shares
of common stock are released. Any remaining balance of accrued dividend equivalents, after determining the number of shares to be distributed, will be forfeited. 
  
 Performance Measures 
  

	 	•	The following corporate-level performance measures apply to the FY05-07 Performance Cycle: 

  

	 	•	3-Year Cumulative Diluted Earnings Per Share (“EPS”) 

  

	 	•	FY07 Value Added Earnings (“VAE”) 

  

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 Performance Standards 
  
 Performance under the EMLTIP is measured using the following corporate financial measures: 
  

	 	•	Cumulative Diluted Earnings Per Share (“ EPS”) 

  

	 	•	FY07 VAE 

  
 Both of these financial measures are independent of one another for purposes of measuring results and determining how many, if any, of the PSUs are earned. Definitions of these measures are included in Appendix I. The
performance measures are equally weighted for purposes of determining performance results, i.e., 50% of the results are based upon EPS and 50% are based upon VAE. The performance levels for EPS and VAE targets were approved by the Committee and are
contained in the minutes of the meeting at which the Program was approved. 
  
 The
performance levels and the percentage of PSUs earned at each performance level are as follows: 
  

			
	 Performance Level

	  	% of Shares
Distributed

	 Threshold
	  	0%
	 Mid-level
	  	100%
	 Maximum
	  	200%

  
 Interpolations are used for results
that fall between the performance levels. For performance above Mid-level, additional shares are issued after the end of the Performance Cycle. Dividend Equivalents are not paid on any shares issued for performance above the Mid-level performance
level. No shares are earned for performance results at or below the Threshold performance level. 
  
 Award Grant Notice 
  
 Each Participant
will receive a Performance Stock Unit Grant Notice (“Grant Notice”) specifying the number of PSUs that have been granted, and the terms and conditions applicable to the grant. The Grant Notice and this Program Description should be
retained with your other important legal documents. 
  

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 Tax Consequences 
  
 United States 
  
 Under current United States tax laws, a Participant does not realize any taxable income from the PSUs when they are initially granted, or from accrued Dividend Equivalents. The “Vesting Date”, i.e., August
31, 2007, is the date when the taxable event occurs, except to the extent that a Participant has elected to defer distribution of the shares until a later date (“Deferred Vesting Date”). The market value of SLC common stock on the Vesting
Date or the Deferred Vesting Date, as the case may be, will determine the amount of taxable income. When the number of shares actually earned has been determined, the market value of the shares on the Vesting Date or the Deferred Vesting Date, as
well as the proportionate Dividend Equivalents are considered income to the Participant. This amount is then subject to applicable federal, state and local withholding. Amounts necessary to settle the tax-withholding obligation will first be
withheld from the accrued Dividend Equivalents and then from the shares that would otherwise have been distributed to the Participant. Federal tax will be withheld at the required statutory supplemental federal tax rate in effect at the time of the
distribution. In 2004 that rate was 25%. 
  
 Countries other than the United
States 
  
 Tax laws vary among countries, so Participants should seek
reputable tax counsel concerning the tax consequences of this grant in their respective countries of taxation. In most cases, Participants incur no taxable income from PSUs when initially awarded, or on the accrued Dividend Equivalents, until the
Vesting Date. When the shares are earned, both the market value of the shares on the Vesting Date as well as the Dividends Equivalents distributed are typically considered income. For those individuals residing outside the U.S. and not subject to
U.S. tax laws, tax due for some countries may be withheld by SLC in Chicago. Each Participant is responsible for compliance with the relevant legal and tax regulations in his or her tax jurisdiction. 
  
 Impact on Other Benefits 
  
 Any shares or Dividend Equivalents ultimately earned under the EMLTIP are not considered
compensation for purposes of any retirement plan, severance arrangement or other benefit plans in which a Participant currently participates or may become eligible to participate in at a later date. 
  
 Forfeiture 
  
 Notwithstanding anything contained in this document to the contrary, if a Participant should engage in any activity inimical, 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 relationship(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 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 PSU award, to the extent it remains restricted, shall terminate automatically on the date on which the Participant first engaged in such wrongful 

  

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conduct and (ii) if the misconduct occurred within 6 months following the Vesting Date, the Participant shall pay to SLC in cash any financial gain the
Participant realized from the vesting of the PSUs. For purposes of this section, financial gain shall equal, the difference between the fair market value of the Common Stock on the Vesting Date, multiplied by the number of PSUs reduced by any taxes
paid in countries other than the United States where taxes are not otherwise eligible for refund from the taxing authorities. By accepting this PSU grant, the Participant consents to and authorizes SLC to deduct from any amounts payable from SLC to
the Participant, any amounts owed by the Participant to SLC. This right of “set-off” is in addition to any other remedies SLC may have against the Participant for the wrongful conduct. 
  
 Administrative Guidelines 
  
 The following guidelines apply to the FY05-07 EMLTIP. Additional Administrative Guidelines
may be adopted, as needed, during the Performance Cycle for the efficient administration of the Program. 
  

	 	•	The Committee is responsible for administering the Program and has full power and authority to interpret the Program and to adopt rules, regulations and guidelines for carrying out
the Program, as it deems necessary. 

  

	 	•	The Committee functions as the Program Administrator and its decisions are binding on all persons. 

  

	 	•	The Committee reserves the right, in its absolute discretion, to reduce or eliminate the awards earned by any Participant. In determining whether to reduce or eliminate awards, the
Committee may take into account the positive effect of the Adjustments and Exclusions specified in Appendix I. 

  

	 	•	The Committee reserves the right, in its absolute discretion, to make further adjustments in reported performance (for purposes of measuring results vs. the goals) or in awards
earned by reference to that performance with respect to any Participant who would not qualify as a Participant at the end of the Performance Cycle. 

  

	 	•	The Committee reserves the right to change any of the terms and conditions of the FY05-07 EMLTIP award to the Participants, including the definitions of Diluted EPS and VAE, if
deemed necessary on advice of counsel to meet the requirements for a “performance-based exemption” under the regulations or rulings of §162(m) of the Internal Revenue Code. 

  

	 	•	The Committee reserves the right to equitably reset the Performance Goals during the Performance Cycle to recognize any major divestitures. 

  

	 	•	The Committee may, as it deems appropriate, delegate some or all of its power to the Chief Executive Officer or other executive officer of the Corporation. However, the Committee
may not delegate its power concerning the grant, timing, pricing or amount of an award to any person who is a Program Participant. 

  

	 	•	 The SLC Controller’s Department will be responsible for providing financial results under the EMLTIP. The Committee will approve the awards when granted at the
beginning of the Performance Cycle (i.e., during fiscal year 2005) and ratify distributions to be made at the end of the Performance Cycle for all EMLTIP Participants. The portion of the shares earned along with the related balance of the accrued
Dividend Equivalents account will be 

  

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distributed as soon as practicable after the completion of the final accounting for the FY05-07 Performance Cycle and the Vesting Date.

  

	 	•	Awards may be made to new Participants during the first year of the Performance Cycle. The number of PSUs awarded may be adjusted to reflect that the executive is not a Participant
for the entire Performance Cycle. 

  

	 	•	Awards may be made to Participants who change positions during the first year of the Performance Cycle, if such a change would have resulted in qualifying for an increased level of
award. 

  

	 	•	In the event of death, total disability (as defined under the appropriate disability benefit plan if applicable) or retirement at age 55 or later and if you have at least 10 years
of service with SLC (or as otherwise defined under the appropriate retirement benefit plan of SLC) prior to the last day of fiscal year 2007, all PSUs granted would be eligible for distribution at the end of the Performance Cycle based upon
proration for performance only, subject to approval of the Committee. If applicable, the shares and related Dividend Equivalents will be distributed at the normal payout time. 

  

	 	•	A Participant who resigns or is terminated during the Performance Cycle generally forfeits the rights to all PSUs and any accrued Dividend Equivalents. However, Participants may be
eligible for a prorated distribution, subject to Committee approval. Eligibility for a prorated distribution and the number of shares that may be recommended for distribution would be dependent upon the circumstances resulting in the
individual’s termination. In order to be considered for any prorated distribution under this Program provision, a Participant must be actively employed for at least one-third, i.e. 12 months, of the Performance Cycle. If employment ceases
before the end of that time, all PSUs granted under that Performance Cycle would be forfeited. Only periods of active service will be recognized for purposes of computing any prorated distribution. This means that any period of time during which
services may be provided to the company but the individual is not then a regular, full-time employee of the company, will be disregarded for purposes of calculating any prorated distribution. 

  

	 	•	In the event of a sale, closing, spin-off or other disposition of the Participant’s business unit that results in the termination of the Participant’s employment with the
Company, the Participant may be eligible for a prorated distribution of shares. Only periods of active service from the beginning of the Performance Cycle will be considered and payout will occur after the Vesting Date. 

  

	 	•	Should a change in control (as defined in the Stock Plans) occur, the Participant’s entitlements under the Program will be determined as provided for under the terms of the
Sara Lee Corporation Severance Plans for Corporate Officers. 

  

	 	•	If any statement in this Program Description or any oral representation differs from the Stock Plans, the Stock Plans prevail. The Stock Plans, Grant Notice and Program Description
collectively comprise all terms and conditions applicable to the FY05-07 EMLTIP. 

  

	 	•	Any stock dividend, stock split, combination or exchange of securities, merger, consolidation, recapitalization, spin-off or other distribution of any or all of the assets of the
SLC will be handled as provided for in the Stock Plans. 

  

	 	•	Nothing in the EMLTIP shall confer on a Participant any right to continue in the employ of SLC or in any way affect SLC’s right to terminate the Participant’s employment
in accordance with applicable laws. 

  

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 Appendix I 
  

Definitions 
  

	a)	Adjustments means changes to the goal to appropriately reflect the effect of spin-offs, divestitures, stock splits or combinations, or special distributions to stockholders
other than normal cash dividends. 

  

	b)	The Committee means the Compensation and Employee Benefits Committee of the Sara Lee Corporation Board of Directors. 

  

	c)	Award Date means the date upon which the Board of Directors or the Committee approved the awards under this Program. In this case the Award Date may mean either August 26,
2004 or January 27, 2005, unless an alternate date was required for tax and/or legal reasons in locations outside the United States. 

  

	d)	Company or Corporation means Sara Lee Corporation or any entity that is directly or indirectly controlled by Sara Lee Corporation, and its subsidiaries.

  

	e)	Deferred Vesting Date means the Distribution Date specified under the Sara Lee Corporation Executive Deferred Compensation Plan, in the event the Participant elected to defer
his or her EMLTIP award. 

  

	f)	Diluted Earnings Per Share means reported diluted earnings per share for the fiscal years in the Performance Cycle subject to applicable Adjustments and Exclusions as defined
in this Appendix 

  

	g)	Dividend Equivalents has the same meaning as in the Stock Plans. 

  

	h)	Exclusions mean the automatic exclusion of the following from relevant financial data for purposes of measuring performance (subject to the Committee’s use of negative
discretion): 

  

	 	1.	Any other extraordinary or unusual charges or income (accounting definition) that are quantified and identified separately on the face of the Income Statement; however proceeds from
the disposition of the European cut Tobacco business will be included in the measurement of performance under the Program. 

  

	 	2.	Revisions in the Internal Revenue Code of the United States or any taxing jurisdiction in which the Corporation earns more than 20% of its pre-tax profits in a particular year.

  

	 	3.	Changes in generally accepted accounting principles 

  

	 	4.	Gains or losses from discontinued operations (accounting definition) 

  

	 	5.	Restructuring charges 

  

	 	6.	The impact of Major Acquisitions and Divestitures made during the Performance Cycle will be excluded from the performance results for the entire three-year Performance Cycle. The
impact of all other acquisitions and divestitures will be included in the performance results. 

  

	i)	Grant Notice means the document provided to each Participant evidencing the number of Performance stock units awarded and the basic terms and conditions of the award.

  

	j)	Key Executive means an employee whose salary, when expressed in U.S. dollars, is above the midpoint of salary grade 39. 

  

	k)	Major Acquisition or Disposition means a business acquisition or disposition completed in the performance cycle in which the consideration issued or received exceeds $250
million. 

  

	l)	Participant means an executive of the company who has been determined to be an eligible Participant and who has received a Grant Notice specifying the basic terms of
participation in this PROGRAM. Participants for the FY05-07 Performance Cycle includes senior Corporate Officers and above. 

  

	m)	Performance Cycle is the three-year period consisting of SLC’s fiscal years 2005 through and including 2007. 

  

	n)	Performance Stock Units has the same meaning as “performance units” as that term is used in the Stock Plans. 

  

	o)	Stock Plans means the Sara Lee Corporation 1998 and 2002 Long-Term Incentive Stock Plans or the successor plan or plans. 

  

	p)	Total Disability as defined under the SLC Long-Term Disability Plan or the specific Sara Lee sponsored disability plan under which the Participant is covered.

  

	q)	Value Added Earnings (“VAE”) means Net Operating Profit After Taxes (NOPAT) less a Capital Charge as defined in SLC Finance Policy 130. 

  

	r)	Vesting means the determination made at the end of the Performance Cycle as to how many, if any, of the PSUs that are actually earned by a Participant based upon actual
performance results. 

  

	s)	Vesting Date means August 31, 2007. 

  

 47Executive Management Long-Term Incentive Program (EMLTIP)

  
 Exhibit 10.2

  
 SARA LEE CORPORATION 
 EXECUTIVE MANAGEMENT LONG-TERM INCENTIVE PROGRAM 
 (FY05-07 EMLTIP) 
  
 RESTRICTED STOCK UNIT GRANT NOTICE

  
 _____________ 
 (“Participant”) 
  
 The Performance Stock Unit (PSU) Grant Notice made this August 26, 2004 (“Award Date”), by Sara Lee Corporation, a Maryland Corporation
(“Corporation”) to Participant is evidence of an award made under the Sara Lee Corporation 1998 Long-Term Incentive Stock Plan (“Plan”) which is incorporated into this Grant Notice by reference. A copy of the Plan has been
provided to the Participant and is also available from the Sara Lee Corporate Compensation department. 
  
 Performance Stock Unit Award. Subject to the restrictions, limitations, terms and conditions as described in the FY05-07 EMLTIP Program Description (“Program Description”), the Plan and this
Grant Notice, the Corporation hereby awards to the Participant as of the Award Date 
  
                  Performance stock units (PSUs) 
  
 which are considered Stock Awards under the Plan. These PSUs will remain restricted until the Vesting Date on August 31, 2007. This award is
performance-based, as detailed in the Program Description and therefore the actual number of PSUs ultimately released is based upon the performance results and the Participant’s active service during the Performance Cycle. 
  
 Prior to the Vesting Date, the PSUs are not transferable by the Participant by means of sale,
assignment, exchange, pledge, or otherwise. 
  
 Dividend
Equivalents. Subject to the restrictions, limitations and conditions as described in the Plan, Dividend Equivalents payable on the PSUs will be accrued on behalf of the Participant at the time that dividends are otherwise paid to owners of
Sara Lee Corporation common stock balances and will be paid to the Participant with the distribution of the shares following the Vesting Date. 
  
 Distribution of the Award. If the distribution is subject to tax withholding, such taxes will be settled by withholding cash and/or a number of
shares with a market value not less than the amount of such taxes. Any cash from Dividend Equivalents remaining after withholding taxes are paid will be paid in cash to the Participant. The net number of shares of Sara Lee Corporation stock to be
distributed will be delivered to the Participant as soon as practicable after the Vesting Date. If withholding of taxes is not required, none will be taken and the gross number of shares will be distributed. The Participant is personally responsible
for the proper reporting and payment of all taxes related to distribution. 
  
 Election to Defer Distribution. If the distribution is subject to U.S. tax law, the Participant may elect to defer the distribution of some or all of the PSUs. Such election must be received in writing by the Corporation no
later than December 30 of the year prior to the Vesting Date. The deferral, if elected, will result in the transfer of the PSUs into the Corporation’s Executive Deferred Compensation Plan’s Stock Equivalent Fund in effect at the time the
PSUs would 

  

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have otherwise been distributed. The Executive Deferred Compensation Plan rules will govern the administration of this award beginning on the date the PSUs
are credited to the Executive Deferred Compensation Plan. 
  
 Death, Total
Disability or Retirement. If you cease active employment with the Corporation, because of your death or permanent and total disability (as defined under the appropriate disability benefit plan if applicable), the award will vest immediately
and be distributed to you or your estate after the Vesting Date. If you retire at age 55 or later and have at least 10 years of service with the Corporation (or as otherwise defined under the appropriate retirement benefit plan of the Corporation),
the award will remain in effect and vest on the Vesting Date. In all cases, the actual number of PSUs released will be based upon the performance results for the Performance Cycle. These provisions apply only to awards under the FY05-07 EMLTIP;
other types of PSU awards may have different provisions. 
  
 Forfeiture.
Notwithstanding anything contained in this Agreement to the contrary, if you engage in any activity inimical, contrary or harmful to the interests of the Corporation, including but not limited to: (1) competing, directly or indirectly (either as
owner, employee or agent), with any of the businesses of the Corporation, (2) violating any Corporation policies, (3) soliciting any present or future employees or customers of the Corporation to terminate such employment or business relationship(s)
with the Corporation, (4) disclosing or misusing any confidential information regarding the Corporation, or (5) participating in any activity not approved by the Board of Directors which could reasonably be foreseen as contributing to or resulting
in a Change of Control of the Corporation (as defined in the Plan) (such activities to be collectively referred to as “wrongful conduct”), then (i) this PSU award, to the extent it remains restricted, shall terminate automatically on the
date on which you first engaged in such wrongful conduct and (ii) if the misconduct occurred within 6 months of the PSU Vesting Date, you shall pay to the Corporation in cash any financial gain you realized from the vesting of the PSU. For purposes
of this section, financial gain shall equal, the difference between the fair market value of the Common Stock on the Vesting Date, multiplied by the number of PSUs actually distributed pursuant to this award, reduced by any taxes paid in countries
other than the United States which taxes are not otherwise eligible for refund from the taxing authorities. By accepting this PSU, you consent to and authorize the Corporation to deduct from any amounts payable by the Corporation to you, any amounts
you owe to the Corporation under this section. This right of set-off is in addition to any other remedies the Corporation may have against you for your breach of this Agreement. 
  
 Conformity with the Plan. This award is intended to conform in all respects with, and is subject to, all applicable provisions of the
Plan. Any inconsistencies between this Grant Notice, the Plan or the Program Description shall be resolved in accordance with the terms of the Plan. By your acceptance of this Grant Notice, you agree to be bound by all of the terms of this Grant
Notice, the Plan and Program Description. 
  
 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, this Grant Notice or the Program Description will be determined and resolved by the
Compensation and Employee Benefits Committee of the Corporation’s Board of Directors (“Committee”). Such determination or resolution by the Committee will be final, binding and conclusive for all purposes. 
  

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 Employment Rights. Nothing in the Plan, this Grant Notice or the Program Description confers on any
Participant any right to continue in the employ of the Corporation or in any way affects the Corporation’s right to terminate the Participant’s employment without prior notice at any time or for any reason. 
  
 Amendment. Notwithstanding anything in the Plan, the Program Description or
this Award Notice to the contrary, this award may be amended by the Corporation without the consent of the Participant, including but not limited to modifications to any of the rights granted to the Participant under this award, at such time and in
such manner as the Corporation may consider necessary or desirable to reflect changes in law. 
  

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