Document:

10.65 Jim Hope Separation Agreement

		
			Exhibit 10.65
		

		
			 
		

		
			Personal & Confidential
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			April 1, 2013
		

		
			 
		

		
			Jim Hope
		

		
			[address]
		

		
			[address] 
		

		
			 
		

		
			            Re:            Employment with Sysco Corporation
		

		
			 
		

		
			Dear Jim:
		

		
			 
		

		
			We wanted to take this opportunity to thank you for your many contributions to Sysco Corporation (“Sysco” or the “Company”) and to summarize the benefits you will be eligible for upon your anticipated departure from the Company, subject to the terms of this letter agreement (the “Agreement”).  
		

		
			 
		

		
			Timing of Your Departure:    You will remain an employee for the period between April 8, 2013 and June 29, 2013 (the “Termination Date”), although you will not be required to report to the office on a regular basis.  During this period, you will be responsible for transitioning your responsibilities and you may be called upon by the Company for other matters at the discretion of the Company.  The period between April 8, 2013 and June 29, 2013 shall be referred to as the “Transition Period” for purposes of this Agreement. 
		

		
			 
		

		
			Special Severance Benefits:  Contingent upon your compliance with the terms of this Agreement, you will be eligible for the Severance Payment and Company-Subsidized Health Care Coverage described below (collectively referred to as the “Special Severance Benefits”).  
		

		
			 
		

		
			            Severance Payment:  Upon your departure from the Company, you will be eligible for a lump-sum payment in the gross total amount of $1,575,000.00,  less applicable withholding taxes (the “Severance Payment”).    The Severance Payment will not be considered compensation under any compensation or benefit plan sponsored or maintained by Sysco and will be in lieu of any severance payment to which you otherwise would have been entitled under any plan or program maintained by, or any agreement with, Sysco or any related or affiliated entity.  The Severance Payment will be paid as soon as practicable but no later than thirty  (30) days following the effective date of an executed Separation Agreement.    
		

		
			 
		

		
			            Company-Subsidized Health Coverage:  Provided that you and your eligible dependents, if any, are participating in Sysco’s group health, dental and vision plans on the Termination Date and elect on a timely basis to continue that 
		

		 

 

		

			Jim Hope

		

		

			April 1, 2013

		

		

			Page 2 of 4

		

		

			 

		

		

			 

		

		participation in some or all of the offered plans through the federal law commonly known as “COBRA,” Sysco pay for the entire premium cost of your continued participation in the Company’s group benefit plans (the “Company-Subsidized Health Coverage”).  You shall continue to be eligible for the Company-Subsidized Health Coverage until the earlier to occur of (1) the date twelve (12) months after your Termination Date or (2) the date you are eligible to enroll in the health, dental and/or vision plans of another employer; provided, however, that your participation is dependent on you and your dependents continuing to be eligible to participate in Sysco’s offered plans through COBRA and you paying any applicable co-payments or other fees.  You agree to notify Sysco promptly if you are eligible to enroll in the plans of another employer or if you or any of your dependents cease to be eligible to continue participation in Company plans through COBRA.  You will receive information under separate cover regarding your COBRA benefits.
		

		
			 
		

		
			In order to receive the Special Severance Benefits, you must execute a General Release on a timely basis.  The General Release will be provided to you at the time of your separation from employment and you will be provided at least twenty-one  (21) days to consider whether to sign the Release.  As described more fully in the General Release, you have seven days following the date you execute the General Release to revoke your signature by delivering a written revocation to Eve McFadden, Assistant General Counsel-Employment & Litigation, Sysco Corporation (fax number (281) 584-2510).  The Release will not become effective until you sign it and the seven-day revocation period has passed without you having exercised your right to revoke your signature.  You are advised to consult an attorney prior to executing the General Release.  Please also note that the General Release contains provisions regarding non-disparagement of the Company and its officers, employees, directors, products and services and your ongoing cooperation with transition efforts and other important matters related to your employment.
		

		
			 
		

		
			Moreover, should you voluntarily leave employment during the Transition Period or be involuntarily terminated by the Company before the Termination Date, you will no longer be eligible for the Special Severance Benefits. In order to continue in employment during the Transition Period, you must comply with Company policy through your Termination Date and with all ongoing obligations to the Company your employment, including those regarding the use and protection of confidential information, restrictions on solicitation of employees and customers, assignment of inventions and intellectual property, and restrictions on competitive activities.  
		

		
			 
		

		
			Career Transition Services:    During the Transition Period and thereafter, you will be eligible for executive outplacement services using a vendor of Sysco’s choice.  
		

		
			 
		

		
			Continued Employment with Sysco:  If you accept another position within Sysco during the Transition Period, the Special Severance Benefits outlined above will no longer be available to you.    
		

		
			 
		

		

		

		 

 

		

			Jim Hope

		

		

			April 1, 2013

		

		

			Page 3 of 4

		

		

			 

		

		

			 

		

		Post-Employment Restrictions:  Your receipt of the Special Severance Benefits is also contingent upon your adherence to your ongoing obligations to the Company regarding intellectual property, confidential information to which you had access by virtue of your employment, restrictions on competitive activities, and non-solicitation of employees and customers, including, but not limited to the restrictions contained in the attached 2001 Stock Option Agreement.  Failure to comply with restrictions on your post-employment activities entitles Sysco to cease any remaining benefits owed to you under this Agreement.  Moreover, should you fail to comply with restrictions on your post-employment activities, you agree and acknowledge that Sysco will be entitled to cease any remaining benefits owed to you under this Agreement and shall be entitled to recoupment of the Severance Payment paid to you as well as any attorneys’ fees associated with such recoupment.
		

		
			 
		

		
			Other Compensation and Benefits:    If you remain employed through the Transition Period, any Management Incentive Plan (“MIP”) bonus earned for the 2013 fiscal year as a result of your participation in the 2013 Annual Incentive Program under the MIP (the “2013 Program”) will be determined under the terms and conditions of the 2013 Program.  Such bonus, if any, will be paid to you at the same time that all other participants in the 2013 Program receive their MIP bonuses for the 2013 fiscal year.  In addition, any elections you made with respect to the MIP bonus you earn under the 2013 Program, if any, including any deferral elections under the Sysco Corporation Executive Deferred Compensation Plan (the “EDCP”), will remain in effect. 
		

		
			 
		

		
			Amounts, if any, payable to you with respect to outstanding, vested “Cash Performance Units” (“CPUs”) granted to you shall be paid after the end of the relevant performance period based on actual company performance and shall be paid at such time as other participants receive payment for CPUs.  
		

		
			 
		

		
			Please note that vesting of all stock options and restricted stock units (RSUs) will cease upon your Termination Date and any unvested options or RSUs are canceled immediately.  Vested stock options granted in 2004 or later must be exercised prior to the close of the NYSE on the ninetieth (90th) day following your Termination Date.
		

		
			 
		

		
			All other compensation and benefits will be governed by the terms of the applicable plans and programs.  You will be paid for any earned but unused vacation at the time of your separation from employment, and you also will be reimbursed for eligible business expenses that you incurred during the course of your employment per Company policy.  Please feel free to contact Mark Wisnoski at 281.584.2782 should you have questions regarding the status of your benefits.
		

		
			 
		

		
			I hope these arrangements are helpful as you plan your future.  Please sign below and return an executed original of this Agreement to me by April 10, 2013 to acknowledge your understanding of the terms and conditions above.  
		

		

		

		 

 

		

			Jim Hope

		

		

			April 1, 2013

		

		

			Page 4 of 4

		

		

			 

		

		

			 

		

		 
		

		
			 
		

		
			 
		

		
			Sincerely, 
		

		
			 
		

		
			/s/ Paul Moskowitz
		

		
			 
		

		
			Paul Moskowitz
		

		
			Senior Vice President, Human Resources
		

		
			Enclosure
		

		
			 
		

		
			 
		

		
			Acknowledgement:
		

		
			 
		

		
			I have read, understand, and agree to the terms and conditions set forth in the letter agreement from Paul Moskowitz dated April 1, 2013 (the “Agreement”).
		

		
			 
		

		
			/s/ Jim Hope
		

		
			____________________________
		

		
			Jim Hope
		

		
			 
		

		
			4/10/13
		

		
			____________________________
		

		
			Date10.66 Wayne Shurts Offer Letter Sept 13 2012

		
			 
		

		
			 
		

		
			Exhibit 10.66
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			PERSONAL AND CONFIDENTIAL            
		

		
			 
		

		
			 
		

		
			September 13, 2012
		

		
			 
		

		
			Mr. Wayne Shurts
		

		
			[address]
		

		
			[address]
		

		
			 
		

		
			Dear Wayne:
		

		
			 
		

		
			It is my pleasure to offer you employment with Sysco Corporation, serving as Executive Vice President, Chief Technology Officer, based in Houston, TX, reporting to me.  I am confident that you will help lead our company with integrity and assist in the growth and prosperity required to sustain our distinct position as the industry leader.  Outlined below you will find the details of our offer:
		

		
			 
		

			
			
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			Your annual base salary will be $575,000 or $23,958.33 semi-monthly.  

			
			
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			Effective on your hire date, you will become a participant in the Sysco Management Incentive Plan (MIP).  

			
			
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			You will receive a one-time sign-on bonus of $150,000, less applicable withholding for taxes, within 30 days of your hire date.   In the event you voluntarily resign or are terminated for cause within the first year after your hire date, you agree to repay the full amount of the bonus within thirty (30) days of your termination date.   

			
			
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			You will receive an additional sign-on bonus of $150,000, less applicable withholding for taxes, on your first anniversary of employment with Sysco.   In the event you voluntarily resign or are terminated for cause within the following year after payment,  you agree to repay the full amount of the bonus within thirty (30) days of your termination date

			
			
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			In November 2012, Sysco’s executive management team will recommend that the Compensation Committee of the Board grant you a one-time sign-on Restricted Stock Unit grant (3 year annual vesting) with a value of $500,000.

			
			
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			You will be eligible for a bonus as an MIP Participant with actual payment based on your annual base salary, the Company’s financial performance and your individual performance.  Your target bonus will be 100% of your base pay.    Eligibility for the bonus is contingent upon your continued employment with Sysco through the end of the fiscal year.  For FY2013, your bonus, if earned, will be prorated for the number of weeks during the fiscal year that you were employed by Sysco.

		
			 
		

			
			
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			In November 2012 in conjunction with our long-term incentive compensation program, Sysco’s executive management team will recommend that the Compensation Committee of the Board grant you long term incentive awards representing 325% of your annual base salary as follows:

			
			
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			50%  Stock Options – 5 year annual vesting

			
			
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			25%  Cash Performance Units (CPUs) – based on 3 year performance

		

		

		 

 

		

			Mr.  Wayne Shurts

		

		

			September 13, 2012

		

		

			Page 2

		

		

			 

		

		
		

		
			 
		

			
			
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			25%  Restricted Stock Units (RSUs) – 3 year annual vesting

		
			 
		

			
			
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			As an MIP participant, you will also be eligible to participate in the following significant executive benefit programs:

			
			
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			A Disability Income Plan that will provide you with benefits in case of personal disability.

			
			
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			Additional group life and accidental death and dismemberment benefits that will be in effect for you as a member of the Plan.

			
			
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			Our Sysco retirement programs are currently under confidential review.    We are committed to providing competitive retirement benefits.   As a corporate Executive Vice President, you will participate in the company’s ERISA-qualified and executive retirement savings programs.

			
			
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			You will be eligible for full benefits with medical, dental and vision insurance effective the first day of the month following two full months of employment with Sysco.

			
			
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			Sysco will reimburse you for temporary housing and certain other expenses incurred in moving in accordance with the terms and conditions of Sysco’s Executive Vice President Relocation policy.  A summary of this program is attached hereto.    

			
			
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			As an Executive Vice President of Sysco Corporate, you will be required to comply with the Stock Ownership Requirements as set forth in the Corporate Governance Guidelines.   Assuming that your hire date is effective as of October 15, 2012, you will be required to own no less than 60,000 shares of Sysco Corporation stock by October 15, 2017.  During that five year period, you will be expected to retain 25% of the net shares acquired upon exercise of stock options and 25% of net shares acquired pursuant to vested RSU grants until your holdings meet or exceed the ownership requirements.

			
			
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			Notwithstanding the foregoing, if your employment with Sysco is terminated for any reason other than death, disability, a change of control of Sysco, an involuntary termination without cause, or a voluntary termination with good reason, within one year following the reimbursement of any such moving or rental expenses, then you will be required to pay back to Sysco the amount of any such reimbursement (plus the amount of any tax gross up paid on such amounts).  For this purpose “good reason” means (1) your demotion to a lesser position than the position in which you are serving prior to such demotion, (2) the assignment to you of duties materially inconsistent with your position or a material reduction of your duties, responsibilities or authority, in either case without your prior written consent, or (3) any reduction in your annual base salary without your prior consent unless other vice presidents suffer a proportionate reduction in their base salaries.

		
			 
		

		
			This offer is contingent upon final Board of Directors approval and successful completion of the pre-employment drug and background check process.  Please be advised that this letter is not intended to create or imply any contract or contractual rights between you and Sysco Corporation.  Any employee may terminate his/her employment at any time, with or without reason, and the company retains the same right.  
		

		
			 
		

		
			Wayne, we are very pleased to extend this offer to become a part of the Sysco family.  Your start date is to be determined.  Please confirm your acceptance of this offer by signing in the designated space provided below.
		

		
			 
		

		
			 
		

		

		

		 

 

		

			Mr.  Wayne Shurts

		

		

			September 13, 2012

		

		

			Page 2

		

		

			 

		

		
		

		
			 
		

		
			Welcome to Sysco!
		

		
			 
		

		
			Sincerely,
		

		
			 
		

		
			 
		

		
			/s/ Manuel A. Fernandez
		

		
			Manuel A. Fernandez
		

		
			Executive Chairman
		

		
			 
		

		
			                                                                        Agreed and Accepted:
		

		
			 
		

		
			                                                                        /s/ Wayne Shurts
		

		
			                                                                        ________________________________________
		

		
			 
		

		
			 
		

		
			 
		

		
			Attachment:  Sysco Corporation Executive Vice President US Domestic Relocation Policy
		

		
			                                                                                                            
		

		
			            
		

		
			c:            Connie Brooks, Director of Executive Benefits
		

		
			            Bill DeLaney, Chief Executive Officer and President
		

		
			            Russell T. Libby, Senior Vice President, General Counsel and Corporate Secretary 
		

		
			            Paul T. Moskowitz, Senior Vice President, Human Resources
		

		
			            Gene Sims, Director, Executive Compensation
		

		
			            Mark Wisnoski, Vice President, Total Rewards

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