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Exhibit 10.54    
  

 
 

SENIOR VICE PRESIDENT OF OPERATIONS 2002 INCENTIVE
  PLAN    
  

PURPOSE:    To reward the Senior Vice President of Operations for achievement of planned sales and planned controllable
operating profit, less regional and operations department overhead costs. 

PLAN YEAR:    The plan begins December 31, 2001 and ends on December 29, 2002. 

INCENTIVE PAY:    The incentive pay pool is equal to a percentage of the Regional Managers' incentive payout, a percent of salary for
achievement of minimum sales objectives, and a percent of salary for achievement of minimum controllable operating profit less regional and operations department overhead costs. See attached schedule. 

ELIGIBILITY:    Employed by Fresh Choice on the date incentive checks are calculated. 

BUDGET CHANGES DURING THE YEAR:    In the following situations, budgets may be revised to reflect the increased sales potential/change from
which incentive pay is calculated: 1) the timing of remodels versus budget (completion dates as well as which stores are actually remodeled); and 2) adding new stores or closing existing
stores. 

Plan Intent:    The Company retains the discretion to revise or cancel the program at any time with or without notice. 

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Exhibit 10.54

SENIOR VICE PRESIDENT OF OPERATIONS 2002 INCENTIVE PLANQuickLinks
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Exhibit 10.55    
  

 
 

NON QUALIFIED DEFERRED COMPENSATION PLAN
  OF
  FRESH CHOICE, INC.    
  

        This unfunded Non Qualified Deferred Compensation Plan (hereinafter referred to as the "Plan"), effective as of December 1, 2001, is hereby adopted and
established by FRESH CHOICE, INC. (hereinafter referred to as the "Company") and will be maintained by the Company for the purpose of providing
benefits for certain individuals as provided herein. 

ARTICLE I

ELIGIBILITY AND PARTICIPATION  

        Section 1.1  All management or highly compensated employees who reach the level of Senior Directors and Vice Presidents or higher with the
Company, and have been identified within the Company and selected to participate in the Plan by the Board of Directors of the Company, or the President of the Company are eligible to become and remain
Participants in the Plan. 

        Section 1.2  The
individuals described in Section 1.1 shall be eligible to participate in the Plan and may do so by filing a written election with the Company
in the form attached or other form approved by the Company. In the first year in which a Participant becomes eligible to participate in the Plan, the newly eligible Participant may make an election to
defer compensation for services to be performed subsequent to the election within 14 days after the effective date the person becomes eligible. Except as otherwise provided herein, elections to
defer payment of compensation must be made 30 days before the beginning of the calendar quarter for which the compensation is payable. 

        Section 1.3  Contributions. 

        A.    The
Company shall establish and maintain a separate Trust Agreement ("Trust Agreement Under the Non Qualified Deferred Compensation Plan of Fresh
Choice, Inc.") within which shall be maintained separate accounts in the name of each Participating Employee. Each account shall be credited no later than each year with
the amounts provided for under subsections B, C and D set forth below. 

        B.    Deferred
Compensation. The amount of each Participant's deferred compensation, as set forth on the Election from each Participant, shall be credited to this account
together with the Matching Contribution, as set forth hereafter, as of the date the deferred compensation otherwise would be payable. Any Participant to whom an amount is credited under the Plan shall
be deemed a general, unsecured creditor of the Company. 

        C.    Matching
Contributions. At the discretion of the Board of Directors, the Company may contribute a Matching Contribution to the account of each Participant in the Plan
which contribution, if made, to be subject to the Vesting provisions set forth in Section 3.2. The amount of such Matching Contribution shall be determined in the sole and absolute discretion
of the Board of Directors each year independent of the decision of the Board for any prior year. 

        D.    Account
Earnings. As of the end of each calendar quarter following the first contribution (or more frequently), the balance in the account of each Participant held in the
Trust established hereunder shall be credited with the earnings (or Losses) which have occurred during such period. 

        Section 1.4
Deferral Elections. 

        A.    Any
Participant may defer all or any portion of his or her compensation otherwise payable to him or her by the Company for the calendar year beginning after the date of
said election as he or she may specify in said written election to the Company, and the amounts so 

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deferred shall be paid only as provided in this Plan. Any Participant may change the amount of, or suspend, future deferrals with respect to compensation otherwise payable to him or her for the
quarter beginning after the date of change or suspension as he or she may specify by written notice to the Company. If a Participant elects to suspend deferrals, the Participant may only make a new
election to again become a Participant in the Plan no less than 30 days before the beginning of the next or any following calendar quarter for which the compensation is payable. 

        B.    In
addition, the Participant may make a Special Election within 30 days prior to the payment of any Bonus or Special Compensation payable in the future to the
Participant by making the Special Election on the form provided by the Company. Such Deferral shall be subject to the same terms and conditions as set forth above with regard to any other Deferral. 

ARTICLE II

INVESTMENT OF THE FUNDS  

        Section 2.1.  Investment Authority.    All investment decisions with regard to the assets of the Trust shall be exercised by Trustee
named therein or the person designated by Trustee, and the Trustee may grant to each Plan Participant the right to direct the Trustee as to the investments of the assets held in the account of such
Participant. 

        Section 2.2  To
the extent the Plan Participant exercises investment authority over the assets held in the Trust for the benefit of such Participant, neither the
Trustee or the Company shall have any liability or responsibility to the Participant for the results of such directed investments. 

ARTICLE III

DISTRIBUTION  

        Section 3.1  On the Company's normal payroll check date for the first full pay period following the date on which a Participant's employment
with the Company and all other related employers of the Company (as determined under Section 414 of the Internal Revenue Code) terminates for any reason including death, distribution of the
amount credited to the Participant's account in accordance with this Plan shall commence to or with respect to the Participant in accordance with either of the alternatives set forth below as selected
by the Participant. Selection of an alternative shall be made at the time the Participant first becomes eligible to receive benefits under the Plan. The alternative forms of distribution shall be: 

        A.
lump sum; or 

        B.
substantially equal bi-weekly installments in accordance with the Company's regular payroll cycle over a period not to exceed three (3) years. Interest credited to
a Participant's deferred compensation account as of the valuation date preceding the date of the next distribution shall be added to the Participant's account and distributed as a part of the next
installment. Distribution shall be made or commence effective with the check date for the first full pay period following the date on which the Participant's employment with the Company and any other
related employers of the Company (as determined under Section 414 of the Internal Revenue Code) terminates. Subsequent installments, if any, will be made bi-weekly in accordance
with the Company's regular payroll cycle following the date of the first installment. Each such installment, if any, shall include interest credited to the balance of the Participant's accounts. The
final installment will be the balance of the Participant's deferred compensation account and interest credited to the account. However, upon the request of a Participant whose account is in the
process of an installment distribution, the Board of Directors of the Company, in its sole discretion and without any obligation to do so, may accelerate any or all payments credited to said
Participant. 

        Section 3.2  The
Matching Contributions contributed to the account of the Participant, plus the earnings thereon, shall be subject to the following in the case of a
distribution which is payable on account of a termination of service for reasons other than death, disability, hardship and a hostile 

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takeover. The Matching Contributions (plus earnings thereon) shall be payable according to the following VESTING SCHEDULE: 

	Years of Service
 
	 	% Vested in Match/earnings.
	 
	1	 	20	%
	2	 	40	%
	3	 	60	%
	4	 	80	%
	5	 	100	%

        In
the event that all, or any portion, of the distribution payable to a Participant or his Beneficiary hereunder shall not be fully vested and therefore forfeited, such forfeited portion
shall be returned to the Company. 

        Section 3.3  If
a Participant should die before distribution of the full amount of the account described in this Plan has been made to the Participant, any remaining
amounts shall be distributed to the Participant's beneficiary by the method designated by the Participant in writing delivered to the Company at the time the Participant first elected to become a
Participant in the Plan. If a Participant has not designated a beneficiary, or if no designated beneficiary is living on the date of distribution, then, notwithstanding any provision herein to the
contrary, such amounts shall be distributed to such Participant's estate in a lump sum distribution as soon as administratively feasible following such Participant's death. 

        Section 3.4  In
the event a Participant incurs an unforeseeable emergency, the Participant may make a written request to the Company for a hardship withdrawal from his
or her account established under
the Plan. An unforeseeable emergency is a severe financial hardship to the Participant resulting from a sudden and unexpected illness or accident of the Participant or of a dependent (as defined in
Section 152(a) of the Code) of the Participant, loss of the Participant's property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events
beyond the control of the Participant. Withdrawals of amounts because of an unforeseeable emergency are only permitted to the extent reasonably needed to satisfy the emergency need. This section shall
be interpreted in a manner consistent with Sections 1.457-2(h)(4) and 1.457-2(h)(5) of the Treasury Regulations. 

        Section 3.5  The
Participant shall also be entitled to request a distribution of all accounts whenever it appears that there may be a "Hostile Takeover". "Hostile
Takeover" shall mean the occurrence of the following: 

        (A)
during any period of two (2) consecutive years beginning on or after the date hereof, the persons who were members of the Board immediately before the beginning of such period
(the "Incumbent Directors") cease (for any reason other than death) to constitute at least a majority of the Board or the board of directors of any successor to the Company, provided that, any
director who was not a director as of the date hereof shall be deemed to be an Incumbent Director if such director was elected to the Board by, or on the recommendation of or with the approval of, at
least two-thirds of the directors who then qualified as Incumbent Directors either actually or by prior operation of the foregoing unless such election, recommendation or approval occurs
as a result of an actual or threatened election contest or other actual or threatened solicitation of proxies or contests by or on behalf of a person other than a member of the Board; or 

        (B)
any person (as defined in Section 3(a)(9) of the Exchange Act and as used in Sections 13(d) and 14(d)thereof), excluding the Company, any subsidiary of the Company and any
employee benefit plan sponsored or maintained by the Company or any subsidiary of the Company (including any trustee of any such plan acting in his capacity as trustee), becomes the "beneficial owner"
(as defined in Rule 1 3d-3 under the Exchange Act) of securities of the Company 

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representing thirty percent (30%) of the total combined voting power of the Company's then outstanding securities other than pursuant to a transaction approved by at least two-thirds of
the directors who then qualify as Incumbent Directors. 

        Section 3.6  Anything
herein to the contrary notwithstanding, if, at any time, a court or the Internal Revenue Service determines that an amount in a Participant's
account is includable in the gross income of the Participant and subject to tax, the Board of Directors of the Company may, in its sole discretion, permit a lump sum distribution of an amount equal to
the amount determined to be includable in the Participant's gross income. 

ARTICLE IV

AMENDMENT AND TERMINATION OF PLAN  

        The Company reserves the right to amend or terminate the Plan at any time. Any such termination shall be effective as of the end of the calendar year during which
notification is given to each Participant. Notification will be by first class mail, addressed to each Participant at the Participant's last known address, or by other notice acknowledged in writing
by the Participant. Any amounts credited to an account of any Participant shall remain subject to the provisions of the Plan and distribution will not be accelerated because of the termination of the
Plan. No amendment or termination shall directly or indirectly reduce the balance of any account described in this Plan as of the effective date of such amendment or termination. No additional credits
or contributions will be made to the accounts of the Participants under the Plan after termination of the Plan, but interest may continue to be credited to the accounts of the Participants under the
Plan until all benefits are distributed to the Participants or to their beneficiaries. Upon termination of the Plan, distribution of amounts credited to the accounts of the Participants shall be made
to the Participants or their beneficiaries in accordance with Article III of this Plan. 

ARTICLE V

CLAIMS PROCEDURE  

        Section 5.1  For purposes of handling claims with respect to this Plan, the "Claims Reviewer" shall be the Company, unless another person or
organizational unit is designated by the Company as Claims Reviewer. 

        Section 5.2  An
initial claim for benefits under the Plan must be made by the Participant or his or her beneficiary in accordance with the terms of the Plan through
which the benefits are provided. Not later than 90 days after receipt of such a claim, the Claims Reviewer will render a written decision on the claim to the claimant, unless special
circumstances require the extension of such 90-day period. If such extension is necessary, the Claims Reviewer shall provide the Participant or the Participant's beneficiary with written
notification of such extension before the expiration of the initial 90-day period. Such notice shall specify the reason or reasons for such extension and the date by which a final decision
can be expected. In no event shall such extension exceed a period of 90 days from the end of the initial 90-day period. In the event the Claims Reviewer denies the claim of a
Participant or the beneficiary in whole or in part, the Claims Reviewer's written notification shall specify, in a manner calculated to be understood by the claimant, the reason for the denial; a
reference to the Plan or other document or form that is the basis for the denial; a description of any additional material or information necessary for the claimant to perfect the claim; an
explanation as to why such information or material is necessary; and an explanation of the applicable claims procedure. Should the claim be denied in whole or in part and should the claimant be
dissatisfied with the Claims Reviewer's disposition of the claimant's claim, the claimant may have a full and fair review of the claim by the Company upon written request therefore submitted by the
claimant or the claimant's duly authorized representative and received by the Company within 60 days after the claimant receives written notification that the claimant's claim has been denied.
In connection with such review, the claimant or the claimant's duly authorized representative shall be entitled to review pertinent documents and submit the claimant's views as to the issues, in
writing. The Company shall act to deny or accept the 

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claim within 60 days after receipt of the claimant's written request for review unless special circumstances require the extension of such 60-day period. If such extension is
necessary, the Company shall provide the claimant with written notification of such extension before the expiration of such initial 60-day period. In all events, the Company shall act to
deny or accept the claim within 120 days of the receipt of the claimant's written request for review. The action of the Company shall be in the form of a written notice to the claimant and its
contents shall include all of the requirements for action on the original claim. In no event may a claimant commence legal action for benefits the claimant believes are due the claimant until the
claimant has exhausted all of the remedies and procedures afforded the claimant by this Article V. 

ARTICLE VI

ADMINISTRATION  

        Section 6.1  The right of a Participant or the Participant's beneficiary to receive a distribution hereunder shall be an unsecured claim
against the general assets of the Company, and neither a Participant nor his or her designated beneficiary shall have any rights in or against any amount credited to any accounts under this Plan or
any other assets of the Company. The Plan at all times shall be considered entirely unfunded both for tax purposes and for purposes of Title I of the Employee Retirement Income Security Act of 1974,
as amended. Any funds invested hereunder shall continue for all purposes to be part of the general assets of the Company and available to its general creditors in the event of bankruptcy or
insolvency. Accounts under this Plan and any benefits which may be payable pursuant to this Plan are not subject in any manner to anticipation, sale, alienation, transfer, assignment, pledge,
encumbrance, attachment, or garnishment by creditors of a Participant or a Participant's beneficiary. The Plan constitutes a mere promise by the Company to make benefit payments in the future. No
interest or right to receive a benefit may be taken, either voluntarily or involuntarily, for the satisfaction of the debts of, or other obligations or claims against, such person or entity, including
claims for alimony, support, separate maintenance and claims in bankruptcy proceedings. 

        Section 6.2  The
Plan shall be administered by the Board of Directors of the Company, which shall have the authority, duty and power to interpret and construe the
provisions of the Plan as the Board deems appropriate including the authority to determine eligibility for benefits under the Plan and the authority to delegate these functions to any person within
the Company who shall thereafter be designated as the "Plan Administrator". The Board, or its designated representative, shall have the duty and responsibility of maintaining records, making the
requisite calculations and disbursing the payments hereunder. The interpretations, determinations, regulations and calculations of the Board or the Plan Administrator shall be final and binding on all
persons and parties concerned. Any benefits payable under this Plan will be paid only if the Board or the Plan Administrator decides in its discretion that the applicant is entitled to them. 

        Section 6.3  Expenses
of administration shall be paid by the Company. The Board of Directors of the Company shall be entitled to rely on all tables, valuations,
certificates, opinions, data and reports furnished by any actuary, accountant, controller, counsel or other person employed or retained by the Company with respect to the Plan. 

        Section 6.4  The
Board of Directors of the Company shall furnish individual quarterly statements of accrued benefits to each Participant, or current beneficiary, in
such form as determined by the Board of Directors or as required by law. 

        Section 6.5  The
sole rights of a Participant or beneficiary under this Plan shall be to have this Plan administered according to its provisions, to receive whatever
benefits he or she may be entitled to hereunder, and nothing in the Plan shall be interpreted as a guaranty that any funds in any trust which may be established in connection with the Plan or assets
of the Company will be sufficient to pay any benefit hereunder. Further, the adoption and maintenance of this Plan shall not be construed as 

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creating any contract of employment between the Company and any Participant. The Plan shall not affect the right of the Company to deal with any Participants in employment respects, including their
hiring, discharge, compensation, and conditions of employment. 

        Section 6.6  The
Company may from time to time establish rules and procedures which it determines to be necessary for the proper administration of the Plan and the
benefits payable to an individual in the event that individual is declared incompetent and a conservator or other person legally charged with that individual's care is appointed. Except as otherwise
provided herein, when the Company determines that such individual is unable to manage his or her financial affairs, the Company may pay such individual's benefits to such conservator, person legally
charged with such individual's care, or institution then contributing toward or providing for the care and maintenance of such individual. Any such payment shall constitute a complete discharge of any
liability of the Company and the Plan for such individual. 

        Section 6.7  The
Plan may be continued after a sale of assets of the Company, or a merger or consolidation of the Company into or with another corporation or entity
only if and to the extent that the transferee, purchaser or successor entity agrees to continue the Plan. In the event that the Plan is not continued by the transferee, purchaser or successor entity,
then the Plan shall be terminated subject to the provisions of Article IV. 

        Section 6.8  Each
Participant shall keep the Company informed of his or her current address and the current address of his or her designated beneficiary. The Company
shall not be obligated to search for any person. If such person is not located within three (3) years after the date on which payment of the Participant's benefits payable under this Plan may
first be made, payment may be made as though the Participant or his or her beneficiary had died at the end of such three year period. 

        Section 6.9  Notwithstanding
any provision herein to the contrary, neither the Company nor any individual acting as an employee or agent of the Company shall be liable
to any Participant, former Participant, designated beneficiary, or any other person for any claim, loss, liability or expense incurred in connection with the Plan, unless attributable to fraud or
willful misconduct on the part of the Company or any such employee or agent of the Company. 

        Section 6.10  All
questions pertaining to the construction, validity and effect of the Plan shall be determined in accordance with the laws of the United States and to
the extent not preempted by such laws, by the laws of the State of California. 

        IN
WITNESS WHEREOF, this Plan is executed and delivered on this 17th day of December, 2001 by the following officers who have been duly authorized to adopt the Plan on the day and year
first written above. 

	 	 	FRESH CHOICE, INC.
	

 	
 	
By:	

/s/ Everett F. Jefferson
 President
	

 	
 	

By:	

/s/ Joan M. Miller
 Secretary

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Exhibit 10.55

NON QUALIFIED DEFERRED COMPENSATION PLAN OF FRESH CHOICE, INC.

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