Document:

exv10wd

 

Exhibit 10(d)

THIRD AMENDED AND RESTATED

SYSCO CORPORATION

EXECUTIVE DEFERRED COMPENSATION PLAN

Effective January 1, 2005

 

 

THIRD AMENDED AND RESTATED

SYSCO CORPORATION

EXECUTIVE DEFERRED COMPENSATION PLAN

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	ARTICLE I — DEFINITIONS	 	 	3	 
	 
	 	 	 	 	 	 
	ARTICLE II — ELIGIBILITY	 	 	12	 
	 
	 	 	 	 	 	 
	ARTICLE III — PARTICIPANT DEFERRALS AND COMPANY CONTRIBUTIONS	 	 	13	 
	3.1

	 	Bonus Deferral Election
	 	 	13	 
	3.2

	 	Company Match
	 	 	14	 
	3.3

	 	Salary Deferral Election
	 	 	14	 
	3.4

	 	Discretionary Company Contributions
	 	 	15	 
	3.5

	 	Cancellation of Salary Deferral Election upon the Occurrence of an Unforeseeable Emergency
	 	 	16	 
	 
	 	 	 	 	 	 
	ARTICLE IV — ACCOUNT	 	 	16	 
	4.1

	 	Establishing a Participant’s Account
	 	 	16	 
	4.2

	 	Credit of the Participant’s Bonus Deferral and the Company’s Match
	 	 	16	 
	4.3

	 	Credit of the Participant’s Salary Deferrals
	 	 	17	 
	4.4

	 	Deemed Investment of Deferrals
	 	 	17	 
	4.5

	 	Crediting of Interest on Company Match
	 	 	19	 
	4.6

	 	Procedure to Credit or Debit Interest, Earnings or Losses Upon an Event of Distribution
	 	 	19	 
	 
	 	 	 	 	 	 
	ARTICLE V — VESTING	 	 	21	 
	5.1

	 	Deferrals
	 	 	21	 
	5.2

	 	Company Match
	 	 	21	 
	 
	 	 	 	 	 	 
	ARTICLE VI — DISTRIBUTIONS	 	 	22	 
	6.1

	 	Death
	 	 	22	 
	6.2

	 	Disability
	 	 	23	 
	6.3

	 	Retirement
	 	 	23	 
	6.4

	 	Distributions Upon Termination
	 	 	23	 
	6.5

	 	In-Service Distributions
	 	 	24	 
	6.6

	 	Distribution Elections for Deferrals
	 	 	24	 
	6.7

	 	Forfeiture For Cause
	 	 	28	 
	6.8

	 	Forfeiture for Competition
	 	 	28	 
	6.9

	 	Hardship Withdrawals
	 	 	29	 
	6.10

	 	Payments Upon Income Inclusion Under Section 409A
	 	 	30	 
	6.11

	 	Restrictions on any Portion of Total Payments Determined to be Excess Parachute Payments
	 	 	30	 
	6.12

	 	Responsibility for Distributions and Withholding of Taxes
	 	 	31	 
	 
	 	 	 	 	 	 
	ARTICLE VII — ADMINISTRATION	 	 	32	 
	7.1

	 	Committee Appointment
	 	 	32	 
	7.2

	 	Committee Organization and Voting
	 	 	32	 
	7.3

	 	Powers of the Committee
	 	 	32	 
	7.4

	 	Committee Discretion
	 	 	33	 
	7.5

	 	Reimbursement of Expenses
	 	 	33	 
	7.6

	 	Indemnification
	 	 	33	 
	7.7

	 	Claims Procedure
	 	 	34	 

-i-

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	ARTICLE VIII — ADOPTION BY SUBSIDIARIES	 	 	35	 
	8.1

	 	Procedure for and Status After Adoption
	 	 	35	 
	8.2

	 	Termination of Participation By Adopting Subsidiary
	 	 	36	 
	 
	 	 	 	 	 	 
	ARTICLE IX — AMENDMENT AND/OR TERMINATION	 	 	36	 
	9.1

	 	Amendment or Termination of the Plan
	 	 	36	 
	9.2

	 	No Retroactive Effect on Awarded Benefits
	 	 	36	 
	9.3

	 	Effect of Termination
	 	 	37	 
	 
	 	 	 	 	 	 
	ARTICLE X — FUNDING	 	 	38	 
	10.1

	 	Payments Under This Agreement are the Obligation of the Company
	 	 	38	 
	10.2

	 	Agreement May be Funded Through Rabbi Trust
	 	 	38	 
	10.3

	 	Reversion of Excess Assets
	 	 	38	 
	10.4

	 	Participants Must Rely Only on General Credit of the Company
	 	 	39	 
	 
	 	 	 	 	 	 
	ARTICLE XI — MISCELLANEOUS	 	 	40	 
	11.1

	 	Limitation of Rights
	 	 	40	 
	11.2

	 	Distributions to Incompetents or Minors
	 	 	40	 
	11.3

	 	Non-alienation of Benefits
	 	 	40	 
	11.4

	 	Reliance Upon Information
	 	 	41	 
	11.5

	 	Severability
	 	 	41	 
	11.6

	 	Notice
	 	 	41	 
	11.7

	 	Gender and Number
	 	 	41	 
	11.8

	 	Governing Law
	 	 	41	 
	11.9

	 	Effective Date
	 	 	41	 
	11.10

	 	Compliance with Section 409A of the Code
	 	 	42	 

-ii-

 

THIRD AMENDED AND RESTATED

SYSCO CORPORATION

EXECUTIVE DEFERRED COMPENSATION PLAN

     WHEREAS, Sysco Corporation sponsors and maintains the Second Amended and Restated Sysco
Corporation Executive Deferred Compensation Plan, effective April 1, 2002 (the “Current
Plan”) to provide the executives of Sysco Corporation the opportunity to defer the receipt of
some or all of their compensation; and

     WHEREAS, the American Jobs Creation Act of 2004 added Section 409A to the Internal Revenue
Code of 1986, as amended (the “Code”), and Section 409A of the Code imposes certain
restrictions on compensation deferred on and after January 1, 2005; and

     WHEREAS, the Board of Directors has determined that it is in the best interests of Sysco and
the Plan participants to amend the Plan to provide for certain expanded rights related to early
retirement benefits and to expand certain other rights provided in this Plan; and

     WHEREAS, the Board of Directors has determined that it is in the best interests of Sysco
Corporation and its current and former executives to amend and restate the Current Plan to comply
with Section 409A of the Code with respect to all benefits provided under the Current Plan, without
regard to when such benefits became earned and vested.

     NOW, THEREFORE, Sysco Corporation hereby adopts the Third Amended and Restated Executive
Deferred Compensation Plan as follows:

ARTICLE I

DEFINITIONS

     Account. “Account” means a Participant’s Account in the Deferred Compensation Ledger
maintained by the Committee which reflects the entire interest of the Participant in the Plan, as
adjusted herein for deemed Investment earnings and losses and credited interest. A Participant’s
Account shall be comprised of, if applicable, such Participant’s Termination/Retirement Account and
In-Service Distribution Account(s).

-3-

 

     Affiliate. “Affiliate” means any entity with respect to which Sysco beneficially
owns, directly or indirectly, at least 50% of the total voting power of the interests of such
entity and at least 50% of the total value of the interests of such entity.

     Beneficiary. “Beneficiary” means a person or entity designated by the Participant
under the terms of this Plan to receive any amounts distributed under the Plan upon the death of
the Participant.

     Board of Directors. “Board of Directors” means the Board of Directors of Sysco.

Bonus Deferral. “Bonus Deferral” shall have the meaning set forth in Section 3.1.

     Bonus Deferral Election. “Bonus Deferral Election” shall have the meaning set forth in
Section 3.1.

     Business Day. “Business Day” means any day on which the New York Stock Exchange is
open for trading.

     Change of Control. “Change of Control” means the occurrence of one or more of the
following events:

          (a) The acquisition by any individual, entity or group (within the meaning of Section 13(d)(3)
or 14(d)(2) of the Securities Act (a “Person”) of beneficial ownership (within the meaning
of Rule 13d-3 promulgated under the Securities Act) of 20% or more of either (i) the
then-outstanding shares of Sysco common stock (the “Outstanding Sysco Common Stock”) or
(ii) the combined voting power of the then-outstanding voting securities of Sysco entitled to vote
generally in the election of directors (the “Outstanding Sysco Voting Securities”);
provided, however, that the following acquisitions shall not constitute a Change of Control: (1)
any acquisition directly from Sysco, (2) any acquisition by Sysco, (3) any acquisition by any
employee benefit plan (or related trust) sponsored or maintained by Sysco or any Affiliate, or (4)
any acquisition by any corporation; pursuant to a transaction that complies with subparagraphs
(c)(i), (c)(ii) and (c)(iii) of this definition;

          (b) Individuals who, as of November 10, 2005, constitute the Board of Directors (the
“Incumbent Board”) cease for any reason to constitute at least a majority of the Board of
Directors; provided, however, that any individual becoming a director subsequent to

-4-

 

November 10, 2005 whose election, or nomination for election by Sysco’s stockholders, was
approved by a vote of at least a majority of the directors then comprising the Incumbent Board
shall be considered as though such individual were a member of the Incumbent Board, but excluding,
for this purpose, any such individual whose initial assumption of office occurs as a result of an
actual or threatened election contest with respect to the election or removal of directors or other
actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the
Board of Directors;

          (c) Consummation of a reorganization, merger, statutory share exchange or consolidation or
similar corporate transaction involving Sysco or any of its Affiliates, a sale or other disposition
of all or substantially all of the assets of Sysco, or the acquisition of assets or stock of
another entity by Sysco or any of its Affiliates (each, a “Business Combination”), in each
case unless, following such Business Combination, (i) all or substantially all of the individuals
and entities that were the beneficial owners of the Outstanding Sysco Common Stock and the
Outstanding Sysco Voting Securities immediately prior to such Business Combination beneficially
own, directly or indirectly, more than 60% of the then-outstanding shares of common stock and the
combined voting power of the then-outstanding voting securities entitled to vote generally in the
election of directors, as the case may be, of the corporation resulting from such Business
Combination (including, without limitation, a corporation that, as a result of such transaction,
owns Sysco or all or substantially all of Sysco’s assets either directly or through one or more
subsidiaries) in substantially the same proportions as their ownership immediately prior to such
Business Combination of the Outstanding Sysco Common Stock and the Outstanding Sysco Voting
Securities, as the case may be, (ii) no Person (excluding any corporation resulting from such
Business Combination or any employee benefit plan (or related trust) of Sysco or such corporation
resulting from such Business Combination) beneficially owns, directly or indirectly, 20% or more
of, respectively, the then-outstanding shares of common stock of the corporation resulting from
such Business Combination or the combined voting power of the then-outstanding voting securities of
such corporation, except to the extent that such ownership existed prior to the Business
Combination, and (iii) at least a majority of the members of the board of directors of the

-5-

 

corporation resulting from such Business Combination were members of the Incumbent Board at
the time of the execution of the initial agreement or of the action of the Board of Directors
providing for such Business Combination; or

          (d) Approval by the stockholders of Sysco of a complete liquidation or dissolution of Sysco.

     Claimant. “Claimant” shall have the meaning set forth in Section 7.7.

     Code. “Code” means the Internal Revenue Code of 1986, as amended from time to time.

     Company. “Company” means Sysco and any Subsidiary that has adopted the Plan with the
approval of the Committee, pursuant to Section 8.1.

     Company Match. “Company Match” shall have the meaning set forth in Section 3.2.

     Committee. “Committee” means the persons who are from time to time serving as members
of the committee administering this Plan.

     Default Distribution Option. “Default Distribution Option” shall have the meaning set
forth in Section 6.6(c)(iv).

     Default Investment. “Default Investment” shall mean a hypothetical investment with an
investment return equal to the monthly average of the Moody’s Average Corporate Bond Yield for the
calendar year ending prior to the beginning of the Plan Year for which such rate shall be
effective, plus one (1) percent; provided, however, for calendar years commencing on or after
January 1, 2006, “Default Investment” shall mean a hypothetical investment with a per annum
investment return equal to the sum of (x) the monthly average of the Moody’s Average Corporate Bond
Yield (determined by dividing the sum of the Corporate Bond Yield Averages for each month, as
published in Moody’s Bond Survey, by the number of months in the applicable calculation period) for
the period described in (i) or (ii) that produces the higher rate: (i) the six-month period ending
on October 31st of the calendar year prior to the calendar year for which such rate
shall be effective, or (ii) the twelve-month period ending on October 31st of the
calendar year prior to the calendar year for which such rate shall be effective, plus (y) 1%, or
such other Investment designated by the Committee as the “Default Investment” on Exhibit
“A” attached hereto. The investment return of the Default Investment shall be re-determined
annually as of

-6-

 

November 1st of the calendar year prior to the calendar year for which such rate
shall be effective. The investment return, once established, shall be effective as of January
1st of the calendar year following the calendar year in which such investment return is
calculated and shall remain in effect for the entire calendar year.

     Deferrals. “Deferrals” shall mean Bonus Deferrals and Salary Deferrals.

     Deferral Election. “Deferral Election” shall mean either a Bonus Deferral Election, a
Salary Deferral Election or both.

     Deferred Compensation Ledger. “Deferred Compensation Ledger” means the ledger
maintained by the Committee for each Participant which reflects the amount of the Participant’s
Deferrals, Company Match, credits and debits for deemed Investment earnings and losses pursuant to
Sections 4.4 and 4.6, interest credited pursuant to Sections 4.5 and 4.6, and cash distributed to
the Participant or the Participant’s Beneficiaries pursuant to Article VI.

     Disability. “Disability” means that a Participant (i) is unable to engage in any
substantial gainful activity by reason of any medically determinable physical or mental impairment
which can be expected to result in death or can be expected to last for a continuous period of not
less than twelve (12) months; (ii) is, by reason of any medically determinable physical or mental
impairment which can be expected to result in death or can be expected to last for a continuous
period of not less than twelve (12) months, receiving income replacement benefits for a period not
less than three (3) months under an accident and health plan covering employees of the Company; or
(iii) has been determined by the Social Security Administration to be totally disabled.

     Eligibility Date. “Eligibility Date” means the date as of which an employee of a
Company is first eligible to participate in the Plan. An employee shall be notified of the
employee’s Eligibility Date by the Committee or its designee.

     Fair Market Value. “Fair Market Value” means, with respect to any Investment, the
closing price on the date of reference, or if there were no sales on such date, then the closing
price on the nearest preceding day on which there were such sales, and in the case of an unlisted
security, the mean between the bid and asked prices on the date of reference, or if no such prices
are available for such date, then the mean between the bid and asked prices on the nearest
preceding day for

-7-

 

which such prices are available. With respect to any Investment which reports “net asset
values” or similar measures of the value of an ownership interest in the Investment, Fair Market
Value shall mean such closing net asset value on the date of reference, or if no net asset value
was reported on such date, then the net asset value on the nearest preceding day on which such net
asset value was reported. For any Investment not described in the preceding sentences, Fair Market
Value shall mean the value of the Investment as determined by the Committee in its reasonable
judgment on a consistent basis, based upon such available and relevant information as the Committee
determines to be appropriate.

     Fixed Interest Option. “Fixed Interest Option” shall have the meaning set forth in
Section 4.4(d).

     In-Service Account. “In-Service Account” means a separate recordkeeping account under
a Participant’s Account in the Deferred Compensation Ledger that is created when a Participant
elects a new In-Service Distribution Date with respect to amounts deferred hereunder.

     In-Service Distribution. “In-Service Distribution” means a payment by Sysco to the
Participant following the occurrence of an In-Service Distribution Date of the amount represented
by the balance in the In-Service Account with respect to such In-Service Distribution Date.

     In-Service Distribution Date. “In-Service Distribution Date” means the date selected
by the Participant following which the Participant’s applicable In-Service Account shall be paid.

     In-Service Distribution Election. “In-Service Distribution Election” shall have the
meaning set forth in Section 6.6(a)(ii).

     Installment Distribution Option. “Installment Distribution Option” shall have the
meaning set forth in Section 6.6(c)(i).

     Investment. “Investment” means the options set forth in Exhibit “A” attached
hereto, including interest credited at the investment return of the Default Investment, as the same
may be amended from time to time by the Committee in its sole and absolute discretion.

     Lump Sum Distribution Option. “Lump Sum Distribution Option” shall have the meaning
set forth in Section 6.6(c)(ii).

-8-

 

     Management Incentive Plan. “Management Incentive Plan” means the Sysco Corporation
1995 Management Incentive Plan, the Sysco Corporation 2000 Management Incentive Plan, and the Sysco
Corporation 2005 Management Incentive Plan, as each may be amended from time to time, any successor
plan, and, at the discretion of the Committee, any other management incentive plan of Sysco.

     MIP Bonus. “MIP Bonus” means a bonus awarded or to be awarded to the Participant
under the Management Incentive Plan.

     MIP Participation. “MIP Participation” means participation in the Management Incentive
Plan. Solely for purposes of vesting under this Plan, MIP Participation shall include the time the
Participant was not eligible to participate in the Management Incentive Plan if, the Participant
(i) was previously eligible to participate in the Management Incentive Plan, (ii) employed by the
Company while such Participant was ineligible to participate in the Management Incentive Plan; and
(ii) later becomes eligible to again participate in the Management Incentive Plan.

     Participant. “Participant” means an employee of a Company who becomes eligible for or
is participating in the Plan, and any other current or former employee of a Company who has an
Account in the Deferred Compensation Ledger.

     Performance Based Compensation. “Performance Based Compensation” means compensation
that is based on services performed over a period of at least twelve (12) months to the extent it
is contingent on satisfaction of pre-established performance criteria and not readily ascertainable
at the time of the Participant’s deferral election, as determined by the Committee in accordance
with Section 409A.

     Plan. “Plan” means the Third Amended and Restated Sysco Corporation Executive
Deferred Compensation Plan, as set forth in this document and amended from time to time.

     Plan Year. “Plan Year” means a one-year period that coincides with the fiscal year of
Sysco. Sysco has a 52/53 week fiscal year beginning on the Sunday next following the Saturday
closest to June 30th of each calendar year.

     Retirement. “Retirement” means (i) with respect to any Participant’s Separation from
Service before July 3, 2005, “Retirement” means any Separation from Service of a Participant from
the

-9-

 

Company for any reason other than death or Disability on or after attaining age sixty (60);
and (ii) with respect to any Participant’s Separation from Service on or after July 3, 2005,
“Retirement” means a Participant’s Separation from Service from the Company for any reason other
than death or Disability on or after the earlier of (A) the date the Participant attains age sixty
(60), or (B) the date that the Participant has attained age fifty-five (55) and has at least
fifteen (15) years of MIP Participation.

     Retirement Investment Election. “Retirement Investment Election” shall have the
meaning set forth in Section 4.4(d).

     Salary Compensation. “Salary Compensation” means any base salary plus any receipts of
commission compensation which is otherwise payable to a Participant in cash by the Company in any
calendar year. Specifically, “Salary Compensation” shall include contributions made by the Company
on behalf of a Participant under any salary reduction or similar arrangement to a cafeteria plan
described in Section 125 of the Code, elective contributions pursuant to an arrangement qualified
under Section 401(k) of the Code, amounts contributed as Salary Deferrals under this Plan, and any
additional amounts determined in the sole discretion of the Committee. “Salary Compensation” shall
exclude moving expenses, any gross up of moving expenses to account for increased income taxes,
Company contributions under any qualified retirement plan, Company accruals to a Participant’s
account under the Sysco Corporation Supplemental Executive Retirement Plan, any amounts payable to
the Participant under the Sysco Corporation Long Term Incentive Cash Plan, a Participant’s MIP
Bonus, any amounts relating to the grant of a stock option, the exercise of a stock option, or the
sale or deemed sale of any shares thereby acquired, any compensation paid in the form of shares of
Sysco stock, bonus paid as an inducement to enter the employment of the Company, any severance
payments or other compensation which is paid to a Participant as a result of the Participant’s
termination of employment with the Company, and any additional amounts determined in the sole
discretion of the Committee.

     Salary Deferral. “Salary Deferral” shall have the meaning set forth in Section 3.3.

     Salary Deferral Election. “Salary Deferral Election” shall have the meaning set forth
in Section 3.3.

-10-

 

     Section 409A. “Section 409A” means Section 409A of the Code. References herein to
“Section 409A” shall also include any regulatory and other interpretive authority promulgated by
the Treasury Department or the Internal Revenue Service under Section 409A of the Code.

     Securities Act. “Securities Act” means the Securities Exchange Act of 1934, as
amended from time to time.

     Separation from Service. “Separation from Service” means “separation from service”
within the meaning of Section 409A.

     Specified Employee. “Specified Employee” means a “specified employee” as defined in
Section 409A(a)(2)(B)(i) of the Code. By way of clarification, “specified employee” means a “key
employee” (as defined in Section 416(i) of the Code, disregarding Section 416(i)(5) of the Code) of
the Company. A Participant shall be treated as a key employee if the Participant meets the
requirements of Section 416(i)(1)(A)(i), (ii), or (iii) (applied in accordance with the Treasury
Regulations thereunder and disregarding Section 416(i)(5) of the Code) at any time during the
twelve (12) month period ending on an Identification Date. If a Participant is a key employee as
of an Identification Date, the Participant shall be treated as a Specified Employee for the twelve
(12) month period beginning on the first day of the fourth month following such Identification
Date. For purposes of any “Specified Employee” determination hereunder, the “Identification Date”
shall mean the last day of the calendar year. The Committee may in its discretion amend the Plan to
change the Identification Date, provided that any change to the Plan’s Identification Date shall
not take effect for at least twelve (12) months after the date of the Plan amendment authorizing
such change.

     Subsidiary. “Subsidiary” means (a) any corporation which is a member of a “controlled
group of corporations” which includes Sysco, as defined in Code Section 414(b), (b) any trade or
business under “common control” with Sysco, as defined in Code Section 414(c), (c) any organization
which is a member of an “affiliated service group” which includes Sysco, as defined in Code Section
414(m), (d) any other entity required to be aggregated with Sysco pursuant to Code Section 414(o),
and (e) any other organization or employment location designated as a “Subsidiary” by resolution of
the Board of Directors or by the Committee for purposes of this Plan.

-11-

 

     Sysco. “Sysco” means Sysco Corporation, the sponsor of this Plan.

     Termination. “Termination” means Separation from Service with the Company,
voluntarily or involuntarily, for any reason other than Retirement, death or Disability.

     Termination/Retirement Account. “Termination/Retirement Account” means that portion
of a Participant’s Account in the Deferred Compensation Ledger that has not been allocated to
In-Service Accounts.

     Treasury Regulations. “Treasury Regulations” means the Federal Income Tax
Regulations, and to the extent applicable any Temporary or Proposed Regulations, promulgated under
the Code, as such regulations may be amended from time to time (including corresponding provisions
of succeeding regulations).

     Total Payments. “Total Payments” means all payments or benefits received or to be
received by a Participant in connection with a Change of Control of Sysco and the termination of
his employment under the terms of this Plan, the Sysco Corporation Supplemental Executive
Retirement Plan, and in connection with a Change of Control of Sysco under the terms of any stock
option plan or any other plan, arrangement or agreement with the Company, its successors, any
person whose actions result in a Change of Control or any person affiliated with the Company or
who, as a result of the completion of transactions causing a Change of Control, become affiliated
with the Company within the meaning of Section 1504 of the Code, taken collectively.

     Unforeseeable Emergency. “Unforeseeable Emergency” shall have the meaning set forth
in Section 6.9.

     Variable Investment Option. “Variable Investment Option” shall have the meaning set
forth in Section 4.4(d).

ARTICLE II

ELIGIBILITY

     Initially, all participants in the Management Incentive Plan, exclusive of any participant
whose compensation income from the Company and its Subsidiaries is subject to taxation under

-12-

 

the Canadian income tax laws, shall be eligible to participate in this Plan. However, the
Committee retains the right to establish such additional eligibility requirements for participation
in this Plan as it may determine is appropriate or necessary from time to time and has the right to
determine, in its sole discretion, that any one or more persons who meet the eligibility
requirements shall not be eligible to participate for one or more Plan Years beginning after the
date they are notified of this decision by the Committee.

ARTICLE III

PARTICIPANT DEFERRALS AND COMPANY CONTRIBUTIONS

     3.1 Bonus Deferral Election. A Participant may elect, what, if any, percentage of his
MIP Bonus earned during a given Plan Year is to be deferred under this Plan (a “Bonus Deferral
Election”), and such percentage shall be designated by the Participant pursuant to such form as
approved by the Committee for this purpose (any such amount so deferred, a “Bonus
Deferral”). To be eligible to make a Bonus Deferral Election for a given Plan Year, a
Participant’s Eligibility Date must occur or have occurred on or before the first day of the Plan
Year to which such Bonus Deferral Election relates. To make a Bonus Deferral Election, a
Participant must complete, execute and file with the Committee a Bonus Deferral Election form
within the applicable deadlines set forth below. A Bonus Deferral Election shall apply only with
respect to the Plan Year specified in the Bonus Deferral Election form, and except as provided in
Section 3.5 hereof, shall be irrevocable after the applicable deadline for making a Bonus Deferral
Election for such Plan Year. To be effective, a Participant’s Bonus Deferral Election form must be
received by the Committee within the period established by the Committee for a given Plan Year,
provided that such period ends no later than the following times: (i) if the MIP Bonus qualifies as
Performance Based Compensation (as applied on a Participant-by-Participant basis), the date that is
six (6) months before the end of the Plan Year with respect to which such MIP Bonus is payable; or
(ii) if the MIP Bonus does not qualify as Performance Based Compensation, the last day of the Plan
Year immediately preceding the Plan Year with respect to which such MIP Bonus is payable. Prior to
the period the Committee establishes for each Participant to make his Bonus Deferral Election, the Committee shall
notify all eligible Participants of the maximum and minimum

-13-

 

percentages of the MIP
Bonus earned during a given Plan Year that may be deferred. If the Committee does not receive a
Participant’s Bonus Deferral Election form within the period established for such purpose by the
Committee for such Plan Year, the Participant shall be deemed to have elected not to make a Bonus
Deferral Election for that Plan Year.

     3.2 Company Match. The Company shall award to each Participant who elects to defer a
portion of his MIP Bonus under this Plan an amount equal to 50% of that portion of the amount of
the MIP Bonus deferred which is not in excess of 20% of his MIP Bonus, for a maximum potential
match by the Company of 10% of the Participant’s MIP Bonus (any such amount so awarded, a
“Company Match”); provided, however, that for Bonus Deferrals made for Plan Years beginning
on or after July 3, 2005, the Company shall award to each Participant who elects to defer a portion
of his MIP Bonus under this Plan, a Company Match equal to 15% of that portion of the amount of the
MIP Bonus deferred which is not in excess of 20% of his MIP Bonus, for a maximum potential Company
Match of 3% of the Participant’s MIP Bonus. Notwithstanding anything herein or otherwise to the
contrary, in no event shall the calculation of the Company Match take into account amounts deferred
pursuant to Section 3.3.

     3.3 Salary Deferral Election. A Participant may elect to defer under this Plan all
or a portion of the Salary Compensation otherwise payable to the Participant by the Company (a
“Salary Deferral Election”), which amount shall be designated by the Participant pursuant
to such form as approved by the Committee for this purpose (any such amount so deferred, a
“Salary Deferral”). To make a Salary Deferral Election, a Participant must complete,
execute and file with the Committee a
Salary Deferral Election form within the applicable deadlines set forth below. A Salary
Deferral Election shall apply only with respect to the calendar year or portion thereof, specified
in the Salary Deferral Election form, and, except as provided in Section 3.5 hereof, shall be
irrevocable after the applicable deadline for making a Salary Deferral Election for such calendar
year.

          (a) In General. To be effective, a Salary Deferral Election form must be received by
the Committee, within the period established by the Committee for a given calendar year; provided
that such period ends on or before December 31 of the year prior to the calendar

-14-

 

year for which the
Salary Deferral Election is to be effective. If the Committee fails to receive a Salary Deferral
Election form from a Participant during the period established by the Committee for such calendar
year, the Participant shall be deemed to have elected not to make a Salary Deferral Election for
that calendar year.

          (b) Election for First Year as Participant. Notwithstanding the provisions of Section
3.3(a), in the calendar year in which a Participant first becomes eligible to participate in the
Plan, the Participant may make a Salary Deferral Election with respect to all or a portion of such
Participant’s Salary Compensation beginning with the payroll period next following the receipt of
the Participant’s Salary Deferral Election form; provided that such Salary Deferral Election form
is received by the Committee prior to the 31st day following the Participant’s
Eligibility Date. If the Committee does not receive such Participant’s Salary Deferral Election
prior to the 31st day following the Participant’s Eligibility Date, the Participant
shall be deemed to have elected not to make a Salary Deferral Election for such calendar year.
Salary Deferral Elections by such a Participant for succeeding calendar years shall otherwise be
made in accordance with the provisions of Section 3.3(a).

          (c) Additional Rules and Procedures. The Committee shall have the discretion to adopt
such additional rules and procedures applicable to Salary Deferral Elections that the Committee
determines are necessary. By way of amplification and not limitation, the Committee shall have the
authority to limit the amount of Salary Compensation deferred by a Participant under this Plan for
any calendar year, require a Participant to pay or provide for payment of cash to the Company,
and/or take such other actions determined to be necessary
where, as a result of a Participant’s Salary Deferral Election, the compensation payable to a
Participant currently is less than such Participant’s tax withholding and other obligations.

     3.4 Discretionary Company Contributions. Notwithstanding anything to the contrary
contained herein, if authorized by the Board of Directors or a committee thereof, the Company, may,
pursuant to a written agreement approved by the Board of Directors or a committee thereof, cause
the Company to make additional contributions to a Participant’s Account. Any discretionary Company
contributions made pursuant to this Section 3.4 shall be credited to a Participant’s

-15-

 

Termination/Retirement Account and shall be paid at the earliest to occur of a Participant’s death,
Disability, Retirement or Termination. Unless otherwise expressly provided in such written
agreement, such discretionary contributions by the Company shall vest in accordance with the
provisions of Section 5.2 of the Plan.

     3.5 Cancellation of Deferral Elections upon the Occurrence of an Unforeseeable
Emergency. Notwithstanding anything to the contrary contained herein, if a Participant
requests a hardship withdrawal pursuant to Section 6.9, and the Committee determines that such
Participant has suffered an Unforeseeable Emergency, the Participant may elect to cancel such
Participant’s Deferral Elections in effect for such calendar year. Such election shall be made in
writing by the Participant in such form as the Committee determines from time to time. In addition,
if a Participant receives a hardship distribution under a 401(k) plan sponsored by the Company, all
Deferral Elections in effect for the calendar year or Plan Year, as the case may be, in which such
hardship distribution is made shall be cancelled, and such Participant may not make additional
Deferral Elections for at least six (6) months following the receipt of such hardship distribution.
Any subsequent Deferral Election shall be subject to the rules of Sections 3.1 or 3.3, as
applicable.

ARTICLE IV

ACCOUNT

     4.1 Establishing a Participant’s Account. The Committee shall establish an Account
for each Participant in a Deferred Compensation Ledger which shall be maintained by the Company.
Each Account shall reflect the entire interest of the Participant in the Plan.

     4.2 Credit of the Participant’s Bonus Deferral and the Company’s Match. Upon
completion of the Plan Year, the Committee shall determine, as soon as administratively
practicable, the amount of a Participant’s MIP Bonus that has been deferred for that Plan Year and
the amount of the Company Match that has been awarded to the Participant pursuant to Section 3.2
and shall credit those amounts to the Participant’s Account in the Deferred Compensation Ledger as
of the July 1st coincident with or closest to the end of the Plan Year for which the MIP
Bonus was awarded.

-16-

 

     4.3 Credit of the Participant’s Salary Deferrals. The Participant’s Account in the
Deferred Compensation Ledger shall be credited with respect to Salary Deferrals, on the same day of
each month on which cash compensation would otherwise have been paid to a Participant, with a
dollar amount equal to the total amount by which the Participant’s cash compensation for such month
was reduced in accordance with the Participant’s Salary Deferral Election.

     4.4 Deemed Investment of Deferrals. The credit balance of the Deferrals in the
Participant’s Account shall be deemed invested and reinvested from time to time in such Investments
as shall be designated by the Participant in accordance with the following:

          (a) Upon commencement of participation in the Plan, each Participant shall make a designation
of the Investments in which the Deferrals in such Participant’s Account will be deemed invested.
The Investments designated by a Participant shall be deemed to have been purchased on the date on
which the Deferrals are credited to the Participant’s Account, or if such day is not a Business
Day, on the first Business Day following such date. If a Participant has not made a designation of
Investments in which such Participant’s Deferrals will be deemed invested, the credit
balance of the Deferrals in the Participant’s Account shall be deemed to be invested in the
Default Investment.

          (b) At such times and under such procedures as the Committee shall designate, each Participant
shall have the right to (i) change the existing Investments in which the Deferrals in such
Participant’s Account are deemed invested by treating a portion of such Investments as having been
sold and the new Investments purchased, and (ii) change the Investments which are deemed purchased
with future Deferral credits to the Participant’s Account.

          (c) In the case of any deemed purchase of an Investment, the Participant’s Account shall be
decreased by a dollar amount equal to the number of units of such Investment treated as purchased
multiplied by the per unit net asset value of such Investment as of such date or, if such date is
not a Business Day, on the first Business Day following such date, and shall be increased by the
number of units of such Investment treated as purchased. In the case of any deemed sale of an
Investment, the Participant’s Account shall be decreased by the number of units of such Investment
treated as sold, and shall be increased by a dollar amount equal to the number of

-17-

 

units of such
Investment treated as sold multiplied by the net asset value of such Investment as of such date or,
if such date is not a Business Day, on the first Business Day following such date.

          (d) If a Participant’s Retirement occurs on or after January 1, 2006, and the Participant has
elected (or is deemed to have elected) to receive any portion of the Participant’s distribution
under Section 6.3 (upon Retirement) pursuant to the Installment Distribution Option, then, with
respect such portion, the Participant may elect (the “Retirement Investment Election”)
either (i) to have interest credited to the declining balance of such portion of the Participant’s
Account at a fixed interest rate determined pursuant to Section 4.6(b)(ii) (the “Fixed Interest
Option”); or (ii) to have the Participant’s designation of deemed Investments (which deemed
Investments may continue to be changed pursuant to Section 4.4(b)) remain in effect throughout the
period of distribution with respect to such portion (the “Variable Investment Option”);
provided, however, that if the Participant dies during the period of distribution, such
Participant’s Investment designations shall be terminated as of the date of the Participant’s death
and such Participant’s Account shall be deemed invested in the Default Investment. A Participant
shall make his or her Retirement Investment Election at such time
and in such form as determined by the Committee. If the Committee does not receive a
Participant’s Retirement Investment Election in the period prescribed by the Committee, the
Participant shall be deemed to have elected the Fixed Interest Option. Once a Participant has made
a Retirement Investment Election (or is deemed to have made a Retirement Investment Election) such
election is irrevocable. Interest or deemed Investment earnings or losses, as the case may be,
shall be credited or debited to the Participant’s Account at such times and in such amounts as
determined under Section 4.6.

          (e) In no event shall the Company be under any obligation, as a result of any designation of
Investments made by Participants, to acquire any Investment assets, it being intended that the
designation of any Investment shall only affect the determination of the amounts ultimately paid to
a Participant.

          (f) In determining the amounts of all debits and credits to the Participant’s Account, the
Committee shall exercise its reasonable best judgment, and all such determinations (in the absence
of bad faith) shall be binding upon all Participants and their Beneficiaries. If an error

-18-

 

is
discovered in the Participant’s Account, the Committee, in its sole and absolute discretion, shall
cause appropriate, equitable adjustments to be made as soon as administratively practicable
following the discovery of such error or omission.

     4.5 Crediting of Interest on Company Match . Interest will be credited on any Company
Match in the Participant’s Account in accordance with this Section 4.5 at the investment return of
the Default Investment. Interest on such Company Match shall be compounded annually, but credited
on a daily basis. Following the occurrence of an event giving rise to a distribution, interest
will be credited on any Company Match in the Participant’s Account at such times and at the rate
(or rates) determined under Section 4.6.

     4.6 Procedure to Credit or Debit Interest, Earnings or Losses Upon an Event of
Distribution.

          (a) Distributions upon Retirement under the Variable Investment Option. If a
Participant is entitled to receive a distribution pursuant to Section 6.3 (upon Retirement) and
elects the Variable Investment Option under Section 4.4(d)(ii), the declining balance of the
portion of the Participant’s Account (including any portion of the Company Match (and any interest
credited thereon pursuant to Section 4.5)) to which this Section 4.6(a) applies, shall continue to
be credited or debited with Investment earnings or losses (including interest credited at the
investment return of the Default Investment, if that Investment option is selected) for the period
beginning on the day following the day on which the event giving rise to the distribution occurs
and continuing until the day immediately prior to the final installment distribution is paid. For
purposes of the preceding sentence, any portion of the Company Match (and any interest credited
thereon pursuant to Section 4.5) that is subject to this Section 4.6(a) shall be deemed invested in
the Default Investment. The amount of interest or deemed Investment earnings or losses credited or
debited to the Participant’s Account shall be determined by the Committee in accordance with
Section 4.4(f).

          (b) Distributions Upon Death, Disability, Termination or Retirement (not under the
Variable Investment Option). If a Participant or a Participant’s Beneficiaries are entitled to
receive a distribution pursuant to Sections 6.1 (upon death), 6.2 (upon Disability), 6.3 (upon

-19-

 

Retirement) and the Participant did not elect the Variable Investment Option under Section
4.4(d)(ii), or 6.4 (upon Termination), interest or deemed Investment earnings or losses shall be
debited or credited to the portion of the Participant’s Account (including any portion of the
Company Match (and interest credited thereon pursuant to Section 4.5)) subject to this Section
4.6(b) in accordance with this Section 4.6(b).

               (i) Crediting of Interest or Deemed Investment Earnings or Losses Prior to Commencement of
Distributions. The Participant’s Account shall continue to be credited or debited with
Investment earnings or losses until, (A) for events giving rise to a distribution that occur before
the January 1, 2006, the date of the event giving rise to the distribution, or (B) for events
giving rise to a distribution that occur on or after January 1, 2006, the later to occur of (x)
the date of the event giving rise to the distribution; or (y) the last day of the month preceding
the month in which distributions will commence (the “Conversion Date”), at which time the
deemed Investments in the Participant’s Account shall be treated as sold and credited with a dollar
value in accordance with Section 4.4(c). For purposes of this Section 4.6(b)(i), for the period
prior to the Conversion Date, any portion of the Company Match (and any interest credited thereon
pursuant to Section 4.5), that is subject to this Section 4.6(b) shall be deemed invested in the
Default Investment. After the Conversion Date, there shall be no additional credits or debits to
the Participant’s Account for deemed Investment earnings or losses. Notwithstanding the foregoing,
the Participant’s Account shall be credited with interest, at the rate of the Default Investment,
for the period beginning on the Conversion Date and ending on the day immediately before the date
on which distribution payments commence.

               (ii) Crediting of Interest After Commencement of Installment Distributions. With
respect to distributions subject to this Section 4.6(b), if any portion of a Participant’s Account
is to be paid pursuant to the Installment Distribution Option, interest shall be credited to the
declining balance of the portion of the Participant’s Account subject to this Section 4.6(b)(ii),
beginning on the day on which distributions commence and continuing until the day immediately
before the final installment distribution is paid. The interest crediting rate for purposes of this
Section 4.6(b)(ii) shall be the investment return of the Default Investment for the last

-20-

 

calendar
year ending prior to the event giving rise to the distribution; provided however, that for events
occurring on or after January 1, 2006 that give rise to a distribution, the interest crediting rate
hereunder shall be the per annum interest rate equal to the sum of (x) the monthly average of the
Moody’s Average Corporate Bond Yield (determined by dividing the sum of the Corporate Bond Yield
Averages for each month, as published in Moody’s Bond Survey, by the number of months in the
calculation period) for the period described in (i) or (ii) that produces the higher rate: (i) the
six-month period ending on the last day of the month that is two months prior to the month during
which distributions are to commence, or (ii) the twelve-month period ending on the last day of the
month that is two months prior to the month during which distributions are to commence, plus (y)
1%.

ARTICLE V

VESTING

     5.1 Deferrals. The amount credited to a Participant’s Account attributable to
Deferrals, adjusted for deemed Investment earnings and losses pursuant to Section 4.4, shall be
100% vested at all times, except that deemed Investment earnings shall be subject to forfeiture
under Sections 6.7 and 6.8.

     5.2 Company Match.

          (a) Each Company Match, together with interest accumulated on those matches pursuant to
Section 4.5, shall vest on the earlier to occur of: (a) the tenth anniversary of the date as of
which the Company Match was credited to the Participant’s Account, (b) the Participant attaining
age 60, (c) the Participant’s death, (d) the Participant’s Disability, or (e) a Change of Control,
provided that such vested Company Matches shall be subject to forfeiture under Sections 6.7 and 6.8
and any reduction caused by the restriction in Section 6.11.

          (b) Notwithstanding the foregoing, effective for Plan Years beginning on or after July 3,
2005, upon a Participant’s Retirement, each previously unvested Company Match (together with
interest accumulated on such Company Matches pursuant to Section 4.5) shall be vested according to
the following schedule:

-21-

 

	 	 	 	 	 
	Participant’s Combined Full Years of Age	 	 
	as of the Participant’s Date of Retirement and	 	 
	Full Years of MIP Participation	 	Vested Percentage
	Less than 70
	 	 	0	%
	70
	 	 	50	%
	71
	 	 	55	%
	72
	 	 	60	%
	73
	 	 	65	%
	74
	 	 	70	%
	75
	 	 	75	%
	76
	 	 	80	%
	77
	 	 	85	%
	78
	 	 	90	%
	79
	 	 	95	%
	80 or more
	 	 	100	%

By way of clarification, a Participant who is age fifty-five (55) with fifteen (15) years MIP
Participation shall be fifty percent (50%) vested in any previously unvested Company Match, and the
Participant shall be vested in any previously unvested Company Match (i) an additional five
percent (5%) for each full year of his age in excess of fifty-five (55) as of the date of the date
of such Participant’s Retirement; and (ii) an additional five percent (5%) for each full year of
MIP Participation by such Participant over fifteen (15) years as of the date of such Participant’s
Retirement.

          (c) Notwithstanding anything to the contrary contained herein, the Compensation and Stock
Option Committee of the Board of Directors may, within its sole discretion, accelerate vesting
under this Section 5.2 when it determines that specific situations warrant such action.

ARTICLE VI

DISTRIBUTIONS

     6.1 Death. Upon the death of a Participant, the Participant’s Beneficiary or
Beneficiaries shall be paid the balance of the Participant’s Account in the Deferred Compensation
Ledger pursuant to the distribution option selected by the Participant under Section 6.6(c).

          Each Participant, upon making his initial deferral election, shall file with the Committee a
designation of one or more Beneficiaries to whom distributions otherwise due the Participant shall
be made in the event of his death prior to the complete distribution of the amount

-22-

 

credited to his
Account in the Deferred Compensation Ledger. The designation shall be effective upon receipt by
the Committee of a properly executed form which the Committee has approved for that purpose. The
Participant may from time to time revoke or change any designation of Beneficiary by filing another
approved Beneficiary designation form with the Committee. If there is no valid designation of
Beneficiary on file with the Committee at the time of the Participant’s death, or if all of the
Beneficiaries designated in the last Beneficiary designation have predeceased the Participant or,
in the case of an entity, otherwise ceased to exist, the Beneficiary shall be the Participant’s
spouse, if the spouse survives the Participant, or otherwise the Participant’s estate. A
Beneficiary who is an individual shall be deemed to have predeceased the Participant if the
Beneficiary dies within 30 days of the date of the Participant’s death. If any Beneficiary survives
the Participant but dies or, in the case of an entity, otherwise
ceases to exist before receiving all amounts due the Beneficiary from the Participant’s
Account, the balance of the amount which would have been paid to that Beneficiary shall, unless the
Participant’s designation provides otherwise, be distributed to the individual deceased
Beneficiary’s estate or, in the case of an entity, to the Participant’s spouse, if the spouse
survives the Participant, or otherwise to the Participant’s estate. Any Beneficiary designation
which designates any person or entity other than the Participant’s spouse must be consented to in
writing by the Participant’s spouse in a form acceptable to the Committee in order to be effective.

     6.2 Disability. Upon the Disability of a Participant, the Participant shall be paid
the balance of the Participant’s Account in the Deferred Compensation Ledger pursuant to the
distribution option selected by the Participant under Section 6.6(c).

     6.3 Retirement. Upon the Retirement of a Participant, the Participant shall be paid
the vested portion of such Participant’s Account in the Deferred Compensation Ledger pursuant to
the Distribution option selected by the Participant under Section 6.6(c). Any amounts not vested at
the time of such Participant’s Retirement shall be forfeited.

     6.4 Distributions Upon Termination. Upon a Participant’s Termination, the Participant
shall be paid the vested portion of such Participant’s Account in the Deferred Compensation

-23-

 

Ledger
pursuant to the Lump Sum Distribution Option. Any amounts not vested at the time of such
Participant’s Termination shall be forfeited.

     6.5 In-Service Distributions. Each In-Service Distribution shall be paid in a lump
sum at the time provided in the In-Service Distribution election made with respect thereto, or as
soon as administratively practicable after the occurrence of the In-Service Distribution Date.
Notwithstanding a Participant’s election to receive an In-Service Distribution of some or all of
the Participant’s Account, if the Participant’s Retirement, Disability, death or Termination, as
applicable, occurs prior to the commencement or
completion of payments elected in connection with any In-Service Distribution Date(s), the
Participant’s remaining In-Service Distribution Account balance(s) shall be distributed pursuant to
the Plan’s provisions regarding distributions upon Retirement, Disability, death or Termination, as
applicable.

     6.6 Distribution Elections for Deferrals. Each Participant shall have the right to
elect, to revoke, or to change any prior election of the timing of payment or the form of
distribution at the time and under the rules established by the Committee, which rules shall
include the provisions of this Section 6.6.

          (a) Initial Distribution Elections.

               (i) Death/Disability/Retirement Distribution Elections. A Participant may elect
different forms of distribution, as specified in Section 6.6(c), with respect to the distribution
events described in Sections 6.1 (upon death), 6.2 (upon Disability) and 6.3 (upon Retirement). The
initial election of form of distribution with respect to a particular distribution event, if
received by the Committee in proper form prior to or concurrent with the time a Participant first
makes an affirmative Deferral Election under this Plan, shall be effective upon receipt, and shall
become irrevocable at the time a Participant first makes an affirmative Deferral Election under
this Plan. All elections of form of distribution, with respect to such distribution events, made
after the time a Participant first makes an affirmative Deferral Election under this Plan must
comply with the rules of Section 6.6(b).

               (ii) In-Service Distribution Elections. In connection with each Salary Deferral
Election and/or Bonus Deferral Election made for a given calendar year and/or Plan Year,

-24-

 

a Participant may elect to receive such Deferrals in a lump sum distribution at an In-Service
Distribution Date that is at least three (3) years after the end of the calendar year in which such
Salary Compensation or MIP Bonus would otherwise have been paid (an “In-Service Distribution
Election”); provided, however, that a Participant’s designation of an In-Service Distribution
Date with respect to a Bonus Deferral shall not apply to any Company Match associated with such
Bonus Deferral. For the avoidance of doubt, a vested Company Match shall only be payable in
connection with a distribution event described in Section 6.1 (upon death), 6.2
(upon Disability), 6.3 (upon Retirement), or 6.4 (upon Termination). Except as otherwise
required by the Committee, an In-Service Distribution Election may be made separately with respect
to each calendar year’s or Plan Year’s Salary Deferrals and/or Bonus Deferrals, and In-Service
Distribution Accounts shall be established accordingly. Any portion of a Deferral that is not
credited to an In-Service Distribution Account shall be credited to the Participant’s
Termination/Retirement Account, which credited amounts shall remain credited to the Participant’s
Termination/Retirement Account until such amounts have been distributed to the Participant or the
Participant’s Beneficiary and may not be credited or reallocated to an In-Service Account.

          (b) Subsequent Elections. Any election, revocation, or change of election of form of
distribution with respect to distributions upon death, Disability and Retirement that a Participant
makes after he first makes an affirmative Deferral Election under this Plan; or any revocation or
change of election of time of payment with respect to In-Service Distributions (such elections,
revocations and changes are referred to collectively herein as “Subsequent Elections”)
shall be effective only if the requirements of this Section 6.6(b) are met. Subsequent Elections
may be submitted to the Committee from time to time in the form determined by the Committee and
shall be effective on the date that is twelve (12) months after the date on which such Subsequent
Election is received by the Committee. If an event giving rise to a distribution occurs during the
one-year period after a Subsequent Election is made, or if such Subsequent Election does not meet
the requirements of this Section 6.6(b), distributions under this Plan shall be made pursuant to
the Participant’s last effective election, revocation, or change with respect to the event

-25-

 

giving rise to the distribution. With respect to payments upon Retirement, Termination or upon the
occurrence of an In-Service Distribution Date, (i) the Subsequent Election must be received by the
Committee in proper form at least one year prior to such Participant’s Retirement, Termination or
the occurrence of an In-Service Distribution Date; and (ii) the first payment pursuant to such
Subsequent Election may not be made within the five-year period commencing on the date such payment
would have been made or commenced under the last effective election, revocation, or change made by
the Participant. Notwithstanding the
foregoing provisions of this Section 6.6(b), at such time as the Committee shall determine,
but no later than December 31, 2006, a Participant may make a Subsequent Election to change the
form of distribution of a Participant’s Account (for distributions upon Retirement, death or
Disability) and such election shall be immediately effective, provided that a Subsequent Election
made during calendar year 2006 may not (i) apply to any amount that would otherwise be payable
during calendar year 2006 or (ii) otherwise cause an amount to be paid in calendar year 2006 that
would not otherwise be payable in such calendar year.

          (c) Distribution Options. The distribution options that may be selected by
Participants pursuant to this Section 6.6 are as follows:

               (i) Installment Distribution Option. If a Participant selects the “Installment
Distribution Option”, with respect to all or a portion of a Participant’s Account, the
Participant or the Participant’s Beneficiaries shall be paid the portion of the Participant’s
Account in the Deferred Compensation Ledger to which this section applies as follows: (A) if the
distribution is pursuant to Section 6.1 (upon death), 6.2 (upon Disability) or 6.3 (upon
Retirement) and the Participant elected the Fixed Interest Option under Section 4.4(e)(i), in equal
quarterly or annual (as selected by the Participant) installments of principal and interest for a
period of up to 20 years (as selected by the Participant); or (B) if the distribution is pursuant
to Section 6.3 (upon Retirement) and the Participant elected the Variable Investment Option under
Section 4.4(e)(ii), each installment payment amount during the period of distribution (as selected
by the Participant) shall be determined as the result of a calculation, performed as soon as
administratively practicable before the date the installment payment is to be made, where (A) is
divided by (B):

-26-

 

                    (A) equals the remaining value of the Participant’s Account
as of the date of such
calculation; and

                    (B) equals the remaining number of installment payments.
Amounts distributed pursuant to the Installment Distribution Option shall be treated as a single
payment for purposes of Section 409A.

               (ii) Lump Sum Distribution Option. If the Participant selects the “Lump Sum
Distribution Option”, with respect to all or a portion of the Participant’s Account, the
Participant or the Participant’s Beneficiaries shall be paid the portion of the Participant’s
Account in the Deferred Compensation Ledger to which this Section 6.6(c)(ii) applies, in a lump
sum.

               (iii) Combination Lump Sum and Installment Distribution Option. Participants may also
elect to have their Accounts distributed in part pursuant to the Lump Sum Distribution Option, and
the balance distributed pursuant to the Installment Distribution Option, by making the appropriate
designation on the form which the Committee has approved for this purpose.

               (iv) Default Distribution Option. If a Participant does not have an effective
election as to the form of distribution on file with the Committee at the time distributions to
such Participant are to commence, the Participant shall be conclusively deemed to have elected to
receive the vested balance of such Participant’s Account pursuant to the Installment Distribution
Option annually over a period of fifteen (15) years (the “Default Distribution Option”).

          (d) Commencement of Distributions. Distributions pursuant to this Section 6.6 shall
commence as soon as administratively feasible after the event giving rise to the distribution, but
not later than 90 days after the event giving rise to the distribution; provided, however, that in
the case of the death of the Participant, distributions shall not commence within the 30-day period
following the Participant’s death; provided further, that, in the case of a Participant who has
made a Subsequent Election, distributions shall not commence earlier than the time prescribed by
Section 6.6(b); provided further, that distributions to a Specified Employee that result from such
Participant’s Separation from Service shall not commence earlier than the date that is six (6)
months after such Specified Employee’s Separation from Service from the

-27-

 

Company if such earlier
commencement would result in the imposition of tax under Section 409A. If distributions to a
Participant are delayed because of the six-month distribution delay described in the immediately
preceding sentence, such distributions shall commence as soon as administratively feasible
following the end of such six-month period.

     6.7 Forfeiture For Cause. If the Committee finds, after full consideration of the
facts presented on behalf of both the Company and a Participant, that the Participant was
discharged by the Company for fraud, embezzlement, theft, commission of a felony, proven dishonesty
in the course of his employment by the Company which damaged the Company, or for disclosing trade
secrets of the Company, the entire amount credited to his Account in the Deferred Compensation
Ledger, exclusive of the lesser of (a) the total Deferrals of the Participant, without any
adjustments for deemed Investment earnings and losses pursuant to Section 4.4, or (b) the credit
balance of the Participant’s Account attributable to Deferrals, taking into account the adjustments
for deemed Investment earnings and losses pursuant to Section 4.4, shall be forfeited even though
it may have been previously vested under Article V. The decision of the Committee as to the cause
of a Participant’s discharge and the damage done to the Company shall be final. No decision of the
Committee shall affect the finality of the discharge of the Participant by the Company in any
manner. Notwithstanding the foregoing, the forfeiture created by this Section shall not apply to a
Participant discharged during the Plan Year in which a Change of Control occurs, or during the next
succeeding three (3) Plan Years following the Plan Year in which a Change of Controls occurs unless
an arbitrator selected to review the Committee’s findings agrees with the Committee’s determination
to apply the forfeiture. The arbitrator shall be selected by permitting the Company and the
Participant to strike one name each from a panel of three names obtained from the American
Arbitration Association. The person whose name is remaining shall be the arbitrator.

     6.8 Forfeiture for Competition. If at the time a distribution is being made or is to
be made to a Participant, the Committee finds after full consideration of the facts presented on
behalf of the Company and the Participant, that the Participant at any time within two years from
his termination of employment from the Company which adopted this Plan, and without written

-28-

 

consent of the Company’s CEO or General Counsel, directly or indirectly owns, operates, manages, controls
or participates in the ownership, management, operation or control of or is employed by, or is paid
as a consultant or
other independent contractor by a business which competes or at any time did compete with the
Company by which he was formerly employed in a trade area served by the Company at the time
distributions are being made or to be made and in which the Participant had represented the Company
while employed by it; and, if the Participant continues to be so engaged 60 days after written
notice has been given to him, the Committee shall forfeit all amounts otherwise due the
Participant, exclusive of the lesser of (a) the total Deferrals of the Participant, without any
adjustments for deemed Investment earnings and losses pursuant to Section 4.4, or (b) the credit
balance of the Participant’s Account attributable to Deferrals, taking into account the adjustments
for deemed Investment earnings and losses pursuant to Section 4.4, even though it may have been
previously vested under Article V. Notwithstanding the foregoing, the forfeiture created by this
Section shall not apply to any Participant whose termination of employment from the Company which
adopted this Plan occurs during the Plan Year in which a Change of Control occurs or during the
next three (3) succeeding Plan Years following the Plan Year in which a Change of Control occurs.

     6.9 Hardship Withdrawals. Any Participant may request a hardship withdrawal to
satisfy an “Unforeseeable Emergency.” No hardship withdrawal can exceed the lesser of (i) the
amount of Deferrals credited to the Participant’s Account, or (ii) the amount reasonably necessary
to satisfy the Unforeseeable Emergency. Whether an Unforeseeable Emergency exists and the amount
reasonably needed to satisfy such need shall be determined by the Committee based upon the evidence
presented by the Participant and the rules established in this Section 6.9. If a hardship
withdrawal under this Section 6.9 is approved by the Committee, it shall be paid within 10 days of
the Committee’s determination. For purposes of this Plan, an “Unforeseeable Emergency” means
either: (i) a severe financial hardship to the Participant resulting from an illness or accident of
the Participant, the Participant’s spouse or of a dependent (as defined in Section 152(a) of the
Code) of the Participant, (ii) loss of the Participant’s property due to casualty, or (iii) other
similar extraordinary and unforeseeable circumstance arising as a result of

-29-

 

events beyond the
control of the Participant, provided that in each case the circumstances qualify as an
“unforeseeable
emergency” for purposes of Section 409A. The circumstances that constitute a hardship shall
depend upon the facts of each case, but, in any case, amounts distributed with respect to an
Unforeseeable Emergency shall not exceed the amount necessary to satisfy such need plus amounts
necessary to pay taxes reasonably anticipated as a result of the distribution, after taking into
account the extent to which such need is or may be relieved: (a) through reimbursement or
compensation by insurance or otherwise, (b) by liquidation of the Participant’s assets, to the
extent the liquidation of such assets will not itself cause severe financial hardship, or (c)
additional compensation that may be available to such Participant by reason of a cancellation of
deferrals under Section 3.5 of this Plan. Foreseeable needs for funds, such as the need to send a
Participant’s child to college or the desire to purchase a home, shall not be considered to be an
Unforeseeable Emergency.

     6.10 Payments Upon Income Inclusion Under Section 409A. It is intended that the
provisions of this Plan shall comply fully with the requirements of Section 409A. In the event that
it is determined that the provisions of this Plan do not comply with the requirements of Section
409A and a Participant is required to include in income amounts otherwise deferred under this Plan
as a result of non-compliance with Section 409A, the Participant shall be entitled, upon request,
to receive a distribution from such Participant’s Account not to exceed the lesser of (i) the
vested portion of the Participant’s Account, or (ii) the amount required to be included in income
as a result of the failure of the Plan to comply with the requirements of Section 409A. Amounts
distributable pursuant to this Section 6.9 shall be distributed as soon as administratively
feasible but no later than ninety (90) days after the date of the determination that the Plan does
not comply with the requirements of Section 409A.

     6.11 Restrictions on any Portion of Total Payments Determined to be Excess Parachute
Payments. In the event that any payment or benefit received or to be received by a Participant
in connection with a Change of Control of Sysco, or the termination of his employment by the
Company would not be deductible, whether in whole or in part, by the
Company or any affiliated company, as a result of Section 280G of the Code and a reduction
under the Sysco

-30-

 

Corporation Supplemental Executive Retirement Plan is not sufficient to cause all
benefits paid under this Plan to be deductible, the benefits payable under this Plan shall be
reduced until no portion of the Total Payments is not deductible as a result of Section 280G of the
Code, or the benefits payable under this Agreement have been reduced to an amount equal to the
credit balance of the Participant’s Account attributable to Deferrals, as adjusted for deemed
Investment earnings and losses pursuant to Section 4.4. In determining this limitation: (a) no
portion of the Total Payments which the Participant has waived in writing prior to the date of the
payment of benefits under this Plan will be taken into account, (b) no portion of the Total
Payments which tax counsel, selected by the Company’s independent auditors and acceptable to the
Participant and reasonably acceptable to the Company (“Tax Counsel”), determines not to
constitute a “parachute payment” within the meaning of Section 280G(b)(2) of the Code will be taken
into account (including, without limitation, amounts not treated as a “parachute payment” as a
result of the application of Section 280G(d)(4)(A)), (c) no portion of the Total Payments which Tax
Counsel, determines to be reasonable compensation for services rendered within the meaning of
Section 280G(d)(4)(B) of the Code will be treated as an “excess parachute payment” in the manner
provided by Section 280G(d)(4)(B), and (d) the value of any non-cash benefit or any deferred
payment or benefit included in the Total Payments will be determined by the Company’s independent
auditors in accordance with Sections 280G(b)(3) and (4) of the Code. Notwithstanding anything
herein or otherwise to the contrary, the Compensation and Stock Option Committee of the Board of
Directors, may, within its sole discretion and pursuant to an agreement approved by the
Compensation and Stock Option Committee, waive application of this Section 6.11, when it determines
that specific situations warrant such action.

     6.12 Responsibility for Distributions and Withholding of Taxes. The Committee shall
furnish information, to the Company last employing the Participant, concerning the amount and form
of distribution to any Participant entitled to a distribution so that the Company may make or cause
the Rabbi Trust to make the distribution required. It shall also calculate the
deductions from the amount of the benefit paid under the Plan for any taxes required to be
withheld by federal, state or local government and will cause them to be withheld.

-31-

 

ARTICLE VII

ADMINISTRATION

     7.1 Committee Appointment. The Committee shall be appointed by the Board of Directors
or its designee. Each Committee member shall serve until his or her resignation or removal. The
Board of Directors or its designee shall have the sole discretion to remove any one or more
Committee members and to appoint one or more replacement or additional Committee members from time
to time.

     7.2 Committee Organization and Voting. The organizational structure and voting
responsibilities of the Committee shall be as set forth in the bylaws of the Committee.

     7.3 Powers of the Committee. The Committee shall have the exclusive responsibility
for the general administration of the Plan according to the terms and provisions of the Plan and
shall have all powers necessary to accomplish those purposes, including but not by way of
limitation the right, power and authority:

          (a) to make rules and regulations for the administration of the Plan;

          (b) to construe all terms, provisions, conditions and limitations of the Plan;

          (c) to correct any defect, supply any omission or reconcile any inconsistency that may
appear in the Plan in the manner and to the extent it deems expedient to carry the Plan
into effect for the greatest benefit of all parties at interest;

          (d) to designate the persons eligible to become Participants and to establish the
maximum and minimum amounts that may be elected to be deferred;

          (e) to determine all controversies relating to the administration of the Plan,
including but not limited to:

               (i) differences of opinion arising between the Company and a Participant in accordance
with Section 7.7, except when the difference of opinion
relates to the entitlement to, the amount of or the method or timing of payment of a
benefit affected by a Change of Control, in which event, such difference of opinion shall
be decided by judicial action; and

-32-

 

               (ii) any question it deems advisable to determine in order to promote the uniform
administration of the Plan for the benefits of all parties at interest;

          (f) to delegate by written notice any plan administration duties of the Committee to
such individual members of the Committee, individual employees of the Company, or groups of
employees of the Company, as the Committee determines to be necessary or advisable to
properly administer the Plan; and

          (g) to designate the investment options treated as Investments for purposes of this
Plan.

     7.4 Committee Discretion. The Committee, in exercising any power or authority granted
under this Plan, or in making any determination under this Plan shall perform or refrain from
performing those acts pursuant to such authority using its sole discretion and judgment. By way of
amplification and without limiting the foregoing, the Company specifically intends that the
Committee have the greatest possible discretion to construe the terms of the Plan and to determine
all questions concerning eligibility, participation and benefits. Any decision made by the
Committee or any refraining to act or any act taken by the Committee in good faith shall be final
and binding on all parties. The Committee’s decision shall never be subject to de novo review.
Notwithstanding the foregoing, the Committee’s decisions, refraining to act or acting is to be
subject to judicial review for those incidents occurring during the Plan Year in which a Change of
Control occurs and during the next three succeeding Plan Years.

     7.5 Reimbursement of Expenses. The Committee shall serve without compensation for its
services but shall be reimbursed by Sysco for all expenses properly and actually incurred in the
performance of its duties under the Plan.

     7.6 Indemnification. To the extent permitted by law, members of the Board of
Directors, members of the Committee, employees of the Company, and all agents and representatives
of the Company shall be indemnified by the Company, and saved harmless against any claims resulting
from any action or conduct relating to the administration of the Plan, except claims arising from
gross negligence, willful neglect or willful misconduct.

-33-

 

     7.7 Claims Procedure. Any person who believes that he or she is being denied a
benefit to which he or she is entitled under the Plan (referred to hereinafter as a
“Claimant”) must file a written request for such benefit with the Committee; provided,
however, that any claim involving entitlement to, the amount of or the method of or timing of
payment of a benefit affected by a Change of Control shall be governed by Section 7.3(e)(i). Such
written request must set forth the Claimant’s claim and must be addressed to the Committee at
Sysco’s principal office.

          (a) Initial Claims Decision. The Committee shall generally provide written notice to
the Claimant of its decision within ninety (90) days (or forty-five (45) days for a
Disability-based claim) after the claim is filed with the Committee; provided, however, that the
Committee may have up to an additional ninety (90) days (or up to two (2) thirty (30) day periods
for a Disability-based claim), to decide the claim, if the Committee determines that special
circumstances require an extension of time to decide the claim, and the Committee advises the
Claimant in writing of the need for an extension (including an explanation of the special
circumstances requiring the extension) and the date on which it expects to decide the claim.

          (b) Appeals. A Claimant may appeal the Committee’s decision by submitting a written
request for review to the Committee within sixty (60) days (or 180 days for a Disability-based
claim) after the earlier of receiving the denial notice or after expiration of the initial review
period. Such written request must be addressed to the Committee at Sysco’s principal office. In
connection with such request, the Claimant (and his or her authorized representative, if any) may
review any pertinent documents upon which the denial was based and may submit issues and comments
in writing for consideration by the Committee. If the
Claimant’s request for review is not received within the earlier of sixty (60) days (or 180
days for a Disability-based claim) after receipt of the denial or after expiration of the initial
review period, the denial shall be final, and the Claimant shall be barred and estopped from
challenging the Committee’s determination.

          (c) Decision Following Appeal. The Committee shall generally make its decision on the
Claimant’s appeal in writing within sixty (60) days (or forty-five (45) days for a Disability-based
claim) following its receipt of the Claimant’s request for appeal; provided, however, that the
Committee may have up to an additional 60 days (or 45 days for a Disability-

-34-

 

based claim) to decide
the claim, if the Committee determines that special circumstances require an extension of time to
decide the claim and the Committee advises the Claimant in writing of the need for an extension
(including an explanation of the special circumstances requiring the extension) and the date on
which it expects to decide the claim. The Committee shall notify the Claimant of its decision on
the Claimant’s appeal in writing, regardless of whether the decision is adverse.

          (d) Decisions Final; Procedures Mandatory. A decision on appeal by the Committee
shall be binding and conclusive upon all persons, and completion of the claims procedures described
in this Section 7.7 shall be a mandatory precondition to commencement of a legal or equitable
action in connection with the Plan by a person claiming rights under the Plan or by another person
claiming rights through such a person. The Committee may, in its sole discretion, waive the
procedures described in this Section 7.7 as a mandatory precondition to such an action.

          (e) Time for Filing Legal or Equitable Action. Any legal or equitable action filed in
connection with the Plan by a person claiming rights under the Plan or by another person claiming
rights through such a person must commence not later than two (2) years following the earlier of
the Participant’s death, Disability, Retirement, or termination of employment.

ARTICLE VIII

ADOPTION BY SUBSIDIARIES

     8.1 Procedure for and Status After Adoption. Any Subsidiary may, with the approval of
the Committee, adopt this Plan by appropriate action of its board of directors. The terms of this
Plan shall apply separately to each Subsidiary adopting this Plan and its Participants in the same
manner as is expressly provided for Sysco and its Participants except that the powers of the Board
of Directors and the Committee under the Plan shall be exercised by the Board of Directors of Sysco
or the Committee, as applicable. Sysco and each Subsidiary adopting this Plan shall bear the cost
of providing plan benefits for its own Participants. It is intended that the obligation of Sysco
and each Subsidiary with respect to its Participants shall be the sole obligation of the Company
that is employing the Participant and shall not bind any other Company.

-35-

 

     8.2 Termination of Participation By Adopting Subsidiary. Any Subsidiary adopting this
Plan may, by appropriate action of its board of directors, terminate its participation in this
Plan. The Committee may, in its discretion, also terminate a Subsidiary’s participation in this
Plan at any time. The termination of the participation in this Plan by any Subsidiary shall not,
however, affect the rights of any Participant who is working or has worked for the Subsidiary as to
amounts previously standing to his credit in his Account in the Deferred Compensation Ledger,
including, without limitation, all of the Participant’s rights pursuant to Sections 4.4 and 4.5
with respect to amounts deferred by him and matched by the Company and credited to his Account,
prior to the distribution of those funds to the Participant, without his consent.

ARTICLE IX

AMENDMENT AND/OR TERMINATION

     9.1 Amendment or Termination of the Plan. The Board of Directors, the Committee, or
their designees, may amend this Plan at any time by an instrument in writing without the consent of
any adopting Subsidiary; provided, however, that authority to terminate this Plan or to make any
amendment that would have a significant financial statement or benefit impact on the Company shall
be reserved to the
Board of Directors or its designee. Notwithstanding the foregoing, in no event shall the
Board of Directors have the authority to terminate this Plan during the two (2) years following a
Change of Control.

     9.2 No Retroactive Effect on Awarded Benefits. Absent a Participant’s prior consent,
no amendment shall affect the rights of such Participant to the amounts then standing to his credit
in his Account in the Deferred Compensation Ledger, to change the method of calculating Investment
earnings and losses already accrued, or the rate of interest already accrued or to accrue in the
future on the Participant’s Company Match prior to the date of the amendment, or to change a
Participant’s rights under any provision relating to a Change of Control after a Change of Control
has occurred. However, the Board of Directors shall retain the right at any time to change in any
manner the method of calculating Investment earnings and losses, effective from and after the date
of the amendment, and the method or the rate of interest on a Participant’s Company

-36-

 

Match received
after the date of the amendment, if in both cases the amendment has been announced to the
Participants.

     9.3 Effect of Termination. Upon termination of the Plan, the following provisions of
this Section 9.3 shall apply:

          (a) No additional amounts shall be credited to any Participant’s Account in the Deferred
Compensation Ledger, to the extent such amounts relate to salaries or bonuses earned on or after
the effective date of the Plan’s termination.

          (b) The Board of Directors or its designee may, in its sole discretion, authorize
distributions of the vested balance of the Participants’ Accounts in the Deferred Compensation
Ledger to Participants as a result of the Plan’s termination; provided, that:

               (i) All deferred compensation arrangements sponsored by the Company that would be aggregated
with this Plan under Section 1.409A-1(c) of the Treasury Regulations, if the Participant
participated in such arrangements are terminated;

               (ii) No distributions other than distributions that would be payable under the terms of the
Plan if the termination had not occurred are made within twelve (12) months of the termination of
the Plan;

               (iii) All distributions of amounts deferred under the Plan and any other vested amounts are
paid within twenty-four (24) months of the termination of the Plan; and

               (iv) The Company does not adopt a new deferred compensation arrangement at any time within
five (5) years following the date of termination of the Plan that would be aggregated with this
Plan under Section 1.409A-1(c) of the Treasury Regulations if the Participant participated in this
Plan and the new arrangement.

          (c) Except as otherwise provided in Sections 9.3(a) and (b), on and after the effective date
of the Plan’s termination, (i) the Plan shall continue to be administered as it was prior to the
Plan’s termination until all Participant Account balances have been distributed pursuant to the
terms of the Plan; (ii) a Participant shall continue to be entitled to a distribution of his Plan
Account only if he meets the distribution requirements set forth in Article 6 hereof; (iii) the
forfeiture provisions of Sections 6.6 and 6.7, and the restrictions set out in Section 6.9 shall

-37-

 

continue to apply; and (iv) no Participant shall be entitled to a distribution of the Participant’
Plan Account solely as a result of the Plan’s termination in accordance with the terms of this
Article IX.

ARTICLE X

FUNDING

     10.1 Payments Under This Plan are the Obligation of the Company. The Company shall
pay the benefits due the Participants under this Plan; however should it fail to do so when a
benefit is due, the benefit shall be paid by the trustee of that certain trust agreement by and
between the Company and JPMorgan Chase Bank, with respect to the funding of the Plan. In any
event, if the trust fails to pay for any reason, the Company still remains liable for the payment
of all benefits provided by this Plan.

     10.2 Plan Obligations May be Funded Through Rabbi Trust. It is specifically
recognized by both the Company and the Participants that the Company may, but is not required to,
purchase life insurance so as to accumulate assets to fund the obligations of the Company under
this Plan, and that the Company may, but is not required to contribute any policy or policies it
may purchase and any amount it finds desirable to a trust established to accumulate assets
sufficient to fund the obligations of all of the Companies under this Plan. However, under all
circumstances, the Participants shall have no rights to any of those policies; and likewise, under
all circumstances, the rights of the Participants to the assets held in the trust shall be no
greater than the rights expressed in this Plan and the trust agreement governing the trust.
Nothing contained in the trust agreement which creates the funding trust shall constitute a
guarantee by any Company that assets of the Company transferred to the trust shall be sufficient to
pay any benefits under this Plan or would place the Participant in a secured position ahead of
general creditors should the Company become insolvent or bankrupt. Any trust agreement prepared to
fund the Company’s obligations under this Plan must specifically set out these principles so it is
clear in that trust agreement that the Participants in this Plan are only unsecured general
creditors of the Company in relation to their benefits under this Plan.

     10.3 Reversion of Excess Assets. Any adopting Company may, at any time, request the
record keeper for the Plan to determine the present Account balance, assuming the Account

-38-

 

balance
to be fully vested and taking into account credits and debits arising from deemed Investment
earnings and losses in accordance with Section 4.4 and credited interest pursuant to Section 4.5,
as of the month end coincident with or next preceding the request, of all Participants and
Beneficiaries of deceased Participants for which the Company is or will be obligated to make
payments under this Plan. If the fair market value of the assets held in the trust, as determined
by the Trustee as of that same date, exceeds the total of the Account balances of all Participants
and Beneficiaries by 25%, any Company may direct the trustee to return to each Company its
proportionate part of the assets which are in excess of 125% of the Account balances. Each
Company’s share, of the excess
assets will be the Participants’ Accounts earned while in the employ of that Company as
compared to the total of the Account balances earned by all Participants under the Plan times the
excess assets. If there has been a Change of Control, for the purpose of determining if there are
excess funds, all contributions made prior to the Change of Control will be subtracted from the
fair market value of the assets held in the trust as of the determination date but before the
determination is made.

     10.4 Participants Must Rely Only on General Credit of the Company. It is also
specifically recognized by both the Company and the Participants that this Plan is only a general
corporate commitment and that each Participant must rely upon the general credit of the Company for
the fulfillment of its obligations under this Plan. Under all circumstances the rights of
Participants to any asset held by the Company will be no greater than the rights expressed in this
Plan. Nothing contained in this Plan will constitute a guarantee by the Company that the assets of
the Company shall be sufficient to pay any benefits under this Plan or would place the Participant
in a secured position ahead of general creditors of the Company. Though the Company may establish
or become a signatory to a Rabbi Trust, as indicated in Section 10.2, to accumulate assets to
fulfill its obligations, the Plan and any such trust will not create any lien, claim, encumbrance,
right, title or other interest of any kind whatsoever in any Participant in any asset held by the
Company, contributed to any such trust or otherwise designated to be used for payment of any of its
obligations created in this Plan. No policy or other specific asset of the Company has been or
will be set aside, or will in any way be transferred to the trust or will be

-39-

 

pledged in any way for
the performance of the Company’s obligations under this Plan which would remove the policy or asset
from being subject to the general creditors of the Company.

ARTICLE XI

MISCELLANEOUS

     11.1 Limitation of Rights. Nothing in this Plan shall be construed:

          (a) to give any employee of any Company any right to be designated a Participant in the Plan;

          (b) to give a Participant any right with respect to the compensation deferred, the Company
Match, the deemed Investment earnings and losses, or the interest credited in the Deferred
Compensation Ledger except in accordance with the terms of this Plan;

          (c) to limit in any way the right of the Company to terminate a Participant’s employment with
the Company at any time;

          (d) to evidence any agreement or understanding, expressed or implied, that the Company shall
employ a Participant in any particular position or for any particular remuneration; or

          (e) to give a Participant or any other person claiming through him any interest or right under
this Plan other than that of any unsecured general creditor of the Company.

     11.2 Distributions to Incompetents or Minors. Should a Participant become incompetent
or should a Participant designate a Beneficiary who is a minor or incompetent, the Committee is
authorized to pay the funds due to the parent of the minor or to the guardian of the minor or
incompetent or directly to the minor or to apply those funds for the benefit of the minor or
incompetent in any manner the Committee determines in its sole discretion.

     11.3 Non-alienation of Benefits. No right or benefit provided in this Plan shall be
transferable by the Participant except, upon his death, to a named Beneficiary as provided in this
Plan. No right or benefit under this Plan shall be subject to anticipation, alienation, sale,
assignment, pledge, encumbrance or charge, and any attempt to anticipate, alienate, sell, assign,
pledge, encumber, or charge the same will be void. No right or benefit under this Plan shall in
any manner be liable for or subject to any debts, contracts, liabilities or torts of the person
entitled to

-40-

 

such benefits. If any Participant or any Beneficiary becomes bankrupt or attempts to
anticipate, alienate, sell, assign, pledge, encumber or charge any right or benefit under this
Plan, that right or benefit shall, in the discretion of the
Committee, cease. In that event, the Committee may have the Company hold or apply the right
or benefit or any part of it to the benefit of the Participant or Beneficiary, his or her spouse,
children or other dependents or any of them in any manner and in any proportion the Committee
believes to be proper in its sole and absolute discretion, but is not required to do so.

     11.4 Reliance Upon Information. The Committee shall not be liable for any decision or
action taken in good faith in connection with the administration of this Plan. Without limiting
the generality of the foregoing, any decision or action taken by the Committee when it relies upon
information supplied it by any officer of the Company, the Company’s legal counsel, the Company’s
independent accountants or other advisors in connection with the administration of this Plan shall
be deemed to have been taken in good faith.

     11.5 Severability. If any term, provision, covenant or condition of the Plan is held
to be invalid, void or otherwise unenforceable, the rest of the Plan shall remain in full force and
effect and shall in no way be affected, impaired or invalidated.

     11.6 Notice. Any notice or filing required or permitted to be given to the Committee
or a Participant shall be sufficient if submitted in writing and hand-delivered or sent by U.S.
mail to the principal office of the Company or to the residential mailing address of the
Participant. Notice shall be deemed to be given as of the date of hand-delivery or if delivery is
by mail, as of the date shown on the postmark.

     11.7 Gender and Number. If the context requires it, words of one gender when used in
this Plan will include the other genders, and words used in the singular or plural will include the
other.

     11.8 Governing Law. The Plan shall be construed, administered and governed in all
respects by the laws of the State of Texas.

     11.9 Effective Date. This Plan will be operative and effective on January 1, 2005.

-41-

 

     11.10 Compliance with Section 409A of the Code. The Plan (i) is intended to comply
with, (ii) shall be interpreted and its provisions shall be applied in a manner that is consistent
with, and (iii) shall have any ambiguities therein interpreted, to the extent possible, in a manner
that complies with Section 409A. As of the date the Plan is adopted, final Treasury Regulations
have not been issued under Section 409A. It is Sysco’s intention that, to the extent that (a) any
terms of the Plan conflict with Section 409A, or (b) Section 409A would require alternate or
additional Plan provisions in order for the Plan to comply with the requirements of Section 409A,
the Plan shall be amended in a manner that complies with the requirements of Section 409A. To that
end, once such final Treasury Regulations are issued, Sysco shall conform the Plan to the
requirements of Section 409A and the final Treasury Regulations and other interpretive authority
promulgated thereunder.

     IN WITNESS WHEREOF, the Company has executed this document as of January 1, 2005.

	 	 	 	 	 
	 	 	SYSCO CORPORATION
	 
	 	 	 	 
	 

	 	By:
	 	/S/ DIANE DAY SANDERS
	 

	 	 	 	 
	 

	 	Name:
	 	Diane Day Sanders
	 

	 	 	 	 
	 

	 	Title:
	 	Vice President and Treasurer
	 

	 	 	 	 

-42-

 

EXHIBIT “A”

SYSCO CORPORATION

EXECUTIVE DEFERRED COMPENSATION PLAN

INVESTMENT OPTIONS

     The following are the “Investments” that are available under the Sysco Corporation Executive
Deferred Compensation Plan:

	 	 	 
	Option	 	Manager
	Equity Income Trust

	 	T. Rowe Price Associates, Inc.
	500 Index B Trust

	 	MFC Global Investment Management
	Mid-Value Trust

	 	T. Rowe Price Associates, Inc.
	Overseas Equity Trust

	 	Capital Guardian Trust Company
	Small Cap Value Trust

	 	Wellington Management Company LLC
	Brandes International Equity Fund

	 	Brandes Investment Partners, LP
	Frontier Capital Appreciation

	 	Frontier Capital Management Company, LLC
	Bond Index B Trust

	 	Declaration Management & Research LLC

     Default Investment

     Moody’s Average Corporate Bond Yield, plus 1%, as described in the definition of Default
Investment.

-43-exv10we

 

Exhibit 10(e)

SYSCO CORPORATION

2005 BOARD OF DIRECTORS DEFERRED COMPENSATION PLAN

Effective January 1, 2005

 

 

SYSCO CORPORATION

2005 BOARD OF DIRECTORS DEFERRED COMPENSATION PLAN

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Page	 
	ARTICLE I	 	DEFINITIONS
	 	 	2	 
	ARTICLE II	 	ELIGIBILITY
	 	 	7	 
	ARTICLE III	 	DEFERRAL
	 	 	8	 
	 	3.1	 	 	Election to Defer
	 	 	8	 
	 	3.2	 	 	Failure to Elect
	 	 	8	 
	 	3.3	 	 	Revocation or Change of Election
	 	 	8	 
	 	3.4	 	 	Timing and Form of Election
	 	 	8	 
	ARTICLE IV	 	ACCOUNT
	 	 	9	 
	 	4.1	 	 	Establishing a Participant’s Account
	 	 	9	 
	 	4.2	 	 	Credit of the Participant’s Deferral
	 	 	9	 
	 	4.3	 	 	Deemed Investments
	 	 	9	 
	 	4.4	 	 	Procedure to Credit/Debit Interest, Earnings, or Losses Upon an Event of Distribution
	 	 	10	 
	ARTICLE V	 	VESTING
	 	 	12	 
	ARTICLE VI	 	DISTRIBUTIONS
	 	 	13	 
	 	6.1	 	 	Form and Time of Distribution
	 	 	13	 
	 	6.2	 	 	Death/Beneficiary Designation
	 	 	14	 
	 	6.3	 	 	Termination Distributions
	 	 	15	 
	 	6.4	 	 	Hardship Withdrawals
	 	 	15	 
	 	6.5	 	 	Payments upon Income Inclusion Under Section 409A
	 	 	15	 
	 	6.6	 	 	Expenses Incurred in Enforcing the Plan
	 	 	16	 
	 	6.7	 	 	Responsibility for Distributions and Withholding of Taxes
	 	 	16	 
	ARTICLE VII	 	ADMINISTRATION
	 	 	17	 
	 	7.1	 	 	Committee Appointment
	 	 	17	 
	 	7.2	 	 	Committee Organization and Voting
	 	 	17	 
	 	7.3	 	 	Powers of the Committee
	 	 	17	 
	 	7.4	 	 	Committee Discretion
	 	 	18	 
	 	7.5	 	 	Reimbursement of Expenses
	 	 	18	 
	 	7.6	 	 	Indemnification.
	 	 	18	 
	ARTICLE VIII	 	AMENDMENT AND/OR TERMINATION
	 	 	19	 
	 	8.1	 	 	Amendment or Termination of the Plan
	 	 	19	 
	 	8.2	 	 	No Retroactive Effect on Account
	 	 	19	 
	 	8.3	 	 	Effect of Termination
	 	 	19	 

-i-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Page	 
	ARTICLE IX	 	FUNDING
	 	 	21	 
	 	9.1	 	 	Payments Under This Plan Are the Obligation of Sysco
	 	 	21	 
	 	9.2	 	 	Plan Obligations May Be Funded Through Rabbi Trust
	 	 	21	 
	 	9.3	 	 	Reversion of Excess Assets
	 	 	21	 
	 	9.4	 	 	Participants Must Rely Only on General Credit of Sysco
	 	 	21	 
	ARTICLE X	 	MISCELLANEOUS
	 	 	23	 
	 	10.1	 	 	Limitation of Rights
	 	 	23	 
	 	10.2	 	 	Distributions to Incompetents or Minors
	 	 	23	 
	 	10.3	 	 	Nonalienation of Benefits
	 	 	23	 
	 	10.4	 	 	Reliance Upon Information
	 	 	23	 
	 	10.5	 	 	Severability
	 	 	24	 
	 	10.6	 	 	Notice
	 	 	24	 
	 	10.7	 	 	Gender and Number
	 	 	24	 
	 	10.8	 	 	Governing Law
	 	 	24	 
	 	10.9	 	 	Effective Date
	 	 	24	 
	 	10.10	 	 	Compliance with Section 409A
	 	 	24	 

-ii-

 

SYSCO CORPORATION 2005

BOARD OF DIRECTORS DEFERRED COMPENSATION PLAN

     WHEREAS, Sysco Corporation sponsors and maintains the Second, Amended and Restated Sysco
Corporation Board of Directors Deferred Compensation Plan (the “Pre-2005 Plan”) to provide
the non-employee directors of Sysco Corporation the opportunity to defer the receipt of some or all
of their directors fees; and

     WHEREAS, the American Jobs Creation Act of 2004 added Section 409A to the Internal Revenue
Code of 1986, as amended (the “Code”), and Section 409A of the Code imposes certain
restrictions on compensation deferred on and after January 1, 2005; and

     WHEREAS, Section 409A of the Code (and the proposed regulations and other interpretive
authority promulgated thereunder) provides that, with respect to compensation that was earned,
deferred, and vested prior to January 1, 2005 under plans (such as the Pre-2005 Plan) that were in
effect on or prior to October 3, 2004, plan provisions that would not otherwise comply with Section
409A of the Code may nonetheless be retained with respect to such compensation, provided that such
plans are not materially modified after October 3, 2004; and

     WHEREAS, the members of the Board of Directors of Sysco Corporation who are not eligible, by
virtue of their employment with Sysco Corporation, to participate in the Pre-2005 Plan have
determined that it is in the best interests of Sysco Corporation and its non-employee directors to
retain the provisions of the Pre-2005 Plan with respect to compensation that was earned, vested,
and deferred prior to January 1, 2005, to avoid any material modification of the Pre-2005 Plan, and
to adopt, effective January 1, 2005, a new non-employee directors deferred compensation plan that
complies with Section 409A of the Code with respect to compensation that is earned, deferred, or
vested on or after January 1, 2005.

     NOW, THEREFORE, Sysco Corporation hereby adopts the Sysco Corporation 2005 Board of Directors
Deferred Compensation Plan as follows:

ARTICLE I

DEFINITIONS

     Account. “Account” means a Participant’s Account in the Deferred Compensation Ledger
maintained by the Committee which reflects the entire interest of the Participant in the Plan.
Each Account shall reflect the Participant’s compensation deferred under this Plan, as adjusted
herein for deemed Investment earnings and losses and credited interest.

     Beneficiary. “Beneficiary” means a person or entity designated by the Participant
under the terms of this Plan to receive any amounts distributed under the Plan upon the death of
the Participant.

 

 

     Board of Directors. “Board of Directors” means the Board of Directors of Sysco.

     Business Day. “Business Day” means any day on which the New York Stock Exchange is
open for trading.

     Change of Control. “Change of Control” means the occurrence of one or more of the
following events:

          (a) The acquisition by any individual, entity or group (within the meaning of Section 13(d)(3)
or 14(d)(2) of the Securities Act (a “Person”) of beneficial ownership (within the meaning
of Rule 13d-3 promulgated under the Securities Act) of 20% or more of either (i) the
then-outstanding shares of SYSCO common stock (the “Outstanding SYSCO Common Stock”) or
(ii) the combined voting power of the then-outstanding voting securities of SYSCO entitled to vote
generally in the election of directors (the “Outstanding SYSCO Voting Securities”);
provided, however, that, for purposes of this definition, the following acquisitions shall not
constitute a Change of Control: (1) any acquisition directly from SYSCO, (2) any acquisition by
SYSCO, (3) any acquisition by any employee benefit plan (or related trust) sponsored or maintained
by SYSCO or any Affiliate, or (4) any acquisition by any corporation; pursuant to a transaction
that complies with subparagraphs (c)(i), (c)(ii) and (c)(iii) of this definition;

          (b) Individuals who, as of November 10, 2005, constitute the Board of Directors (the
“Incumbent Board”) cease for any reason to constitute at least a majority of the Board of
Directors; provided, however, that any individual becoming a director subsequent to November 10,
2005 whose election, or nomination for election by SYSCO’s stockholders, was approved by a vote of
at least a majority of the directors then comprising the Incumbent Board shall be considered as
though such individual were a member of the Incumbent Board, but excluding, for this purpose, any
such individual whose initial assumption of office occurs as a result of an actual or threatened
election contest with respect to the election or removal of directors or other actual or threatened
solicitation of proxies or consents by or on behalf of a Person other than the Board of Directors;

          (c) Consummation of a reorganization, merger, statutory share exchange or consolidation or
similar corporate transaction involving SYSCO or any of its Affiliates, a sale or other disposition
of all or substantially all of the assets of SYSCO, or the acquisition of assets or stock of
another entity by SYSCO or any of its Affiliates (each, a “Business Combination”), in each
case unless, following such Business Combination, (i) all or substantially all of the individuals
and entities that were the beneficial owners of the Outstanding SYSCO Common Stock and the
Outstanding SYSCO Voting Securities immediately prior to such Business Combination beneficially
own, directly or indirectly, more than 60% of the then-outstanding shares of common stock and the
combined voting power of the then-outstanding voting securities entitled to vote generally in the
election of directors, as the case may be, of the corporation resulting from such Business
Combination (including, without limitation, a corporation that, as a result of such transaction,
owns SYSCO or all or substantially all of SYSCO’s assets either directly or through one or more
subsidiaries) in substantially the same proportions as their ownership immediately

 

 

prior to such Business Combination of the Outstanding SYSCO Common Stock and the Outstanding
SYSCO Voting Securities, as the case may be, (ii) no Person (excluding any corporation resulting
from such Business Combination or any employee benefit plan (or related trust) of SYSCO or such
corporation resulting from such Business Combination) beneficially owns, directly or indirectly,
20% or more of, respectively, the then-outstanding shares of common stock of the corporation
resulting from such Business Combination or the combined voting power of the then-outstanding
voting securities of such corporation, except to the extent that such ownership existed prior to
the Business Combination, and (iii) at least a majority of the members of the board of directors of
the corporation resulting from such Business Combination were members of the Incumbent Board at the
time of the execution of the initial agreement or of the action of the Board of Directors providing
for such Business Combination; or

          (d) Approval by the stockholders of SYSCO of a complete liquidation or dissolution of SYSCO.

     Code. “Code” means the Internal Revenue Code of 1986, as amended from time to time.

     Committee. “Committee” means the persons who are from time to time serving as
Chairman of the Board, President, Secretary, and Treasurer of Sysco. These persons shall
constitute the members of the committee administering this Plan.

     Default Distribution Option. “Default Distribution Option” shall have the meaning set
forth in Section 6.1(c).

     Default Investment. “Default Investment” shall mean a hypothetical investment with an
investment return equal to the monthly average of the Moody’s Average Corporate Bond Yield for the
calendar year ending prior to the beginning of the Plan Year for which such rate shall be
effective, plus one (1) percent; provided, however, for calendar years commencing on or after
January 1, 2006, “Default Investment” shall mean a hypothetical investment with a per annum
investment return equal to the sum of (x) the monthly average of the Moody’s Average Corporate Bond
Yield (determined by dividing the sum of the Corporate Bond Yield Averages for each month, as
published in Moody’s Bond Survey, by the number of months in the applicable calculation period) for
the period described in (i) or (ii) that produces the higher rate: (i) the six-month period ending
on October 31st of the calendar year prior to the calendar year for which such rate
shall be effective, or (ii) the twelve-month period ending on October 31st of the
calendar year prior to the calendar year for which such rate shall be effective, plus (y) 1%, or
such other Investment designated by the Committee as the “Default Investment” on Exhibit
“A” attached hereto. The investment return of the Default Investment shall be re-determined
annually as of November 1st of the calendar year prior to the calendar year for which
such rate shall be effective. The investment return, once established, shall be effective as of
January 1st of the calendar year following the calendar year in which such investment
return is calculated and shall remain in effect for the entire calendar year.

 

 

     Deferred Compensation Ledger. “Deferred Compensation Ledger” means the ledger
maintained by the Committee for each Participant which reflects the amount of the Participant’s
compensation deferred under this Plan, the credits and debits for deemed Investment earnings and
losses pursuant to Section 4.3, interest credited pursuant to Section 4.4, and cash distributed to
the Participant or the Participant’s Beneficiaries pursuant to Article VI.

     Eligibility Date. “Eligibility Date” means the date as of which a member of the Board
of Directors is first eligible to participate in the Plan. A member of the Board of Directors
shall be notified of his Eligibility Date by the Committee or its designee.

     Fair Market Value. “Fair Market Value” means, with respect to any Investment, the
closing price on the date of reference, or if there were no sales on such date, then the closing
price on the nearest preceding day on which there were such sales, and in the case of an unlisted
security, the mean between the bid and asked prices on the date of reference, or if no such prices
are available for such date, then the mean between the bid and asked prices on the nearest
preceding day for which such prices are available. With respect to any Investment which reports
“net asset values” or similar measures of the value of an ownership interest in the Investment,
Fair Market Value shall mean such closing net asset value on the date of reference, or if no net
asset value was reported on such date, then the net asset value on the nearest preceding day on
which such net asset value was reported. For any Investment not described in the preceding
sentences, Fair Market Value shall mean the value of the Investment as determined by the Committee
in its reasonable judgment on a consistent basis, based upon such available and relevant
information as the Committee determines to be appropriate.

     Fixed Interest Option. “Fixed Interest Option” shall have the meaning set forth in
Section 4.3(d).

     Installment Distribution Option. “Installment Distribution Option” shall have the
meaning set forth in Section 6.1(b)(ii).

     Investment. “Investment” means the options set forth in Exhibit “A” attached
hereto, as the same may be amended from time to time by the Committee in its sole and absolute
discretion.

     Lump Sum Distribution Option. “Lump Sum Distribution Option” shall have the meaning
set forth in Section 6.1(b)(i).

     Participant. “Participant” means a member of the Board of Directors of Sysco who is
not otherwise employed by Sysco or a Subsidiary, and any former member the Board of Directors of
Sysco who is eligible to participate in the Plan or who has an Account in the Deferred Compensation
Ledger.

     Plan. “Plan” means the Sysco Corporation 2005 Board of Directors Deferred
Compensation Plan, as set forth in this document and amended from time to time.

 

 

     Plan Year. “Plan Year” means the calendar year. The Plan’s first Plan Year shall be
the 2005 calendar year.

     Section 409A. “Section 409A” means Section 409A of the Code. References herein to
“Section 409A” shall also include any regulatory and other interpretive guidance promulgated under
Section 409A of the Code.

     Securities Act. “Securities Act” means the Securities Exchange Act of 1934, as
amended from time to time.

     Subsequent Elections. “Subsequent Elections” shall have the meaning set forth in
Section 6.1(a).

     Subsidiary. “Subsidiary” means (a) any corporation which is a member of a “controlled
group of corporations” which includes Sysco, as defined in Code Section 414(b), (b) any trade or
business under “common control” with Sysco, as defined in Code Section 414(c), (c) any organization
which is a member of an “affiliated service group” which includes Sysco, as defined in Code Section
414(m), (d) any other entity required to be aggregated with Sysco pursuant to Code Section 414(o),
and (e) any other organization or employment location designated as a “Subsidiary” by resolution of
the Board of Directors.

     Sysco. “Sysco” means Sysco Corporation.

     Termination. “Termination” means a Participant’s retirement, resignation, or removal
from the Board of Directors for any reason.

     Termination Investment Election. “Termination Investment Election” shall have the
meaning set forth in Section 4.3(d).

     Treasury Regulations. “Treasury Regulations” means the Federal Income Tax
Regulations, and, to the extent applicable, any Temporary or Proposed Regulations promulgated under
the Code, as such regulations may be amended from time to time (including the corresponding
provisions of succeeding regulations).

     Trust. “Trust” means any trust created by separate agreement as permitted by Section
9.2 of this Plan.

     Unforeseeable Emergency. “Unforeseeable Emergency” shall have the meaning set forth
in Section 6.4.

     Variable Investment Option. “Variable Investment Option” shall have the meaning set
forth in Section 4.3(d).

 

 

ARTICLE II

ELIGIBILITY

     All members of the Board of Directors who are not otherwise employed by Sysco or a Subsidiary
shall be eligible to participate in this Plan.

ARTICLE III

DEFERRAL

     3.1 Election to Defer. Each Participant may elect to defer under this Plan a
percentage of his Director’s fees in any 10% increment which is not less than 20% nor more than
100% of his Director’s fees. Generally, the election to defer is effective only if received by the
Committee in proper form prior to the beginning of the Plan Year or Years for which it is to be
applicable; once a Plan Year has commenced, the election to defer shall be irrevocable for that
Plan Year. Notwithstanding the foregoing provisions of this Section 3.1 to the contrary, with
respect to the first Plan Year during which a Participant becomes eligible to participate in the
Plan, the Participant’s election to defer may be made, with respect to Director’s fees for services
to be performed subsequent to the election, within 30 days after the Participant’s Eligibility
Date.

     3.2 Failure to Elect. If the Participant fails to provide his election to the
Committee in proper form prior to (i) with respect to the initial Plan Year of a Participant’s Plan
eligibility, the 31st day following the Participant’s Eligibility Date, and (ii) with
respect to Plan Years after a Participant’s initial year of Plan eligibility, the beginning of a
Plan Year for which no prior election is effective, the Participant shall be deemed to have elected
not to defer any portion of his Director’s fees for that Plan Year.

     3.3 Revocation or Change of Election. Each Participant shall have the right to revoke
or change any prior continuing election to defer a portion or all of his Director’s fees; provided,
however, that any such revocation or change of election shall be effective only on a prospective
basis beginning with Director’s fees earned during the Plan Year next following the Plan Year
during which the Committee receives the revocation or change in proper form. Notwithstanding
anything to the contrary contained herein, if a Participant receives a hardship withdrawal pursuant
to Section 6.4, the Participant may elect to cancel his deferral election in effect for such
calendar year. Such cancellation election shall be made in writing by the Participant in such form
as the Committee determines from time to time, and any subsequent deferral elections shall be
subject to the requirements of the first sentence of Section 3.1.

     3.4 Timing and Form of Election. The Committee shall have the right to make such
rules and regulations regarding the election, revocation, or change of election to defer as are not
inconsistent with the requirements of Sections 3.1, 3.2, and 3.3 or Section 409A, including
establishing election periods, forms for elections, and all other pertinent matters.

 

 

ARTICLE IV

ACCOUNT

     4.1 Establishing a Participant’s Account. The Committee shall establish an Account
for each Participant in a special Deferred Compensation Ledger which shall be maintained by Sysco.
Each Account shall reflect the entire interest of the Participant in the Plan.

     4.2 Credit of the Participant’s Deferral. The Committee shall credit the amount of a
Participant’s deferral to the Participant’s Account in the Deferred Compensation Ledger on the same
day that such amount would have been paid to the Participant but for the deferral which was
elected.

     4.3 Deemed Investments. The credit balance of the Participant’s Account in the
Deferred Compensation Ledger shall be deemed invested and reinvested from time to time in such
Investments as shall be designated by the Participant in accordance with the following:

          (a) Upon commencement of participation in the Plan, each Participant shall make a designation
of the Investments in which his Account will be deemed invested. The Investments designated by a
Participant shall be deemed to have been purchased on the date on which the Participant’s deferrals
are credited to the Participant’s Account, or if such date is not a Business Day, on the first
Business Day following such date. If a Participant has not made a designation of Investments in
which his Account will be deemed invested, the credit balance of the Participant’s Account shall be
deemed to be invested in the Default Investment.

          (b) At such times and under such procedures as the Committee shall designate, each Participant
shall have the right to change (i) the existing Investments in which the Participant’s Account is
deemed invested by treating a portion of the existing Investments in the Participant’s Account as
having been sold and the new Investments purchased; and (ii) the Investments which are deemed to be
purchased with future credits to the Participant’s Account.

          (c) In the case of any deemed purchase of an Investment, the Participant’s Account shall be
decreased by a dollar amount equal to the number of units of such Investment treated as purchased
multiplied by the per unit net asset value of such Investment as of such date or, if such date is
not a Business Day, on the first Business Day following such date, and shall be increased by the
number of units of such Investment treated as purchased. In the case of any deemed sale of an
Investment, the Participant’s Account shall be decreased by the number of units of Investment
treated as sold, and shall be increased by a dollar amount equal to the number of units of such
Investment treated as sold multiplied by the per unit net asset value of such Investment as of such
date or, if such date is not a Business Day, on the first Business Day following such date.

 

 

          (d) If a Participant’s Termination occurs on or after January 1, 2006 and the Participant has
elected to receive any portion of the Participant’s distribution under Section 6.3 (upon
Termination) pursuant to the Installment Distribution Option, with respect such portion, the
Participant may elect (the “Termination Investment Election”) either (i) to have interest
credited to the declining balance of such portion of the Participant’s Account at a fixed rate
determined pursuant to Section 4.4(b)(ii) (the “Fixed Interest Option), or (ii) to have the
Participant’s designation of deemed Investments (which deemed Investments may continue to be
changed pursuant to Section 4.3(b)) remain in effect throughout the period of distribution (the
“Variable Investment Option”); provided, however, that if the Participant dies during the
period of distribution, such Participant’s designation of deemed Investments shall be terminated
and such Participant’s Account shall be deemed invested in the Default Investment. A Participant
shall make his or her Retirement Investment Election at such time and in such form as determined by
the Committee. If the Committee does not receive a Participant’s Retirement Investment Election in
the period prescribed by the Committee, the Participant shall be deemed to have elected the Fixed
Interest Option. Once a Participant has made a Retirement Investment Election (or is deemed to have
made a Retirement Investment Election) such election is irrevocable. Following the Participant’s
Termination, interest or deemed Investment earnings or losses, as the case may be, shall be
credited or debited to the Participant’s Account in accordance with Section 4.4.

          (e) In no event shall Sysco be under any obligation, as a result of any designation of
Investments made by Participants, to acquire any Investment assets, it being intended that the
designation of any Investment shall only affect the determination of amounts ultimately paid to a
Participant.

          (f) In determining the amounts of all debits and credits to the Participant’s Account, the
Committee shall exercise its reasonable best judgment, and all such determinations (in the absence
of bad faith) shall be binding upon all Participants and their Beneficiaries. If an error is
discovered in the Participant’s Account, the Committee, in its sole and absolute discretion, shall
cause appropriate, equitable adjustments to be made as soon as administratively practicable
following the discovery of such error or omission.

     4.4 Procedure to Credit/Debit Interest, Earnings, or Losses Upon an Event of
Distribution.

          (a) Distributions Upon Termination under the Variable Investment Option. If a
Participant is entitled to receive a distribution pursuant to Section 6.3 (upon Termination) and
elects the Variable Investment Option under Section 4.3(d)(ii), the declining balance of the
portion of the Participant’s Account to which this Section 4.4(a) applies shall continue to be
credited or debited with Investment earnings or losses (including interest credited at the
investment return of the Default Investment, if that Investment option is selected) for the period
beginning on the day following the day on which the event giving rise to the distribution occurs
and continuing until the final installment distribution is paid. The amount of deemed Investment
earnings or losses credited or debited to the Participant’s Account shall be determined by the
Committee in accordance with Section 4.3(f)

 

 

          (b) Distributions Upon Death, or Termination. If a Participant or a Participant’s
Beneficiaries are entitled to receive a distribution pursuant to Section 6.2 (upon death), or
Section 6.3 (upon Termination) unless the Participant elected the Variable Investment Option under
Section 4.3(d)(ii), interest or deemed Investment earnings or losses shall be credited or debited
to the portion of the Participant’s Account subject to this Section 4.4(b) in accordance with this
Section 4.4(b).

          (i) Crediting/Debiting of Interest or Deemed Investment Earnings or Losses Prior to
Commencement of Distributions. The Participant’s Account shall continue to be credited or
debited with Investment earnings or losses until, (A) for events giving rise to a distribution
that occur before January 1, 2006, the date of the event giving rise to the distribution, or
(B) for events giving rise to a distribution that occur on or after January 1, 2006, the later
to occur of (x) the date of the event giving rise to the distribution; or (y) the last day of
the month preceding the month in which distributions will commence (the “Conversion
Date”) at which time the deemed Investments in the Participant’s Account shall be treated
as sold and credited with a dollar value in accordance with Section 4.3(c). After such date,
there shall be no additional credits or debits to the Participant’s Account under this Plan
for deemed Investment earnings or losses. Notwithstanding the foregoing, the Participant’s
Account shall be credited with interest, at the rate of the Default Investment, for the period
beginning on the Conversion Date and ending on the day immediately before the date on which
distribution payments commence.

          (ii) Crediting of Interest or Deemed Investment Earnings After Commencement of
Installment Distributions. With respect to distributions subject to this Section 4.4(b),
if any portion of a Participant’s Account is to be paid pursuant to the Installment
Distribution Option, interest shall be credited to the declining balance of the portion of the
Participant’s Account subject to this Section 4.4(b)(ii) beginning on the day on which
distributions commence and continuing until the final installment distribution is paid. The
interest crediting rate for purposes of this Section 4.4(b)(ii) shall be the investment return
of the Default Investment for the last calendar year ending prior to the event giving rise to
the distribution; provided however, that for events occurring on or after January 1, 2006 that
give rise to a distribution, the interest crediting rate hereunder shall be the per annum
interest rate equal to the sum of (x) the monthly average of the Moody’s Average Corporate
Bond Yield (determined by dividing the sum of the Corporate Bond Yield Averages for each
month, as published in Moody’s Bond Survey, by the number of months in the calculation period)
for the period described in (i) or (ii) that produces the higher rate: (i) the six-month
period ending on the last day of the month that is two months prior to the month during which
distributions are to commence, or (ii) the twelve-month period ending on the last day of the
month that is two months prior to the month during which distributions are to commence, plus
(y) 1%.

 

 

ARTICLE V

VESTING

     The amount credited to a Participant’s Account attributable to deferrals of Director’s fees,
adjusted for interest and deemed Investment earnings and losses pursuant to Sections 4.3 and 4.4,
shall be 100% vested at all times.

ARTICLE VI

DISTRIBUTIONS

     6.1 Form and Time of Distribution.

          (a) Election, Revocation, or Change of Election of the Form of Distribution. Each
Participant shall have the right to elect, to revoke, or to change any prior election of the form
of distribution at the time and under the rules established by the Committee, which rules shall
include the provisions of this Article VI. A Participant may elect different forms of
distribution, as specified in Section 6.1(b), with respect to the distribution options described in
Sections 6.2 (death) and 6.3 (Termination). The initial election of form of distribution with
respect to a particular distribution event, if received by the Committee in proper form prior to or
concurrent with the time a Participant first makes an election to defer Director’s fees under this
Plan, shall become effective upon receipt, and shall become irrevocable at the time a Participant
first makes an election to defer Director’s fees under this Plan. Any election of form of
distribution or revocations or changes of election of form of distribution with respect to a
distribution event that a Participant makes after he first makes an election to defer Director’s
fees under this Plan (such elections, revocations, and changes are referred to collectively herein
as “Subsequent Elections”) shall be effective only if the Subsequent Election is received
by the Committee in proper form at least one (1) year prior to the occurrence of the event giving
rise to the distribution to which such Subsequent election applies. During the one-year period
after a Subsequent Election is received by the Committee, the Participant’s last effective
election, revocation, or change shall remain in force with respect to such distribution event. In
addition, with respect to distributions resulting from the Participant’s Termination, the first
payment pursuant to such Subsequent Election may not be made within the five (5) year period
commencing on the date such payment would have been made or commenced under the last effective
election, revocation, or change made by the Participant. Notwithstanding the foregoing provisions
of this Section 6.1(a), at such time as the Committee shall determine, but no later than December
31, 2006, a Participant may make a Subsequent Election to change the form of distribution of a
Participant’s Account, and such Subsequent Election shall be immediately effective, provided that a
Subsequent Election made during calendar year 2006 may not (i) apply to any amount that would
otherwise be payable during calendar year 2006, or (ii) otherwise cause an amount to be paid in
calendar year 2006 that would not otherwise be payable in such calendar year.

 

 

          (b) Form of Distribution Options Available. The distribution options that may be
selected by Participants are as follows:

          (i) a lump-sum payment (the “Lump-Sum Distribution Option”) to the Participant or
the Participant’s Beneficiaries of the Participant’s Account in the Deferred Compensation
Ledger;

          (ii) equal quarterly or annual (as elected by the Participant) installment payments to
the Participant or the Participant’s Beneficiaries of principal and interest for a period of
up to 20 years (as elected by the Participant) (the “Installment Distribution
Option”); provided, however, if a Participant is entitled to receive a distribution
pursuant to Section 6.3 (upon Termination) and elects the Variable Investment Option under
Section 4.3(d)(ii), each installment payment amount during the period of distribution (as
selected by the Participant) shall be determined as the result of a calculation, to be
performed as soon as administratively practicable before the date on which the installment
payment is to be made, where (A) is divided by (B); and

     (A) equals the remaining value of the Participant’s Account in the
Deferred Compensation Ledger as of the date of such calculation; and

     (B) equals the remaining number of installment payments.

          (iii) a combination of the Lump-Sum Distribution Option and the Installment Distribution
Option, whereby a portion of the Participant’s Account in the Deferred Compensation Ledger is
distributed in part pursuant to the Lump-Sum Distribution Option, and the balance of the
Account is distributed pursuant to the Installment Distribution Option.

          (c) Default Distribution Option. If a Participant does not have an effective election
as to form of distribution on file with the Committee at the time distributions to such Participant
are to commence, the Participant shall be conclusively deemed to have elected to receive the
balance of the Participant’s Account pursuant to the Installment Distribution Option annually over
a period of ten (10) years (the “Default Distribution Option”).

          (d) Payment of Amounts less than $30,000. Notwithstanding any other provision of this
Plan, if a Participant’s account balance is less than $30,000 on the date installment distributions
to such Participant hereunder would otherwise commence, the distribution shall be made in one lump
sum.

          (e) Commencement of Distributions. Distributions pursuant to this Section 6.1 shall
commence as soon as administratively feasible after the occurrence of the event giving rise to the
distribution, but not later than 90 days after the event giving rise to the distribution, provided
that, in the case of the death of the Participant, distributions shall not commence within the
30-day period following the

 

 

Participant’s death, provided further, that, in the case of a Participant who has made a
Subsequent Election, distributions shall not commence earlier than the time prescribed by Section
6.1(a).

     6.2 Death/Beneficiary Designation. Upon the death of a Participant, the Participant’s
Beneficiary or Beneficiaries shall receive, at the time and in the manner provided in Section 6.1,
the balance then credited to the Participant’s Account in the Deferred Compensation Ledger. Each
Participant, at the time of making his initial deferral election, must file with the Committee a
designation of one or more Beneficiaries to whom distributions otherwise due the Participant shall
be made in the event of his death prior to the complete distribution of the amount credited to his
Account in the Deferred Compensation Ledger. The designation shall be effective upon receipt by
the Committee of a properly executed form which the Committee has approved for that purpose. The
Participant may from time to time revoke or change any designation of Beneficiary by filing another
approved Beneficiary designation form with the Committee. If there is no valid designation of
Beneficiary on file with the Committee at the time of the Participant’s death, or if all of the
Beneficiaries designated in the last Beneficiary designation have predeceased the Participant or,
in the case of entities, otherwise ceased to exist, the Beneficiary shall be the Participant’s
spouse, if the spouse survives the Participant, or otherwise the Participant’s estate. A
Beneficiary who is an individual shall be deemed to have predeceased the Participant if the
Beneficiary dies within 30 days after the date of the Participant’s death. If any Beneficiary
survives the Participant but dies or, in the case of an entity, otherwise ceases to exist before
receiving all amounts due the Beneficiary from the Participant’s Account, the balance of the amount
which would have been paid to that Beneficiary shall, unless the Participant’s designation provides
otherwise, be distributed to the individual deceased Beneficiary’s estate or, in the case of a
Beneficiary which is an entity, to the Participant’s spouse, if the spouse survives the
Participant, or otherwise to the Participant’s estate. Any Beneficiary designation which
designates any person or entity other than the Participant’s spouse must be consented to in writing
by the Participant’s spouse in a form acceptable to the Committee in order to be effective.

     6.3 Termination Distributions . Upon the Participant’s Termination, the Participant
shall receive, at the time and in the manner provided in Section 6.1, the amount credited to the
Participant’s Account in the Deferred Compensation Ledger.

     6.4 Hardship Withdrawals. Any Participant may request a hardship withdrawal to
satisfy an “Unforeseeable Emergency.” No hardship withdrawal can exceed the lesser of the amount
credited to the Participant’s Account or the amount reasonably needed to satisfy the Unforeseeable
Emergency. Whether an Unforeseeable Emergency exists and the amount reasonably needed to satisfy
such emergency shall be determined by the Committee based upon the evidence presented by the
Participant and the rules established in this Section 6.4. If a hardship withdrawal is approved by
the Committee, it shall be paid within 10 days of the Committee’s determination. For purposes of
this Plan, an Unforeseeable Emergency means: (a) a severe financial hardship to the Participant
resulting from an illness or accident of the Participant or of

 

 

a dependent (as defined in Section 152(a) of the Code) of the Participant, (b) the loss of the
Participant’s property due to casualty, or (c) another similar extraordinary and unforeseeable
circumstance arising as a result of events beyond the control of the Participant. The
circumstances that constitute a hardship shall depend upon the facts of each case, but, in any
case, amounts distributed with respect to an Unforeseeable Emergency shall not exceed the amount
necessary to satisfy such emergency plus amounts necessary to pay taxes reasonably anticipated as a
result of the distribution, after taking into account the extent to which such emergency is or may
be relieved: (i) through reimbursement or compensation by insurance or otherwise, (ii) by
liquidation of the Participant’s assets, to the extent the liquidation of such assets will not
itself cause severe financial hardship, or (iii) by additional compensation that may be available
to such Participant by reason of a cancellation of deferrals under Section 3.3 of this Plan.
Foreseeable needs for funds, such as the need to send a Participant’s child to college or the
desire to purchase a home, shall not be considered to be an Unforeseeable Emergency.

     6.5 Payments upon Income Inclusion Under Section 409A. It is intended that the
provisions of this Plan shall comply with the requirements of Section 409A; however, if it is
determined that the provisions of this Plan do not comply with the requirements of Section 409A and
a Participant is required to include in income amounts otherwise deferred under this Plan, the
Participant shall be entitled, upon request, to receive a distribution not to exceed the amount
required to be included in income as a result of the failure of the Plan to meet the requirements
of Section 409A. Amounts distributable pursuant to this Section 6.5 shall be distributed as soon
as administratively feasible, but no later than ninety (90) days after the date of the
determination that the Plan does not comply with the requirements of Section 409A.

     6.6 Expenses Incurred in Enforcing the Plan. Sysco will, in addition, pay a
Participant for all legal fees and expenses incurred by him in contesting or disputing his removal
from the Board of Directors or in seeking to obtain or enforce any benefit provided by this Plan if
the removal occurs in the Plan Year in which a Change of Control occurs or during the next three
succeeding Plan Years following the Plan Year in which a Change of Control occurs.

     6.7 Responsibility for Distributions and Withholding of Taxes. The Committee shall
furnish information to Sysco concerning the amount and form of distribution to any Participant
entitled to a distribution so that Sysco may make or cause the Trust to make the distribution
required. The Committee shall also calculate the deductions from the amount of the benefit paid
under the Plan for any taxes required to be withheld by federal, state, or local government and
shall cause them to be withheld.

ARTICLE VII

ADMINISTRATION

     7.1 Committee Appointment. The Committee shall be comprised of the Chairman of the
Board of Directors, the President, the Secretary, and the Treasurer of Sysco. The Board of
Directors or its

 

 

designee shall have the sole discretion to remove any one or more Committee members and to
appoint one or more replacement or additional Committee members from time to time.

     7.2 Committee Organization and Voting. The Committee shall select from among its
members a chairman to preside at all of its meetings and shall elect a secretary without regard to
whether that person is a member of the Committee. The secretary shall keep all records, documents,
and data pertaining to the Committee’s supervision and administration of the Plan. A majority of
the members of the Committee shall constitute a quorum for the transaction of business, and the
vote of a majority of the members present at any meeting shall decide any question brought before
the meeting. In addition, the Committee may decide any question by vote, taken without a meeting,
of a majority of its members. A member of the Committee who is also a Participant shall not vote
or act on any matter relating solely to himself.

     7.3 Powers of the Committee. The Committee shall have the exclusive responsibility
for the general administration of the Plan according to the terms and provisions of the Plan and
shall have all powers necessary to accomplish those purposes, including, but not by way of
limitation, the right, power, and authority:

     (a) to make rules and regulations for the administration of the Plan;

     (b) to construe all terms, provisions, conditions, and limitations of the Plan;

     (c) to correct any defect, supply any omission, or reconcile any inconsistency that may appear
in the Plan in the manner and to the extent it deems expedient to carry the Plan into effect for
the greatest benefit of all parties at interest;

     (d) to designate the persons eligible to become Participants;

     (e) to determine all controversies relating to the administration of the Plan, including but
not limited to:

                    (i) differences of opinion arising between Sysco and
a Participant, except when the
difference of opinion relates to the entitlement to, the amount of, or the method or timing of
payment of a benefit affected by a Change of Control, in which event, such difference shall be
decided by judicial action; and

                    (ii) any question it deems advisable to determine in
order to promote the uniform
administration of the Plan for the benefit of all parties at interest;

 

 

          (f) to delegate by written notice any Plan administration duties of the Committee to such
individual members of the Committee, individual employees of Sysco, or groups of employees of
Sysco, as the Committee determines to be necessary or advisable to properly administer the Plan;
and

          (g) to designate the investment options treated as Investments for purposes of this Plan.

     7.4 Committee Discretion. The Committee, in exercising any power or authority granted
under this Plan or in making any determination under this Plan, shall perform or refrain from
performing those acts pursuant to such authority, using its sole discretion and judgment. By way
of amplification and without limiting the foregoing, Sysco specifically intends that the Committee
have the greatest possible discretion to construe the terms of the Plan and to determine all
questions concerning eligibility, participation, and benefits. Any decision made by the Committee
or any refraining to act or any act taken by the Committee in good faith shall be final and binding
on all parties. The Committee’s decision shall never be subject to de novo review.
Notwithstanding the foregoing, the Committee’s decisions, refraining to act or acting is to be
subject to judicial review for those incidents occurring during the Plan Year in which a Change of
Control occurs and during the next three succeeding Plan Years.

     7.5 Reimbursement of Expenses. The Committee shall serve without compensation for its
services but shall be reimbursed by Sysco for all expenses properly and actually incurred in the
performance of its duties under the Plan.

     7.6 Indemnification. To the extent permitted by law, members of the Board of
Directors members of the Committee, employees of Sysco, and all agents and representatives of Sysco
shall be indemnified by Sysco, and saved harmless against any claims resulting from any action or
conduct relating to the administration of the Plan, except claims arising from gross negligence,
willful neglect, or willful misconduct.

ARTICLE VIII

AMENDMENT AND/OR TERMINATION

     8.1 Amendment or Termination of the Plan. The members of the Board of Directors who
are not eligible to participate in the Plan may amend or terminate this Plan at any time by an
instrument in writing.

     8.2 No Retroactive Effect on Account. Absent a Participant’s prior consent, no
amendment shall affect the rights of such Participant to the amounts then standing to his credit in
his Account in the Deferred Compensation Ledger, to change the method of calculating Investment
earnings and losses already accrued prior to the date of the amendment, or to change a
Participant’s rights under any provision relating to a Change of Control after a Change of Control
has occurred. However, the members of the Board of Directors who are not eligible to participate in the Plan shall retain the right
at any time to change in

 

 

any manner the method of calculating Investment earnings and losses
effective from and after the date of the amendment if it has been announced to the Participants.

     8.3 Effect of Termination. Upon termination of the Plan, the following provisions of
this Section 8.3 shall apply:

          (a) No additional amounts shall be credited to any Participant’s Account in the Deferred
Compensation Ledger, to the extent that such amounts relate to Director’s fees earned on or after
the effective date of the Plan’s termination.

          (b) The Committee or its designee may, in its sole discretion, authorize distributions of the
balance of the Participant’s Account in the Deferred Compensation Ledger to Participants as a
result of the Plan’s termination, provided that:

          (i) All deferred compensation arrangements sponsored by the Company that would be
aggregated with this Plan under Section 1.409A-1(c) of the Treasury Regulations if the
Participant participated in such arrangements are terminated;

          (ii) No distributions other than distributions that would be payable under the terms of
the Plan if the termination had not occurred are made within twelve (12) months of the
termination of the Plan;

          (iii) The remaining balances of all Participants’ Accounts after distributions pursuant
to Section 8.3(b)(ii), are distributed within twenty-four (24) months of the termination of
the Plan; and

          (iv) Sysco does not adopt a new deferred compensation arrangement at any time within five
(5) years following the date of the termination of the Plan that would be aggregated with this
Plan under Section 1.409A-1(c) of the Treasury Regulations if the Participant participated in
this Plan and the new arrangement.

          (c) Except as otherwise provided in Section 8.3(a) and 8.3(b), on and after the effective date
of the Plan’s termination, (i) the Plan shall continue to be administered as it was prior to the
Plan’s termination, (ii) all amounts credited the Participant’s Account in the Deferred
Compensation Ledger prior to the date of termination shall be payable only under the conditions, at
the time, and in the form then provided in this Plan, and (iii) no Participant shall be entitled to
a distribution of his Account solely as a result of the Plan’s termination in accordance with the
provisions of this Article VIII.

 

 

ARTICLE IX

FUNDING

     9.1 Payments Under This Plan Are the Obligation of Sysco. Sysco shall pay the
benefits due the Participants under this Plan; however, should it fail to do so when a benefit is
due, the benefit shall be paid by the trustee of that certain trust established pursuant to Section
9.2. In any event, if the Trust fails to pay for any reason, Sysco shall remain liable for the
payment of all benefits provided by this Plan.

     9.2 Plan Obligations May Be Funded Through Rabbi Trust. It is specifically recognized
by both Sysco and the Participants that Sysco may, but is not required to, contribute any amount it
finds desirable to a so-called “Rabbi Trust,” established to accumulate assets to fund the
obligations of Sysco under this Plan. However, under all circumstances, the rights of the
Participants to the assets held in the Trust shall be no greater than the rights expressed in the
Plan and the trust agreement governing the Trust. Nothing contained in any trust agreement which
creates any funding trust or trusts shall constitute a guarantee by Sysco that assets of Sysco
transferred to that trust or those trusts shall be sufficient to pay any benefits under this Plan
or would place the Participant in a secured position ahead of general creditors should Sysco become
insolvent or bankrupt. Any trust agreement prepared to fund Sysco’s obligations under the Plan
must specifically set out these principles so it is clear in that trust agreement that the
Participants in this Plan are only unsecured general creditors of Sysco in relation to their
benefits under this Plan.

     9.3 Reversion of Excess Assets. Sysco may at any time request the record keeper for
the Plan to determine the present Account balance, taking into account credits and debits arising
from the deemed Investment earnings and losses in accordance with Section 4.3 and interest credited
pursuant to Section 4.4, as of the month end coincident with or next following the request, of all
Participants and Beneficiaries of deceased Participants for which Sysco is or will be obligated to
make payments under this Plan. If the fair market value of the assets held in the Trust, as
determined by the Trustee as of that same date, exceeds the total of the accrued benefits of all
Participants and Beneficiaries by 25%, Sysco may direct the trustee to return to it all of the
excess funds. However, if there has been a Change of Control, for the purpose of determining if
there are excess funds, all contributions made prior to the Change of Control shall be subtracted
from the fair market value of the assets held in the Trust as of the determination date but before
the determination is made.

     9.4 Participants Must Rely Only on General Credit of Sysco. It is also specifically
recognized by both Sysco and the Participants that this Plan is only a general corporate commitment
and that each Participant must rely upon the general credit of Sysco for the fulfillment of its
obligations hereunder. Under all circumstances the rights of Participants to any asset held by
Sysco shall be no greater than the rights expressed in this Plan. Nothing contained in this Plan
shall constitute a guarantee by Sysco that the assets of Sysco will be sufficient to pay any
benefits under this Plan or would place the Participant in a secured position ahead of general creditors of Sysco. Though Sysco has established and may
fund a Rabbi Trust,

 

 

 as indicated in Section 9.2, to accumulate assets to fulfill its obligations,
the Plan and any such trust shall not create any lien, claim, encumbrance, right, title or other
interest of any kind whatsoever in any Participant in any asset held by Sysco, contributed to any
such trust or otherwise designated to be used for payment of any of its obligations created in this
Plan. No specific assets of Sysco have been or will be set aside, or will in any way be
transferred to any trust or will be pledged in any way for the performance of Sysco’s obligations
under this Plan which would remove such assets from being subject to the general creditors of
Sysco.

ARTICLE X

MISCELLANEOUS

     10.1 Limitation of Rights. Nothing in this Plan shall be construed:

          (a) to give any member of the Board of Directors any right to be designated a Participant in
the Plan;

          (b) to give a Participant any right with respect to the fee or compensation deferred, the
deemed Investment earnings and losses, or the interest credited in the Deferred Compensation
Ledger, except in accordance with the terms of this Plan;

          (c) to limit in any way the right of Sysco to remove a Participant from the Board of Directors
at any time;

          (d) to evidence any agreement or understanding, expressed or implied, that Sysco shall retain
a Participant as a member of the Board of Directors for any particular remuneration; or

          (e) to give a Participant or any other person claiming through him any interest or right under
this Plan other than that of any unsecured general creditor of Sysco.

     10.2 Distributions to Incompetents or Minors. Should a Participant become incompetent
or should a Participant designate a Beneficiary who is a minor or incompetent, the Committee is
authorized to pay the funds due to the parent of the minor or to the guardian of the minor or
incompetent or directly to the minor or to apply those funds for the benefit of the minor or
incompetent in any manner the Committee determines in its sole discretion.

     10.3 Nonalienation of Benefits. No right or benefit provided in this Plan shall be
transferable by the Participant except, upon his death, to a named Beneficiary as provided in this
Plan. No right or benefit under this Plan shall be subject to anticipation, alienation, sale,
assignment, pledge, encumbrance or charge, and any attempt to anticipate, alienate, sell, assign,
pledge, encumber, or charge the same shall be void. No right or benefit under this Plan shall in any manner be liable for
or subject to any debts, contracts,

 

 

liabilities or torts of the person entitled to such benefits.
If any Participant or any Beneficiary becomes bankrupt or attempts to anticipate, alienate, sell,
assign, pledge, encumber or charge any right or benefit under this Plan, that right or benefit
shall, in the discretion of the Committee, cease. In that event, the Committee may have Sysco hold
or apply the right or benefit or any part of it to the benefit of the Participant or Beneficiary,
his or her spouse, children or other dependents or any of them in any manner and in any proportion
the Committee believes to be proper in its sole and absolute discretion, but is not required to do
so.

     10.4 Reliance Upon Information. The Committee shall not be liable for any decision or
action taken in good faith in connection with the administration of this Plan. Without limiting
the generality of the foregoing, any decision or action taken by the Committee when it relies upon
information supplied to it by any officer of Sysco, Sysco’s legal counsel, Sysco’s independent
accountants, or other advisors in connection with the administration of this Plan shall be deemed
to have been taken in good faith.

     10.5 Severability. If any term, provision, covenant or condition of the Plan is held
to be invalid, void or otherwise unenforceable, the rest of the Plan shall remain in full force and
effect and shall in no way be affected, impaired or invalidated.

     10.6 Notice. Any notice or filing required or permitted to be given to the Committee
or a Participant shall be sufficient if submitted in writing and hand-delivered or sent by U.S.
mail to the principal office of Sysco or to the residential mailing address of the Participant.
Notice shall be deemed to be given as of the date of hand-delivery or if delivery is by mail, as of
the date shown on the postmark.

     10.7 Gender and Number. If the context requires it, words of one gender when used in
this Plan shall include the other, and words used in the singular or plural shall include the
other.

     10.8 Governing Law. The Plan shall be construed, administered, and governed in all
respects by the laws of the State of Texas.

     10.9 Effective Date. This Plan shall be operative and effective on January 1, 2005.

     10.10 Compliance with Section 409A.

          (a) Interpretation. The Plan (i) is intended to comply with, (ii) shall be
interpreted and its provisions shall be applied in a manner that is consistent with, and (iii)
shall have any ambiguities therein interpreted, to the extent possible, in a manner that complies
with Section 409A.

          (b) Amendment for Compliance with Section 409A. As of the date the Plan is adopted,
final Treasury Regulations have not been issued under
Section 409A. It is Sysco’s intention

 

 

that, to the extent that (i) any terms of the Plan conflict with Section 409A, or (ii) Section
409A would require alternate or additional Plan provisions in order for the Plan to comply with the
requirements of Section 409A, the Plan shall be amended in a manner that complies with the
requirements of Section 409A. To that end, once such final Treasury Regulations are issued, Sysco
shall conform the Plan to the requirements of Section 409A and the final Treasury Regulations and
other interpretive authority promulgated thereunder.

     IN WITNESS WHEREOF, Sysco has executed this document as of January 1, 2005.

	 	 	 	 	 
	 

	 	SYSCO CORPORATION	 	 
	 
	 	 	 	 
	 

	 	By: /S/ DIANE DAY SANDERS	 	 
	 

	 	 	 	 
	 

	 	Name: Diane Day Sanders	 	 
	 

	 	Title: Sr. Vice President, Finance and Treasurer	 	 

 

 

EXHIBIT “A”

SYSCO CORPORATION 

BOARD OF DIRECTORS DEFERRED COMPENSATION PLAN

INVESTMENT OPTIONS

     The following are the “Investments” that are available under the Sysco Corporation 2005 Board
of Directors Deferred Compensation Plan:

	 	 	 
	Options	 	Manager
	Equity Income Trust

	 	T. Rowe Price Associates, Inc.
	500 Index B Trust

	 	MFC Global Investment Management
	Mid-Value Trust

	 	T. Rowe Price Associates, Inc.
	Overseas Equity Trust

	 	Capital Guardian Trust Company
	Small Cap Value Trust

	 	Wellington Management Company LLC
	Brandes International Equity Fund

	 	Brandes Investment Partners
	Frontier Capital Appreciation

	 	Frontier Capital Management Company, LLC
	Bond Index B Trust

	 	Declaration Management & Research LLC

Default Investment

     Moody’s Average Corporate Bond Yield, plus 1%, as described in the Plan’s Default Investment
definition.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}]]