Document:

Employment Contract between Denis Hennequin and the Company

  
 Exhibit (10)(n)

  

			
	 ACCORD DE TRANSFERT ET

CONTRAT DE TRAVAIL
	  	 TRANSFER
AGREEMENT AND
 EMPLOYMENT CONTRACT

	 	 
	ENTRE LES SOUSSIGNES	  	BETWEEN THE UNDERSIGNED
	 	 
	La société McDONALD’ S SYSTEM OF
FRANCE, INC., société de droit américain constituée sous les lois de l’Etat du Delaware, dont le siège social est sis Prentice Hall Corporation System Inc., 2711 Centerville Road, Suite 400,
Wilmington, Delaware, 19808, agissant via sa succursale française sise 1, rue Gustave Eiffel—78045 Guyancourt cedex, représentée aux présentes par Monsieur Peter J. Bensen agissant en qualité de Vice
Président et Contrôleur de la société, (ci-après « MSF »)	  	McDONALD’ S SYSTEM OF FRANCE INC., a corporation governed by the
laws of the State of Delaware, United States of America, whose registered office is located at Prentice Hall Corporation System, Inc., 2711 Centerville Road, Suite 400, Wilmington, Delaware 19808, acting through its French branch, located at 1, rue
Gustave Eiffel - 78045 Guyancourt cedex, represented for the purposes hereof by Mr. Peter J. Bensen, acting in his capacity as Vice President and Controller of the corporation (hereinafter: “MSF”)
	 	 
	ET	  	AND
	 	 
	McDONALD’S EUROPE FRANCHISING SERVICES
S.A.R.L., société de droit français au capital de 20.000 €, dont le siège social est sis 1, rue Gustave Eiffel, 78280 Guyancourt, France, immatriculée au Registre du Commerce et des
Sociétés de Versailles sous le numéro 511 811 547, représentée aux présentes par Monsieur Donald Thompson, dûment habilité à l’effet des présentes (ci-après :
« MEFS »)	  	MCDONALD’S EUROPE FRANCHISING SERVICES S.A.R.L., a company governed
by the laws of France with a share capital of € 20,000, whose registered office is located at 1 rue Gustave Eiffel, 78280 Guyancourt, France, registered with the Trade and Companies Register of Versailles under the number reference 511 811 547,
represented by Mr. Donald Thompson, duly empowered for the purposes hereof (hereinafter: “MEFS”),
	 	 
	ET	  	AND
	 	 
	MCD EUROPE FRANCHISING S.À.R.L.,
société de droit luxembourgeois, dont le siège social est sis 9, rue du Laboratoire, L-1911 Luxembourg, agissant via sa succursale suisse établie à Genève et sise 5 rue Pedro-Meylan, c/o Baker &
McKenzie, avocats, 1208 Genève, représentée aux présentes par Monsieur Denis Berdoz, dûment habilité à l’effet des présentes (ci-après :
« MEF »).	  	MCD EUROPE FRANCHISING S.À.R.L., a company governed by the laws of
Luxembourg whose registered office is at 9, rue du Laboratoire, L-1911 Luxembourg, acting through its Swiss branch located in Geneva at rue Pedro-Meylan 5, c/o Baker & McKenzie, avocats, 1208 Genève, represented for the purposes hereof by
Mr. Denis Berdoz, duly empowered for the purposes hereof (hereinafter: “MEF”).
	 	 
	ET	  	AND
	 	 
	 Monsieur
Denis HENNEQUIN, de nationalité française, immatriculé à la sécurité sociale sous le numéro
 xxxxxxxxxxxxx, domicilié xxxxxxxxxxxxxxxxxxxxxxxxxxxx, xxxxxxxxxxx.
	  	Mr. Denis HENNEQUIN, a French national, registered with the French social
security system under number xxxxxxxxxxxxx, residing at xxxxxxxxxxxxxxxxxxxxxxxxxxx, xxxxxxxxxxx (hereinafter: “Mr. Hennequin”).
	 	 
	Etant préalablement exposé
que:	  	Whereas:
	 	 
	Depuis le 3 décembre 1984, Monsieur Hennequin a
exercé ses fonctions au sein du groupe McDonald’s	  	Since December 3rd 1984, Mr. Hennequin has been performing services for the
McDonald’s Group

			
	(défini comme incluant la société
McDonald’s Corporation et toutes les sociétés dont au moins 50% du capital est détenu, directement ou indirectement, par cette dernière, ci-après désignées toutes ensemble comme « le
Groupe »), jusqu’à sa position actuelle de Président Europe.	  	(defined as inclusive of McDonald’s Corporation and all entities directly or indirectly
at least 50% owned by McDonald’s Corporation, hereinafter referred to as “the Group”), through his current position of President Europe.
	 	 
	A la date des présentes, Monsieur Hennequin exerce ses fonctions de Président
Europe en étant employé par MSF, dans le cadre du contrat de travail conclu avec cette dernière le 26 février 2007.	  	As of the date of this Agreement, Mr. Hennequin is performing services as President Europe employed by MSF pursuant to a
written contract entered into with the latter on February 26, 2007.
	 	 
	Le Groupe ayant décidé d’établir ses quartiers
généraux européens à Genève, il a été proposé à Monsieur Hennequin d’y être localisé en sa qualité de Président Europe. Monsieur Hennequin a
manifesté son intérêt pour poursuivre ses fonctions en qualité de Président Europe, en étant désormais principalement basé dans les bureaux de Genève, pour autant qu’il demeure
salarié d’une société basée en France et qu’il puisse continuer à accomplir une partie de ses fonctions en France. Monsieur Hennequin a insisté sur le fait qu’il est important pour lui de
s’assurer que sa relation de travail subsiste avec une société établie en France, qu’elle demeure régie par le droit français et qu’il demeure maintenu au système français de
sécurité sociale.	  	The Group having decided to establish its European headquarters in Geneva, it has been proposed to Mr. Hennequin to be
localised there in his capacity of President Europe. Mr. Hennequin has expressed his interest in continuing to perform his services as President Europe, being now based mainly in Geneva, provided that he remains an employee of a French company and
can continue performing some of his services from France. Mr. Hennequin emphasized that it is important for him to ensure that his employment relationship continues with a French company, is still governed by French law and that he remains subject
to the French social security system.
	 	 
	Le Groupe a alors indiqué, au regard de ces éléments, que la structure
la plus appropriée pour l’emploi de Monsieur Hennequin était MEFS, dans la mesure où celle-ci a vocation à héberger les salariés ayant, tout comme Monsieur Hennequin, des fonctions
pan-européennes.	  	The Group then has indicated that, going forward, the most appropriate structure to employ Mr. Hennequin is MEFS, since the
latter is designed to host employees like Mr. Hennequin with pan-European responsibilities.
	 	 
	Ainsi, l’objet du présent Contrat est, pour les parties, d’assurer le
transfert du contrat de travail existant de Monsieur Hennequin à MEFS et de définir pour l’avenir les termes et conditions de l’emploi de Monsieur Hennequin par MEFS.	  	Accordingly, to effectuate the purpose of this Agreement, the parties wish to transfer Mr. Hennequin’s existing
contract of employment to MEFS and to set out the terms and conditions of Mr. Hennequin’s employment with MEFS going forward.
	 	 
	Il est en conséquence convenu de ce qui
suit :	  	It is hereby agreed as follows:
	 	 
	Article 1 : Transfert du contrat de travail	  	Article 1: Transfer of Employment
	 	 
	Il est expressément convenu entre MSF, MEFS et Monsieur Hennequin de
transférer, d’un commun accord, le contrat de travail de Monsieur Hennequin de MSF à MEFS, et ce à compter du 1er octobre 2010, ci-après “la Date de Transfert”.	  	It is expressly agreed by MSF, MEFS and Mr. Hennequin that the employment of Mr. Hennequin is transferred by mutual
consent from MSF to MEFS, effective October 1st, 2010,
hereafter “the Effective Date”.
	 	 
	A compter de la Date de Transfert, et du fait de ce
transfert volontaire et d’un commun accord du contrat de travail de Monsieur Hennequin, (i) la relation contractuelle de travail existant entre Monsieur Hennequin et MSF prendra fin de plein droit et (ii) cette relation contractuelle
de travail se poursuivra entre Monsieur Hennequin et MEFS aux termes et conditions définis dans le présent Contrat.	  	As from the Effective Date, as a result of this voluntary and mutually agreed transfer
of Mr. Hennequin’s employment contract, (i) the contractual employment relationship existing between Mr. Hennequin and MSF will be terminated as of right, and (ii) this contractual employment relationship will continue between Mr. Hennequin and
MEFS in accordance with the terms and conditions of this Agreement.

  

			
	A compter de la Date de Transfert, MSF cessera donc
d’être l’employeur de Monsieur Hennequin et MEFS deviendra son seul et unique employeur.	  	As from the Effective Date, MSF will therefore cease to be Mr. Hennequin’s employer and
MEFS will become his new and only employer.
	 	 
	MEFS reprendra à son compte les droits à congés payés acquis et
non pris par Monsieur Hennequin, ainsi que, le cas échéant, le bonus qui aurait été payé par MSF en 2010 au titre de 2009.	  	MEFS will recognize all of Mr. Hennequin’s accrued paid holidays, as well as the bonus, if any, that would have been
paid by MSF in 2010 for 2009.
	 	 
	Au regard de ce qui précède, aucune
indemnité de quelque sorte que ce soit ne sera due à Monsieur Hennequin au titre de la cessation de ses fonctions avec MSF.	  	In light of the above, no termination indemnity of any kind shall be due to Mr. Hennequin
as a result of the termination of his functions with MSF.
	 	 
	 Article 2 :
Engagement
  
 Sous réserve des autres stipulations du
présent contrat, Monsieur Hennequin continuera à exercer, en qualité de salarié de MEFS, les fonctions de Président Europe, avec le statut Cadre.
	  	 Article 2: Hiring

 
 Subject to the other provisions of this Agreement, Mr. Hennequin will continue to
hold, in his capacity as an employee of MEFS, the position of President Europe, with executive employee status.

	 	 
	Il est expressément convenu que l’ancienneté de Monsieur Hennequin est
prise en compte depuis le 3 décembre 1984, date à laquelle il a commencé à travailler avec le Groupe.	  	It is expressly agreed that Mr. Hennequin’s seniority shall be taken into account with effect from 3rd December 1984, which is the date on which he first joined the
Group.
	 	 
	Cette date sera celle prise en compte pour la détermination de l’ensemble des
droits de Monsieur Hennequin liés à l’ancienneté.	  	This date shall be used as a reference in order to determine all Mr. Hennequin’s entitlements based on length of
service.
	 	 
	A titre informatif seulement, il est spécifié
que MEFS applique à titre volontaire la convention collective nationale des bureaux d’Etudes Techniques, Cabinets d’Ingénieurs-Conseils, Sociétés de Conseils dans ses dispositions étendues
(SYNTEC).	  	For information purposes, it is specified that MEFS has chosen to voluntarily apply the
provisions of the national collective bargaining agreement for the IT, engineering and consulting sector (“SYNTEC”).

  

			
	 Article
3 : Attributions 
  
 Au titre de ses fonctions de
Président Europe, Monsieur Hennequin aura la responsabilité globale de la croissance et du développement durables et à long terme de McDonald’s en Europe. Les responsabilités de Monsieur Hennequin incluront
tous les aspects des activités du groupe McDonalds’ en Europe.
	  	 Article 3: Duties 

 
 As the President Europe, Mr. Hennequin has overall responsibility and accountability
for driving McDonald’s sustainable, long-term growth and development in Europe. Mr. Hennequin’s responsibility includes all aspects of the McDonald’s business in Europe.

	 	 
	Monsieur Hennequin devra rendre compte de l’exécution de ses fonctions, aussi
souvent que nécessaire, à la direction de MEFS, actuellement Monsieur Donald Thompson, ou à toute autre personne qui pourrait à tout moment être désignée par cette dernière.	  	Mr. Hennequin reports on the performance of his duties, as often as necessary, to the management of MEFS, currently Mr.
Donald Thompson, or to any other person designated by the latter from time to time.
	 	 
	Les attributions de Monsieur Hennequin sont amenées à évoluer, et
lesdites attributions, ainsi que le nom et/ou la qualité de la personne à laquelle Monsieur Hennequin rendra directement compte de son activité, pourront être modifiés, autant que nécessaire, compte tenu de
l’évolution de l’organisation du Groupe, dans le respect des qualifications et du statut de Monsieur Hennequin.	  	The duties of Mr. Hennequin may evolve over time and said duties, as well as the person and/or the capacity of the person
to whom Mr. Hennequin is required directly to report, are subject to change and may be modified as often as necessary to take into account organizational changes within the Group, provided that these changes are in line with the scope of Mr.
Hennequin’s qualifications and status.
	 	 
	Tout changement de cette nature sera notifié par Monsieur Hennequin par note interne
et ne pourra pas être considéré comme une modification du présent contrat de travail, ce que Monsieur Hennequin accepte expressément.	  	Mr. Hennequin shall be informed of any such changes by internal communication. Mr. Hennequin expressly acknowledges that
said changes shall not be considered as a modification of this employment contract.
	 	 
	Monsieur Hennequin s’engage à remplir ses fonctions au mieux des
intérêts de MEFS et du Groupe, et conformément à leur politique générale incluant, en particulier, le Code de Pratiques des Affaires (« Standards of Business Conduct ») ainsi que les
instructions qui lui seront données par ses supérieurs hiérarchiques. De façon générale, Monsieur Hennequin s’engage à consacrer ses meilleurs soins à l’exercice des fonctions qui lui
sont confiées et à respecter, dans le cadre de ses fonctions et de ses attributions, toutes instructions orales ou écrites, générales ou particulières, de la direction de MEFS et du Groupe.	  	Mr. Hennequin undertakes to perform his duties in the best interests of MEFS and the Group and in compliance with the
general policies of the latter, including but not limited to the Standards of Business Conduct, and the instructions given to him by his superiors. Mr. Hennequin undertakes to devote the necessary care and attention to the duties entrusted to him
and to follow all the verbal, written, general or special instructions given to him by the management of MEFS and the Group, provided they are within the scope of the duties and responsibilities entrusted to him.
	 	 
	Dans le cadre de ses fonctions, il est expressément
convenu que Monsieur Hennequin accepte tout mandat social pouvant lui être confié au titre de l’une des sociétés du Groupe, sans rémunération supplémentaire, la rémunération convenue
à l’article 5 ci-après prenant d’ores et déjà en compte cette éventualité.	  	For the purposes of his duties, it is expressly agreed that Mr. Hennequin shall agree to
be appointed as a corporate officer and/or director of any company of the Group, without additional compensation, the compensation agreed upon under Article 5 hereafter taking already into consideration such possibility.
	 	 
	 Article
4 : Durée
  
 Le présent contrat est conclu pour
une durée indéterminée.
	  	 Article 4: Term

 
 This contract is entered into for an unlimited period.

			
	 Article 5 :
Rémunération
  
 A compter de la Date de Transfert,
Monsieur Hennequin percevra, au titre de l’exécution de ses fonctions, un salaire fixe mensuel brut de 38,362 Euros. Cette rémunération inclut les primes conventionnelles résultant de la convention collective
applicable. Monsieur Hennequin bénéficiera d’une revue de sa rémunération sur une base annuelle en vue de son ajustement, étant toutefois précisé que cette possibilité ne lui garantit
aucun droit à augmentation de son salaire mensuel fixe.
	  	 Article 5: Compensation

 
 As of the Effective Date, Mr. Hennequin will receive, in consideration for the
performance of his duties, a fixed monthly salary of 38,362 Euros gross. This compensation includes the bonuses provided for in the collective bargaining agreement. Mr. Hennequin will be eligible for a salary review and adjustment on an annual
basis. Such eligibility does not guarantee an increase in the fixed monthly salary.

	 	 
	Monsieur Hennequin percevra en outre un “treizième mois” égal à la mensualité
définie ci-dessus. Cette gratification lui sera versée suivant les modalités en vigueur dans l’entreprise. En cas de rupture du présent Contrat, Monsieur Hennequin percevra ce treizième mois prorata temporis
en fonction de la période effectivement travaillée au cours de l’année considérée.	  	Mr. Hennequin shall also receive a “thirteenth month” salary payment, equal to one month of salary as defined
above. This amount shall be paid to him in accordance with the terms and conditions in force from time to time in MEFS. In the event of termination of this Agreement, the amount of this thirteenth month payment shall be prorated to the time
effectively worked by Mr. Hennequin during the year in question.
	 	 
	Monsieur Hennequin pourra par ailleurs percevoir, compte tenu de son statut, une rémunération variable dont le
montant sera calculé en conformité avec les dispositions du plan d’objectifs (“Target Incentive Plan”) de McDonald’s Corporation et les termes des documents relatifs à la rémunération variable
communiqués chaque année à Monsieur Hennequin.	  	Mr. Hennequin will in addition be eligible to receive a variable compensation according to his level, which shall be
calculated in accordance with the terms of the McDonald’s Corporation Target Incentive Plan (“TIP”) and the terms of the variable compensation materials communicated to Mr. Hennequin each year.
	 	 
	Monsieur Hennequin reconnaît et accepte que ces objectifs et critères pourront être modifiés
à tout moment ou annuellement en application de la Politique du Groupe, et que de tels changements ne constituent pas une modification de son contrat de travail. Tout paiement de bonus, quel qu’en soit le montant, au titre d’une
année donnée, ne pourra servir de base à des demandes de paiement de nouveaux bonus ou d’une rémunération équivalente au titre des années suivantes.	  	Mr. Hennequin acknowledges and agrees that such targets and criteria may be changed from time to time or year-to-year in
conformance with Group policy, and that any such changes shall not constitute a modification of this employment contract. The payment of any bonus, whatever its amount, in a given year, may not be used as a basis for claiming new bonuses or
equivalent compensation in any subsequent years.
	 	 
	Monsieur Hennequin bénéficiera d’une voiture de fonction, d’une
couverture mutuelle et d’un Plan d’Epargne d’Entreprise selon la politique de MEFS en la matière.	  	Mr. Hennequin shall have benefit of a company car, healthcare and PEE schemes according to
the policies of MEFS applicable to these matters.
	 	 
	Article 6 : Primes et avantages liés à la relocalisation	  	Article 6: Relocation benefits
	 	 
	 MEF fournira à Monsieur Hennequin un
logement de fonction loué à Genève. Une société externe d’aide au relogement assistera Monsieur Hennequin à cet effet. MEF prendra en charge la location de mobilier, le loyer, les charges, la
maintenance, une ligne de téléphone fixe et une connexion internet « câble ».
  
 Monsieur Hennequin sera tenu de souscrire une
	  	 MEF will provide Mr. Hennequin with leased
housing in Geneva. An external relocation company will provide Mr. Hennequin with assistance throughout his relocation. MEF will pay for the furniture rental, lease, utilities, maintenance, home phone service, internet service and cable.

 
 Mr. Hennequin will be required to obtain third party

			
	assurance responsabilité civile pour ce logement. Le
coût de cette assurance sera remboursé à Monsieur Hennequin sur présentation des documents adéquats conformément aux procédures de MEF en matière de remboursement de dépenses.	  	liability insurance regarding the housing. The cost for this insurance will be reimbursed to
Mr. Hennequin upon submission of adequate documentation in accordance with MEF procedures pertaining to reimbursement of expenses.
	 	 
	Monsieur Hennequin sera éligible à une allocation forfaitaire, couvrant son
relogement et l’acquisition des gros équipements électroménagers, d’un montant (net) de 13.000 Dollars US. Cette allocation sera payée à Monsieur Hennequin dans son équivalent en Euros via la paye
de MEFS le mois où Monsieur Hennequin aménagera dans le logement loué.	  	Mr. Hennequin will be eligible for a one-time relocation and appliance allowance of USD 13,000 (net), which will be paid to
Mr. Hennequin in the equivalent amount in Euro via MEFS’s payroll the month that Mr. Hennequin moves into the leased housing.
	 	 
	MEFS choisira et supportera le coût des services
d’un cabinet comptable afin de préparer les déclarations d’impôts de Monsieur Hennequin en France et en Suisse, et d’opérer les réconciliations conformément à l’Article 18,
pour les années pendant lesquelles Monsieur Hennequin sera soumis à l’impôt sur le revenu et/ou aux charges sociales en Suisse dans le cadre du présent Contrat. Monsieur Hennequin est tenu de pleinement
coopérer avec le cabinet comptable choisi pour satisfaire à l’ensemble des obligations fiscales et sociales applicables, et de façon à lui permettre d’opérer les réconciliations.	  	MEFS will retain and bear the costs of an accounting firm to prepare Mr. Hennequin’s
French and Swiss income tax returns, and to make reconciliation analyses pursuant to Article 18, for the years for which Mr. Hennequin is subject to income tax and/or social charges in Switzerland on account of this Agreement. Mr. Hennequin
is obligated to cooperate fully with the approved accounting firm in order to comply with all applicable legal tax and social charge obligations, and to enable that firm to make the reconciliation analyses.
	 	 
	 Article 6
bis : Prime d’expatriation
  
 Monsieur Hennequin est
susceptible de bénéficier du paiement d’une rémunération supplémentaire en fonction de ses déplacements en dehors de France (Suisse non incluse) réalisés dans l’intérêt
de MEFS. Cette rémunération supplémentaire aura la nature et sera qualifiée de prime d’expatriation. Les conditions selon lesquelles cette prime sera versée seront déterminées chaque année
et détaillées dans une lettre adressée à Monsieur Hennequin au mois de mars de chaque année. L’éligibilité à ce programme sera décidée par MEFS sur une base
annuelle.
	  	 Article 6 bis: Expatriation
premium
  
 Mr. Hennequin might benefit from the payment of
supplemental remuneration based on his travel outside of France (excluding Switzerland) made in the interest of MEFS. Such supplemental remuneration corresponds to a foreign service premium, referred to as “expatriation premium”. The
conditions under which the premium shall be paid will be determined each year and detailed in a letter sent to Mr. Hennequin in March each year. The eligibility to such program is decided by MEFS on a yearly basis.

	 	 
	 Article
7 : Durée du travail
  
 Compte tenu des
responsabilités confiées à Monsieur Hennequin, dont l’importance implique une large indépendance dans l’organisation de son emploi du temps, de son habilitation à prendre des décisions de
façon largement autonome et de la rémunération qu’il perçoit, qui se situe dans les niveaux de rémunération les plus élevés de MEFS il est convenu expressément entre les parties que
Monsieur Hennequin sera considéré comme cadre dirigeant au regard des dispositions relatives à la durée du travail et, à ce titre, exclu du bénéfice desdites dispositions.
	  	 Article 7: Working
time
  
 Given the importance of the responsibilities entrusted to Mr.
Hennequin, which imply that he will have a great deal of freedom to organize his work schedule and take autonomous decisions, as well as the level of his compensation which is amongst the highest in MEFS, it is expressly agreed that Mr. Hennequin is
considered as a managing executive and consequently, he is not subject to the provisions on working time.

			
	Article 8: Congés payés	  	Article 8: Paid vacation
	  

Monsieur Hennequin bénéficiera des dispositions légales applicables en matière de congés payés.
	  	  
 Mr. Hennequin’s paid vacation entitlements shall be in accordance with the relevant legal provisions.

	 	 
	 Article 9 : Lieu de
travail
  
 Le bureau de Monsieur Hennequin sera rattaché
à la succursale suisse de MEF à Genève. Monsieur Hennequin continuera cependant à accomplir une partie de ses fonctions en France.
	  	 Article 9: Place of work

 
 Mr. Hennequin’s office will be attached to the Swiss branch of MEF in Geneva.
Mr. Hennequin will continue performing part of his services in France.

	 	 
	En outre, il est expressément convenu que la nature
des fonctions de Monsieur Hennequin peut l’amener à exercer temporairement sa mission en tout autre lieu en France, en Suisse ou ailleurs. En conséquence, Monsieur Hennequin s’engage notamment à effectuer tous
déplacements nécessaires à l’exercice de ses fonctions, tant en France qu’en Suisse ou ailleurs, et ce quelle que soit leur durée.	  	Furthermore, it is expressly agreed that, due to the nature of his duties, he may be
required to work on a temporary basis at any other place in France, Switzerland or elsewhere. As a result, Mr. Hennequin undertakes to travel as often and for as long as necessary for professional purposes, in France, Switzerland and
elsewhere.
	 	 
	 Article 10 : Clause de
mobilité
  
 MEFS se réserve la possibilité de
modifier le lieu de travail et de muter Monsieur Hennequin dans tout autre lieu où le siège Européen du Groupe pourrait être implanté, sous la seule réserve de le prévenir au moins six mois à
l’avance.
	  	 Article 10: Mobility clause

 
 MEFS reserves the right to change the place of work of Mr. Hennequin and to transfer
the latter to any other place where the head European office may be located subject to at least six months’ prior notice.

	 	 
	Les parties au présent contrat tiennent à
réaffirmer l’importance de l’acceptation par Monsieur Hennequin des Articles 9 et 10 compte tenu de la multitude des sites où s’exerce l’activité du Groupe en Europe et de leur dispersion
géographique.	  	The parties hereto stress the importance of Mr. Hennequin’s acceptance of Articles 9
and 10, in view of the number and geographic dispersion of sites operated by the Group in Europe.
	 	 
	 Article 11 : Remboursement de
frais
  
 Les frais professionnels, notamment de déplacement,
de Monsieur Hennequin, engagés à l’occasion de l’exercice de ses fonctions dans l’intérêt du Groupe, lui seront remboursés sur présentation de notes de frais accompagnées des
justificatifs appropriés, conformément aux procédures en vigueur dans MEFS, dont il déclare avoir pris connaissance et qu’il accepte. Le remboursement sera effectué une fois par mois.
	  	 Article 11: Reimbursement of business expenses

 
 The business expenses, and in particular the travel expenses incurred by Mr.
Hennequin for the purposes of his duties and in the Group’s interests, shall be reimbursed to him upon the presentation of expense sheets along with supporting documents, in compliance with MEFS’s business expenses policy, which Mr.
Hennequin represents he understands and accepts. Business expenses will be reimbursed on a monthly basis.

	 	 
	MEFS se réserve à tout moment la
possibilité de modifier les modalités de remboursement des frais professionnels, sans que cette modification puisse être considérée comme une modification de son contrat de travail par Monsieur
Hennequin.	  	MEFS reserves the right to change the terms and conditions of its business expenses policy
at any time, without said change being considered as a modification of Mr. Hennequin’s employment contract.
	 	 
	 Article
12 : Exclusivité
  
 Monsieur Hennequin déclare
n’exercer et s’engage à n’exercer aucune activité professionnelle, qu’elle soit rémunérée ou non, autre que celles exercées au titre du présent Contrat ou exercées en
qualité de
	  	 Article 12:
Exclusivity
  
 Mr. Hennequin represents that he does not and will not
perform any professional activities, either with or without compensation, other than pursuant to his employment under this Agreement or as corporate

							
	mandataire social ou d’administrateur de
toute autre société du Groupe. L’acceptation par Monsieur Hennequin de toute autre activité professionnelle doit faire l’objet d’une autorisation écrite préalable de sa hiérarchie.	  	officer or director of any Group company. Mr.
Hennequin shall not undertake or agree to undertake any other professional activities without the prior written consent of his hierarchy.
	 	 
	 Article 13 : Discrétion/
Confidentialité
  
 Monsieur Hennequin reconnaît que la
divulgation d’informations confidentielles ou de secrets commerciaux de MEFS et/ ou de toute société du Groupe pourrait nuire aux intérêts de ces derniers. Ceci concerne, notamment :
	  	 Article 13: Secrecy / Confidentiality

 
 Mr. Hennequin acknowledges that the disclosure of MEFS’s and/or Group’s
confidential information or trade secrets could be detrimental to the interests of MEFS and/or Group. This obligation of secrecy / confidentiality shall apply, in particular, to:

	 		 	 
	 (a)
	 	 toutes les versions de logiciels, le matériel informatique, les progiciels et les documents dont MEFS et/ ou toute société du
Groupe sont propriétaires (y compris les codes sources et les codes objet);
	  	 (a)
	  	 any and all versions of the computer software (including source codes and object codes),
hardware, packages and documents owned by MEFS or any Group company;

	 		 	 
	 (b)
	 	 tous documents techniques concernant MEFS et/ ou toute société du Groupe;
	  	 (b)
	  	 all technical documents relating to MEFS and/or any Group company;

	 		 	 
	 (c)
	 	 les informations concernant l’activité de MEFS et/ ou de toute société du Groupe incluant, notamment, les informations
comptables et financières non publiées, les business plans, les méthodes d’étude de marché, les fichiers et données concernant les salariés et les franchisés, actuels ou potentiels, les
fichiers et données concernant les fournisseurs et les stratégies d’entreprise;
	  	 (c)
	  	 information relating to MEFS and/or any Group company’s business, including but not
limited to non-published accounting and financial information, business plans, market survey methods, files and data regarding employees, franchisees and prospective employees and franchisees, files and data regarding suppliers and corporate
strategies;

	 		 	 
	 (d)
	 	 les informations fournies par les fournisseurs, les salariés, les consultants, les franchisés ou les entreprises partenaires de MEFS et/
ou de toute société du Groupe à des fins d’étude, d’évaluation ou d’utilisation;
	  	 (d)
	  	 information provided by MEFS and/or any Group company’s suppliers, employees,
consultants, franchisees or business partners for review, evaluation or use;

	 		 	 
	 (e)
	 	 toutes autres informations dont n’a pas connaissance le public de manière générale et qui, s’il en était fait
mauvais usage ou si elles étaient divulguées, pourraient, selon toute vraisemblance, avoir un impact négatif sur les activités de MEFS et/ ou de toute société du Groupe.
	  	 (e)
	  	 all other information not generally known to the general public, which if misused or
disclosed, could reasonably be expected to adversely affect MEFS’s and/or any Group company’s business.

	 	 
	Monsieur Hennequin s’engage à observer la discrétion la plus
absolue sur les secrets commerciaux de MEFS et/ ou de toute	  	Mr. Hennequin keeps MEFS’ and any Group company’s trade secrets (and
those of any individual or legal entity

			
	société Groupe (et ceux de toute personne
physique ou morale en relation d’affaires avec MEFS), peu important qu’ils aient été ou non préparés ou développés par lui.	  	contracting with MEFS), whether or not prepared or developed by him, in the strictest
confidence.
	 	 
	Monsieur Hennequin sera tenu à une obligation
générale de discrétion sur les activités de MEFS et sur celles du Groupe ainsi que celles de leurs franchisés, fournisseurs et partenaires. Cette obligation s’appliquera tant pendant la durée du
présent contrat qu’après sa cessation, sur une période illimitée. A cet effet, Monsieur Hennequin ne peut en aucun cas divulguer à un quelconque tiers, ni utiliser pour son usage personnel, les informations
techniques ou commerciales confidentielles relatives à MEFS et au Groupe.	  	Mr. Hennequin is bound by a general duty of discretion and secrecy regarding MEFS’
business and that of the Group as well as those of their franchisees, suppliers and business partners. This obligation shall apply both during the performance of this contract and following the termination hereof for an unlimited period.
Consequently, Mr. Hennequin agrees not to disclose to any third party or use for his own private purposes, any confidential technical or commercial information relating to MEFS or the Group.
	 	 
	 Article 14 : Droits de
propriété intellectuelle et/ ou industrielle
  
 Si dans
l’exercice de ses fonctions, qui comportent une mission inventive, Monsieur Hennequin réalisait une invention quelconque, brevetable ou non, créait des dessins ou modèles, méthodes, programmes, formules ou
procédés ayant trait aux activités, études ou recherches de MEFS ou de toute autre société du Groupe, et susceptibles d’être protégés, les droits de propriété
intellectuelle ou industrielle en résultant appartiendrait de plein droit à la MEFS.
	  	 Article 14: Intellectual and/or industrial property
rights
  
 If, during the performance of his duties which may lead to
inventions, Mr. Hennequin makes any invention, whether patentable or not, or creates any design or model, method, program, formula or process relating to the activities, studies or research of MEFS or of any Group company, which is capable of being
protected, the resulting intellectual or industrial property rights would automatically belong to MEFS.

	 	 
	Monsieur Hennequin s’engage, en tout état de cause, à n’effectuer
aucune démarche ni procédure visant à se faire reconnaître ou à se faire réserver un droit de propriété intellectuelle quel qu’il soit (en ce inclus les droits d’auteur, copyrights,
brevets, dessins et modèles, et les marques), ou un quelconque droit d’usage ou d’exploitation, sur les produits ou procédés précités de sa création ou de son invention, dans quelque pays que ce
soit, tant en exécution du présent contrat qu’après l’achèvement de celui-ci.	  	In any event, Mr. Hennequin agrees not to take any steps or implement any procedures aimed at obtaining title to or the
reservation of an intellectual property right of any kind whatsoever (including author’s rights, copyright, patent, design, model, or trademark) or any right of use or exploitation over the aforementioned products or processes or over the
creation or invention thereof. This undertaking shall apply in all countries, both during the performance of this contract and following the termination thereof.
	 	 
	Monsieur Hennequin a bien conscience de ce que toute
violation de la présente obligation engagerait nécessairement sa responsabilité contractuelle.	  	Mr. Hennequin is aware of the fact that he shall be held contractually liable for any
violation of this obligation.

			
	 Article 15 : Non- sollicitation du personnel

 
 Aussi bien pendant la durée du présent Contrat qu’après sa
rupture par l’une ou l’autre des parties, pour quelque motif que ce soit, Monsieur Hennequin s’engage à ne pas, directement ou indirectement, convaincre ou tenter de convaincre un quelconque personnel de MEFS ou de toute autre
société du Groupe, de quitter son emploi ou de travailler pour ou fournir des services à une quelconque autre personne physique ou morale qui ne ferait pas partie du Groupe, en quelque qualité que ce soit.
	  	 Article
15: Non-solicitation of employees
  
 During the performance of this
Agreement and following its termination at the initiative of either party and for any reason whatsoever, Mr. Hennequin undertakes not to, either directly or indirectly, convince or attempt to convince any person employed by MEFS or by any company of
the Group, to leave his/her employment or to work for or provide services to any other individual or legal entity that is not part of the Group, in any capacity whatsoever.

	 	 
	 Article 16 :
Non-concurrence
  
 Compte tenu du caractère extrêmement
sensible du savoir-faire et des informations techniques et commerciales auxquelles Monsieur Hennequin a accès dans l’exercice de ses fonctions au titre du présent Contrat, et de la nature particulièrement concurrentielle
des activités de MEFS, de MEF et du Groupe, les parties conviennent expressément de la nécessité d’une clause de non-concurrence pour protéger les intérêts légitimes de MEFS, de MEF et du
Groupe.
	  	 Article 16: Non-competition

 
 Given the extreme sensitiveness of the know-how and technical and commercial
information to which Mr. Hennequin has access in the framework of his functions under this Agreement and the extremely competitive nature of the activities of MEFS, MEF and the Group, the parties expressly agree on the necessity of a non-compete
obligation in order to protect the legitimate interests of MEFS, MEF and the Group.

	 	 
	En outre, Monsieur Hennequin reconnaît que, compte tenu de sa formation, cette clause
n’est pas susceptible de porter atteinte à sa capacité à retrouver un nouvel emploi.	  	Moreover, Mr. Hennequin understands that in light of his training, this provision is not likely to hinder his capacity to
find a new position.
	 	 
	Au cas où le présent Contrat viendrait à être rompu par l’une
ou l’autre des parties, pour quelque cause que ce soit, Monsieur Hennequin s’interdit expressément d’entrer au service d’une entreprise fabriquant ou vendant des produits ou services susceptibles de concurrencer ceux de
MEFS, de MEF ou du Groupe, de créer en France pour son propre compte une entreprise du même genre ou d’y participer directement ou indirectement, en quelque qualité que ce soit. Pour les besoins du présent Contrat,
les entreprises ci-après (incluant toutes leurs filiales, leurs franchisés, leurs master-franchisés, et leurs opérations sous quelque forme que ce soit) sont considérés être des entreprises fabriquant
ou vendant des produits ou services susceptibles de concurrencer ceux de MEFS, de MEF ou du Groupe :	  	In the event this Agreement is terminated by either of the parties, for any reason whatsoever, Mr. Hennequin expressly
undertakes not to enter the service of another company manufacturing or selling products or services that could compete with those of MEFS, MEF or the Group, to create in France for himself a business of the same type, or to participate directly or
indirectly therein in any capacity. For purposes of this Agreement, each of the following (inclusive of all affiliates, franchisees, master franchisees, and company operations thereof) is deemed to be a company manufacturing or selling products or
services that could compete with those of MEFS, MEF or the Group:
	 	 
	Starbucks, Yum! Brands (incluant toutes ses sous-marques), Burger King, Subway, Quick and
Greggs.	  	Starbucks, Yum! Brands (inclusive of all sub-brands), Burger King, Subway, Quick and Greggs.
	 	 
	Il est expressément convenu que l’exécution de la présente clause
est limitée à une période d’un an à compter de la date du départ effectif de Monsieur Hennequin de MEFS et au secteur géographique de l’Europe, compte tenu des responsabilités
européennes de Monsieur Hennequin.	  	It is expressly agreed that the duration of this clause is limited to a period of one (1) year as from the date of Mr.
Hennequin’s actual departure from MEFS and to the geographic sector Europe, in light of Mr. Hennequin’s European responsibilities.
	 	 
	MEFS versera à Monsieur Hennequin, sous
condition	  	Subject to the effective application of this
non-compete

			
	d’application effective de cette obligation de
non-concurrence et pendant toute la durée de celle-ci, une indemnité mensuelle égale à 35 % de la somme (a) de sa rémunération mensuelle moyenne de base perçue au cours des 12 derniers mois
précédant la rupture du présent Contrat et (b) du douzième de la moyenne des trois derniers bonus (identifiés sous le terme “TIP”) annuels reçus par Monsieur Hennequin. Il est
expressément convenu et accepté qu’aucun autre élément de rémunération ou avantage, de quelque nature que ce soit, ne sera pris en compte dans ce calcul, et que cette indemnité sera assujettie
aux divers impôts et cotisations sociales applicables.	  	obligation and during the period covered by the latter, Mr. Hennequin will receive from MEFS
a monthly indemnity corresponding to 35 % of the sum of (a) his average monthly base salary received over the last 12 months preceding the termination of this Agreement and (b) one-twelfth of the average of the last 3 annual incentive bonuses
(currently referred to as TIP) bonuses received by Mr. Hennequin. It is expressly agreed and understood that no other element of compensation or benefit, of whatever nature, is to be considered for this calculation, and that this indemnity will be
subject to all applicable taxes and social security contributions.
	 	 
	Il est entendu qu’en toutes circonstances, MEFS aura la
possibilité soit de réduire la durée de la période d’application de la clause de non-concurrence, soit de renoncer à cette dernière, à condition toutefois d’en informer Monsieur Hennequin
par lettre recommandée avec accusé de réception dans les 15 jours suivant la notification de la rupture du présent Contrat.	  	It is agreed that, in any case, MEFS shall be entitled to reduce the duration of the
period of application of this non-competition clause, or to waive this clause, provided however that it informs Mr. Hennequin thereof by registered letter with return receipt requested within the 15 days following the notification of the termination
of this Agreement.
	 	 
	 Article 17 : Cessation du
contrat
  
 Le présent Contrat pourra être rompu à
l’initiative de MEFS ou de Monsieur Hennequin moyennant le respect d’un préavis réciproque de trois mois, hormis dans les cas où MEFS ou Monsieur Hennequin serait en droit de rompre le présent Contrat pour faute
grave, lourde ou événement de force majeure.
	  	 Article 17: Termination

 
 This Agreement may be terminated at the initiative of either MEFS or Mr. Hennequin
subject to a mutual notice period of three months, except where MEFS or Mr. Hennequin could terminate this Agreement without notice in the event of serious misconduct (“faute grave”), gross misconduct (“faute lourde”) or force
majeure.

	 	 
	En cas de cessation du présent Contrat, pour un quelconque motif (licenciement,
démission, départ en retraite, etc.), Monsieur Hennequin s’engage à restituer à MEFS, de sa propre initiative, tout le matériel ainsi que tout fichier et autres documents (y compris toutes photocopies de
ceux-ci) qu’il pourra avoir en sa possession ou sous son contrôle en rapport avec ses activités professionnelles pour le compte de MEFS et/ ou de toute société du Groupe et/ou avec les activités
professionnelles de ses clients. Cette restitution interviendra au terme du préavis, sauf si celui-ci n’est pas exécuté quelle qu’en soit la raison. Dans cette dernière hypothèse, la restitution
interviendra dans les 48 heures suivant la notification de la rupture du contrat.	  	Following the termination of this Agreement, for any reason whatsoever (dismissal, resignation, retirement, etc), Mr.
Hennequin undertakes to return to MEFS, at his own initiative, all the equipment, data files and other documents (including photocopies) in his possession or under his control relating to his professional activities for MEFS and/or any Group company
and/or the professional activities of its clients. This equipment shall be returned at the end of the notice period, unless the notice period is not worked out for any reason whatsoever, in which case the equipment shall be returned within 48 hours
of the date of the written notice of termination.
	 	 
	En cas de suspension du contrat de travail, pour quelque
raison que ce soit et quelle que soit la durée de cette suspension, Monsieur Hennequin devra également restituer à MEFS à première demande notifiée par celle-ci par tout moyen approprié, tous les
éléments visés ci-dessus.	  	In the event that this employment agreement is suspended, for any reason whatsoever and
irrespective of the duration, Mr. Hennequin shall also return all the above equipment to MEFS by any appropriate means upon the first request of the latter.

							
	
Article 18 : Egalisation fiscale et sécurité sociale

 
 Compte tenu de ce que Monsieur Hennequin accomplira une partie de ses fonctions en
Suisse (pays d’accueil), une fraction de la rémunération versée par MEFS à Monsieur Hennequin pourrait être soumise à l’impôt personnel sur les revenus et/ou aux charges sociales en Suisse. De
tels impôts ou charges sociales suisses, le cas échéant, sur cette fraction seront payés par Monsieur Hennequin si une telle obligation existe, soit directement par Monsieur Hennequin, soit au moyen d’un
prélèvement à la source opéré par MEFS sur ses salaires.
	  	 Article 18: Tax equalization
and social security
  
 Due to Mr. Hennequin’s provision of
services in Switzerland (host country), a portion of the remuneration paid to Mr. Hennequin by MEFS may be subject to personal income tax and/or social charges in Switzerland. Such Swiss taxes and social charges, if any, on this portion will be paid
by Mr. Hennequin as such obligations occur, either directly by Mr. Hennequin or by means of a withholding at source performed by MEFS on his salaries.

	 	 
	Les parties conviennent que Monsieur Hennequin sera soumis, sur une base
annuelle, à un dispositif « d’égalisation fiscale » (« tax equalization ») au regard tant des charges sociales que de l’impôt sur le revenu, de telle sorte que Monsieur
Hennequin paye au final un montant d’impôt sur le revenu et de charges sociales approximativement identique au montant qu’il aurait payé en France (pays d’origine) uniquement, s’il était resté
basé en France et avait accompli l’intégralité de ses fonctions depuis la France. Pour les besoins du dispositif d’égalisation fiscale, cette charge fiscale pro forma dans son pays d’origine (France)
constituera la charge fiscale théorique de Monsieur Hennequin. Si les impôts réellement payés par Monsieur Hennequin en France et en Suisse sur les montants versés par la Société s’avèrent
être plus élevés que cette charge fiscale théorique, la Société remboursera Monsieur Hennequin la différence dans le cadre du dispositif d’égalisation fiscale mis en place. Si les
impôts réellement payés par Monsieur Hennequin en France et en Suisse sur les montants versés par la Société s’avèrent être moins élevés que cette charge fiscale
théorique, Monsieur Hennequin remboursera à la Société la différence dans le cadre du dispositif d’égalisation fiscale mis en place.	  	The parties agree that Mr. Hennequin will be subject to tax equalization, on an annual basis, in regard to both
social taxes and income tax liability so that Mr. Hennequin will pay an amount of income and social taxes that approximates the amount he would have paid in France (home country) alone had he remained based in France and performed all of his
services from France. For purposes of tax equalization, this pro forma home country liability will constitute his hypothetical tax liability. If the actual taxes paid by Mr. Hennequin in France and Switzerland on Company income is greater than his
hypothetical liability, then the Company will reimburse Mr. Hennequin the difference through the tax equalization process. If the actual taxes paid by Mr. Hennequin in France and Switzerland on Company income is less than the hypothetical liability,
then Mr. Hennequin will reimburse the Company the difference through the tax equalization process.
	 		 	 
	 	 	 •        Une fois que les
déclarations fiscales de Monsieur Hennequin pour le pays d’origine et pour le pays d’accueil auront été préparées, un impôt et des charges sociales théoriques seront calculés sur la
rémunération et les primes et avantages de Monsieur Hennequin tels que décrits à l’Article 5 et à l’Article 6 bis, et les attributions faites dans le cadre de plans d’actionnariat salarié
(incluant les stock-options ou autres rémunérations en actions, auquel cas Monsieur Hennequin s’engage à informer MEFS à l’avance de tout exercice de stock-options de façon à permettre à
MEFS et à ses conseils d’évaluer l’impôt sur le revenu et les charges sociales et de mettre œuvre toute optimisation côté français ou côté suisse qui pourrait être
recommandée en fonction des circonstances) et sur l’impôt personnel de Monsieur Hennequin sur les revenus, tels
	  	 	  	
•        After Mr. Hennequin’s home and host countries tax returns have been prepared,
hypothetical home country income and social tax will be calculated on Mr. Hennequin’s compensation and premiae as described in Article 5 and in Article 6 bis, and long term incentives (including stock-options or other equity compensation, in
which case, Mr. Hennequin agrees to notify MEFS in advance of any exercise of stock options in order to allow MEFS and its advisors to evaluate the income tax and social tax consequences and to implement any Swiss or French tax planning which may be
advisable under the circumstances) and on Mr. Hennequin’s personal income such as interest, dividends and sales of property, etc., without limitation.

							
	 que les intérêts, les dividendes et les
ventes de propriété, etc., sans limitation.
	  	 
	 	 
	Les charges sociales et les impôts sur le revenu effectivement supportés par Monsieur Hennequin
seront comparés à l’impôt sur le revenu et aux charges sociales théoriques calculés comme précisé ci-dessus.	  	The actual social charges and income taxes borne by Mr. Hennequin will be compared to the hypothetical French
income and social taxes calculated as specified above.
	 	 
	Monsieur Hennequin sera tenu de se conformer à ce qui suit :	  	Mr. Hennequin is required to comply with the following:
	 		 	 
	 1.
	 	Monsieur Hennequin sera tenu de coopérer pleinement avec le cabinet comptable choisi conformément à l’Article 6 et à cet Article 18.	  	 1.
	  	Mr. Hennequin is obligated to cooperate fully with the chosen accounting firm in accordance with Article 6 and this
Article 18.
	 		 	 
	 2.
	 	Sur une base mensuelle, dans les 5 jours suivant la fin de chaque mois, Monsieur Hennequin sera tenu d’informer MEFS par écrit du nombre de jours au titre desquels il a
accompli ses fonctions en Suisse durant le mois précédent.	  	 2.
	  	On a monthly basis, within 5 days of the end of each month, Mr. Hennequin is obligated to inform MEFS in writing of the
number of days in the preceding month during which he performed services in Switzerland.
	 	 
	Une fois l’égalisation fiscale déterminée, le différentiel, qu’il soit
dû à Monsieur Hennequin par MEFS ou par Monsieur Hennequin à MEFS, sera remboursé dans les 14 jours de la communication du calcul de détermination du différentiel. Tout différentiel dû à
MEFS pourra être recouvré par compensation avec toute autre rémunération due à Monsieur Hennequin dans les limites légalement permises par le droit applicable.	  	Once tax equalization is completed, the balance, whether due to Mr. Hennequin by MEFS or by Mr. Hennequin to
MEFS, shall be reimbursed within 14 days of communication of the reconciliation calculation. Any balance owing to MEFS can be recovered by offset of other compensation owing to Mr. Hennequin to the extent permitted under applicable
law.
	 	 
	Sous réserve de l’obtention du certificat E 101, Monsieur Hennequin continuera de cotiser au
régime français de sécurité sociale et d’assurance chômage, ainsi qu’aux régimes de retraite et de prévoyance complémentaires conformément aux dispositions de l’article 14.
2) b i du Règlement communautaire 1408/71.	  	Subject to the delivery of the E101 certificate, Mr. Hennequin will continue contributing to the French social
security and unemployment schemes and to the complementary retirement and provident schemes in accordance with the provisions of article 14 2) b i of the EU Regulation 1408/71.
	 	 
	MEFS accomplira la procédure requise pour l’obtention du certificat E 101 indiquant que Monsieur
Hennequin continuera à cotiser au régime français de sécurité sociale bien qu’accomplissant une partie de ses fonctions en Suisse. Dans le cas où des cotisations sociales devraient être
payées en Suisse, elles seront supportées par MEFS.	  	MEFS will carry out the procedure required for the delivery of the E 101 certificate stating that Mr. Hennequin
will be contributing to the French social security scheme while performing part of his services in Switzerland. In the case where employee social contributions would have to be paid in Switzerland, they will be borne by MEFS.
	 	 
	Monsieur Hennequin informera MEFS de tout changement dans sa situation
personnelle et familiale (ex. potentiel transfert de sa résidence hors de France) de façon à lui permettre de déterminer si cela est susceptible d’avoir des conséquences sur	  	Mr. Hennequin shall inform MEFS of any change in his personal circumstances
(e.g. a potential transfer of his residence outside France) in order to determine if it may have consequences on his social security or tax status.

			
	son régime fiscal ou de sécurité sociale.	  	 
	 	 
	Article 19 : Données personnelles	  	Article 19: Data privacy
	 	  	 
	Monsieur Hennequin comprends et accepte que, en relation
avec son emploi, des données personnelles le concernant ou concernant sa situation de famille devront être traitées par les services de MEFS en charge des Ressources Humaines, de la Paie, de la Comptabilité, du Juridique,
de l’Informatique, à des fins de gestion des ressources humaines (notamment de gestion administrative du personnel et de la paie, de mise à disposition d’outils informatiques et de communication, d’organisation du
travail, de gestion des évaluations et des carrières, de formation du personnel et de conformité aux obligations légales de MEFS en tant qu’employeur). Ces données personnelles sont susceptibles
d’être transférées vers ou à partir de France, Suisse, Royaume-Uni et/ou Etats-Unis, pour les finalités décrites ci-dessus. Les lois et règlements relatifs au traitement de données
personnelles dans ces divers pays diffèrent de ceux en vigueur dans le pays d’origine de Monsieur Hennequin mais également entre eux. Afin d’assurer la protection des données transférées, MEFS a mis en
place des mesures contractuelles appropriées, conformément à la règlementation applicable. Mr. Hennequin est informé qu’il peut demander à accéder à ses données ou à les
faire modifier (en cas d’erreur) en contactant Monsieur Hubert Mongon ou toute personne qui lui serait substituée dans ses fonctions.	  	Mr. Hennequin understands and agrees that, in connection with his employment, personal
information related to him and his family will need to be processed by relevant MEFS departments in charge of HR, Payroll, Accounting, Legal, IT, for human resources management purposes (notably, for the personnel administration and payroll,
provision of ITC resources, work organization, management of appraisals and careers, training of the personnel, and compliance with MEFS obligations as an employer). Such personal information may need to be transferred to and from France,
Switzerland, the United Kingdom and/or the United States for the above mentioned purposes. The laws and regulations relating to the processing of data in these countries differ from those of Mr. Hennequin’s home country and from one another. In
order to secure the protection of the transferred personal information, MEFS has implemented appropriate contractual measures, in compliance with applicable law. Mr. Hennequin is informed that he may access his personal data and have it corrected
(if not accurate) by contacting Hubert Mongon or his successor in position. 
	 	 
	 Article 20 : Loi
applicable
  
 Le présent contrat de travail sera régi
par le droit français, tant pour sa conclusion que pour son exécution et sa cessation, sous réserve des dispositions d’ordre public en vigueur en Suisse qui seraient applicables peu important la loi choisie par les parties.
Ces dispositions s’appliqueront en priorité, sans qu’il soit possible de combiner les avantages et garanties offerts par les deux législations.
	  	 Article 20: Governing law

 
 This employment contract shall be governed by French law, for the purposes of its
conclusion, performance and termination, subject to any provisions of public order in Switzerland that are applicable regardless of the law designated by the parties. Such provisions shall apply in priority without it being possible to combine
benefits and guarantees granted by both legislations.

	 	 
	Tout litige afférent au présent Contrat sera soumis à la
compétence exclusive des tribunaux français.	  	Any dispute in relation to this Agreement shall be submitted to the French courts.
	 	 
	Les engagements pris de part et d’autre l’ayant
été dans les intérêts de chacun, les parties confirmeront leur accord sans réserve sur les termes du présent Contrat et s’engageront à respecter loyalement les droits et obligations qui en
résultent.	  	The commitments made herein are done so in the mutual interests of the parties, who
confirm the terms and conditions of this Agreement without reservation and undertake to abide by the ensuing rights and obligations.
	 	 
	 Article
21 : Langue
  
 La version du présent Contrat qui lie les
parties est la version française, la version anglaise n’étant fournie qu’à titre d’information. En cas de contradiction
	  	 Article 21 :
Language
  
 The version of this Agreement that binds the parties is
the French language version, the English version being provided for information purposes only. In the event

			
	entre les versions française et anglaise, la version française prévaudra.	  	of a contradiction between the two versions, the French
version shall prevail.
	 	 
	 Article 22 : Accords
antérieurs
  
 Le présent Contrat constitue
l’intégralité des accords entre les parties. Il annule et remplace tout accord antérieur conclu directement ou indirectement, tant verbalement que par écrit, entre MSF, MEFS ou MEF et Monsieur Hennequin, et/ou les
éventuels engagements, directs ou indirects, de l’une des parties à l’égard de l’autre.
	  	 Article 22: Prior agreements

 
 This Agreement represents the entire agreement between the parties. It supersedes any
prior direct or indirect written or verbal agreements entered into between MSF, MEFS or MEF and Mr. Hennequin and/or any commitments made, directly or indirectly, by either party towards the other.

	 	 
	Monsieur Hennequin informera sans délai MEFS de toute modification des informations
qu’il lui aura données à la Date de Transfert (adresse, etc.).	  	Mr. Hennequin shall immediately inform MEFS of any change to the information given to the latter at the Effective Date
(address, etc.).
	 	 
	Pour la bonne règle, Monsieur Hennequin retournera à MEFS l’un des quatre
exemplaires ci-joints, revêtu de sa signature précédée de la mention « lu et approuvé ».	  	Mr. Hennequin shall return to MEFS one of the four enclosed copies for its files, bearing his signature preceded by the
words “read and approved”.
	 	 
	Fait à Londres, le 30/09/10	  	Executed in London, on 9/30/10
	  
  

/s/ Denis
Hennequin                                    

Monsieur Hennequin
	  	  
  

/s/ Denis
Hennequin                                    

Mr. Hennequin

	  
  

/s/ Donald
Thompson                                  

Pour MEFS
	  	  
  

/s/ Donald
Thompson                                  

For MEFS

	  
  

/s/ Peter J.
Bensen                                       

 Pour MSF
	  	  
  

/s/ Peter J.
Bensen                                       

 For MSF

	  

 
 /s/ Denis
Berdoz                                        
 
 Pour MEF
	  	  
  

/s/ Denis
Berdoz                                        
 
 For MEFTransition Services Agreement

  
 Exhibit 10.1

 TRANSITION SERVICES AGREEMENT 
 THIS TRANSITION SERVICES AGREEMENT (including all schedules and exhibits hereto, this “Agreement”), dated as of November 4, 2010 and effective as of the effective time of the REIT
Conversion Merger (as defined below), is entered into by and between SHG Services, Inc., a Delaware corporation (“New Sun”), and Sabra Health Care REIT, Inc., a Maryland corporation (“Sabra”) (each, a
“Party” and collectively, the “Parties”). 
 RECITALS: 

WHEREAS, the Board of Directors of Sun Healthcare Group, Inc. (“Sun”) has determined that it is appropriate and
desirable to separate Sun and its subsidiaries into two publicly-owned companies so that (i) the assets and liabilities relating to substantially all of Sun’s owned real property are allocated to Sabra and (ii) the other assets and
liabilities relating to the historical operations of Sun are allocated to New Sun; 
 WHEREAS, in order to effectuate the
foregoing, New Sun and Sabra have entered into a Distribution Agreement, dated as of November 4, 2010 (the “Distribution Agreement”), which provides for, among other things, subject to the conditions and upon the terms set
forth therein, the contribution to Sabra of certain assets, the assumption by New Sun and Sabra of certain liabilities, the distribution of New Sun common stock (the “Distribution”) to Sun stockholders as of a certain record date
and the execution and delivery of certain other agreements in order to facilitate and provide for the foregoing; 
 WHEREAS, at
5:00 p.m. Eastern Time on the Distribution Date (as defined below), Sun will be merged with and into Sabra, with Sabra surviving the merger (the “REIT Conversion Merger”); and 

WHEREAS, in order to facilitate an orderly transition under the Distribution Agreement, New Sun and Sabra have agreed to enter into
transitional arrangements upon the terms and subject to the conditions contained in this Agreement. 
 NOW THEREFORE, for valid
consideration the sufficiency of which is hereby acknowledged and in consideration of the foregoing and the mutual agreements contained in this Agreement, the Parties hereby agree as follows: 
 Section 1. Definitions. 
 (a) For purposes of this Agreement, the following
terms shall have the following meanings: 
 “Additional Services” has the meaning set forth in
Section 2(b)(ii). 
 “Agreement” has the meaning set forth in the Preamble. 

“Change of Control Event” has the meaning set forth in Section 7(j). 

“Charges” has the meaning set forth in Section 3(a). 

  
 “CPR
Rules” has the meaning set forth in Section 6(c). 
 “Disputes” has the meaning set forth in
Section 6(a). 
 “Distribution” has the meaning set forth in the Recitals. 

“Distribution Agreement” has the meaning set forth in the Recitals. 

“Distribution Date” means the date on which Sun distributes as a dividend to its stockholders all of the outstanding
shares of New Sun common stock as set forth in the Distribution Agreement. 
 “Employment Tax” means
withholding, payroll, social security, workers compensation, unemployment, disability and any similar tax imposed by any Tax Authority, and any interest, penalties, additions to tax or additional amounts with respect to the foregoing imposed on any
taxpayer or consolidated, combined or unitary group of taxpayers. 
 “Governmental Authority” means any
federal, state, local, foreign or international court, government, department, commission, board, bureau, agency, applicable stock exchange or other regulatory, administrative or governmental authority. 

“Information” means information, whether or not patentable or copyrightable, in written, oral, electronic or other
tangible or intangible forms, including studies, reports, records, books, contracts, instruments, surveys, discoveries, ideas, concepts, know-how, techniques, designs, specifications, drawings, blueprints, diagrams, models, prototypes, samples, flow
charts, data, computer data, disks, diskettes, tapes, computer programs or other software, marketing plans, customer names, communications by or to attorneys (including attorney-client privileged communications), memos and other materials prepared
by attorneys or under their direction (including attorney work product), and other technical, financial, employee or business information or data. 
 “Initial Services” has the meaning set forth in Section 2(a). 
 “Law” means all laws, statutes, ordinances, orders, decrees, regulations, rules, policies or guidelines promulgated and other pronouncements of any Governmental Authority, and includes
rules and regulations or any regulatory or self regulatory authority compliance with which is required by law. 
 “New
Sun” has the meaning set forth in the Preamble. 
 “Omitted Service” has the meaning set forth in
Section 2(b)(i). 
 “Parties” has the meaning set forth in the Preamble. 

“Person” means any individual, person, entity, general partnership, limited partnership, limited liability partnership,
limited liability company, corporation, joint venture, trust, business trust, cooperative, association, foreign trust or foreign business organization. 

  
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 “Provider
Indemnitees” has the meaning set forth in Section 7(c). 
 “REIT Conversion Merger” has the
meaning set forth in the Recitals. 
 “Sabra” has the meaning set forth in the Preamble. 

“Service Period” means, with respect to any Service, the period commencing on the Distribution Date and ending on the
earliest of (i) the date Sabra terminates the provision of such Service pursuant to Section 4(b), (ii) the termination date (measured as the number of months from the Distribution Date) specified with respect to such Service on
Schedule 1, unless extended pursuant to Section 4(a) or (iii) the failure of Sabra to cure a breach of its obligation to pay the Charges for the applicable Service in accordance with Section 3 within thirty (30) days after
receipt of written notice from New Sun describing the breach. 
 “Services” has the meaning set forth in
Section 2(b)(ii). 
 “Subsidiary” means, with respect to any specified Person, any corporation or other
legal entity of which such Person or any of its Subsidiaries controls or owns, directly or indirectly, more than 50% of the stock or other equity interest entitled to vote on the election of members to the board of directors or similar governing
body. 
 “Sun” has the meaning set forth in the Recitals. 

“Tax” means: (i) any income, net income, gross income, gross receipts, profits, capital stock, franchise, property,
ad valorem, stamp, excise, severance, occupation, service, sales, use, license, lease, transfer, import, export, customs duties, value added, alternative minimum, estimated or other similar tax (including any fee, assessment, or other charge in the
nature of or in lieu of any tax) imposed by any Tax Authority, and any interest, penalties, additions to tax or additional amounts with respect to the foregoing imposed on any taxpayer or consolidated, combined or unitary group of taxpayers; and
(ii) any Employment Tax. 
 “Tax Authority” means, with respect to any Tax, the governmental entity or
political subdivision thereof that imposes such Tax, and the agency (if any) charged with the collection of such Tax for such entity or subdivision. 
 “Third Party” means any Person other than New Sun, Sabra and any of their respective Subsidiaries. 
 (b) Rules of Construction. Unless the context otherwise requires: 
 (i) A
capitalized term has the meaning assigned to it; 
 (ii) References in the singular or to “him,” “her,”
“it,” “itself,” or other like references, and references in the plural or the feminine or masculine reference, as the case may be, shall also, when the context so requires, be deemed to include the plural or singular, or the
masculine or feminine reference, as the case may be; 

  
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 (iii) References to
Sections and Exhibits and Schedules shall refer to sections and exhibits and schedules of this Agreement, unless otherwise specified; 
 (iv) The headings in this Agreement are for convenience and identification only and are not intended to describe, interpret, define or limit the scope, extent or intent of this Agreement or any provision
thereof; 
 (v) This Agreement shall be construed without regard to any presumption or other rule requiring construction against
the Party that drafted and caused this Agreement to be drafted; 
 (vi) All monetary figures shall be in United States dollars
unless otherwise specified; 
 (vii) References to “including” in this Agreement shall mean “including, without
limitation,” whether or not so specified; and 
 (viii) References herein to this Agreement or any other agreements
contemplated herein shall be deemed to refer to this Agreement or such other agreement as of 11:59 pm Eastern Daylight Time on the Distribution Date and as such time may be amended thereafter, unless otherwise specified. 

Section 2. Services. 

(a) Initial Services. Commencing on the Distribution Date, upon the terms and subject to the conditions contained in this
Agreement, New Sun agrees to provide, or with respect to any service to be provided by a Subsidiary of New Sun, to cause such Subsidiary to provide, to Sabra or its Subsidiaries as designated on the Schedules, the applicable services (the
“Initial Services”) set forth in Schedule 1 hereto. 
 (b) Omitted Services; Additional Services.

 (i) If during the term of this Agreement, Sabra identifies a service that Sun previously provided to Sabra or
any of its Subsidiaries during the six (6) months preceding the Distribution Date (excluding those services that were intentionally discontinued in the ordinary course of business other than as a result of the pendency of the transactions
contemplated by the Distribution Agreement), but such service was inadvertently omitted from the Services set forth on the Schedules hereto (such service an “Omitted Service”), then upon the prior written consent of New Sun, which
consent shall not be unreasonably withheld, delayed or conditioned such Omitted Service shall be added and considered as part of the Services pursuant to an addendum to Schedule 1. The Parties shall cooperate and act in good faith to agree upon the
terms for the provision of any such Omitted Service. 
 (ii) From time to time after the Distribution Date, the
Parties may identify additional services that are not Omitted Services that Sabra requests in accordance with the terms of this Agreement (the “Additional Services” and, 

  
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together with the Initial Services and any added Omitted Services, the “Services”). Upon the prior written consent of New Sun, which New Sun shall not have any obligation to
provide, such Additional Services shall be added and considered as part of the Services pursuant to an addendum to Schedule 1, which addendum shall contain mutually agreeable terms for the provision of any such Additional Services. 

(c) Performance of Services. 
 (i) New Sun shall, and shall cause its Subsidiaries to, perform all Services to be provided by New Sun in a manner which is substantially similar in nature, quality and timeliness to the analogous
services provided by Sun to its Subsidiaries prior to the Distribution Date. 
 (ii) New Sun shall, and shall
cause its Subsidiaries to, perform its duties and responsibilities hereunder in good faith and consistent with its past practices. Neither New Sun nor any of its Subsidiaries shall be liable or held accountable, in damages or otherwise, for any
error of judgment or any mistake of fact or applicable Law or for anything that New Sun or any of its Subsidiaries does or refrains from doing in good faith hereunder, except in the case of its gross negligence or willful misconduct. 

(iii) Nothing in this Agreement shall require New Sun to perform or cause to be performed any Service in a manner that
would constitute a violation of applicable Law, its Financial Code of Ethics or its Code of Conduct. 
 (iv) (1)
Neither New Sun nor any of its Subsidiaries shall be required to perform or to cause to be performed any of the Services for the benefit of any Third Party or any other Person other than Sabra or its Subsidiaries, and (2) EXCEPT AS EXPRESSLY
PROVIDED IN SECTION 2(c), EACH PARTY ACKNOWLEDGES AND AGREES THAT ALL SERVICES AND PRODUCTS ARE PROVIDED ON AN “AS-IS” BASIS AND THAT NEW SUN AND ITS SUBSIDIARIES MAKE NO WARRANTIES, EXPRESS OR IMPLIED, WITH RESPECT TO THE SERVICES AND
PRODUCTS, AND HEREBY DISCLAIM ANY REPRESENTATION OR WARRANTY OF MERCHANTABILITY, FITNESS FOR ANY PARTICULAR PURPOSE, NON-INFRINGEMENT OR ANY OTHER WARRANTY WHATSOEVER. 
 (d) Changes To Services. Except as provided in Section 2(g) below, New Sun may make changes from time to time in the manner of performing the Services if New Sun is making similar changes in
performing analogous services for itself. No such change shall affect the Charges for the applicable Service. If New Sun is no longer performing, or obtaining from Third Parties, analogous services for itself, New Sun shall not modify any such
Service in a manner which would (i) materially increase Sabra’s costs therefor or (ii) materially degrade the functionality or standards related thereto, without the prior written consent of Sabra. Subject to the foregoing, if New Sun
plans to implement any material change to any Service New Sun provides to Sabra or its Subsidiaries, but does not perform or obtain from Third Parties an analogous service for 

  
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itself, that will or may impact the Services or the costs thereof, (1) New Sun shall provide Sabra with not less than thirty (30) days prior written notice for Sabra to consider and
implement alternative solutions for such affected Services, and (2) Sabra shall have fifteen (15) days after receipt of such notice to elect to (A) continue to receive the affected Services, in which event New Sun and Sabra shall
mutually agree upon revised Charges for such Services during the remaining Service Period or (B) terminate such Services without incurring any penalty for such termination. 

(e) Transitional Nature of Services. The Parties acknowledge the transitional nature of the Services and agree to cooperate in
good faith and to use commercially reasonable efforts to effectuate a smooth transition of the Services from New Sun to Sabra (or its designee). 
 (f) Cooperation. In the event that (i) there is nonperformance of any Service as a result of an event described in Section 7(e), or (ii) the provision of a Service would violate
applicable Law, the Parties agree to work together in good faith to arrange for an alternative means by which Sabra or its Subsidiaries may obtain, at Sabra’s sole cost, the Services so affected. 

(g) Use Of Third Parties To Provide The Services. New Sun may perform its obligations through its Subsidiaries or, if New Sun is
obtaining analogous services for itself from agents, subcontractors or independent contractors, New Sun may perform its obligations hereunder through the use of such agents, subcontractors or independent contractors. If New Sun is not obtaining
analogous services for itself from Third Parties, New Sun may perform its obligations hereunder through the use of agents, subcontractors or independent contractors only upon obtaining the prior written consent of Sabra. Notwithstanding the
foregoing, New Sun shall not be relieved of its obligations under this Agreement by use of such agents, subcontractors or independent contractors. Delegation of performance of any Service by New Sun in accordance with this Section 2(g) shall
not affect the Charges for the applicable Service. 
 Section 3. Charges; Billing; Taxes. 

(a) Charges For Services. The charges for the Services shall be determined in accordance with Schedule 1 (the
“Charges”). 
 (b) Prepayment. In the event that New Sun is required in the course of providing the
Services to make any payments on Sabra’s behalf in excess of $10,000, New Sun will use good faith efforts to provide notice of such payment at least five business days in advance of the applicable payment date and Sabra shall, at least three
business days prior to the applicable date when such payments are to be made, pay to New Sun by wire transfer an amount equal to the sum of such payments. New Sun and Sabra acknowledge and agree that New Sun will have no responsibility to make any
such payments on Sabra’s behalf if Sabra fails to wire the funds to New Sun as provided herein. 
 (c) Procedure.
Charges for the Services shall be charged to and payable by Sabra. Amounts payable pursuant to the terms of this Agreement shall be paid 

  
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to New Sun, as directed by New Sun, on a monthly basis, which amounts shall be due within thirty (30) days after the date of invoice. 

(d) Taxes. Sabra shall pay any and all Taxes incurred in connection with New Sun’s provision of the Services, including all
sales, use, value-added, and similar Taxes, but excluding Taxes based on New Sun’s net income. 
 (e) No Set-Off.
Sabra’s obligation to make any required payments under this Agreement shall not be subject to any unilateral right of offset, set-off, deduction or counterclaim, however arising. 
 Section 4. Term and Termination. 
 (a) Term. Unless otherwise
terminated pursuant to Section 4(b), this Agreement shall terminate with respect to any Service at the close of business on the last day of the Service Period for such Service. Notwithstanding the foregoing, Sabra may elect to extend the
Service Period for any Service by providing New Sun with written notice no later than 30 days prior to the termination of such Service Period; provided, however, that no Service Period, including any extension thereof, shall continue
for longer than one year after the Distribution Date without the prior written consent of New Sun. This Agreement shall terminate immediately following the termination of all Service Periods, including any extensions thereof. 

(b) Early Termination. Sabra shall have the right at any time during the term of this Agreement to terminate its obligation to
purchase any individual Service, upon the giving of an advance written notice to New Sun of at least 10 days. 
 (c)
Information Transmission. On or prior to the last day of each relevant Service Period, New Sun shall use commercially reasonable efforts and shall cause its Subsidiaries to use commercially reasonable efforts to support any transfer of
Information concerning the relevant Services to Sabra or its Subsidiaries. If requested by Sabra, New Sun shall, and shall cause its Subsidiaries to, deliver to Sabra, within such time periods as the Parties may reasonably agree, all Information
received or computed for the benefit of Sabra and its Subsidiaries during the Service Period, in electronic and/or hard copy form; provided, however, that (i) New Sun shall not have any obligation to provide or cause its
Subsidiaries to provide Information in any non-standard format, and (ii) New Sun and its Subsidiaries shall be reimbursed for their reasonable out-of-pocket costs and expenses for providing Information in any format other than its standard
format. 
 Section 5. Confidentiality; Protective Arrangements. 
 (a) New Sun And Sabra Obligations. Subject to Section 5(c), each of New Sun, on behalf of itself and each of its Subsidiaries, and Sabra, on behalf of itself and each of its Subsidiaries,
agrees to hold, and to cause its respective directors, officers, employees, agents, accountants, counsel and other advisors and representatives to hold, in strict confidence, with at least the same degree of care that applies to Sun’s
confidential and proprietary information pursuant to policies in effect prior to the Distribution Date, all Information regarding New Sun or its Subsidiaries on the one hand and all Information regarding Sabra or its Subsidiaries on the other hand
that is in the possession of the other 

  
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Party (including Information in such Party’s possession prior to the Distribution Date or Information that has been furnished to the other Party’s respective directors, officers,
employees, agents, accountants, counsel and other advisors and representatives at any time pursuant to this Agreement). Such Information shall not be used in any manner other than for such purposes as may be expressly permitted hereunder, except, in
each case, to the extent that such Information has been (i) in the public domain through no fault of such Party or its Subsidiaries or any of their respective directors, officers, employees, agents, accountants, counsel and other advisors and
representatives; (ii) later lawfully acquired from other sources by such Party (or any of its Subsidiaries), which sources are not themselves bound by a confidentiality obligation; or (iii) independently generated without reference to any
proprietary or confidential Information of the other Party. 
 (b) No Release; Return Or Destruction. Each Party agrees
not to release or disclose, or permit to be released or disclosed, any Information addressed in Section 5(a) to any other Person or Governmental Authority, except its directors, officers, employees, agents, accountants, counsel and other
advisors and representatives who need to know such Information, and except in compliance with Section 6.07 of the Distribution Agreement. Without limiting the foregoing, when any Information furnished by either Party after the Distribution Date
pursuant to this Agreement is no longer needed for the purposes contemplated by this Agreement, each Party shall, at such Party’s option, promptly after receiving a written request from the other Party either return to the other Party all such
Information in a tangible form (including all copies thereof and all notes, extracts or summaries based thereon) or certify to the other Party that it has destroyed such Information (and such copies thereof and such notes, extracts or summaries
based thereon). 
 (c) Protective Arrangements. In the event that either Party or any of their respective Subsidiaries
determines on the advice of its counsel that it is required to disclose any Information pursuant to applicable Law or the rules or regulations of any Governmental Authority or receives any demand under lawful process or from any Governmental
Authority to disclose or provide Information of the other Party that is subject to the confidentiality provisions hereof, such Party shall notify the other Party prior to disclosing or providing such Information and shall cooperate at the expense of
the requesting Party in seeking any reasonable protective arrangements requested by such other Party. Subject to the foregoing, the Party that received such request, or its Subsidiaries, may thereafter disclose or provide Information to the extent
required by applicable Law (as so advised by counsel). 
 Section 6. Dispute Resolution And Arbitration. 

(a) Sole And Exclusive Method For Resolution Of Disputes. Any dispute, claim or controversy arising out of or relating to the
Services or this Agreement (hereinafter “Disputes”) shall be resolved in accordance with the procedures specified in this Section 6, which shall be the sole and exclusive procedures for the resolution of any such Disputes.

 (b) Negotiation Between Executives. The Parties involved in any Dispute shall attempt to resolve such Dispute between
them promptly by negotiation 

  
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between executives who have authority to settle the Dispute and who are at a comparable or higher level of management than the Persons who have been involved in the negotiation of this Agreement.
Any Party may give the other Party written notice of any Dispute not resolved in the normal course of business. Within fifteen (15) days (or such further time as the Parties may agree) after delivery of such notice, the receiving party shall
submit to the other a written response. The notice and response shall include (a) a statement of that Party’s position and a summary of the arguments supporting that position, and (b) the name and title of the executive who will
represent that Party and of any other person who will accompany the executive. Within thirty (30) days (or such further time as the Parties may agree) after delivery of the initial notice, the executives of the Parties shall meet at a mutually
acceptable time and place, and thereafter continue to meet as often as they reasonably deem necessary, to use their good faith and commercially reasonable efforts to attempt to resolve the Dispute. All negotiations pursuant to this clause shall be
confidential and shall be treated as compromise and settlement negotiations for purposes of applicable rules of evidence, and any documents or information exchanged pursuant to the preceding sentence shall be returned immediately following the
earlier of the conclusion of negotiations or the institution of arbitration. 
 (c) Arbitration. If any Dispute has not
been resolved by negotiation as provided in Section 6(b) within sixty (60) days (or such further time as the Parties may agree) after delivery of the initial notice of negotiation, or if the Parties fail to meet within thirty
(30) days (or such further time as the Parties may agree) after delivery of such notice, then, at the request of New Sun or Sabra, such Dispute shall be submitted to binding arbitration in accordance with the then prevailing CPR Rules for
Non-Administered Arbitration (the “CPR Rules”). 
 (d) Selection of Arbitrators. The arbitration shall
be conducted before a panel that shall consist of two independent and impartial arbitrators, one appointed by New Sun and one appointed by Sabra and a third independent and impartial arbitrator who shall chair the panel. The third arbitrator shall
be selected as provided in Rule 5.2 of the CPR Rules. The Parties acknowledge that each Party may have confidential communications with its party-appointed arbitrator concerning that arbitrator’s selection and the selection of the third neutral
arbitrator. The arbitrators selected shall be qualified by education, experience and training to render a decision upon the matter in dispute. Should a Party fail to appoint an arbitrator, or should the two party-appointed arbitrators fail to
appoint a chairman within sixty (60) days (or such further time as the Parties may agree) following the claimant’s giving of notice to respondent of such Dispute, the remaining positions on the panel shall be filled by appointment of the
CPR in accordance with the CPR Rules. 
 (e) Rules. The arbitration shall proceed under the CPR Rules and shall be
governed by the Federal Arbitration Act, 9 U.S.C. Section 1, et. seq. The arbitrators may, in their discretion, limit or expand discovery in any arbitration proceeding. The Parties expressly covenant and agree to be bound by the decision of the
arbitrators as a final determination of the Dispute, and the Parties agree that a judgment of any court of competent jurisdiction within the United States may be entered upon the award. In rendering the award the arbitrators shall abide by
(a) the terms and conditions of this Agreement including, any and all restrictions, prohibitions or limitations on damages or 

  
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remedies and (b) the Law of the State of California. The arbitrators shall not have jurisdiction or authority to add to, detract from or alter in any way the provisions of this Agreement.
Each Party acknowledges that either Party, in addition to all other remedies that may be available, shall be entitled to seek, and the arbitrators may award, equitable relief in the form of specific performance or any other equitable remedy that may
then be available, as well as monetary damages for either Party’s breach or threatened breach of this Agreement. 
 (f)
Location. The seat of any arbitrations pursuant to this Section 6 shall be Orange County, California. All hearings in this arbitration shall be held at the seat or at such other place as the Parties may agree. 

(g) Costs and Expenses. The arbitration panel may apportion the costs of arbitration between or among the Parties in such manner
as it deems reasonable, taking into account the circumstances of the Dispute, the conduct of the Parties and the result of arbitration. The arbitration panel shall be empowered and directed to enter an award by default against either Party to the
arbitration who declines to pay when required by the arbitration panel its share of such fees and costs. In addition, the arbitration panel, shall be entitled to award to a Party such Party’s reasonable attorneys’ fees and expert fees, as
determined by the arbitration panel considering those factors mentioned in the first sentence of this Section 6(g), incurred in connection with such Party’s preparation for and participation in the arbitration. 

(h) Confidentiality. Except to the extent necessary to enforce the arbitration agreement or award, to enforce other rights of the
Parties hereunder, or as required by applicable Law or the rules of any stock exchange on which the securities of any Party or any of its Subsidiaries are listed or are in the process of being listed, the arbitrators and Parties, and their counsel,
advisors, consultants and expert witnesses, shall maintain as confidential the fact of the arbitration proceedings, the arbitral award, and all documents prepared and submitted by each Party, or its counsel, advisors, consultants and expert
witnesses, in connection with the arbitration or exchanged by the Parties in the discovery process. 
 (i) Breach of
Confidentiality Provisions. Notwithstanding the foregoing, the Parties acknowledge that the breach of Section 5 (Confidentiality) by one Party may give rise to irreparable injury to the other Party which is not adequately compensable in
damages or at Law. Accordingly, the Parties agree that in such event, the non-breaching Party may seek equitable relief to enforce or prevent violation of such Party’s respective rights and/or obligations under Section 5. Unless otherwise
agreed in writing, the Parties shall continue to provide Services and honor all other commitments under this Agreement during the course of any Dispute being resolved pursuant to the provisions of this Section 6 with respect to all matters
subject to such Dispute; provided, however, that this obligation shall only exist during the applicable Service Period. 
 Section
7. Miscellaneous. 
 (a) Mutual Cooperation. The Parties and their respective Subsidiaries shall cooperate with
each other in connection with the performance of the Services 

  
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hereunder, including producing on a timely basis all Information that is reasonably requested with respect to the performance of Services and the transition of Services at the end of the
applicable Service Period or any extension thereof; provided, however, that such cooperation shall not unreasonably disrupt the normal operations of the Parties and their respective Subsidiaries. 

(b) Limitations on Liability. 
 (i) THE MAXIMUM LIABILITY OF NEW SUN AND ITS SUBSIDIARIES TO, AND THE SOLE REMEDY OF, SABRA AND ITS SUBSIDIARIES WITH RESPECT TO ANY AND ALL CLAIMS ARISING UNDER OR IN CONNECTION WITH THIS AGREEMENT,
REGARDLESS OF THE THEORY UPON WHICH THE LIABILITY IS PREMISED, SHALL NOT EXCEED NEW SUN’S PROFITS FOR PERFORMING SERVICES HEREUNDER, WHICH SHALL BE DEEMED TO BE EQUAL TO THE AMOUNT RECEIVED BY NEW SUN AS SET FORTH ON SCHEDULE 1 THAT
EXCEEDS NEW SUN’S COSTS OF PROVIDING SUCH SERVICES. 
 (ii) IN NO EVENT SHALL EITHER PARTY, ITS SUBSIDIARIES
OR ITS DIRECTORS, OFFICERS, EMPLOYEES OR AGENTS BE LIABLE TO THE OTHER PARTY FOR INDIRECT, EXEMPLARY, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES IN CONNECTION WITH THE PERFORMANCE OF THIS AGREEMENT, EVEN IF THE PARTY HAS BEEN ADVISED OF THE
POSSIBILITY OF SUCH DAMAGES, AND EACH PARTY HEREBY WAIVES ON BEHALF OF ITSELF AND ITS SUBSIDIARIES ANY CLAIM FOR SUCH DAMAGES, INCLUDING ANY CLAIM FOR PROPERTY DAMAGE OR LOST PROFITS, WHETHER ARISING IN CONTRACT, TORT OR OTHERWISE. 

(iii) The foregoing limitations on liability in this Section 7(b) shall not apply to: (1) either Party’s
liability for breaches of confidentiality under Section 5 (Confidentiality), and (2) either Party’s obligations under Section 7(c) (Third Party Claims). 
 (c) Third Party Claims. Sabra shall indemnify, defend and hold harmless New Sun, its Subsidiaries and each of their respective directors, officers and employees, and each of the successors and
assigns of any of the foregoing (collectively, the “Provider Indemnitees”), from and against any and all claims of Third Parties relating to, arising out of or resulting from New Sun’s furnishing or failing to furnish the
Services provided for in this Agreement, other than Third Party claims arising out of the gross negligence or willful misconduct of any Provider Indemnitee. 
 (d) Title To Intellectual Property. Sabra acknowledges that neither it nor any of its Subsidiaries shall acquire any right, title or interest (including any license rights or rights of use) in any
intellectual property which is owned or licensed by New Sun or any of its Subsidiaries, by reason of the provision of the Services provided hereunder. Sabra shall not, and shall cause its Subsidiaries not to, remove or alter any copyright,
trademark, confidentiality or other proprietary notices that appear on any 

  
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intellectual property owned or licensed by New Sun or any of its Subsidiaries, and Sabra shall, and shall cause its Subsidiaries to, reproduce any such notices on any and all copies thereof.
Sabra shall not, and shall cause its Subsidiaries not to, attempt to decompile, translate, reverse engineer or make excessive copies of any intellectual property owned or licensed by New Sun or any of its Subsidiaries, and Sabra shall promptly
notify New Sun of any such attempt, regardless of whether by Sabra, any of its Subsidiaries or any Third Party, of which Sabra becomes aware. 
 (e) Force Majeure. Neither Party shall be liable to the other if, and to the extent that, the performance or delay in performance of any of its obligations under this Agreement is prevented,
restricted, delayed or interfered with due to circumstances beyond the reasonable control of such Party, including, but not limited to, government legislation, fires, floods, explosions, epidemics, accidents, acts of God, wars, acts of terrorism,
riots, strikes, lockouts or other concerted acts of workers and/or acts of government. The Party claiming an event of force majeure shall promptly notify the other Party in writing, and provide full particulars of the cause or event and the date of
first occurrence thereof, as soon as possible after the event and also keep the other Party informed of any further developments. The Party so affected shall use its commercially reasonable efforts to remove the cause of non-performance, and both
the Parties shall resume performance hereunder with the utmost dispatch when such cause is removed unless this Agreement has previously been terminated under Section 4 hereof. 

(f) Independent Contractors. The Parties each acknowledge that they are separate entities, each of which has entered into this
Agreement for independent business reasons. The relationships of the Parties hereunder are those of independent contractors and nothing contained herein shall be deemed to create a joint venture, partnership or any other relationship. 

(g) No Third Party Beneficiaries. Except as expressly provided in Section 7(c), the provisions of this Agreement are solely
for the benefit of the Parties and their Subsidiaries and are not intended to confer upon any Person except the Parties and their Subsidiaries any rights or remedies hereunder. Except for the Provider Indemnitees, there are no Third Party
beneficiaries of this Agreement and this Agreement shall not provide any Third Party with any remedy, claim, liability, reimbursement, claim of action or other right in excess of those existing without reference to this Agreement. 

(h) Governing Law. This Agreement shall be governed by, and construed in accordance with, the Laws of the State of California
(other than the Laws regarding choice of laws and conflicts of laws) as to all matters, including matters of validity, construction, effect, performance and remedies. 
 (i) Survival. Section 1 (Definitions), Sections 2(c)(v) (Performance of Services), Section 3 (Charges; Billing; Taxes), Section 5 (Confidentiality), Section 6 (Dispute
Resolution and Arbitration), Section 7(b) (Limitations on Liability), Section 7(c) (Third Party Claims), Section 7(d) (Title to Intellectual Property) and Section 7(g) (No Third Party Beneficiaries) through Section 7(p)
(Severability) shall survive any expiration or termination of this Agreement. 

  
 12 

  
 (j) Amendment;
Assignment. This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective successors and permitted assigns; provided, however, that neither Party may assign its rights or delegate its
obligations under this Agreement without the express prior written consent of the other Party hereto. Notwithstanding the foregoing, this Agreement shall be assignable by either Party in whole with the prior written consent of the other Party (which
consent shall not be unreasonably withheld, delayed or conditioned) in connection with: (i) a merger or consolidation of such Party if (a) such Party is not the surviving entity, or (b) such Party’s stockholders constitute less
than 70% of the surviving stockholders; (ii) the sale of all or substantially all of the assets of such Party; or (iii) the acquisition by a Third Party of at least 30% of the combined voting power of the then-outstanding securities of
such Party entitled to vote generally in the election of directors (each such occurrence, a “Change of Control Event”), in each case so long as the resulting, surviving or transferee Person assumes all the obligations of the
assignor hereunder by operation of law or pursuant to an agreement in form and substance reasonably satisfactory to the other Party. It shall not be deemed to be unreasonable for a Party to withhold consent to assignment in connection with a Change
of Control Event on the basis that the proposed assignee is a competitor of such Party. In the event a Party effects a Change of Control Event without the other Party’s prior written consent to assign this Agreement as set forth above, the
latter Party may terminate this Agreement, in its sole discretion, with effect immediately upon the occurrence of such Change of Control Event. 
 (k) Audit Assistance. Each of the Parties and their respective Subsidiaries is or may be subject to regulation and audit by Governmental Authorities, standards organizations, other regulatory
authorities, customers or other parties to contracts with such Parties under applicable Law and contract provisions. If a Governmental Authority, standards organization, other regulatory authority or customer or other party to a contract with a
Party or a Subsidiary of a Party exercises its right to examine or audit such Party’s or any of its Subsidiaries’ books, records, documents or accounting practices and procedures pursuant to such applicable Law, rules, regulations,
standards or contract provisions and such audit or examination relates to the Services, the other Party shall provide, at the sole cost and expense of the requesting Party, all assistance requested by the Party that is subject to the audit in
responding to such audits or requests for information, to the extent that such assistance or information is within the reasonable control of the cooperating Party and is related to the Services. 

(l) No Waivers. Any failure of any Party to comply with any obligation, covenant, agreement or condition contained herein may be
expressly waived in writing by the Party to whom such obligation is owed, but such waiver or failure to insist upon strict compliance shall not operate as a waiver of, or estoppel with respect to, any subsequent or other failure. The rights and
remedies of the Parties and their Subsidiaries hereunder are cumulative and are not exclusive of any rights or remedies which they would otherwise have hereunder. 
 (m) Notices. All notices and other communications given or made pursuant hereto shall be in writing and shall be deemed to have been duly given or made (a) as of the date delivered, if
delivered personally, (b) on the date the delivering party receives confirmation, if delivered by facsimile, (c) three (3) business days after being 

  
 13 

 
mailed by registered or certified mail (postage prepaid, return receipt requested) or (d) one (1) business day after being sent by overnight courier (providing proof of delivery), to
the Parties at the following addresses (or at such other address for a Party as shall be specified in a notice given in accordance with this Section 7(m)): 
 If to New Sun: 
 Sun Healthcare Group, Inc. 

18831 Von Karman, Suite 400 
 Irvine, California 92612 
 Facsimile: (949) 255-7055

 Attention: Chief Executive Officer 
 If to Sabra: 
 Sabra Health Care REIT, Inc. 

18500 Von Karman Ave, Suite 550 
 Irvine, California 92612 
 Facsimile: (949) 678-8868

 Attention: Chief Executive Officer 
 (n) Counterparts. This Agreement may be executed by facsimile signatures and in any number of counterparts with the same effect as if all signatory parties had signed the same document. All
counterparts shall be construed together and shall constitute one and the same instrument. 
 (o) Complete Agreement.
This Agreement and the Exhibits and Schedules hereto shall constitute the entire agreement among the Parties with respect to the subject matter hereof and shall supersede all previous contracts or agreements, whether oral or written, with respect to
such subject matter. Notwithstanding any other provisions in this Agreement to the contrary, in the event and to the extent that there is a conflict between the provisions of this Agreement and the provisions of the Distribution Agreement, the
provisions of this Agreement shall control. 
 (p) Severability. Any provision of this Agreement which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof. Any such prohibition or unenforceability in any jurisdiction
shall not invalidate or render unenforceable such provision in any other jurisdiction. Upon such determination, the Parties shall negotiate in good faith in an effort to agree upon a suitable and equitable provision to effect the original intent of
the Parties. 
 * * * 

  
 14 

  
 IN WITNESS WHEREOF,
the Parties have executed this Agreement as of the date first written above. 
  

			
	SHG SERVICES, INC.
		
	By:	 	 /s/ Michael Newman

	Name:	 	Michael Newman
	Title:	 	Vice President
	
	SABRA HEALTH CARE REIT, INC.
		
	By:	 	 /s/ Rick Matros

	Name:	 	Rick Matros
	Title:	 	Chairman & CEO

  
 Schedule 1

  

	1.	Consulting Services. The following departments of New Sun shall provide consulting and advisory services to Sabra, upon the request of Sabra, at an hourly rate
as listed below, for a period of up to six months from the Distribution Date (such services are exclusive of any required services under the lease agreements or Tax Allocation Agreement which services will not be billed under this agreement and
instead will be provided as set forth in the Tax Allocation Agreement or applicable lease agreement): 

  

							
	a.	  	MIS / IT	  	$	75.00	  
	b.	  	Treasury	  	$	75.00	  
	c.	  	Payroll	  	$	50.00	  
	d.	  	Legal	  	$	150.00	  
	e.	  	Risk Management	  	$	75.00	  
	f.	  	Accounts Payable	  	$	50.00	  
	g.	  	Financial Reporting	  	$	150.00	  
	h.	  	Real Estate	  	$	75.00	  
	i.	  	Tax	  	$	150.00	  
	j.	  	HR / Benefits	  	$	75.00	  
	k.	  	Accounting	  	$	75.00	  

  

	2.	Data Downloads. New Sun shall provide information and data downloads relevant to the transition process for a period of up to 90 days after the Distribution Date
at no cost. Such downloads shall be in a format as requested by Sabra, so long as that format is currently available to New Sun. If such format is not available to New Sun, New Sun and Sabra will work together to determine the most appropriate
format available to New Sun to be used. This data download will include details of all general ledger accounts that will be part of the opening balance sheet of Sabra. 

 

	3.	Email Service. For a period of 90 days after the Distribution Date, New Sun shall forward to Sabra all emails received on New Sun’s system that are
addressed to the employees of Sabra at no cost. In addition, New Sun shall provide to Sabra, as available, the historical email files of Sabra’s employees. 

 

	4.	W-2s and 1099s. New Sun shall timely process W-2s and 1099s for the FEIN of Sun for the fiscal year ended December 31, 2010 at no cost to Sabra.

  

	5.	HUD. New Sun shall, for all HUD audits of Sabra subsidiaries to be completed for the 2010 fiscal year, manage the completion of such audits, including the
coordination of the preparation of financial statements by an independent auditing firm and all other coordination of the required reporting to HUD related to the fiscal year ending December 31, 2010. Sabra will be responsible for 12.5% of the
external costs of such HUD audits, including audit and legal fees, and will reimburse New Sun within 30 days of receipt of supporting details of such costs. 

  
 2 

  

	6.	Tax Filings. All agreements related to tax filings are governed by the Tax Allocation Agreement between Sabra and New Sun dated September 23, 2010.

  

	7.	1099s for Stockholders. New Sun shall calculate the amount of E&P that is taxable to Sun’s stockholders in connection with dividend distributions to
Sun’s stockholders pursuant to the separation of Sun into two publicly-owned companies, and shall provide such calculations to Sabra and to Sabra’s transfer agent for the purpose of the transfer agent distributing 1099s to the
stockholders. All costs associated with the distribution will be the responsibility of New Sun. 

  

	8.	Fixed Asset Database and Supporting Documents. New Sun shall provide to Sabra, at no cost, an electronic media file containing the relevant underlying detail
transactional support for all fixed assets (and where relevant any intangible or other assets) and associated accumulated depreciation, including the gross value of the assets, useful lives of assets, dates the assets were placed into service, etc.
This information will be provided based on both a GAAP book basis and on a tax basis. In addition, New Sun shall provide Sabra with the documentation for the asset valuation work completed as of the date of the Separation for Capital Lease testing
at no cost to Sabra. 

  

	9.	Audit of Opening Balance Sheet. New Sun shall assist Sabra in the completion of Sabra’s opening balance sheet at no cost. Note: it is the responsibility of
Sabra to pay all audit fees incurred in connection with any such audit of such balance sheet. 

  

	10.	Supporting and Other Documents. New Sun shall provide Sabra at no cost and to the extent available, copies of supporting and other related documents for the general
ledger accounts that comprise the opening balance sheet of Sabra and the real estate owned by Sabra including but not limited to the following: 

  

	 	a.	All loan documents and related debt compliance documents for 2009 and 2010. 

 

	 	b.	HUD audit reports for 2008 and 2009 

  

	 	c.	Insurance policies 

  

	 	d.	Ground leases 

  

	 	e.	Entitlement documentation 

  

	 	f.	Building plans 

  

	 	g.	Supporting documentation for any asset impairment testing for 2009 and 2010 

 

	 	h.	Appraisals 

  

	 	i.	Environmental reports 

  

	 	j.	Title Policies 

  

	 	k.	Property Condition Reports 

  

	 	l.	Summary of Capx for the past 5 years for each facility by type of expenditure. 

 

	 	m.	HR files for Rick Matros and Dale Krehbiel 

  

	 	n.	All supporting documentation for Rick Matros non-cash compensation and the Sabra stock to be issued to New Sun employees 

 

	 	o.	FAS 109 and FIN 48 workpapers related to Sabra deferred taxes 

  

	 	p.	Copy of the Sun/PWC E&P study 

  

	 	q.	Copy of Sun’s internal control structure documents. 

  

	 	r.	Any other documents as reasonable requested by Sabra. 

  
 3

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