Document:

exv10w40

Exhibit 10.40

FISCAL YEAR 2009

SUPPLEMENTAL BONUS AGREEMENT

     This Fiscal Year 2009 Supplemental Bonus Agreement (the “Agreement”) was approved by the
Compensation Committee of the Board of Directors (the “Committee”) of Sysco Corporation (the
"Company”), and agreed to by the Company and                                          (“Executive) effective June 27, 2008.
This Agreement is for the Company’s fiscal year ending June 27, 2009 (the “Fiscal Year”).

     1. Implementation and Administration of Agreement. The Committee shall implement and
administer the terms and conditions of this Agreement. All decisions made by the Committee
pursuant to the provisions of this Agreement shall be made in the Committee’s sole discretion and
shall be final and binding on all persons, including the Company and Executive.

     2. Evaluation of Performance. Within 90 days after the end of the Fiscal Year, the
Committee shall complete an evaluation of Executive’s performance for such Fiscal Year, including
but not limited to a review of the following performance areas: (a) implementation of the Company’s
long-term strategy, (b) succession planning and (c) implementation of the Company’s planned
information technology initiatives. Based upon this evaluation, Executive’s compensation for the
Fiscal Year will be adjusted, in the Committee’s sole discretion, as follows:

     (a) Performance Exceeds Expectations. If Executive’s performance for the
Fiscal Year “exceeds expectations,” Executive will be entitled to receive a bonus (the
“Performance Bonus”) equal to (x) the Adjustment Factor multiplied by (y) the bonus earned
by Executive for such Fiscal Year under the Sysco Corporation 2005 Management Incentive
Plan, as it may be amended (the “MIP Bonus”). For purposes of this Section 2(a) and Section
2(c) below, the “Adjustment Factor” shall be a percentage of up to 25% selected by the
Committee based upon the Committee’s determination of Executive’s performance for such
Fiscal Year.

     (b) Performance Meets Expectations. If Executive’s performance for the Fiscal
Year “meets expectations,” Executive shall not be entitled to receive a Performance Bonus as
set forth in Section 2(a) above, nor shall Executive’s MIP Bonus be subject to reduction as
set forth in Section 2(c) below.

     (c) Performance Below Expectations. If Executive’s performance for the Fiscal
Year is “below expectations,” Executive’s MIP Bonus for such Fiscal Year shall be reduced by
an amount equal to the Adjustment Factor times the Executive’s MIP Bonus (the “Forfeited
Amount”).

Notwithstanding anything to the contrary contained herein, Executive shall not be entitled to a
Performance Bonus under this Agreement unless Executive is otherwise eligible to receive a MIP
Bonus for the Fiscal Year. Executive acknowledges and agrees that all determinations required
pursuant to this Section 2 shall be made by the Committee in its sole and absolute discretion.

     3. Performance Bonus. If earned in accordance with Section 2(a) above, the
Performance Bonus will be paid in cash as soon administratively feasible following the Company’s
determination of Executive’s MIP Bonus amount; provided however, that the Performance Bonus must be
paid before the later of (i) the date that is 2 1/2 months from the end of Executive’s first taxable
year in which the Performance Bonus is no longer subject to a substantial risk of forfeiture or
(ii) the date that is 2 1/2 months from the end of Company’s first taxable year in which the amount
is no longer subject to a

 

 

substantial risk of forfeiture, it being the intent of the parties that
the compensation paid pursuant to this Agreement not in any way be subject to Section 409A of the
Code (and this clause shall be interpreted in a manner that is consistent therewith). In addition,
in no event will the Performance Bonus increase the amount of compensation earned by Executive
under the Sysco Corporation 2005 Management Incentive Plan, as it
may be amended, and the related agreement between Executive and the Company. Executive
acknowledges and agrees that the Company’s obligations under this Agreement shall at all times be
unfunded and no provision shall at any time be made with respect to segregating any assets of the
Company or its subsidiaries for payment of any benefits under the Agreement.

     4. No Employment Arrangements Implied; Termination of Employment. The existence of
this Agreement shall not be deemed to constitute a contract of employment between the Company and
Participant, nor shall it constitute a right to remain in the employ of the Company. If
Executive’s employment with the Company terminates for any reason prior to the end of the Fiscal
Year, including, without limitation, as a result of death, disability or following a change of
control of the Company: (a) Section 2(a) will be applied by treating the date Executive’s
employment terminates as the end of the Fiscal Year for purposes of such Section if, under the
terms of that certain Severance Agreement by and between Executive and Company (as amended through
the date hereof, the “Severance Agreement”), Executive is entitled to receive a MIP Bonus for the
Fiscal Year, (b) Section 2(a) will not apply for the Fiscal Year (i.e., Executive will not be
eligible to receive a Performance Bonus under this Agreement) if, under the terms of the Severance
Agreement, Executive is not entitled to receive a MIP Bonus for the Fiscal Year, (c) in no event
will Section 2(c) apply to Executive (i.e., Executive’s MIP Bonus will not be subject to reduction
regardless of whether his performance immediately prior to the date of his termination was “below
expectations”).

     5. Waiver of Forfeited Amount. In consideration for the opportunity to earn the
Performance Bonus, Executive hereby unconditionally waives his right to receive the Forfeited
Amount.

     6. Withholding Taxes. The Company may withhold from all payments due to Executive
hereunder all taxes that, by applicable federal, state, local or other law, the Company is required
to withhold therefrom.

     7. Term of Agreement. This Agreement shall be effective only for this Fiscal Year
(i.e., the fiscal year ending June 27, 2009).

     8. Successors; Binding Agreement.

     (a) This Agreement shall be binding on the Company, its successors (whether the
existence of such successor is the result of a direct or indirect purchase, merger,
consolidation or otherwise) and assigns.

     (b) This Agreement shall inure to the benefit of and be enforceable by Executive’s
personal or legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees. If Executive shall die while any amounts remain to be
payable to Executive hereunder had Executive continued to live, all such amounts shall be
paid in accordance with the terms of this Agreement to such person or persons appointed in
writing by Executive to receive such amounts or, if no person is so appointed, to
Executive’s estate.

     9. Governing Law. The interpretation, construction and performance of this Agreement
shall be governed by and construed and enforced in accordance with the internal laws of the state
of Delaware without regard to the principle of conflicts of laws.

 

 

     10. Counterparts. This Agreement may be executed in counterparts, each of which shall
be deemed to be an original and all of which together shall constitute one and the same instrument.

     11. Severability. Provided the other provisions of this Agreement do not frustrate
the purpose and intent of the law, in the event that any portion of this Agreement shall be
determined to be invalid or unenforceable to any extent, the same shall to that extent be deemed
severable from this Agreement and the invalidity or unenforceability thereof shall not affect the
validity and enforceability of the remaining portion of this Agreement.

     12. Miscellaneous. No provision of this Agreement may be modified or waived unless
such modification or waiver is agreed to in writing and signed by Executive and by a duly
authorized officer of the Company. No waiver by either party hereto at any time of any breach by
the other party hereto of, or compliance with, any condition or provision of this Agreement to be
performed by such other party shall be deemed a waiver of similar or dissimilar provisions or
conditions at the same or at any prior or subsequent time. Failure by Executive or the Company to
insist upon strict compliance with any provision of this Agreement or to assert any right Executive
or the Company may have hereunder, shall not be deemed to be a waiver of such provision or right or
any other provision or right of this Agreement. Except as otherwise specifically provided herein,
the rights of, and benefits payable to, Executive, Executive’s estate or Executive’s beneficiaries
pursuant to this Agreement are in addition to any rights of, or benefits payable to, Executive,
Executive’s estate or Executive’s beneficiaries under any other employee benefit plan or
compensation arrangement of the Company, except as herein specifically provided.

     IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by a duly authorized
officer of the Company and Executive has executed this Agreement as of the day and year first above
written.

	 	 	 	 	 	 	 	 	 
	SYSCO CORPORATION	 	 	 	EXECUTIVE	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	Name:

	 	 

	 	 	 	 

	 	 
	 

	 	 	 	 	 	 	 	 
	Title:exv10w45

Exhibit 10.45

SUMMARY OF COMPENSATION ARRANGEMENTS

WITH NAMED EXECUTIVE OFFICERS

(As of August 1, 2008)

The following summarizes the current cash compensation and benefits received by the Company’s Chief
Executive Officer and the other officers who will be named in the Summary Compensation Table in the
proxy statement for the Company’s upcoming Annual Meeting of Stockholders, as well as the Company’s
Chief Financial Officer (collectively, the “Named Executive Officers”). This document is intended
to be a summary of existing oral, at will arrangements, and in no way is intended to provide any
additional rights to any of the Named Executive Officers.

The executive officers of the Company serve at the discretion of the Board of Directors. The
Compensation and Stock Option Committee of the Board (the “Committee”) reviews and determines the
salaries that are paid to the Company’s executive officers, including the Named Executive Officers.
The current salaries of the Named Executive Officers are as follows:

	 	 	 	 	 
	Richard J. Schnieders
	 	$	1,116,250	 
	Chairman of the Board and Chief Executive Officer
	 	 	 	 
	 
	 	 	 	 
	Kenneth F. Spitler
	 	$	693,500	 
	President and Chief Operating Officer
	 	 	 	 
	 
	 	 	 	 
	William J. DeLaney III
	 	$	560,500	 
	Executive Vice President and Chief Financial Officer
	 	 	 	 
	 
	 	 	 	 
	Larry G. Pulliam
	 	$	532,000	 
	Executive Vice President, Global Sourcing and Supply Chain
	 	 	 	 
	 
	 	 	 	 
	Kenneth J. Carrig
	 	$	508,250	 
	Executive Vice President and Chief Administrative Officer
	 	 	 	 

The Named Executive Officers are also eligible to participate in the Company’s executive and
regular benefit plans and programs, as described below. All executive benefit plans and agreements
are filed as exhibits to the Company’s Exchange Act filings. Information regarding these plans and
agreements, as well as compensation paid or earned during fiscal 2008, will be included in the
Company’s 2008 Proxy Statement.

Management Incentive Plan

The Named Executive Officers are eligible to receive an annual incentive bonus under the SYSCO
Corporation Management Incentive Plan (the “MIP”). For fiscal 2008, participants will receive an
automatic 28% stock match of their MIP bonus, if any; such stock match has been discontinued for
fiscal 2009 and later years.

Supplemental Performance-Based Bonus Plan and Agreements

For fiscal 2008, the Named Executive Officers are eligible to participate in a Supplemental
Performance-Based Bonus Plan which may result in up to a 25% upward or downward adjustment to the
amount of any annual incentive bonus earned under the MIP. For fiscal 2009, Mr. Schnieders and Mr.
Spitler are each party to a supplemental bonus agreement which may result in up to a 25% upward or
downward adjustment to the amount of any annual incentive bonus earned under the MIP.

Deferred Compensation Election

MIP participants, including the Named Executive Officers, may defer up to 40% of their annual
incentive bonus (without considering any election to receive a portion of the bonus in stock) under
the Executive Deferred Compensation Plan (“EDCP”). They may also elect to defer all or a portion of
their salary under the EDCP. For deferrals of up to 20% of the annual incentive bonus, the EDCP
provides for SYSCO to credit the participant’s deferred compensation account in an amount equal to
15% of the amount deferred.

Stock Options and Restricted Stock

The Named Executive Officers are eligible to receive options under SYSCO’s stock option plans,
including the 2007 Stock

 

 

 Incentive Plan, in such amounts and with such terms and conditions as
determined by the Committee at the time
of grant. The 2007 Stock Incentive Plan also allows for the issuance of restricted stock grants,
and the Committee expects to replace the 28% stock match under the MIP with annual discretionary
restricted stock grants beginning in fiscal 2010.

Cash Performance Unit Plan

The Named Executive Officers are eligible to participate in the SYSCO Corporation 2004 Cash
Performance Unit Plan (formerly the 2004 Long-Term Cash Incentive Plan and the 2004 Mid-Term
Incentive Plan).

Supplemental Executive Retirement Plan

MIP participants, including the Named Executive Officers, are also eligible to participate in a
Supplemental Executive Retirement Plan (the “SERP”).

Severance Agreements

Mr. Schnieders and Mr. Spitler have Severance Agreements with the Company.

Other Benefits

The Named Executive Officers also participate in SYSCO’s regular employee benefit programs, which
include a defined benefit retirement plan, a 401(k) plan with Company match, group medical and
dental coverage, group life insurance and other group benefit plans. They are also provided with
additional life insurance benefits, as well as long-term disability coverage.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00146-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00146-of-00352.parquet"}]]