Document:

Muscle
Maker, Inc

Employment
Agreement

 

THIS
EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into effective as of the Effective Date (as defined below),
by and between Kevin Mohan (“Employee”) and Muscle Maker, Inc, a California corporation (the “Company”).
The Employee and the Company are sometimes referred to herein, each individually as a “Party” or collectively as the
“Parties”.

 

WHEREAS,
the Company desires to (i) to employ Employee as Chief Investment Officer of the Company (“Executive”), and the Employee
desires to serve in such capacities on behalf of the Company, on the terms and conditions set forth in this Agreement.

 

NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree
as follows:

 

Section
1. Position and Duties.

 

1.1
During the Initial Employment Term (as defined below), the Employee shall serve as the Chief Investment Officer of the Company
and shall report solely and directly to the Chief Executive Officer. The Employee shall be responsible for oversight and management
of all investment, SEC, public entity, litigation, legal and negotiation activities of the Company. In addition, the Employee
shall perform all other duties and accept all other responsibilities incident to such position as may be reasonably assigned to
him by the Chief Executive Officer.

 

1.2
During the Initial Employment Term, Employee shall serve the Company faithfully and to the best of his ability and shall devote
substantially all of his business time, attention and efforts to the performance of such duties as may be assigned to him from
time to time by the Chief Executive Officer. Employee shall confer with the Chief Executive Officer and must have written approval
prior to any mergers, acquisitions or significant contracts by the company or prior to entering into any new financial agreements
on behalf of the company outside of his normal day to day responsibilities. The Employee is allowed to serve on the Board of Directors
or as an Advisor, of any non-competing business, while employed by the Company under this agreement.

 

1.3
Employee expressly represents and warrants to the Company that Employee is not a party to any contract or agreement and is not
otherwise obligated in any way, and is not subject to any rules or regulations, whether governmentally imposed or otherwise, which
will or may restrict in any way the Employee’s ability to fully perform his duties and responsibilities under this Agreement.
Employee further expressly represents and warrants that he is eligible to work in the United States and shall take all necessary
action to comply with requests for verification of employment eligibility.

 

1.4
Employee will perform his duties and responsibilities located at the corporate headquarters or elsewhere within reason.

 

1.5
To the extent Employee is asked to serve as an officer, director or manager of the subsidiaries (“Subsidiaries”) of
the Company (such as Muscle Maker Development, LLC and Muscle Maker Corp., LLC), Employee’s duties to the Subsidiaries shall
be deemed to have been included in this Agreement. Employee shall not be entitled to any additional compensation hereunder and
shall be covered by all provisions of the Agreement mutatis mutandis.

 

    	 	1	 

    	 

    

 

Section
2. Term. Employee shall be employed by the Company (the “Initial Employment Term”) under this Agreement
commencing as of the date signed below (“Effective Date”), and for a period of 24 months, subject to earlier termination
or extension as provided herein. This agreement will automatically renew upon the successful completion of an initial public offering.
A successful initial public offering is defined as listing the company stock on a national security exchange and raising a minimum
of $3,000,000 dollars (three-million).

 

Section
3. Compensation and Benefits.

 

3.1
Base Salary. Commencing on the Effective Date, the Company shall pay Employee during the Initial Employment Term an annual
salary of $156,000, less ordinary withholdings (the “Annual Salary”). Such Annual Salary will be payable less ordinary
withholdings in accordance with the normal payroll cycle as presently exists (currently weekly) or may hereafter be adopted by
the Company. Furthermore, the Executive’s annual base salary compensation will be increased to $175,000 upon the successful
completion of an initial public offering. The Executive’s salary will be reviewed at the end of each fiscal year after a
successful initial public offering and, at the discretion of the Chief Executive Officer and Compensation Committee, can be increased
based upon the Company’s financial performance against the established business plan. The
annual rate may not be decreased except with the written consent of the employee.

 

3.2
Bonuses. As additional compensation and as further consideration for Employee entering into this Agreement for services
to be rendered by Employee, the Company may pay Employee annually following the end of each fiscal year after a successful initial
public offering, a cash bonus. The total cash bonus will be based on 50% of the employee’s then current base salary and
dependent upon the employee successfully meeting specific written criteria to be provided on an annual basis. The bonus will be
administered and approved by the compensation committee and Chief Executive Officer and contain both company-wide metrics and
individual performance targets.

 

The
Chief Executive Officer, together with the Compensation Committee of the Company’s Board, will review Employee’s performance
and may award Employee performance-based compensation (“Bonus”) in its sole discretion, if deemed warranted. Any such
Bonus may be in cash or in securities of the Company, or any combination thereof, and shall be subject to such timing of receipt,
vesting and any other conditions (including but not limited to conditions which may extend beyond the termination of this contract)
as imposed by the Board at the time of such grant and at the time of adoption of any plan under which such Bonus may be granted,
if any. However, there will be no cash bonuses awarded prior to the completion of a successful initial public offering. Any bonus
paid prior to a successful public offering can only be in the form of securities of the company.

 

As
an incentive to remain employed with the company through any initial public offering, the employee will receive an additional
$50,000 cash bonus upon the successful completion of an initial public offering. The bonus will be payable within 30 days after
the initial public offering is completed.

 

    	 	2	 

    	 

    

 

3.3
Equity Awards. Employee shall also receive additional restricted stock units (.0001 par value) as an additional bonus upon
the successful completion of an initial public offering on a national security exchange. The amount of restricted stock units
awarded is dependent upon the total amount raised through the IPO as follows:

 

-
100,000 additional restricted stock units upon $3,000,000 (three million) dollars raised or

 

-
200,000 additional restricted stock units upon $5,000,000 (five million) dollars raised.

 

Additional
stock grants may be approved by the Board of Directors together with the Compensation Committee from time to time.

 

3.4
Employee Benefits. Effective as of the Effective Date and during the Initial Employment Term, Employee shall be eligible
for employee benefits available to regular full-time executive management employees of the Company provided that Employee meets
the eligibility requirements for such benefits. The Company provides no assurance as to the adoption or continuance of any particular
employee benefit plan or program; and Employee’s participation in any such plan or program shall be subject to the provisions,
rules, conditions, exclusions, regulations and plan documents or policies applicable thereto. The Company remains free to change
the terms of any benefit plan in its sole discretion with or without notice.

 

3.5
Vacation. Employee shall be entitled to accrue paid vacation at the rate of two (2) weeks per year (10 days) through the
first year of employment and three (3) weeks per year (15 days) starting in year two of his employment. Upon separation, all accrued
but not yet used vacation days will be paid in one lump sum in a final paycheck.

 

3.6
Holidays. Employee shall receive five (5) personal time off days and six (6) paid Company holidays.

 

3.7
Reimbursement of Expenses. Employee shall be entitled to reimbursement of reasonable expenses incurred by Employee in the
course of Employee’s duties, in accordance with applicable policies and documentation requirements of the Company.

 

3.8
Relocation. In the event that the Company requires Employee to relocate a relocation package will be provided up to an
amount not to exceed twenty-five thousand dollars ($25,000).

 

3.9
Technology. A laptop or desktop computer will be issued to the Employee for Company use. A reimbursement for cell phone
usage up to two hundred dollars ($200) per month and a home internet connection up to fifty dollars ($50) per month will be granted.

 

3.10
Tax Withholding. Notwithstanding anything in this Agreement to the contrary, the Company may withhold from any amounts
payable or benefits provided under this Agreement all federal, state, city, or other taxes as are legally required to be withheld.

 

    	 	3	 

    	 

    

 

Section
4. Termination.

 

4.1
Termination by Company for Cause. The Company may terminate Employee’s employment for Cause immediately upon written
notice stating the basis for such termination. If Employee is terminated for Cause, he shall be entitled to receive all earned
but unpaid compensation, bonuses (not subject to a pro-rate adjustment), and benefits through the date of termination by the Company
for Cause. A termination of Employee by the Company for “Cause” occurs if Employee is terminated for any of the following
reasons:

 

(i)
Employee’s refusal to comply with a lawful instruction of the Company’s Board of Directors or Chief Executive Officer;

 

(ii)
Any act or omission knowingly undertaken or omitted by Employee without a reasonable belief that such action was in the best interests
of the Company, its properties, assets or business or its officers, directors or employees, as determined by the Board in its
commercially reasonable discretion (including disparagement of the Company);

 

(iii)
Theft, dishonesty or intentional falsification of any employment or Company records;

 

(iv)
Any fraud or embezzlement involving properties, assets or funds of the Company;

 

(v)
A material breach of this Agreement if Employee fails to cure such breach within thirty (30) days after written notice from the
Company specifying the action which constitutes the breach and demanding its discontinuance;

 

(vi)
Negligence in performing his duties, which has been brought to Employee’s attention in writing, and which (if curable) has
not been cured within thirty (30) days of the notice thereof;

 

(vii)
Intentional and improper disclosure of the Company’s confidential or proprietary information;

 

(viii)
Employee’s conviction (including any plea of guilty or nolo contendere) to any criminal offense which constitutes
a felony, or is punishable by more than one year in jail, in the jurisdiction where the conviction or plea occurred; or

 

(ix)
Employee’s commission of an act of discrimination or harassment based on race, sex, national origin, religious, disability,
age or other protected classification in the state where the act occurs.

 

4.2
Termination upon Death or Disability. This Agreement shall automatically terminate upon the death or disability of Employee
unless employees’ death occurs while on Company business in which event the employees’ estate will receive all
compensation and benefits through the date of death or disability. For purposes of this Agreement, the term “disability”
shall mean the inability of Employee to perform with or without reasonable accommodation, the essential functions of his job duties
due to physical or mental disablement which continues for a period of ninety (90) consecutive days during any six (6) month period,
as determined by an independent qualified physician mutually acceptable to Employee and the Company. Notwithstanding the foregoing,
nothing in this Agreement shall alleviate any legal responsibility of the Company to provide reasonable accommodations to Employee
as may be required by applicable law.

 

4.3
Termination by Employee with Good Reason or by Company without Cause. This Employment Agreement and Employee’s employment
with the Company may be terminated by the Employee for good reason (“Good Reason”), or by the Company without cause
(“Without Cause”), upon providing thirty (30) days prior written notice to the Company (which notice describes such
good reason with reasonable detail) or Employee, respectively.

 

    	 	4	 

    	 

    

 

In
the event the company terminates the Executives employment without cause, other than due to disability or death without cause,
or the Employee terminates their employment for Good Reason, the Executive shall be entitled to:

 

	 	(i)	Base
    salary through the end of the month in which the termination of employment occurs;
	 	 	 
	 	(ii)	Base
    salary, at the rate in effect of the date of termination of the Executive’s employment, for 6 months beginning with
    the month following the month in which the termination of his employment occurs;
	 	 	 
	 	(iii)	 Any
    accrued bonuses to which the executive is entitled under the terms of the then applicable bonus plans;
	 	 	 
	 	(iv)	Any
    other amounts earned, accrued or owing under the terms of this agreement, but not yet paid;
	 	 	 
	 	(v)	Continued
    participation in all employee benefit plans or programs in which he was participating on the date of the termination of employment
    as permitted by their terms until the earlier of:
	 	 	 
	 		a.	The
    date which is 6 months following the end of the month in which the termination of employment occurs; or
	 	 	 
	 		b.	The
    date, or dates, he receives an equivalent coverage and benefits under the plans and programs of the subsequent employer (such
    coverages and benefits to be determined on a coverage by coverage, or benefit by benefit, basis); For clarity purposes, the
    Company will continue to pay its portion of all benefit plans including, but not limited to, the company portion/share of
    all health and dental premiums as per the then in effect health insurance plans, provided that
	 	 	 	 
	 		 	i.	If
    the executive is precluded from continuing his participation in any employee benefit plan or program as provided in this clause,
    he shall be provided with the after-tax economic equivalent of the benefits provided under the plan or program in which he
    is unable to participate for the period specified in this clause, and
	 	 	 
	 		 	ii.	The
    economic equivalent of any benefit forgone shall be deemed to be the lowest cost that would be incurred by the Executive in
    obtaining such benefit himself on an individual basis;
	 	 	 
	 	(vi)	Other
    benefits in accordance with applicable plans and programs of the Company; and
	 	 	 
	 	(vii)	All
    granted and vested restricted stock units provided to the employee as part of this agreement or previously awarded units from
    any other agreement.

 

    	 	5	 

    	 

    

 

“Good
Reason” shall mean the occurrence of any one or more of the following events provided Employee has notified the Company
in writing of the occurrence of such event and the event has continued uncured for thirty (30) days after the Company’s
receipt of such notice, unless Employee specifically agrees in writing that such event shall not be Good Reason:

 

	 	(i)	Any
    material breach of this Employment Agreement by the Company; or
	 	 	 
	 	(ii)	the
    failure of the Company to assign this Employment Agreement to a successor to the Company or the failure of a successor to
    explicitly assume and agree to be bound by this Employment Agreement or a similar Employment Agreement; or
	 	 	 
	 	(iii)	Failure
    by Catalytic Capital, LLC, Muscle Maker Grill or others to fully fund within 60 days the pre-determined amounts ($1,000,000)
    per additional closing upon the company’s successful completion of the milestones as defined in the Securities Purchase
    Agreement dated _____ schedule 2.1(b). In the event this specific failure occurs, the employee would be limited to 3 months
    versus 6 months on the above conditions in section 4.3 including all sub-sections of section 4.3 (sub-section i, ii, iii,
    iv, v, vi, vii)

 

4.4
Termination by Employee Without Cause. Employee may terminate this Employment Agreement and his employment with the Company
Without Cause upon providing thirty (30) days prior written notice to the Company, subject to the non-compete restrictions as
defined in this agreement. The Company shall pay Employee all earned but unpaid compensation, bonuses (not subject to a pro-rate
adjustment), and benefits through the date of termination Without Cause by Employee. The Company shall have no further obligation
to pay compensation or benefits to Employee for the remainder of the balance of the Initial Employment Term. In the event the
employee terminates this agreement without cause, they agree to surrender all equity awards not yet vested as of the separation
date.

 

4.5
Return of Property. Employee agrees, upon the termination of his employment with the Company, to return all physical, computerized,
electronic or other types of records, documents, proposals, notes, lists, files and any and all other materials including, without
limitation, computerized and/or electronic information that refers, relates or otherwise pertains to the Company and/or its affiliates,
and any and all business dealings of said persons and entities. In addition, Employee shall return to the Company all property
or equipment that Employee has been issued during the course of his employment or which he otherwise currently possesses, including,
but not limited to, any computers, cellular phones, and/or similar items. Employee shall immediately deliver to the Company any
such physical, computerized, electronic or other types of records, documents, proposals, notes, lists, files, materials, property
and equipment that are in Employee’s possession. Employee acknowledges that Employee is not authorized to retain any physical,
computerized, electronic or other types of copies of any such physical, computerized, electronic or other types of records, documents,
proposals, notes, lists, files or materials, and is not authorized to retain any other property or equipment of the Company and/or
its affiliates. Employee further agrees that he will immediately forward to the Company any business information regarding the
Company and/or any of its affiliates that has been or is inadvertently directed to Employee following Employee’s last day
of employment with the Company. The provisions of this Section are in addition to any other written agreements on this subject
that Employee may have with the Company and/or any of its affiliates, and are not meant to and do not excuse any additional obligations
that Employee may have under such agreements.

 

Section
5. Miscellaneous Provisions.

 

5.1
Confidentiality. At all times Employee both during and after employment will regard and preserve as confidential all trade
secrets and other confidential information pertaining to the business of the Company, including financial data, strategic business
plans, product development, marketing plans, and other non-public proprietary information.

 

    	 	6	 

    	 

    

 

5.1a
Indemnification. The company agrees to indemnify the executive to the fullest extent
permitted by law consistent with the company’s bylaws in effect as of the date hereof with respect to any acts or non-action
he may have committed during the period during which he was an officer, director and/or employee of the company or any subsidiary
thereof, or of any other entity of which he served as an officer, director or employee at the request of the company.

 

5.1b
Liability Insurance. The company agrees to obtain a directors and officers liability insurance policy covering the executive
and to maintain such policy. The amount of coverage should be reasonable in relation to the executive’s position and responsibilities
during the term of employment but in no event shall the amount of coverage be less than $1 million in the aggregate provided that
the cost and availability of such insurance is reasonable within the marketplace.

 

5.2
Non-Solicitation. For a period commencing on the date of Employment with the Company and ending on the one year anniversary
of the last day payment is received from the Company, without prior written consent of the Company, Employee shall not, directly
or indirectly, as a principal, manager, agent, consultant, or other similar role solicit or hire any current employees of the
Company and/or its affiliates.

 

5.2(a)
Non-Compete. Employee agrees that, during the non-compete period as defined in this
agreement, executive shall not directly or indirectly engage in or participate as an owner, partner, stockholder, officer, employee,
director, agent out of or consultant for any competing business with any business of company, without the written consent of company;
provided, however, that this provision shall not prevent executive from investing as less than a 1% stockholder in the securities
of any company listed on a national securities exchange or quoted on an automated quotation system.

 

A
competing business is defined as any health focused
restaurant chain such as Freshii, True-food kitchen, First Watch or Snap Kitchen and similar concepts but excludes traditional
QSR, limited service, full service, fast casual and other restaurant segments.

 

The
non-compete period shall cover the entire initial employment term (24 months from the effective date in this agreement) as defined
in this agreement in addition to any subsequent automatic renewal periods and during any payment periods associated with a termination
without cause by the company.

 

5.3
Assignment by Employee. This Agreement may not be assigned by Employee in whole or in part; provided, however, if Employee
should die or become disabled while any amount is owed but unpaid to him hereunder, all such amounts, unless otherwise provided
herein, shall be paid to his devisees, legatees, legal guardian or other designees.

 

5.4
Assignment by Employer. Employee hereby acknowledges and agrees that the Company may, in its sole discretion assign this
Agreement to a comparable affiliate, successor, assign (including any direct or indirect successor by purchase, merger, consolidation
or otherwise to all or substantially all of the assets or business of the Company). This Agreement shall be binding upon and inure
to the benefit of the parties hereto and their respective spouses, heirs and personal and legal representatives. Any such successor
or assign of the Company shall be included in the term “Company” as used in this Agreement

 

    	 	7	 

    	 

    

 

5.5
Notices. Any notice required to be delivered hereunder shall be in writing and shall be addressed as follows:

 

If
to the Company, to:

308
E. Renfro Street,

Suite
101

Burleson,
Texas 76028

Attention:
Chairman of the Board

 

If
to Employee:

_______________________________________________

_______________________________________________

Attention:
Kevin Mohan

 

or,
in each case, to such other address as such party may hereafter specify for the purpose by written notice to the other party hereto.
Any such notice shall be deemed received on the date of receipt by the recipient thereof if received prior to 5:00 p.m. in the
place of receipt and such day is a business day in the place of receipt. Otherwise, any such notice shall be deemed not to have
been received until the next succeeding business day in the place of receipt.

 

5.6
Entire Agreement. This Agreement represents the entire agreement between Employee and the Company and its affiliates with
respect to Employee’s employment, and supersedes all prior discussions, negotiations, and agreements, written or oral. 

 

5.7
Waiver of Rights. The waiver by either party of a breach of any provision of this Agreement shall not operate or be construed
as a continuing waiver or as a consent to or waiver of any subsequent breach hereof.

 

5.8
Severability. In the event any provision of the Agreement shall be held illegal or invalid for any reason, the illegality
or invalidity shall not affect the remaining parts of the Agreement, and the Agreement shall be construed and enforced as if the
illegal or invalid provision had not been included.

 

5.9
Governing Law; Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of Texas
without reference to principles of conflict of laws. Any action at law, suit in equity or judicial proceeding arising directly,
indirectly, or otherwise in connection with, out of, related to or from this Agreement, or any provision hereof, shall be litigated
only in the courts of the State of Texas.

 

5.10
Counterparts. This Agreement may be signed in several counterparts, each of which shall be an original, with the same effect
as if the signatures thereto and hereto were on the same instrument.

 

5.11
Employee Counsel. Employee acknowledges that he has had the opportunity to review this Agreement and the transactions contemplated
hereby with his own legal counsel.

 

    	 	8	 

    	 

    

 

5.12
Authority. The company represents and warrants that is fully authorized and empowered
to enter into this agreement and that the performance of its obligations under this agreement will not violate any agreement between
the company and any other person, firm or organization.

 

IN
WITNESS WHEREOF, the Company and Employee have executed this Employment Agreement effective as of the date first set forth above.

 

Effective
Date: _________________

 

	COMPANY:	Muscle
    Maker, Inc
	 	 	 
	 	By:	/s/
    Michael Roper 
	 	 	Michael
    Roper, its Chief Executive Officer
	 	 	 
	 	By:	/s/
    Noel DeWinter 
	 	 	Noel
    DeWinter, Compensation Committee
	 	 	 
	 	By:	/s/
    A.B Southall 
	 	 	A.B
    Southall, Compensation Committee
	 	 	 
	EMPLOYEE:

                                                         
	 	 
	 	 	 
	 	By:
    	/s/
    Kevin Mohan 
	 		Kevin
    Mohan 

 

    	 	9Exhibit

EXHIBIT 10.1
Fiscal 2019 Management Incentive Program (MIP)
For Corporate MIP Bonus-eligible Positions
Adopted July 26, 2018

This SYSCO CORPORATION FISCAL 2019 MANAGEMENT INCENTIVE PROGRAM FOR CORPORATE MIP BONUS-ELIGIBLE PARTICIPANTS (the “Program”) was adopted pursuant to the Sysco Corporation 2013 Long-Term Incentive Plan (the “Plan”) by the  Committee (as defined in the Plan) of Sysco Corporation (the “Company”) on July  26, 2018, and shall be effective for the Company’s fiscal year ending June 29, 2019 (the “Program Year”).  Capitalized terms used but not otherwise defined herein shall have the meaning ascribed to them in the Plan.

1.    Participants. For purposes of this Program, “Senior Officer” shall mean the Company’s President and Chief Executive Officer, the Company’s Chief Financial Officer or an Executive Vice-President of the Company.  The Participants in this Program are grouped as follows:
 (A)    Corporate MIP Bonus-eligible Participants: Those persons who serve in a Corporate MIP Bonus-eligible position and are designated by a Senior Officer as eligible to participate in the Program.
 (B)    Senior Executive Participants: Corporate MIP Bonus-eligible Participants who are “covered employees” of the Company within the meaning of Code Section 162(m) and Treasury Regulation 1.162-27(c)(2) (or any successor statute, any regulatory section, or any administrative interpretation thereof) for the Program Year.  If it is determined that a Participant is a Senior Executive Participant for the Program Year, such Participant’s bonus shall be calculated subject to any and all restrictions applicable to Senior Executive Participants under the Plan and this Program for the Program Year.
Once a person is designated as a Participant in this Program, the Committee may remove the Participant as a Participant in this Program with or without cause at any time during the Program Year, and the Participant shall not be entitled to any bonus under this Program for the Program Year regardless of when during the Program Year such Participant is removed.
2.    Definitions.
(A)     For calculation of a performance bonus the applicable metrics are defined as follows: 
(i)    Operating Income: Means the Operating Income expressed as a dollar value, as it may be adjusted pursuant to Section 3(B), for the Program Year.
(ii)    Gross Profit Dollars Growth and US Broadline and Canadian Broadline Total Case Growth: Means Gross Profit Dollars Growth and US and Canadian Broadline Case Growth expressed as a percentage and computed by comparing gross profit dollars and total cases for US Broadline and Canadian Broadline, as they may be adjusted pursuant to Section 3(B), for the Program Year to target gross profit dollars and the target total cases for US Broadline and Canadian Broadline in the Fiscal 2019 Profit Plan, as they may be adjusted pursuant to Section 3(B).

(iii)    Strategic Bonus Objectives: Means key goals for the Program Year, as established by the Committee and as set forth in the Participant’s performance objectsives.
(iv)    Operating Income Bonus Percentage: Means the percentage determined from Table A - Operating Income, which is computed by comparing Operating Income for the Program Year to the target  Operating Income for the Program Year in the the Fiscal 2019 Profit Plan.
(v)    Gross Profit Dollar Growth and US Broadline and Canadian Broadline Case Growth Bonus Percentage: Means the percentage determined from Table A – Gross Profit Dollar Growth and USBL+CABL Case Growth, attached hereto, which is computed by comparing the Gross Profit Dollar Growth for the Program Year and the US Broadline and Canadian Broadline Total Cases Growth for the Program Year to the target Gross Profit Dollar Growth for the Program Year and the target US Broadline and Canadian Broadline Cases Growth from the Fiscal 2019 Profit Plan.
(vi)    Strategic Bonus Objective Bonus Percentage: Means the percentage determined from Table A – Strategic Bonus Objectives, attached hereto, which coincides with Participant’s achievement of Strategic Bonus Objectives for the Program Year.
(B)    Corporate MIP Bonus-eligible Position: Means (i) positions held by the Senior Officers and (ii) other positions with the Company or its affiliates, as deemed appropriate by a Senior Officer. 
(C)    Bonus Target Amount: Means a Participant’s Target Bonus Percentage for the Program Year multiplied by the Participant’s base salary as of the end of the relevant Program Year.
(D)    Bonus for a Corporate MIP Bonus-eligible Position: Means the sum of the Company Performance Bonus for a MIP Bonus-eligible Position and the SBO Performance Bonus for a Corporate MIP Bonus-eligible Position.
(E)    Performance Bonus for a Corporate MIP Bonus-eligible Position: As defined in Section 3(A)(i) hereof.
(G)    GAAP Change Year: As defined in Section 3(C)(i) hereof.
(G)    SBO Performance Bonus for a Corporate MIP Bonus-eligible Position: As defined in Section 3(A)(ii) hereof.
(H)    Rate Change Year: As defined in Section 3(C)(iii) hereof.
(I)    Target Bonus Percentage:  The percentage set forth in the Participant’s bonus letter for the Program Year.

3.    Calculation of Bonus.  

(A)         Bonus Formula. The Bonus for a Corporate MIP Bonus-eligible Position for the Program Year shall be based 75% on financial performance of the Company and 25% on an individual Participant’s performance with respect to Strategic Bonus Objectives, and shall be equal to the sum of the (i) and (ii), calculated as follows: 
(i)    Performance Bonus for a Corporate MIP Bonus-eligible Position.  The Company Performance Bonus for a MIP Bonus-eligible Position shall be equal to the sum of the following:

(AA)    Operating Income Bonus – 
	
							
	Participant’s Bonus Target Amount
	X
	Operating Income Bonus Percentage
	X
	50%
	

=
	Operating Income Bonus

		
	(BB) 
	Gross Profit Dollars Growth and US Broadline and Canadian Broadline Total Case Growth Bonus –

	
							
	Participant’s Bonus Target Amount
	X
	Gross Profit Dollars Growth and US Broadline and Canadian Broadline Cases Growth Bonus Percentage
	X
	25%
	=
	Gross Profit Dollars Growth and US Broadline and Canadian Broadline Cases Growth Bonus

(ii)    SBO Performance Bonus for a MIP Bonus-eligible Position.  The SBO Performance Bonus for a MIP Bonus-eligible Position shall be determined based on the Participant’s achievement of the specified SBOs, and shall be equal to the sum of the following:
(CC)     Strategic Bonus Objective Bonus – 
	
							
	Participant’s Bonus Target Amount
	X
	SBO Bonus Percentage
	X
	25%
	=
	SBO Bonus

Each of the above components of the Bonus for a MIP Bonus-eligible Position shall be calculated and awarded independently.  Each metric based on financial performance has a possible payout between 0% and 200%, depending on actual performance relative to established targets.  SBO Performance Bonus has a possible payout of between 0% and 150%, depending on actual performance relative to established targets.  If performance for the Program Year with respect to a component does not meet Threshold, a Participant will not receive any bonus with respect to that component.  If performance for the Program Year is between Threshold and Maximum, the amount of bonus earned with respect to that component will be determined as set forth on the applicable Table A attached to this Program.  Prior to the date that is ninety (90) days after the beginning of the Program Year, the Committee shall determine the Threshold, Target and Maximum performance metrics and the respective payout percentages to be set forth on Table A for the Company.

(B)    Performance Metric Adjustments.  Certain items of revenue, expense, gain, losses or other adjustments resulting from extraordinary or non-recurring items, will be taken into account in the application of the relevant performance metrics used to determine the Participants’ bonuses under this Program in accordance with the following:
(i)    Multi-Employer Pension Adjustments.  Adjustments resulting from the Company’s or an Operating Company’s complete or partial withdrawal from a multi-employer pension plan sponsored by a third party in which the Company or an Operating Company participates (“Pension Adjustments”). The amount of any such adjustment shall be determined in accordance with GAAP.  Pension Adjustments shall initially be excluded from the calculation of the performance metrics used to determine Participants’ bonuses under this Program; provided however, the Committee may include all or any portion of such Pension Adjustments in the determination of a Participant’s bonus hereunder in its discretion, provided such inclusion shall not apply to a Senior Executive Participant unless the Committee determines that the inclusion of all or any portion of such Pension Adjustments will not impact the Company’s ability to deduct the bonus payable to a Senior Executive Participant under this Program under Section 162(m) of the Code.
(ii)    Restructuring Charges Adjustment.  Adjustments resulting from the Company’s or an Operating Company’s costs including, but not limited to, severance, facility closures and consolidations and asset write downs.  The foregoing notwithstanding, the following items will not be eligible for adjustment under this provision: ERB, COLI, Fuel and Tax. 
(iii)     Acquisitions and Divestitures.  All or any portion of operating results, acquisition and divestiture expenses (including any applicable break up fees), acquisition debt, if any, and any gains or losses relating to or resulting from (AA) an acquisition by the Company of stock (or other equity interest) or substantially all of the assets of a corporation, partnership, limited liability company or other entity for a purchase price in excess of $100 million;  and  (BB) a divestiture of an Operating Company or operating division of the Company (or substantially all of the assets thereof) for a sale price in excess of $100 million may be excluded from the determination of the Company Performance Bonus under this Program; provided however, such exclusion shall not apply to a Senior Executive Participant unless the Committee determines that the exclusion of all or any portion of such adjustments will not impact the Company’s ability to deduct the bonus payable to a Senior Executive Participant under this Program under Section 162(m) of the Code. 
(iii)    Foreign Exchange Rate Fluctuations.  Variance of actual foreign exchange rates during the Program Year versus projected foreign exchange rate assumptions used in the development of operational targets in the Fiscal 2018 Profit Plan.
(iv)    Certain Other Events.  Notwithstanding the foregoing, the  Committee may include or exclude from the determination of a Participant’s bonus hereunder the results of certain other extraordinary or non-recurring items not otherwise contemplated by this Section (B), and expenses related to acquisitions by, or restructuring of, the Company and its subsidiaries (whether or not such expenses are extraordinary or non-recurring).

(C)    General Rules Regarding Bonus Calculation.
(i)    Consistent Accounting. In determining whether or not the results of operations for a given fiscal year result in a bonus, Company accounting practices and, except as otherwise modified in this Program, GAAP shall be applied on a basis consistent with prior periods, and such determination shall be based on the calculations made by the Company, approved (in the case of Senior Executive Participants) by the Committee and binding on each Participant.  Notwithstanding the foregoing, if there is any material change in GAAP during a Program Year that results in a material change in accounting for the revenues or expenses of the Company, the calculations of the MIP bonus for such Program Year (the “GAAP Change Year”) shall be made as if such change in GAAP had not occurred during the GAAP Change Year.  In determining the MIP bonus for the year following a GAAP Change Year, the calculation shall be made after taking into account such change in GAAP. 
(ii)    Maximum Bonus. Subject to Section 6 as to Senior Executive Participants, and notwithstanding any other provision in this Program to the contrary, in no event shall any Participant be entitled to a bonus under this Program in excess of 281.25%  of such Participant’s base salary in effect as of the end of the Program Year. 
(iii)    Tax Law Changes.  If the Internal Revenue Code is amended during the Program Year and, as a result of such amendment(s), the effective tax rate applicable to the earnings of the Company (as described in the “Summary of Accounting Policies” section of the Company’s annual report to the Securities and Exchange Commission on Form 10-K) changes during the Program Year, the determination of the Participant’s Company Performance Bonus for the Program Year (the “Rate Change Year”) shall be made as if such rate change had not occurred during the Rate Change Year.  In determining the Company Performance Bonus in the year following the Rate Change Year, the calculation shall be made after taking into account such rate change. 
4.    Payment.  Within ninety (90) days following the end of the Program Year, the Company shall determine, and, in the case of Senior Executive Participants, the Committee shall approve, the amount of any bonus earned by each Participant under this Program.  Such bonus shall be payable in the manner, at the times and in the amounts provided in the Plan.
5.    Clawback of Bonus.  In accordance with the Company’s incentive payment clawback policy, in the event of a restatement of financial results (other than a restatement due to a change in accounting policy) within thirty-six (36) months of the payment of a bonus under this Program, if the Committee or the Company determines in its sole and absolute discretion, that the bonus paid to a Participant under the Program for the Program Year would have been lower had it been calculated based on such restated results (the “Adjusted MIP Bonus”), then the Committee or the Company shall, subject to applicable governing law, recoup from such Participant, in such form and at such time as the Committee or the Company determines in its sole and absolute discretion, the difference between the amount previously paid to such Participant pursuant to this Program (without regard to amounts deferred by such Participant under the Company’s executive benefit plans) and the Adjusted MIP Bonus.
6.    Overall Limitation upon Payments under the Plan to Senior Executive Participants.      Notwithstanding any other provision in this Program to the contrary, in no event shall any Senior Executive Participant be granted a Cash-Based Award in excess of one percent (1%) of the Company’s earnings before income taxes as publicly disclosed in the “Consolidated Results of Operations” section of the Company’s Annual Report on Form 10-k filed with the Securities and Exchange Commission for the fiscal year ended immediately before the date the applicable Cash-Based Awards are paid. 

7.    Confidentiality. The target performance levels and other information set forth on Table A constitute confidential information of the Company, subject to the prohibition on disclosure of confidential information under Sysco’s Code of Conduct. Any disclosure of the target performance levels by a Participant prior to the time such target performance levels are disclosed to the public, as determined by the Committee, will result in a forfeiture (which may include a clawback) of such Participant’s Bonus for the Program Year.
8.    Treatment Upon Change in Control.  
(A)    Notwithstanding anything to the contrary contained herein, and in lieu of any other payments due hereunder other than pursuant to this Section 8, within ninety (90) days following the date on which a Change in Control (as defined in Section 1.2(f) of the Plan) has occurred, each person who was a Participant at the time of the Change in Control shall be paid a cash bonus hereunder, equal to the following (subject to reduction in the case of certain severance payments, as set forth below): the product of (i) a fraction equal to the number of days in the Performance Period in which the Change in Control occurs up to and including the date of the Change in Control divided by 365, and (ii) the bonus that would have been paid under this Plan, calculated using a Performance Goal equal to the product of (i) performance through and including the end of the most recently completed fiscal quarter occurring prior to and in the same Performance Period as the Change in Control (the “Measurement Date”), calculated in accordance with generally accepted accounting principles, if applicable, and (b) a fraction, the numerator of which is 365 and the denominator of which is the number of days in such Performance Period up to and including the Measurement Date. 
(B)    In addition to any bonus paid or payable pursuant to Section 8(A), any Participant who remains in the employ of the Company or any Affiliated Company on the last day of the Performance Period in which a Change in Control occurs shall be entitled to receive, in cash, within ninety (90) days after the end of the Performance Period, an amount equal to the positive difference, if any, between (a) the bonus that would have been paid to the Participant for such Performance Period under the Plan as in effect on the date of the Change in Control, using the actual performance for the entire Performance Period, and (b) the amount paid pursuant to Section 8(A).
(C)    Notwithstanding the foregoing, with respect to any Participant who is a party to the Company’s a severance agreement with the Company or an Affliated Company, the bonus paid pursuant to this Section 8 shall be reduced, but to not less than zero, by the amount of any payment pursuant to such Participant’s severance agreement that is determined or calculated with respect to payments received or to be received under this Plan or any predecessor or successor thereof.
9.    Delegation of Authority.  Pursuant to Section 2.3 of the Plan, the Committee hereby delegates discretionary authority granted to the Committee under this Program as well as under the Plan, including but not limited to the authority to determine the target, minimum and maximum performance levels applicable to Participants and the Company and the related payout percentages subject to the maximum bonus levels set forth in Section 3(c)(ii) of this Program, to the Senior Officers and each of them individually, except as to Senior Executive Participants.

CONFIDENTIAL
TABLE A

THE PERFORMANCE TARGETS SET FORTH ON THIS TABLE CONSTITUTE “CONFIDENTIAL INFORMATION” AND ANY DISCLOSURE OF SUCH PERFORMANCE TARGETS BY A PARTICIPANT PRIOR TO THE TIME SUCH PERFORMANCE TARGETS BECOME PUBLIC INFORMATION WILL RESULT IN SUCH PARTICIPANT FORFEITING HIS OR HER RIGHTS TO A BONUS UNDER THIS PROGRAM.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00288-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00288-of-00352.parquet"}]]