Document:

Annual Incentive Plan Program for Fiscal Year 2007

 Exhibit 10.30 
 ANNUAL INCENTIVE PLAN 
 PROGRAM DESCRIPTION FOR FISCAL YEAR 2007 
 Purpose 
 The objective of the Annual Incentive Plan (the
“AIP”) is to advance the interests of Sara Lee Corporation (“SLC”) by: 
  

	a)	Rewarding financial performance that contributes to increased shareholder value; 

  

	b)	Measuring the effectiveness of SLC operating performance and capital management; 

  

	c)	Basing a significant portion of all executives’ incentives on operating plan results; 

  

	d)	Continuing to provide significant rewards for exceptional performance. 

 Incentive Opportunity & Standards of Performance 
 Attachment 1 shows the FY07 AIP Target and Maximum payout levels at the various
salary grades. The following applies to the Plan goals: 
  

	 	•	 	Financial and Individual Standards of Performance are established at the beginning of the Incentive Plan Year. The Financial Standards of Performance for Corporate Staff
Participants and the Plan parameters applicable to all Plan Participants are approved by the Compensation and Employee Benefits Committee of the SLC Board of Directors (“the Committee”). 

  

	 	•	 	Business Segment executive management will develop the financial goals within their respective business. The SLC Chief Executive Officer (CEO) will approve the Business Segment
financial goals for each business. 

  

	 	•	 	The FY07 Performance Measures are: 

  

	 	•	 	Operating Profit – (Operating Income will be used for Corporate Staff positions)—35% of Target Bonus Opportunity 

  

	 	•	 	Sales - 25% of Target Bonus Opportunity 

  

	 	•	 	Cash Flow - (Free Cash Flow for Corporate Staff positions; Operating Cash Flow for Business Segment positions) - 20% of Target Bonus Opportunity 

  

	 	•	 	Individual Objectives – 20% of Target Bonus Opportunity 

  

	 	•	 	Beginning in FY07, business segment CEOs will have the discretion to approve different weightings of the Performance Measures to allow better alignment and line of sight of the
performance measures with certain executives’ responsibilities, e.g. executives in a Sales function may have an increased weighting of the Sales Performance Measure and a reduction in another Performance Measure. 

	 	•	 	When expressed as a percentage of Target bonus opportunity, the weighting of each performance measure is approximately the same for each salary grade. A summary of FY07 Performance
Measures and the corresponding incentive opportunities for Participants are shown in Attachment 2. Where applicable, similar Attachments for Participants in countries other than the U.S. are available from the appropriate Business Segment Human
Resources representative. 

  

	 	•	 	It is recommended that Individual objectives be limited in number to provide focus on the major objectives for the year. These same objectives should be reflected in PMP.

  

	 	•	 	At the end of the fiscal year, the Participant’s manager will make an overall assessment of performance results for each of the specific individual objectives as well as any
other accomplishments or criteria deemed relevant in determining the payout level. 

  

	 	•	 	It is possible to achieve Maximum, i.e. 150% of Target, payout for Individual objectives as well as Financial objectives. 

 Performance Period 
 All Standards of Performance are measured over a
one-year performance period, i.e. the Incentive Plan Year. The Incentive Plan Year for FY07 is July 2, 2006 to June 30, 2007. 
 Performance
Level Definitions 
 In FY07 Sara Lee will provide an enhanced payout level in order to motivate executives to deliver results that exceed Target levels.
As shown in Attachment 3 the payout curve has been enhanced to payout at an increased rate between Target and 10% of Target. Attachment 3 graphically displays this enhancement. 
 Level 5 - Maximum – An unusually high level of performance far exceeding targeted performance requiring significant “stretch” to achieve. 
 Level 4 – Above Target – A high level of performance exceeding targeted performance requiring “stretch” to
achieve. 
 Level 3 - Target –Target level of performance typically equivalent to the Annual Operating Plan
(“AOP”). 
 Level 2 - Below Target – The level of performance at which attainment of goals is below the Target level but considerably
above the Threshold level. 
 Level 1 - Threshold – Performance that is below an acceptable level and not
warranting any payout. 
 Incentive Award Payout Levels 
 The following table is to be used in setting the performance goals at the various payout levels. 
  

 2 

 Performance Measure 
  

								
	 Performance Level
	  	 Performance Goal
 (Operating Profit,
Cash Flow, Individual
Objectives)
	 	 Performance
Goal
 (Sales)
	 	Payout Level
as a % of
Target Bonus	 
	 Level 5 – Maximum
	  	110% of Target	 	105% of Target	 	150	%
	 Level 4 – Above Target
	  	105% of Target	 	102.5% of Target	 	135	%
	 Level 3– Target
	  	Target	 	100% of Target	 	100	%
	 Level 2– Below Target
	  	95% of Target	 	97.5% of Target	 	50	%
	 Level 1 –Threshold
	  	90% of Target	 	95% of Target	 	0	%

 Attachment 4 provides the FY07 Financial Performance Measures and goals. 
 Straight-line interpolation is used for calculating results between performance levels. 
 Incentive Award Payments 
 Incentive award payments are distributed after the Incentive Plan Year results have been
publicly announced and the individual awards requiring the review and approval of the Committee have been approved at its August, 2007 meeting. Generally, a Participant must be an employee on the last day of the fiscal year in order to be eligible
to receive any incentive award. 
 Administrative Provisions 
 The Committee and the Chief Executive Officer of SLC, whose decisions are final, shall administer the Plan jointly. The Chief People Officer will be responsible for the administrative procedures governing the Plan including ensuring the
existence of approved Performance Measures and Goals and the presentation of the performance results under the Plan to the Committee for its approval. The following administrative procedures shall govern: 
  

	a)	The Committee will approve individual incentive awards for all corporate officers and those executives whose salaries are above the midpoint of salary grade 39. The Chief Executive
Officer may approve all other incentive awards. 

  

	b)	Incentive awards may be made in cash, stock or any combination of cash and stock as permitted under the 1998 and 2002 Long-Term Incentive Stock Plans. Any awards earned under the
FY07 AIP will be paid in cash. Participants paid in the U.S. and subject to taxation in the U.S. may elect to defer part or all of their incentive awards pursuant to the terms and conditions of the SLC Executive Deferred Compensation Plan.

  

	c)	A new Participant who begins participation during the Incentive Plan Year may be eligible for a pro-rata incentive award from the date of entry into the Plan. Typically, a new
Participant should have been actively employed for at least one calendar quarter of the Incentive Plan Year in order to receive consideration for a pro-rata incentive award. 

  

	d)	In the case of death, total disability, or retirement under a SLC retirement plan during the Incentive Plan Year, a Participant or the Participant’s estate is eligible for a
pro-rata incentive award based upon the Participant’s period of active service during the Incentive Plan Year. The award will be distributed at the same time as those of active Participants. 

  

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	e)	A Participant who is terminated and who subsequently receives severance pay under a SLC severance plan may be eligible for a pro-rata incentive award. Management will determine the
amount of any pro-rata incentive award based upon the facts and circumstances related to the Participant’s termination as well as the amount of time the Participant was actively employed during the Incentive Plan Year. 

 

	f)	Unless otherwise approved by the Chief Executive Officer, any Participant who resigns or is terminated during the Incentive Plan Year (except as provided for above) will not be
entitled to any incentive award attributable to the Incentive Plan Year. 

  

	g)	A Participant who is employed as of the end of the Incentive Plan Year shall be entitled to receive an incentive award regardless of whether the Participant resigns or is terminated
between the end of the Incentive Plan Year and the date the incentive awards are actually distributed. 

  

	h)	Performance results under the Plan will be measured by taking into consideration those Exclusions listed in Attachment 5. 

  

	i)	SLC reserves the right to offset any funds from any incentive award due a terminating or terminated Participant to which SLC has a “claim of right”.

  

	j)	Nothing herein shall be construed as an agreement or commitment to employ any Participant or to employ a Participant for any fixed period of time or constitute a commitment by SLC
that any Participant will continue to receive an incentive award or will continue as a Participant in the Plan. 

  

	k)	The Committee reserves the right to amend, modify, interpret or terminate the Plan or awards to be paid under the Plan at any time for any reason. 

  

	l)	The Committee may delegate certain administrative responsibilities to the Chief Executive Officer except for the following: 

  

	 	1)	Any actions affecting the Chief Executive Officer, and other elected officers of SLC, 

  

	 	2)	Approval of Corporate Financial Standards of Performance and certification of performance results relative to such standards following the end of the Incentive Plan Year,

  

	 	3)	Approval of any substantive changes or amendments to the Plan. 

  

 4 

 Attachment 1 
 SARA LEE CORPORATION 
 FY07 ANNUAL INCENTIVE PLAN 
 TARGETS AND MAXIMUMS 
  

							
	 	 	 	 	FY07 Annual Incentive Plan
	 	 	 Salary
 Grades
	 	 Target -
 %s Of Salary
	 	 Maximum -
 %s Of Salary

		 	50	 	200%	 	300%
		 	49	 	200%	 	300%
		 	48	 	165%	 	250%
		 	47	 	160%	 	240%
		 	46	 	150%	 	225%
		 	45	 	145%	 	220%
		 	44	 	135%	 	205%
		 	43	 	130%	 	195%
		 	42	 	125%	 	190%
		 	41	 	125%	 	190%
		 	40	 	120%	 	180%
		 	39	 	120%	 	180%
		 	38	 	115%	 	175%
		 	37	 	115%	 	175%
		 	36	 	115%	 	175%
		 	35	 	95%	 	145%
		 	34	 	75%	 	115%
		 	33	 	65%	 	100%
		 	32	 	55%	 	85%
		 	31	 	45%	 	70%
		 	30	 	40%	 	60%
		 	29	 	30%	 	45%
		 	28	 	30%	 	45%

 Attachment 2 
 SARA LEE CORPORATION 
 FY07 ANNUAL INCENTIVE PLAN 
 PERFORMANCE MEASURES AND WEIGHTINGS 
  

																		
	 	 	 	 	Performance Measures as a % of Target Annual Incentive Opportunity	 
	 	 	 	 	Operating
Income	 	 	Sales	 	 	Cash Flow	 	 	Individual
Objectives	 	 	Target Annual
Incentive
Opportunity	 
		 		 	35	%	 	25	%	 	20	%	 	20	%	 	100	%
							
	 	 	 Salary
 Grades
	 	Operating Profit	 	 	Sales	 	 	Cash Flow	 	 	 Individual
 Objectives
	 	 	Target Annual
Incentive
Opportunity	 
		 	50	 	85.0%	 	 	65.0%	 	 	50.0%	 	 	0.0%	 	 	200%	 
		 	49	 	85.0%	 	 	65.0%	 	 	50.0%	 	 	0.0%	 	 	200%	 
		 	48	 	55.0%	 	 	40.0%	 	 	35.0%	 	 	35.0%	 	 	165%	 
		 	47	 	54.0%	 	 	40.0%	 	 	33.0%	 	 	33.0%	 	 	160%	 
		 	46	 	50.0%	 	 	40.0%	 	 	30.0%	 	 	30.0%	 	 	150%	 
		 	45	 	50.0%	 	 	35.0%	 	 	30.0%	 	 	30.0%	 	 	145%	 
		 	44	 	49.0%	 	 	32.0%	 	 	27.0%	 	 	27.0%	 	 	135%	 
		 	43	 	46.0%	 	 	32.0%	 	 	26.0%	 	 	26.0%	 	 	130%	 
		 	42	 	44.0%	 	 	31.0%	 	 	25.0%	 	 	25.0%	 	 	125%	 
		 	41	 	44.0%	 	 	31.0%	 	 	25.0%	 	 	25.0%	 	 	125%	 
		 	40	 	42.0%	 	 	30.0%	 	 	24.0%	 	 	24.0%	 	 	120%	 
		 	39	 	42.0%	 	 	30.0%	 	 	24.0%	 	 	24.0%	 	 	120%	 
		 	38	 	41.0%	 	 	30.0%	 	 	22.0%	 	 	22.0%	 	 	115%	 
		 	37	 	41.0%	 	 	30.0%	 	 	22.0%	 	 	22.0%	 	 	115%	 
		 	36	 	41.0%	 	 	30.0%	 	 	22.0%	 	 	22.0%	 	 	115%	 
		 	35	 	32.0%	 	 	23.0%	 	 	20.0%	 	 	20.0%	 	 	95%	 
		 	34	 	25.0%	 	 	20.0%	 	 	15.0%	 	 	15.0%	 	 	75%	 
		 	33	 	22.0%	 	 	17.0%	 	 	13.0%	 	 	13.0%	 	 	65%	 
		 	32	 	20.0%	 	 	13.0%	 	 	11.0%	 	 	11.0%	 	 	55%	 
		 	31	 	16.0%	 	 	11.0%	 	 	9.0%	 	 	9.0%	 	 	45%	 
		 	30	 	14.0%	 	 	10.0%	 	 	8.0%	 	 	8.0%	 	 	40%	 
		 	29	 	10.0%	 	 	8.0%	 	 	6.0%	 	 	6.0%	 	 	30%	 
		 	28	 	10.0%	 	 	8.0%	 	 	6.0%	 	 	6.0%	 	 	30%	 

 Attachment 3 
 AIP Payout and Performance Curves 
 FY06 v. FY07 
 

 

 AIP Payout and Performance Curves 
 FY07 Sales Component 
 

 

 Attachment 4 
 SARA LEE CORPORATION 
 FY07 ANNUAL INCENTIVE PLAN 
 PERFORMANCE GOALS-CORPORATE LEVEL 
  

																
	 Performance Levels
	  	 Level 1
 (Threshold)
	 	 	 Level 2
 (Below Target)
	 	 	 Level 3
 (Target)
	 	 	 Level 4
 (Above Target)
	 	 	 Level 5
 (Maximum)
	 
	 Bonus Payout Levels as a % of Target
	  	0	%	 	50	%	 	100	%	 	135	%	 	150	%

 (All goals are stated at plan currency rates, in $ millions) 
  

											
	Operating Income	 	 90% of Target
 (1)
	 	 95% of Target
 (1)
	 	 100% of Target
 (1)
	 	 105% of Target
 (1)
	 	 110% of Target
 (1)

  

											
	Net Sales	 	 95% of Target
 (1)
	 	 97.5% of Target
 (1)
	 	 100% of Target
 (1)
	 	 102.5% of Target
 (1)
	 	 105% of Target
 (1)

  

											
	Cash Flow	 	 90% of Target
 (1)
	 	 95% of Target
 (1)
	 	 100% of Target
 (1)
	 	 105% of Target
 (1)
	 	 110% of Target
 (1)

  

	(1)	The specific financial goals were approved by the Committee and are contained in the minutes of the Committee’s meetings on June 28, 2006 and August 31, 2006.

 Attachment 5 
 Definitions 
  

	a)	Base Salary means base salary earned or actually paid (dependent upon the practice of the business unit) to the Participant during the Incentive Plan Year disregarding any
deferral elections, premiums, expatriate allowances, expense reimbursements, commissions, other incentives, severance or termination pay, lump sum merit awards, retention awards, payments from deferred compensation arrangements and compensation
attributable to the exercise of stock options or other forms of long-term incentive compensation. 

  

	b)	Board means the SLC Board of Directors. 

  

	c)	Business Segment means one of the three major Sara Lee business units, i.e. Sara Lee North America Food & Beverage, Sara Lee International or Sara Lee North America
Food Service. 

  

	d)	Committee is the Compensation and Employee Benefits Committee of the Board. 

  

	e)	Division means an operating profit center of SLC. 

  

	f)	Exclusions means the automatic exclusion of the following from relevant financial data for purposes of measuring performance (subject to the Committee’s use of negative
discretion): 

  

	 	1.	Any extraordinary or unusual charges or income (accounting definition) that are quantified and identified separately on the face of the Income Statement, excluding earnings related
to the receipt of Tobacco Divestiture Proceeds 

  

	 	2.	Revisions to the U.S. Internal Revenue Code 

  

	 	3.	Changes in generally accepted accounting principles 

  

	 	4.	Impairments, pension settlements or curtailments, and gains or losses related to businesses reported as discontinued operations 

  

	 	5.	Impairments, pension settlements or curtailments, and gains or losses related to the sale of asset groups which are not reported as discontinued operations 

 

	 	6.	Charges, cash disbursements or cash receipts related to exit and business transformation activities or business dispositions reported as continuing or discontinued operations

  

	g)	Free Cash Flow shall be measured using actual currency rates and is defined as Net Cash from Operating Activities, plus Tobacco Divestiture Proceeds, less Capital
Expenditures, with the following exceptions: 

  

	 	1.	Cash Flow of businesses acquired during the year and not included in the Annual Operating Plan shall be excluded. 

  

	 	2.	Cash Flow of businesses divested and not included in the Annual Operating Plan as divestments will only be included through the date of divestment. 

 

	h)	Incentive Plan Year is the same as SLC’s fiscal year beginning on July 2, 2006 and ending June 30, 2007. 

  

	i)	Net Sales means net outside sales, as shown on Line 5 of the EO-200 income statement, with the following adjustment(s): 

  

	 	1.	Actual Net Sales shall be measured using plan currency rates 

  

	 	2.	Net Sales of businesses acquired during the year and not included in the Annual Operating Plan shall be excluded. 

  

	 	3.	Net Sales of businesses divested and not included in the Annual Operating Plan as divestments will only be included through the date of divestment. 

 

	j)	Operating Cash Flow means cash flow as calculated in the EO-600 – cash flow statement, using FY 07 peg currency rates, with the flowing exceptions:

  

	 	1.	Operating Cash Flow of businesses acquired during the year and not included in the Annual Operating Plan shall be excluded. 

  

	 	2.	Operating Cash Flow of businesses divested and not included in the Annual Operating Plan as divestments will only be included through the date of divestment.

	k)	Operating Income means pre-tax income, before interest, and Exclusions, with the following adjustment(s): 

  

	 	1.	Actual Operating Income shall be measured using plan currency rates 

  

	 	2.	Operating Income of businesses acquired during the year and not included in the Annual Operating Plan shall be excluded. 

  

	 	3.	Operating Income of businesses divested and not included in the Annual Operating Plan as divestments will only be included through the date of divestment.

  

	l)	Operating Profit means Line 16 of the EO-200 income statement, using FY 07 peg currency rates, with the following exceptions: 

  

	 	1.	Operating Profit of businesses acquired during the year and not included in the Annual Operating Plan shall be excluded. 

  

	 	2.	Operating Profit of businesses divested and not included in the Annual Operating Plan as divestments will only be included through the date of divestment.

  

	m)	Participant means an SLC executive in salary grades 28 through and including 50. 

  

	n)	Return on Investment (“ROI”) as defined in Finance Policy 130. 

  

	o)	Standards of Performance means a Financial or Individual performance measure. 

  

	p)	Total Disability is as defined under the SLC Long-Term Disability Plan or the specific Sara Lee sponsored disability plan under which the Participant is covered.Long-Term Restricted Stock Unit Grant

 Exhibit 10.31 
 LONG-TERM RESTRICTED STOCK UNIT GRANT 
 FISCAL YEARS 2007-2009 
 Highlights 
 This booklet explains the plan provisions of the Sara Lee
Corporation Long-Term Restricted Stock Unit (LTRSU) grant covering fiscal years 2007 through 2009 (“Service Period”) with the restricted stock units (“RSUs”) vesting 100% on August 31, 2009 the “Vesting Date”. The
following pages provide detailed information relating to the grant of RSUs that you have received under the Plan. 
 The key features of this Plan are
summarized below. In some countries other than the United States, variations in Plan design and rules may occur in order to comply with local laws and tax provisions. 
 Purpose 
 The LTRSU program is a significant component of Sara Lee’s executive compensation program. It enhances
the competitiveness of Sara Lee’s total executive compensation package and facilitates the attraction and retention of highly qualified executives. 
 Restricted Stock Units 
 LTRSU awards are authorized under the Sara Lee Corporation 1998 Long-Term Incentive Stock Plan (“Stock
Plan”). LTRSU awards are initially granted as RSUs at the beginning of the Service Period. On the Vesting Date, all of the RSUs that are earned will be converted to shares of Sara Lee common stock. Dividend equivalents that are payable on RSUs
during the vesting periods are accrued on your behalf. 
 The release of RSUs on the Vesting Date is contingent upon your continued active employment by the
Corporation until the Vesting Date, which is August 31, 2009. 
 SLC may substitute or offer alternative forms of incentive compensation in the event it
either determines that tax or legal regulations in some countries outside the United States provide more favorable treatment for these alternative forms of incentive compensation or as a voluntary alternative to RSUs. 
  

	 	•	 	Individual RSU awards are approved on August 31, 2006 and January 25, 2007. Based upon your continued active service through the Vesting Date the RSUs are converted to
actual shares of Sara Lee stock, on a one-for-one basis, and issued in your name. 

  

	 	•	 	You do not have voting rights on RSUs until the RSUs are converted to actual shares. 

 Dividend Equivalents 
 During the Service Period, dividend equivalents that are payable on the RSUs will be accrued on
your behalf. These dividend equivalents are paid to you in cash after the RSUs have vested. At the Corporation’s discretion, the dividend equivalents may be applied toward a Participant’s tax withholding obligations. 
 Award Grant Notice 
 Each Participant will receive a Restricted Stock
Unit Grant Notice and Agreement (“Grant Notice”) specifying the number of RSUs that have been granted, and certain terms and conditions applicable to the grant. The Grant Notice should be retained by the Participant along with other
important legal documents. The Grant Notice will be distributed electronically through the Participant’s E*Trade account. Participants must go into the E*Trade account and accept their grants on-line. Instructions will be provided at the
appropriate time. Sara Lee may from time to time modify the grant acceptance process and will notify participants of any changes. 

 Tax Consequences 
 United States 
 Under current United States tax law, a Participant receives no taxable income from the RSUs when initially granted, or
from accrued dividend equivalents. The Vesting Date is the date when the taxable event occurs, except to the extent a Participant paid in the U.S. and subject to U.S. taxation has elected to defer eligible distributions of the shares until a later
date (“Deferred Vesting Date”). The market value of SLC common stock on the Vesting Date or the Deferred Vesting Date, as the case may be, will determine the amount of taxable income. When the number of shares actually earned has been
determined, the market value of the shares on the Vesting Date or the Deferred Vesting Date, as well as the proportionate dividend equivalents are considered taxable income to the Participant. This amount is then subject to any applicable federal,
state and local withholding. Amounts necessary to settle the tax-withholding obligation will be withheld from the accrued dividend equivalents and/or shares otherwise to be distributed to the Participant. 
 Countries other than the United States 
 Tax laws vary
significantly from country to country, so professional advice should be obtained from appropriate counsel concerning the tax consequences of this grant. In most cases, Participants incur no taxable income from RSUs when initially awarded, or on the
accrued dividend equivalents, until the Vesting Date. When the shares are earned, both the market value of the shares on the Vesting Date as well as the dividends distributed are typically considered income. For Participants residing outside the
U.S. and not subject to U.S. tax laws, tax withholding for certain countries may be required and will be taken by Sara Lee Corporation in the U.S. Each Participant is responsible for compliance with the relevant legal and tax regulations in his or
her tax jurisdiction. 
 Impact on Other Benefits 
 Any
shares or dividend equivalents ultimately earned under this LTRSU grant are not considered compensation for purposes of any retirement plan, severance arrangement or other benefit plans in which a Participant currently participates or may become
eligible to participate in at a later date. 
 Stock Ownership Compliance 
 These RSUs will count towards the Corporation’s stock ownership guidelines during the Service Period. 
 Forfeiture

 Notwithstanding anything contained in this document to the contrary, if the Participant engage in any activity inimical, contrary or harmful to the
interests of the Company, including but not limited to: (1) competing, directly or indirectly (either as owner, employee or agent), with any of the businesses of the Company, (2) violating any Company policies, (3) soliciting any
present or future employees or customers of the Company to terminate such employment or business relationship(s) with the Company, (4) disclosing or misusing any confidential information regarding the Company, or (5) participating in any
activity not approved by the Board of Directors which could reasonably be foreseen as contributing to or resulting in a Change of Control of the Company (as defined in the Plan) (such activities to be collectively referred to as “wrongful
conduct”), then (i) this RSU award, to the extent it remains restricted, shall terminate automatically on the date on which the participant first engaged in such wrongful conduct and (ii) if the misconduct occurred within 6 months
following the Vesting Date, the participant shall pay to the Company in cash any financial gain the participant realized from the vesting of the RSUs. For purposes of this section, financial gain shall equal, the difference between the fair market
value of the Common Stock on the Vesting Date, multiplied by the number of RSUs pursuant to the vesting (without reduction for any shares of Common Stock surrendered or attested to for tax withholding purposes) reduced by any taxes paid in countries
other than the United States (which taxes are not 

  

 2 

 
otherwise eligible for refund from the taxing authorities). By accepting this RSU grant, the Participant consent to and authorize the Sara Lee Companies to
deduct from any amounts payable by the Sara Lee Companies to the Participant, any amounts the Participant owes to Sara Lee under this section. This right of set-off is in addition to any other remedies Sara Lee may have against the Participant for
the wrongful conduct. 
 Administrative Guidelines 
 The
following guidelines apply to the FY07-09 LTRSU grant. Additional Administrative Guidelines may be adopted, as needed, during the Service Period for the efficient administration of the Plan. 
  

	 	•	 	The Compensation and Employee Benefit Committee (“Committee”) is responsible for administering the Plan and has full power and authority to interpret the Plan and to adopt
rules, regulations and guidelines for administering the Plan, as it deems necessary. 

  

	 	•	 	The Committee functions as the Plan Administrator and its decisions are binding on all Participants. 

  

	 	•	 	The Committee reserves the right, in its absolute discretion, to make further adjustments in awards granted to any Participant prior to the release of those RSUs.

  

	 	•	 	The Committee may, as it deems appropriate, delegate some or all of its power to the Chief Executive Officer of Sara Lee Corporation. However, the Committee may not delegate its
power concerning the grant, timing, pricing or amount of an award to any person who is a corporate officer or Key Executive. 

  

	 	•	 	The Committee will approve the awards at the time they are granted for all Corporate Officers and Key Executives. The RSUs to be distributed along with the related dividend
equivalents will be distributed as soon as practicable after the Vesting Date. 

  

	 	•	 	Awards may be made to new Participants during the first year of the Service Period. The number of RSUs awarded may be adjusted to reflect that the executive is not a Participant for
the entire Service Period. 

  

	 	•	 	Awards may also be made to Participants who change positions during the first year of the Service Period, if such a change would have resulted in the Participant qualifying for an
increased level of award. 

  

	 	•	 	In the event of death or permanent and total disability (as defined under the appropriate disability benefit plan if applicable) the RSUs immediately vest and will be distributed to
the estate or Participant as soon as practicable after that event date. 

  

	 	•	 	In the case of a Participant attaining age 55 or older and having at least 10 years of service with the Corporation when a Participant’s employment terminates or attaining age
65, regardless of service, the RSUs will continue to vest under the normal vesting schedule (no pro-ration) and payout will occur at the normal payout time. 

  

	 	•	 	A Participant who resigns or is terminated for cause during the Service Period generally forfeits the rights to all RSUs and any accrued dividend equivalents. Exceptions to this
rule must be approved by the Chief Executive Officer of Sara Lee Corporation. 

  

	 	•	 	A Participant who is involuntarily terminated and receives severance from the Company is eligible for a pro-rated distribution of shares and any accrued dividend equivalents. Active
service as well as the severance period will be used to determine the pro-ration and payout will occur at the normal payout time. 

  

	 	•	 	 In the event of a sale, closing, spin-off or other disposition of the Participant’s business unit, resulting in the termination of the Participant’s
employment with the Company, the Participant will be eligible 

  

 3 

 
for a full distribution of shares and any accrued dividend equivalents. The shares will be distributed as soon as practicable after the event. 
  

	 	•	 	Should a change in control occur (as defined in the Stock Plan), the Committee will decide what effect, if any, this should have on the awards which are outstanding under this Plan.

  

	 	•	 	If any statement in this Plan Description or any oral representation differs from the Stock Plan, the Stock Plan document prevails. The Stock Plan Grant Notice and Plan Descriptions
collectively comprise all terms and conditions applicable to the FY07-09 LTRSU grant. 

  

	 	•	 	Any stock dividend, stock split, combination or exchange of securities, merger, consolidation, recapitalization, spin-off or other distribution of any or all of the assets of the
Company will be handled as provided for in the Stock Plan. 

  

	 	•	 	Nothing in the LTRSU grant shall confer on a Participant any right to continue in the employ of SLC or in any way affect SLC’s right to terminate the Participant’s
employment in accordance with applicable laws. 

  

 4 

 Appendix I 
  

					
		  	FY07-09 LTRSU	 	

 Definitions 
  

	a)	The Committee means the Compensation and Employee Benefits Committee of the Sara Lee Corporation Board of Directors. 

  

	b)	Award Date means the date upon which the Committee approved the awards under this Plan. In this case the Award Date can mean August 31, 2006 or January 25, 2007,
unless an alternate date was required for tax and/or legal reasons in locations outside the United States. 

  

	c)	Company, Corporation or SLC means Sara Lee Corporation or any entity that is directly or indirectly controlled by Sara Lee Corporation, and its subsidiaries.

  

	d)	Deferred Vesting Date means the Distribution Date specified under the Sara Lee Corporation Executive Deferred Compensation Plan, in the event the Participant elected to defer
his or her LTRSU award. 

  

	e)	Dividend Equivalents has the same meaning as in the Stock Plan. 

  

	f)	E*Trade is Sara Lee Corporation’s executive equity outsourcing vendor. 

  

	g)	Grant Notice means the electronic document provided to each Participant evidencing the number of restricted stock units awarded, Vesting Dates and the basic terms and
conditions of the award. 

  

	h)	Key Executive means an employee whose salary, when expressed in U.S. dollars, is above the midpoint of salary grade 39. 

  

	i)	Participant means an executive of the company who has been determined to be an eligible Participant and who has received a Grant Notice specifying the basic terms of
participation in this Plan. 

  

	j)	Restricted Stock Units (“RSUs”) has the same meaning as “stock awards” as that term is used in the Stock Plan. 

  

	k)	Service Period is the three-year period of August 31, 2006 through and including August 31, 2009. 

  

	l)	Stock Plan means the Sara Lee Corporation 1998 Long-Term Incentive Stock Plan or its successor plan or plans. 

  

	m)	Total Disability is defined in the Key Executive Long-Term Disability Plan of SLC. 

  

	n)	Vesting Date means August 31, 2009. 

  

 5

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