Document:

Exhibit
10.2

 

SECURITY
AGREEMENT

 

 

This
Security Agreement (the “Agreement”) is made as of this 10th day of January, 2020 by and between Tofutti
Brands Inc., a Delaware corporation, having a place of business at 50 Jackson Drive, Cranford, New Jersey 07016 (“Grantor”)
and David Mintz (“Secured Party”), having a place of business at 50 Jackson Drive, Cranford, New Jersey
07016.

 

WHEREAS,
the Grantor has executed and delivered to Secured Party a Secured Promissory Note (the “Note”) dated as of
the date hereof;

 

WHEREAS,
the Grantor has agreed to secure the Note as further set forth herein;

 

NOW,
THEREFORE, in consideration of the promises contained herein and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows:

 

Section
1. Definitions. All capitalized terms used herein or in any certificate, report or other document delivered pursuant
hereto shall has the meanings assigned to them below or as defined in the Note or in the Uniform Commercial Code as adopted in
the State of New Jersey (the “NJ Code”).

 

Section
2. Grant. To secure the payment and performance of the Note, Grantor hereby assigns and pledges to the Secured Party
a continuing security interest in and to the following Collateral (the “Collateral”), and each item
thereof, whether now owned or now due, or in which the Grantor has an interest, or hereafter acquired, arising, or to become due,
or in which Grantor or either of them obtain an interest:

 

(i)
all Accounts;

 

(ii)
all Chattel Paper;

 

(iii)
all Documents;

 

(iv)
all Equipment;

 

(v)
all Fixtures;

 

(vi)
all General Intangibles;

 

(vii)
all Goods and all Accessions thereto, and Goods with which the Goods are commingled;

 

(viii)
all Instruments;

 

(ix)
all Inventory;

 

(x)
all Investment Property;

 

(xi)
all Money, cash or cash equivalents;

 

(xii)
all letters of credit, Letter-of-Credit Rights and Supporting Obligations;

 

    	 

    	 

    

 

(xiii)
all Deposit Accounts with any bank or other financial institution;

 

(xiv)
all Commercial Tort Claims;

 

(xv)
all intellectual property;

 

(xvi)
all personal property not otherwise described above; and

 

(xvii)
all books and records pertaining to the Collateral.

 

together
with all proceeds (including but not limited to insurance proceeds), products and accessions, and any cash or property received
in exchange therefor, or to which Grantor is or may become entitled to receive on account of the Collateral.

 

Section
3. Representations, Warranties and Covenants. Grantor makes the following representations and warranties, and agrees
to the following covenants, each of which representations, warranties and covenants shall be continuing and in force as long as
this Agreement is in effect:

 

(a)
The name and address of the Grantor set forth on the first page hereof is the true and correct legal name and address of such
Grantor as set forth in the Grantor’s organizational documents.

 

(b)
The Grantor is the lawful owner of the Collateral free and clear of all security interests, liens and encumbrances and claims
of others.

 

(c)
The execution, delivery and performance of this Agreement has been duly authorized by all necessary action, corporate or otherwise
of Grantor.

 

(d)
This Agreement, together with the filing of Uniform Commercial Code financing statements in the appropriate offices or the execution
of appropriate account control agreements, as the case may be, creates a valid and continuing first lien on and perfected security
interest in the Collateral, prior to all other liens or encumbrances, and is enforceable as such against creditors of the Grantor
to the extent provided by the NJ Code and applicable law.

 

(e)
The Grantor will not sell, grant, assign or transfer any interest in, or permit to exist any liens or encumbrances on, any of
the Collateral other than in favor of the Secured Party; provided, however, that the Grantor may sell, transfer, or otherwise
dispose of any of the Collateral in the ordinary course of its business. The Grantor shall defend its title to and the Secured
Party’s interest in the Collateral against all claims (other than claims that in the judgment of the Grantor are not material
to the value of the Collateral taken as a whole) and take any action necessary to remove any liens and defend the right, title
and interest of the Secured Party in and to any of the Grantor’s rights in the Collateral.

 

(f)
Upon the written request of the Secured Party, and at the sole expense of the Grantor, the Grantor will promptly execute and deliver
such further instruments and documents and take such further actions as the Secured Party may reasonably deem necessary to obtain
the full benefits of this Agreement and of the rights and powers herein granted, including, without limitation, filing of any
financing statement under the NJ Code covering the Collateral. The Grantor authorizes the Secured Party to file any such financing
statement with regard to the Collateral without the signature of the Grantor to the extent permitted by applicable law, and to
file a copy of this Agreement in lieu of a financing statement. If any amount payable under or in connection with any of the Collateral
shall be or become evidenced by any promissory Note or other instrument, such Note or instrument shall be promptly delivered to
the Secured Party, duly endorsed in a manner reasonably satisfactory to it.

 

    	 

    	 

    

 

Section
4. Notices and Reports Pertaining to Collateral. The Grantor will, with respect to the Collateral:

 

(a)
promptly furnish to the Secured Party, from time to time upon request, reports in form and detail reasonably satisfactory to the
Secured Party; and

 

(b)
promptly notify the Secured Party upon obtaining knowledge of any lien or encumbrance asserted against the Collateral, including
any attachment, levy, execution or other legal process levied against any of the Collateral, and of any information received by
the Grantor relating to the Collateral that would reasonably be expected to materially adversely affect the value of the Collateral
taken as a whole or the rights and remedies of the Secured Party with respect thereto.

 

Section
5. Set-off Rights. Regardless of the adequacy of any Collateral or any other means of obtaining repayment of the Note,
the Secured Party may at any time and from time to time during the continuation of an Event of Default, without notice to the
Grantor (any such notice being expressly waived by the Grantor) and to the fullest extent permitted by law, set off and apply
any and all deposits (general or special, time or demand, provisional or final) and other sums credited by or due from the Secured
Party to Grantor or subject to withdrawal by Grantor and any other property and securities at any time in the possession or control
of the Secured Party against any sums due to Secured Party by Grantor, whether or not the Secured Party shall has made any demand
therefor and although such sums may be contingent or unmatured.

 

Section
6. Defaults. An event of default (“Event of Default”) shall exist hereunder if any of the following
shall occur:

 

(a)
any representation or statement made by Grantor in the Note or any other document delivered to the Secured Party in connection
with this Agreement or the Indebtedness, or in any financial statement or other information provided to the Secured Party pursuant
hereto or thereto proving to have been false or misleading when made;

 

(b)
any default by the Grantor under any provision of the Note;

 

(c)
failure of the Grantor to deliver any financial information regarding the Grantor or any of the Grantor’s properties or
operations which is requested at any time by the Secured Party;

 

(d)
any Transfer (as defined in the Note), or any disposition by the Grantor of any material part of the Grantor’s assets, or
the suspension, dissolution or liquidation of any material aspect of the business conducted by the Grantor;

 

(e)
the occurrence of any event or circumstance which, under any agreement or evidence of indebtedness relating to any obligation
of the Grantor for borrowed money other than this Agreement, assuming that any required notice had been given or lapse of time
had occurred, would give the holder thereof or any other person the right to declare such obligation due and payable;

 

(f)
the failure of the Grantor, under any agreement relating to any obligation of the Grantor for borrowed money, which obligation
is payable on demand, to pay such obligation upon such demand, in accordance with the terms of such agreement;

 

(g)
the failure of the Grantor to pay all taxes, assessments and other governmental charges as the same became due and payable;

 

    	 

    	 

    

 

(h)
the breach or invalidity of any term of this Agreement or the Note or any document or instrument entered into by the Grantor in
connection therewith (collectively, the “Loan Documents”) or the assertion by the Grantor or any other
person or entity obligated hereunder or thereunder that any such term or any Loan Document is not binding on such person or entity;

 

(i)
any sale, transfer or assignment by the Grantor of its interest in the land or building (or both) located at 50 Jackson Drive,
Cranford, New Jersey 07016 (collectively, the “Property”) or any part thereof;

 

(j)
the Grantor is made a party to or the Property or any part thereof is made the subject of any action, suit or proceeding which,
in the reasonable judgment of Secured Party, could materially adversely affect the value or economic viability of the Property
or the ability of the Grantor or any Person to repay timely the Indebtedness, or the filing of a federal tax lien against the
Grantor or any Person who controls Grantor or against the Property or any part thereof, unless the same is paid or provided for
to the satisfaction of Secured Party or discharged of record within 30 days from the date of filing thereof;

 

(k)
any of the Loan Documents for any reason ceases to be in full force and effect or is declared to be null and void, or the validity
or enforceability thereof shall be contested in writing by the Grantor, or the Grantor denies that it has any further liability
under any Loan Documents; or

 

(l)
the Secured Party shall not have or shall cease to have a valid and perfected first priority security interest in the Collateral
or any other collateral purported to be covered by this Agreement.

 

Section
7. Secured Party’s Rights and Remedies. 

 

(a)
As long as any Event of Default shall have occurred and is continuing, the Secured Party may, at its option, whether or not any
amount under the Note is due, without notice or demand on the Grantor, take the following actions with respect to the Collateral:

 

(i)
demand, collect, and receipt for any amounts relating thereto, as the Secured Party may determine;

 

(ii)
commence and prosecute any actions in any court for the purposes of collecting any such Collateral and enforcing any other rights
in respect thereof;

 

(iii)
defend, settle or compromise any action brought and, in connection therewith, give such discharges or releases as the Secured
Party may deem appropriate;

 

(iv)
endorse checks, notes, drafts, acceptances, money orders, or other instruments or documents evidencing payment, relating or giving
rise to the Collateral on behalf of and in the name of the Grantor; and

 

(vi)
sell, assign, transfer, make any agreement in respect of, or otherwise deal with or exercise rights in respect of, any such Collateral
or services which has given rise thereto, as fully and completely as though the Secured Party were the absolute owner thereof
for all purposes.

 

    	 

    	 

    

 

(b)
Except as otherwise provided herein, the Secured Party shall have no duty as to the collection or protection of the Collateral
or as to the preservation of any rights pertaining thereto, beyond the exercise of any reasonable care with respect to any Collateral
in its possession. The Secured Party may sell, lease or otherwise dispose of the Collateral at a public or private sale, with
or without having the Collateral at the place of sale, and upon such terms and in such manner as the Secured Party may determine,
and the Secured Party may purchase any Collateral at any such public sale and, to the extent permitted by law, any private sale.
Unless the Collateral threatens to decline rapidly in value or is of the type customarily sold on a recognized market, the Secured
Party shall send to the Grantor prior written notice (which, if given not less than ten (10) days prior to any sale, shall be
deemed to be reasonable) of the time and place of any public sale of the Collateral or of the time after which any private sale
or other disposition thereof is to be made. The Grantor agrees that, upon any such sale, the Collateral shall be held by the purchaser
free from all claims or rights of any kind and nature, including any equity of redemption or similar rights, and all such equity
of redemption and similar rights are, to the extent permitted by law, hereby expressly waived and released by the Grantor. In
the event any consent, approval or authorization of any governmental agency is necessary to effectuate any such sale, the Grantor
shall execute all applications or other instruments as may be required.

 

(c)
The Secured Party shall be entitled to retain and to apply the proceeds of any disposition of the Collateral, first, to its reasonable
expenses of retaking, holding, protecting and maintaining, and preparing for disposition and disposing of, the Collateral, including
reasonable attorneys’ fees and other legal expenses incurred by it in connection therewith; and second, to the payment of
the Obligations in accordance with the Note. Any surplus remaining after such application shall be paid to the Grantor or to whoever
may be legally entitled thereto, provided that in no event shall the Grantor be credited with any part of the proceeds of the
disposition of the Collateral until such proceeds shall has been received in cash by the Secured Party. The Grantor shall remain
liable for any deficiency.

 

(d)
The Secured Party shall have all other rights and remedies as provided in the Note.

 

Section
8. Waivers. The Grantor waives presentment, demand, notice, protest, notice of acceptance of this Agreement, notice
of any Notes made, credit or other extensions granted, collateral received or delivered or any other action taken in reliance
hereon and all other demands and notices of any description, except for such demands and notices as are expressly required to
be provided to the Grantor under this Agreement or any other document. The Grantor assents to any substitution, exchange or release
of Collateral, to the addition or release of any party or person primarily or secondarily liable, to the acceptance of partial
payment thereon and the settlement, compromise or adjustment of any thereof, all in such manner and at such time or times as the
Secured Party may deem advisable, pursuant to the exercise of its rights hereunder. The Secured Party may exercise its rights
with respect to the Collateral without resorting, or regard, to other collateral or sources of reimbursement. The Secured Party
shall not be deemed to have waived any of its rights with respect to the Note or the Collateral unless such waiver is in writing
and signed by the Secured Party. No delay or omission on the part of the Secured Party in exercising any right shall operate as
a waiver of such right or any other right. A waiver on any one occasion shall not bar or waive the exercise of any right on any
future occasion. All rights and remedies of the Secured Party in the Note or the Collateral, whether evidenced hereby or by any
other instrument or papers, are cumulative and not exclusive of any remedies provided by law or any other agreement, and may be
exercised separately or concurrently.

 

Section
9. Expenses. In the event of any default by the Grantor, the Grantor shall be liable to the Secured Party, and shall
promptly reimburse it on demand, for all expenses incurred by the Secured Party as a result of such default, including reasonable
fees and disbursements of counsel and all expenses of collection.

 

Section
10. Notices. Any notice or demand or request shall be in writing and shall be deemed to have been received and shall
be effective on the day on which delivered if (a) personally delivered, (b) transmitted by telex, telecopier or telegram, or (c)
mailed by certified mail or sent by courier service providing evidence of delivery (in which case such notice shall be deemed
to be delivered on the date shown on any receipt or other evidence of delivery or refusal), and notices transmitted as provided
in clauses (b) or (c), in the case of (i) the Secured Party, shall be addressed to the Secured Party at 50 Jackson Drive, Cranford,
New Jersey 07016, or at any other address designated by the Secured Party for such purpose in a notice given to the Grantor in
the manner herein provided, or (ii) the Grantor, shall be addressed to the Grantor at 50 Jackson Drive, Cranford, New Jersey 07016,
Attention: Mr. Steven Kass (telecopier: (908) 272-9492), with a copy to Carter Ledyard & Milburn LLP, 2 Wall Street, New York,
New York 10005, Attention: Steven J. Glusband, (telecopier: 212-732-3232), or at any other address designated for such purpose
by Grantor in a notice given to the Secured Party in the manner hereinabove provided.

 

    	 

    	 

    

 

Section
11. Successors and Assigns. This Agreement shall be binding upon the Grantor, their successors and assigns, and shall
inure to the benefit of and be enforceable by the Secured Party and its successors and assigns.

 

Section
12. Modification, Governing Law and Consent to Jurisdiction. THIS AGREEMENT MAY NOT BE AMENDED OR MODIFIED EXCEPT BY
A WRITING SIGNED BY THE GRANTOR AND THE SECURED PARTY. THIS AGREEMENT AND THE TERMS, COVENANTS AND CONDITIONS HEREOF SHALL BE
CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE STATE OF NEW JERSEY (WITHOUT GIVING EFFECT TO ANY CONFLICTS OF
LAW PROVISIONS CONTAINED THEREIN). GRANTOR HEREBY CONSENTS TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED IN THE STATE
OF NEW JERSEY AND IRREVOCABLY AGREES THAT ALL ACTIONS OR PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE OTHER
NOTE DOCUMENTS SHALL BE LITIGATED IN SUCH COURTS, PROVIDED THAT NOTHING IN THIS AGREEMENT SHALL BE DEEMED OR OPERATE TO PRECLUDE
SECURED PARTY FROM BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY OTHER JURISDICTION TO COLLECT THE SECURED OBLIGATIONS, REALIZE
ON THE COLLATERAL OR ANY OTHER SECURITY FOR THE SECURED OBLIGATIONS, OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER.

 

Section
13. Section Headings. Section headings are for convenience of reference only and are not a part of this Agreement.

 

Section
14. JURY WAIVER. THE SECURED PARTY (BY ITS ACCEPTANCE HEREOF) AND THE GRANTOR WAIVE (A) TRIAL BY JURY IN ANY LAWSUIT,
PROCEEDING, COUNTERCLAIM, OR ANY OTHER ACTION BASED UPON, OR ARISING OUT OF THIS AGREEMENT, ANY RELATED INSTRUMENTS, ANY COLLATERAL
OR THE DEALINGS, OR THE RELATIONSHIP, BETWEEN OR AMONG ANY OF THEM, (B) RIGHTS TO CONSOLIDATE ANY SUCH ACTION WITH ANY OTHER ACTION
IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED OR (C) ANY CLAIM FOR CONSEQUENTIAL DAMAGES ARISING FROM ANY BREACH OF CONTRACT,
TORT OR OTHER WRONG RELATING TO ANY OF THE OBLIGATIONS. THE PROVISIONS OF THIS PARAGRAPH HAVE BEEN FULLY DISCUSSED BY THE SECURED
PARTY AND THE GRANTOR, AND THESE PROVISIONS SHALL BE SUBJECT TO NO EXCEPTIONS. NEITHER THE SECURED PARTY NOR THE GRANTOR HAS AGREED
WITH OR REPRESENTED TO THE OTHER THAT THE PROVISIONS OF THIS PARAGRAPH WILL NOT BE FULLY ENFORCED IN ALL INSTANCES.

 

Section
15. Termination. This Agreement shall terminate upon satisfaction in full of the Obligations.

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, the Grantor and the Secured Party has caused this Agreement to be duly executed as an instrument under seal as
of the date first written above.

 

	 	Tofutti Brands Inc.
	 	 	 
	 	By:
    	/s/
    Steven     Kass
	 	Name:	Steven
    Kass
	 	Title:
    	Chief
    Financial Officer

 

	 	/s/
    David     Mintz
	 	David
    MintzEX-10.1

 Exhibit 10.1 
  

					
		 	

   	 	  
  
 

		 	 Sysco Corporation

1390 Enclave Parkway
 Houston, Texas 77077

Telephone: 281-584-1390

 

	
	
	  
 PERSONAL AND CONFIDENTIAL

 January 10, 2020 
 Kevin
Hourican 
 Via hand delivery 
 Dear Kevin: 

On behalf of the Sysco Board of Directors (the “Board”), I am delighted to offer you the Sysco leadership role of President and Chief
Executive Officer, reporting to the Chairman of the Board, with such duties commensurate with the position of President and Chief Executive Officer of a similarly-sized company operating in the same industry,
along with any other duties consistent with such position as may be reasonably assigned to you by the Board. Your employment with Sysco is expected to commence on the Confirmed Start Date set forth below (the actual date employment commences with
Sysco, the “Start Date”). Your principal location of employment will be Sysco’s Houston, Texas headquarters, although you may be required to travel from time to time in connection with the fulfillment of your duties. 

Your compensation package includes: 
  

	 	•	 	 Your annual base salary will be $1,300,000 per year (the “Base Salary”), paid in accordance with
Sysco’s regular payroll practices. The Base Salary is subject to annual review and, in the discretion of the Board, increase (but not decrease). Any increased amount is “Base Salary” for all applicable purposes thereafter. Your next
compensation review date is expected to be September 2020. 

  

	 	•	 	 For Sysco’s fiscal year 2020 (“FY2020”), you will be eligible for an annual cash bonus with
actual payment based on achievement of the Company’s financial performance and strategic bonus objectives, which will be consistent with applicable objectives currently in place for other senior executives of the Company. Your target annual
bonus each fiscal year during your employment will be 150% of your Base Salary. Your bonus during FY2020 will be prorated from January 1, 2020 for FY2020 unless the Start Date is after February 15, 2020 (except at the request of the
Company), in which case your bonus will be pro-rated based on your period of actual service with Sysco during FY2020. Eligibility for the bonus is contingent upon your continued employment with Sysco through
the end of the fiscal year (except as set forth below). 

	 	•	 	 For FY2020, you will be granted a long-term incentive award under the Company’s 2018 Omnibus Incentive Plan
(“Plan”) for FY2020 with a grant date fair value equal to $8,500,000 as soon as practicable (but not later than fifteen (15) days) after the Start Date. This award will be in the form of 40%
non-statutory stock options and 60% performance share units (“PSUs”) (such stock options and PSUs, the “2020 Annual Equity Award”). The stock options will vest, based on
continued service to Sysco, 33% on each of August 21, 2020, August 21, 2021 and August 21, 2022 and have a 10-year term, and the PSUs will have a performance period from June 30, 2019 until
July 2, 2022. The 2020 Annual Equity Award will have such other terms and conditions as the stock options and PSUs granted to other senior executives in FY2020, except that vesting of 50% of the unvested portion of the 2020 Annual Equity Award
will fully accelerate (with performance deemed met at the target level) upon a termination of your employment by Sysco without Cause or resignation by you for Good Reason. Thereafter, you will be eligible to receive annual equity awards in the
amounts and with such terms as determined by the Compensation and Leadership Development Committee of the Board (the “Committee”) in its discretion. 

 

	 	•	 	 You will receive a one-time, initial cash lump sum sign-on bonus of $2,000,000, payable within 30 days after the Start Date (the “Initial Sign-On Bonus”). 

 

	 	•	 	 You will also be eligible to receive an additional bonus (the “Make-Whole Bonus”) in respect of
any forfeited annual cash bonus for 2019 from your current employer in an amount equal to (1) your current target bonus opportunity of $1,450,000, paid within thirty (30) days after the Start Date, plus (2) an amount equal to any
annual cash bonus above the target bonus opportunity of $1,450,000 that would have been earned based on actual performance as reported in your current employer’s 2020 annual stockholders meeting definitive proxy statement (with any individual
performance requirements to be deemed fully satisfied), paid within thirty (30) days after the date such definitive proxy statement is filed. 

  

	 	•	 	 In the event your employment is terminated by Sysco for Cause or you voluntarily resign without Good Reason, you
agree to repay, (1) with respect to the Initial Sign-On Bonus and the Make-Whole Bonus, if occurring prior to the first anniversary of your Start Date, 100% of the net (after tax) amount or
(2) solely with respect to the Sign-On Bonus, if occurring on or after the first anniversary of your Start Date but prior to the second anniversary of your Start Date, 50% of the net (after tax) amount,
in each case, repaid within thirty (30) days after your termination date. 

  

	 	•	 	 In order to compensate you for the forfeiture of equity awards with your current employer that is anticipated to
be incurred in connection with your employment by Sysco, you will receive a special one-time, make-whole equity grant (the “Make-Whole Equity Grant”)
having a grant date fair value of $12,800,000, which will be made as soon as practicable (but not later than fifteen (15) days) after the Start Date. This award will be granted 33% in the form of
non-statutory stock options, 33% in the form of time-based restricted stock units (“RSUs”) and 33% in the form of PSUs. The stock options will vest, based on continued service to Sysco, 33% on
each of August 21, 2020, August 21, 2021 and August 21, 2022 and have a 10-year term. The RSUs will vest (and be settled promptly

  
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upon vesting), based on continued service to Sysco, 50% on each of the 12 month and 18 month anniversaries of the Start Date. The PSUs will have a performance period from June 30, 2019 until
July 2, 2022 and be settled promptly following a determination of achievement of the performance objectives. The Make-Whole Equity Grant will have such other terms and conditions as awards granted to other senior executives in FY2020, except
that vesting of the Make-Whole Equity Grant will fully accelerate (with performance deemed met at the target level) upon a termination of your employment by Sysco without Cause or resignation by you for Good Reason. 

Severance and Benefits. You will also be eligible to receive the following benefits: 

 

	 	•	 	 Upon a termination of your employment by Sysco without Cause or upon your resignation for Good Reason that in
either case is not a Change in Control Termination, you will be entitled to receive, subject to execution and non-revocation of the Company’s standard release of claims (which becomes irrevocable no later
than fifty-five (55) days after your date of termination), (1) an amount equal to two (2) times the sum of your Base Salary plus target Annual Performance Bonus, payable in substantially equal payroll installments for twenty-four
(24) months after your date of termination beginning on the first regular payroll date following the date on which the release becomes irrevocable, provided that the first such payment will include all payments that would have been made to you
had such payments commenced on the first regular payroll date following your date of termination; (2) a pro rata bonus based on the number of days you are employed during the then-current fiscal year until your date of termination, subject to
attainment of applicable Sysco performance goals for such fiscal year and payable at the time annual cash bonuses are paid to other Sysco executives (the “Pro-Rata Bonus”); and
(3) continuation of health, dental and vision benefits at active employee rates for twenty-four (24) months after your date of termination, which shall run concurrently with any period in which you are eligible to receive health benefits
under COBRA (“Health Care Continuation”). 

  

	 	•	 	 Upon a Change in Control Termination, you will be entitled to receive, subject to execution and non-revocation of the Company’s standard release of claims, (1) an amount equal to three (3) times the sum of your Base Salary plus target Annual Performance Bonus, paid in a lump sum within thirty
(30) days following your date of termination; provided, if the Change in Control is not a “change in control event” under Section 409A (as defined below), then such sum will be payable in substantially equal payroll installments
for twenty-four (24) months after your date of termination beginning on the first regular payroll date following the date on which the release becomes irrevocable (which shall be no later than fifty-five (55) days after your date of
termination), provided that the first such payment will include all payments that would have been made to you had such payments commenced on the first regular payroll date following your date of termination; (2) the Pro-Rata Bonus; and (3) Health Care Continuation for thirty-six (36) months after your date of termination. 

 

	 	•	 	 You will be eligible for full participation in Sysco’s standard health and welfare benefit plans and
programs as in effect from time to time, including approved leave policies, and not less than four (4) weeks’ annual vacation, on the same basis as made available to 

  
 3 

	 	 
similarly situated senior executives. Medical, dental, vision, and life / AD&D insurance will be effective the first day of the month coincident with or next following 60 days after your
Start Date. For the duration of any such waiting period until you become eligible to receive benefits under Sysco’s health plan, Sysco will reimburse you for the employer-portion of COBRA health coverage continuation from your current employer,
such that you would only pay Sysco active employee rates for such period. 

  

	 	•	 	 You will be eligible to participate in the Sysco Corporation Employees 401(k) Plan effective on your hire date.

  

	 	•	 	 You will be eligible to receive reimbursement for all reasonable business expenses in accordance with
Sysco’s business expense reimbursement policy and, in addition, up to $30,000 in legal fees incurred by you in connection with the preparation and negotiation of this letter agreement and related agreements. 

 

	 	•	 	 In addition to Sysco’s standard employee benefits, you will also be eligible to participate in the following
significant executive benefit programs: 

  

	 	•	 	 A Management Savings Plan, which is a non-qualified deferred compensation
program that allows you to defer salary and bonus on a pre-tax basis above amounts limited under the company’s 401(k) plan 

 

	 	•	 	 A Disability Income Plan that will provide you with benefits in case of personal disability; and

  

	 	•	 	 Additional group life and accidental death and dismemberment insurance coverage. 

 

	 	•	 	 You will either be provided with security monitoring services for your primary residence, or, if Sysco determines
not to provide such services, you will be reimbursed for the reasonable cost of procuring such services. 

  

	 	•	 	 Sysco will reimburse you for tax and financial planning services not to exceed $15,000 per fiscal year.

  

	 	•	 	 All payments and benefits under this letter agreement and any other agreement with Sysco are subject to
applicable tax withholding. 

 Other Conditions of Employment. The following additional terms and conditions apply to your offer of
employment with Sysco: 
  

	 	•	 	 In addition to your role as President and Chief Executive Officer, Sysco will appoint you as a member of the
Board effective the Start Date and thereafter cause you to be nominated as a member of the Board, and you agree, as so appointed or thereafter if elected, to serve as a member of the Board without additional compensation. 

 

	 	•	 	 You agree to relocate to the Houston, Texas area no later than December 31, 2020 and Sysco agrees to provide
you with relocation benefits in accordance with the terms and conditions of Sysco’s current domestic relocation policy applicable to your position, a 

  
 4 

	 	 
copy of which has been previously provided to you, except that notwithstanding anything in the policy, the miscellaneous expense reimbursement will be up to $25,000 and Sysco will pay a gross-up for all taxes incurred by you on all benefits, payments and reimbursements under the relocation policy (including the miscellaneous expense reimbursement). 

 

	 	•	 	 Concurrently with execution of this letter agreement, you agree to enter into a restrictive covenants agreement
with Sysco providing for customary restrictive covenants (the “Protective Covenants Agreement”), including confidentiality, non-disparagement, intellectual property covenants and two
(2) year post-employment non-compete and non-solicit of customers, vendors and employees’ restrictions, a copy of which has been provided to you. By your
execution of this letter agreement, you represent and warrant that you are not subject to any restrictive covenant with your current employer or otherwise that would interfere with your employment with Sysco and Sysco agrees that you have satisfied
this representation with respect to the agreement between you and your current employer that you have furnished to Sysco. 

  

	 	•	 	 Sysco will at all times indemnify you to the maximum extent permitted under Sysco’s corporate charter, by-laws and applicable law. Sysco will at all times cover you under any contract of directors’ and officers’ liability insurance that covers members of the Board. Such indemnification and insurance
coverage to survive any termination of your employment or service as a member of the Board. 

 Treatment of Payments Under Sections
280G and 409A 
 Notwithstanding anything in this letter agreement or any other plan, arrangement or agreement to the contrary: 

In the event that any payment or benefit received or to be received by you (whether pursuant to the terms of this letter agreement or any other plan,
arrangement or agreement) (all such payments and benefits, the “Total Payments”) would fail to be deductible under Section 280G of the Internal Revenue Code (“Section 280G”) or otherwise would be subject
(in whole or part) to the excise tax imposed by Section 4999 of the Internal Revenue Code (the “Excise Tax”) then, the payments or benefits to be received by you that are subject to Section 280G shall be reduced to the
extent necessary so that no portion of the Total Payments is subject to the Excise Tax but only if the net amount of such Total Payments, as so reduced (and after subtracting the net amount of federal, state and local income taxes on such reduced
Total Payments) is greater than or equal to the net amount of such Total Payments without such reduction (but after subtracting the net amount of federal, state and local income and employment taxes on such Total Payments and the amount of Excise
Tax to which you would be subject in respect of such unreduced Total Payments). 
 Payments and benefits under this letter agreement are intended to comply
with Section 409A of the Internal Revenue Code (“Section 409A”), to the extent subject thereto, and accordingly, such payments and benefits will be interpreted and administered to be in compliance with or exempt from
Section 409A. Notwithstanding anything to the contrary in this letter agreement, you will not be considered to have terminated employment with Sysco for purposes of any payments or 

  
 5 

 
benefits under this letter agreement which are subject to Section 409A until you have incurred a “separation from service” within the meaning of Section 409A. Each amount to
be paid or benefit to be provided under this letter agreement will be construed as a separate identified payment for purposes of Section 409A. To the extent required in order to avoid accelerated taxation and/or tax penalties as a
“specified employee” under Section 409A, payments and benefits that would otherwise be paid or provided pursuant to this letter agreement or any other arrangement between you and Sysco during the
six-month period immediately following your separation from service will instead be paid on the first business day after the date that is six months following your separation from service (or, if earlier, your
date of death). To the extent required to avoid any accelerated or additional tax under Section 409A, amounts reimbursable to you under this letter agreement will be paid to you on or before the last day of the year following the year in which
the expense was incurred and the amount of expenses eligible for reimbursement (and in-kind benefits provided to you) during one year may not affect amounts reimbursable or provided in any subsequent year. If
your date of termination occurs after November 1 of a given calendar year, any severance payments provided in this letter agreement shall be paid (or commence to be paid) in January of the immediately following calendar year. Sysco makes no
representation that any or all of the payments and benefits described in this letter agreement will be exempt from or comply with Section 409A and will exercise commercially reasonable efforts to preclude Section 409A from applying to any
such payment. 
 Definitions. For purposes of this letter agreement, the following terms have the meanings set forth as follows: 

“Cause” means your (1) conviction of, or plea of nolo contendere to a felony under federal law or the law of the state in which such
action occurred, (2) dishonesty in the course of fulfilling your employment or service duties, (3) willful and deliberate failure to perform your employment or service duties in any material respect or (4) your violation of any non-competition, non-solicitation, confidentiality or other restrictive covenants agreement or code of conduct applicable to you. 

“Change in Control Termination” means a termination of your employment by Sysco without 

Cause or your resignation of employment with Sysco for Good Reason, either occurring during the period beginning on the date a Change in Control (as defined in
the Plan) occurs and ending on the second anniversary thereof. 
 “Good Reason” means the occurrence of one or more of the following,
without your consent: (1) a material diminution in your authority, duties or responsibilities; (2) a material change in the geographic location at which you must perform services for the Company or its subsidiaries; (3) a material
diminution in the authority, duties or responsibilities of the Chairman (unless you are then reporting to the Board); or (4) a material diminution in your Base Salary. You must provide written notice of your intent to terminate for Good Reason
to Sysco within 30 days after the event constituting Good Reason. Sysco shall have a period of 30 days in which it may correct the act or failure to act that constitutes the grounds for Good Reason as set forth in your notice of termination. If
Sysco does not correct the act or failure to act, you must terminate your employment for Good Reason within 30 days after the end of the cure period, in order for the termination to be considered a Good Reason termination. 

  
 6 

 Miscellaneous 
  

	 	•	 	 As Chief Executive Officer of Sysco Corporation, you will be required to comply with all applicable Sysco
policies including the Stock Ownership Requirements as set forth in Sysco’s Corporate Governance Guidelines. Five years from your date of hire, you will be required to own Sysco stock valued at seven (7) times your salary. During that
five-year period, you will be subject to retention requirements until your holdings meet or exceed the ownership requirements. 

  

	 	•	 	 You will be required to complete Form I-9 (Employment Eligibility
Verification). You will need to provide the required forms of identification within 3 business days of the Start Date. Please review the attached list of acceptable documents and bring either a single List A document or both List B and a List C
document to your meeting with Human Resources and Payroll. 

  

	 	•	 	 This offer is contingent upon your execution of the Protective Covenants Agreement and successful completion of
the pre-employment drug check process. Any employee may terminate his/her employment at any time, with or without reason, and the company retains the same right, subject to the terms of this letter agreement.

  

	 	•	 	 This letter agreement is governed by the laws of the State of Texas, without regard to its conflicts of laws
principles. 

  
 7 

 Kevin, we are excited to have you join the Sysco team and look forward to your contributions to our future
success. 
  

	
	Sincerely,
	
	 /s/ Edward D. Shirley

	Edward D. Shirley
	Member, Board of Directors of Sysco Corporation

  

			
	Agreed and Accepted:	  	Confirmed Start Date:
		
	 /s/ Kevin Hourican
	  	 February 1, 2020

	Kevin Hourican	  	

  

	cc:	 John M. Cassaday, Chair, Compensation and Leadership Development Committee of the Board of Directors of Sysco
Corporation 

 Paul T. Moskowitz, Executive Vice President, Human Resources 

Eve McFadden, Vice President, Legal, General Counsel and Corporate Secretary

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