Enhanced Target Annual Bonus Letter, dated June 11, 2007 (Craig Steeneck)



 Exhibit 10.22 
 Peak Holdings LLC 
 June 11, 2007 
 Mr. Craig Steeneck 
 Dear Craig: 
 On behalf of the Management Committee of Peak Holdings LLC (the “Board”), I am pleased to confirm that the Board has decided to grant you an
additional incentive bonus opportunity, on the terms and subject to the conditions set forth herein. This bonus opportunity is intended to modify the Target Annual Bonus set forth in that certain employment agreement entered into by and between you
and Crunch Holding Corp. (the “Company”), dated April 2, 2007 (the “Employment Agreement”). All capitalized terms not defined herein shall have the meaning ascribed to them in the Employment Agreement. 
 1. Enhanced Target Annual Bonus. Commencing in fiscal 2008, for each fiscal year in which the Company achieves the EBITDA targets set forth in the
“Management Case” of Exhibit A hereto (the “Management Case EBITDA Targets”), your Target Annual Bonus will be increased from 75% of your Base Salary to 100% of your Base Salary (the “Enhanced Target Annual Bonus”) and
your maximum Annual Bonus will be increased to not less than 200% of your Base Salary. 
 2. “Negative” Discretion. Notwithstanding the
foregoing or anything else contained herein to the contrary, for each fiscal year the Chairman of the Board and the Chief Executive Officer of the Company may, in their sole and absolute discretion (despite the achievement of the Management Case
EBITDA Targets), reduce your Enhanced Target Annual Bonus to an amount between 100% of your Base Salary and the Annual Target Bonus percentage set forth in your Employment Agreement (currently 75%) in the event of a failure to achieve one or more of
the Trade Promo, Gross Profit, Advert & Other Consumer and FCF objectives for such year set forth in Exhibit A hereto (“Select Objectives”); provided, that in exercising such discretion, a failure to achieve one or more Select
Objectives will not mandate any such reduction, such as when the Chairman and Chief Executive Officer determine that special circumstances apply. In the event of any such reduction, you will be given Notice of such decision not less than ten
(10) days prior to the date Annual Bonuses are paid for such fiscal year. In such case, the Target Annual Bonus percentage as set forth in the Employment Agreement will apply, as modified by the foregoing provisions of this Section 2 for
that fiscal year. 
 3. Interpretation. The Board shall be empowered to make all determinations or interpretations consistent with Sections 1 and 2 of
this letter agreement, which determinations and interpretations shall, if made in good faith, be binding and conclusive on you and the Company. 
 5.
Transferability. None of your rights under this letter agreement may be assigned, transferred, pledged or otherwise disposed of, other than by your will or under the laws of descent and distribution. 







 6. Withholding. The Company shall be authorized to withhold from the payment of any Retention Bonus that may
become payable hereunder, the amount of any applicable federal, state and local taxes as may be required to be withheld pursuant to any applicable law or regulation. 
 10. Governing Law/Counterparts. The validity, construction, and effect of this letter agreement shall be determined in accordance with the laws of the State of Delaware. This letter agreement may be signed in
counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. 
 Please indicate your agreement to the foregoing by executing this letter agreement where indicated below. 
  

			
	PEAK HOLDINGS LLC
		
	By:	 	 /s/ Jeffrey P. Ansell

	Name:	 	  

	Title:	 	  



  

	
	 Agreed and acknowledged as of this 11th
day of June, 2007

	
	 /s/ Craig Steeneck

	 Craig Steeneck


  

 2 









															
	 Base Case
	  	 Management Case

								
	 	  	2008	  	2009	  	2010	  	 	  	2008	  	2009	  	2010
	 Trade Promo
	  	XXX	  	XXX	  	XXX	  	 Trade Promo
	  	XXX	  	XXX	  	XXX
	 % To Gross
	  	XXX	  	XXX	  	XXX	  	 % To Gross
	  	XXX	  	XXX	  	XXX
								
	 Net Sales
	  	XXX	  	XXX	  	XXX	  	 Net Sales
	  	XXX	  	XXX	  	XXX
								
	 Gross Profit
	  	XXX	  	XXX	  	XXX	  	 Gross Profit
	  	XXX	  	XXX	  	XXX
	 % To Net
	  	XXX	  	XXX	  	XXX	  	 % To Net
	  	XXX	  	XXX	  	XXX
								
	 Advert & Other Consumer
	  	XXX	  	XXX	  	XXX	  	 Advert & Other Consumer
	  	XXX	  	XXX	  	XXX
	 % To Net
	  	XXX	  	XXX	  	XXX	  	 % To Net
	  	XXX	  	XXX	  	XXX
								
	 Ebitda
	  	XXX	  	XXX	  	XXX	  	 Ebitda
	  	XXX	  	XXX	  	XXX
	 % To Net
	  	XXX	  	XXX	  	XXX	  	 % To Net
	  	XXX	  	XXX	  	XXX
								
	 FCF*
	  	XXX	  	XXX	  	XXX	  	 FCF*
	  	XXX	  	XXX	  	XXX

  

	*	(Ebitda - Capex - Cash Taxes - Working capital - Cash Interest - Sponsor Fees) 

 Upside objectives needed to obtain Management Case financial performance (BT/CS) 
  

	 	1)	Reduce Trade spending gradually as a % to Gross Sales, reducing it by XXX basis points by the end of 2010. 

  

	 	2)	Increase Advertising/Other Consumer Spending to above XXX to Net Sales by the end of 2010. 

 If unforseen circumstances prevent this from occurring, then agreement with the Chairman and CEO can waive this requirement. 
  

	 	3)	Increase Gross Profit % to Net Sales (excluding depreciation) by XXX basis points by end of 2010. 

  

	 	4)	Generate Free Cash Flow in excess of XXX million by the end of 2010.