Corporate Office Employee Bonus Plan for 2009



 Exhibit 10.20 
 

 
 Corporate Office 
 Employee Bonus Program 
 2009 
  



					
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 SBARRO 
 Corporate Office Employee Bonus Plan 
 Purpose – The purpose of this Bonus Plan (the “Plan”) is to allow all eligible Sbarro
corporate office employees to share in the EBITDA, (as defined in accordance with the company’s credit agreement without accrued corporate bonus) improvements achieved in 2009. EBITDA is an accounting term which stands for “Earnings Before
Interest, Taxes, Depreciation and Amortization”. This Bonus Plan covers the period December 29, 2008 – December 27, 2009 (52 weeks). 
 Eligibility – Eligibility for participation in the Plan is limited to corporate office employees, including Corporate Officers, Senior Vice Presidents of Operations, Vice Presidents, Directors, Department Managers, Other
Salaried Employees and Hourly-Paid Employees and such other persons that the company shall incorporate into the plan. The effective date of this Plan is December 29, 2008. All corporate office employees employed or hired after December 29,
2008 become participants in the Plan on a pro-rata basis computed on the number of weeks worked during the plan year. Participation in the Plan ends December 27, 2009, unless extended by the Company. Participation also ends if the Plan is
terminated for any reason or if the participant’s employment is terminated for any reason prior to payment unless such payment is covered by a separate employment agreement. 
 How The Plan Works – 
  

	 	•	 	 The EBITDA target for this plan is $47,000,000. 


  

	 	•	 	 The EBITDA target has been made known to all plan participants pursuant to this plan. 


  

	 	•	 	 Each Bonus Plan participant has been told their personal targeted bonus dollars and the related percentage of salary bracket pursuant to this plan.



 How Do I Earn a Bonus? 
  

	 	•	 	 During the year 2009, all plan participants will work toward exceeding the EBITDA target (as defined in the Company’s Credit Agreement without accrued bonus)
of $47,000,000. 


  

	 	•	 	 Each participant shall receive a bonus based upon exceeding the 2009 EBITDA target (as defined in the Company’s Credit Agreement without accrued bonus) of
$47,000,000. 


  

	 	•	 	 Your personal targeted bonus is determined by taking your base salary and multiplying by your targeted bonus percentage as set forth for your job description or
title on Exhibit A. 


  

	 	•	 	 For each dollar of EBITDA, (as defined in the Company’s Credit Agreement without accrued bonus) between $47,000,000 and $51,000,000, 50¢ will be 



  


					
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placed into a 2009 bonus pool and for each dollar over $51,000,000, 25¢ will be placed into a 2009 bonus pool. The 2009 bonus pool will be allocated to
each participant on a pro rata basis based upon their personal targeted bonus as it relates to the personal target bonus as set forth on Exhibit A of all others in the pool. 


 When Will The Bonus Be Paid? 
 Bonuses will be paid (15) days
after the certified year-end statements of company performance are official, but no later than April 30, 2010. You must be an active employee at the time of the bonus plan payout to remain eligible for a bonus. 
 Conclusion 
 This is a great opportunity for all of us to work
together to share in improved EBITDA performance. We anticipate an exciting and productive 2009 for our guests, employees, vendors and shareholders. 
 New Hires – If an individual becomes a new participant during the plan year, the bonus award will be pro-rated based on the number of completed weeks of participation. 
 Leaves of Absence – Employees on an approved leave of absence during the bonus period will receive a pro-rated portion of the bonus that constitutes the time
that the employee has been physically at work. 
 Death and Disability – In the event of involuntary termination of employment for reasons of
death or continuing inability to perform job duties due to a medical condition (despite reasonable accommodation) any unpaid, earned incentive awards applicable to the bonus period shall be paid on pro-rata basis as soon as possible after the death
or disability. In the event of the death of a participant in the Plan, any bonus award shall be paid to the estate or designated beneficiary. 
 Other
Plan Provisions – Promotions and other intra and inter-company movement of employees shall be administered as specified by accepted company compensation administration practices. Where there is conflict between this Plan and other practices
previously set forth, the Company, in its sole and absolute discretion, shall make a determination of Plan eligibility. 
 Company Standards and Legal
Regulations – Awards distributed under this Plan are based on the understanding and condition that each participant will act, and will conduct the company’s business, in accordance with proper business practices, policies and
procedures, in strict compliance with all applicable laws and company policies, and according to the highest ethical standards. The Company, in its sole discretion, retains the right to modify, suspend, discontinue and deny bonus awards to
participants who fail to comply with established company policies and business ethics, or who fail to comply with applicable federal, state and local laws. 
  


					
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 Amendment or Termination of the Plan – The Company may terminate, amend, discontinue or modify this Plan at
any time without prior notice to participants. The Bonus Plan may be discontinued or changed by the Company at any time for any reason or no reason, and should not be regarded as a condition or agreement of employment. Nothing in this Plan alters
the at will status of employment, pursuant to which the company or a Plan participant can terminate their employment relationship without cause, notice or liability. 
 Financial Statements and Books and Records Conclusive – All determinations under this Plan shall be made in accordance with the Company’s internal methods of accounting and shall be based upon the
financial statements prepared by, as applicable, the Company’s finance department. For this purpose, the Company’s books and records will be conclusive. 
  


					
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 Exhibit A 2009 Targets 
  

				
	 Category
	  	Bonus % of Salary	 
	 Corporate Officer
	  	50	%
	 Senior Vice President Operations
	  	50	%
	 Vice Presidents
	  	30	%
	 Senior Director
	  	30	%
	 Directors
	  	25	%
	 Senior Manager
	  	20	%
	 Department Manager
	  	15	%
	 Other Salaried Employees
	  	10	%
	 Non-Exempt Supervisors
	  	10	%
	 Executive Administration
	  	10	%
	 Hourly-Paid Employees
	  	5	%

  


					
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