Exhibit 10.05(b)
Confidential treatment has been requested for certain portions of this Agreement
that have been redacted in this Exhibit. These portions are indicated by an
asterisk (*). The omitted portions of this Agreement have been separately filed
with the Securities and Exchange Commission.
VISTAR / VSA
Xxxxx X. Xxxxxxx
Vice President - Food Service Sales
June 20, 2003
Xx. Xxxxxxx Xxxxxxx
Sbarro, Inc.
000 Xxxxxxxxxxx Xxxx
Xxxxxxxx, XX 00000
Dear Xxxx:
I want to take a moment to express my appreciation for the follow-up and
pro-active work that you and your staff have done to address the case cost
concerns discussed in our recent meeting. Based upon the success of Xxxxxx and
Wendy's meeting this week and the support of your suppliers, we feel more
confident that our benchmark case cost of $* can be achieved in the near future.
Additionally, in respect of our relationship and in an effort to resolve the
misunderstanding associated with the xxxx-up versus margin issue, I suggest we
settle the issue going forward by adopting the following:
>> That the total short paid amounts reflective of * be evenly split
between our companies. This way, each party shares equally in any
prior misunderstanding.
>> Effective June 30, 2003, all corporate and franchised Sbarro stores
will be converted to an * percent * for all items except cheese, which
will be priced as per our current Distribution Agreement and Pepsi
Cola contracted items, which will be priced per your contract.
>> Effective with payments for all invoices beginning June 30, 2003,
short payments will be eliminated.
>> No later than July 30, 2003, Sbarro will reimburse to Vistar fifty
percent of the year-to-date short paid amounts up to invoices dated
June 29, 2003. As of this writing, the total amount of short pays to
Vistar totals approximately $*.
Xxxx, I believe this to be a fair and equitable settlement plan to resolve this
lingering issue and to position both of our companies to move forward as great
business partners committed to each parties success. I look forward to hearing
from you.
Please acknowledge your acceptance of this settlement by signing below.
Sbarro, Inc. Vistar Corporation
By: /s/ Xxxxxxx Xxxxxxx By: /s/ Xxxxx Xxxxxxx
------------------------------ -----------------------------------
Xxxxx Xxxxxxx (6/24/03)
Its: President, QSR (6/26/03) Its: Vice President - Foodservice Sales
LEK/jw
Enclosure
00000 Xxxx Xxxxxxxx Xxxx, Xxxxxxxxxx, XX 00000 - 0-000-000-0000
- xxx.XxxxxxXXX.xxx
