ANNUAL INCENTIVE PLAN FISCAL YEAR 2008 PROGRAM DESCRIPTION

Exhibit 10.1

ANNUAL INCENTIVE PLAN FISCAL YEAR 2008

PROGRAM DESCRIPTION

For Salary Grades 28+

Purpose

The objective of the Annual Incentive Plan (the “AIP” or the “Plan”) is to advance the interests of Sara Lee Corporation (“SLC”) by:

Incentive Opportunity & Performance Objectives

Attachment 1 shows the FY08 AIP Target and Maximum payout levels at the various salary grades.

The following applies to the Plan goals:

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Performance Period

All objectives are measured over a one-year performance period, i.e. the Incentive Plan Year which is July 1, 2007 to June 28, 2008.

Performance Level Definitions

In FY08 Sara Lee will continue to 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% above Target. Attachment 3 graphically displays this enhancement.

For FY08, the definition of the Threshold performance level has been changed. Threshold performance for each of the financial measures is typically defined as the prior year actual result for each measure. This definition does not however, apply to the Cash Flow performance measure. Cash Flow performance levels will be set based upon an independent assessment of factors such as planned capital expenditures for the fiscal year. The purpose of the revised Threshold definition is to provide effective performance incentives beginning with the first dollar of improvement versus the prior year’s actual results. The Level 2—Below Target performance level (50% of Target bonus) is the midpoint between the Threshold and Target performance levels. Similarly, the Level 4—Above Target performance level (135% of Target bonus) is the midpoint between the Target and Maximum performance levels.

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 above the Threshold level, mid-way between Threshold and Target.

Level 1 – Threshold – Performance that is below an acceptable level and not warranting any payout.

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Incentive Award Payout Levels

The following table is to be used in setting the performance goals at the various payout levels.

Performance Measure

Cash Flow goals for FY08 are based upon analyses completed by Financial Planning and Analysis and approved by the Chief Financial Officer.

Straight-line interpolation is used for calculating results between performance levels.

Business Segment leaders are expected to use appropriate discretion in applying the revised Threshold definition in practice. For example, for Business Segments with low growth targets (prior year results are above or equal to the Incentive Plan Year’s Target, or are greater than 90% of Target), Business Segment leaders should consider setting the Threshold at 90% of Target, or an alternatively appropriate level. Similar discretion should be used in setting the Maximum performance level. If, for example, business conditions have changed significantly since the formulation of the FY08 AOP, and 10% improvement no longer provides an appropriate level of stretch, or if a 10% performance improvement reflects too narrow a range of improvement relative to incremental payout, then Business Segment CEOs and CFOs should work with their Compensation business partner to set appropriate Maximum targets.

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, 2008 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 Executive Vice President Human Resources and Chief Financial 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:

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Attachment 1

SARA LEE CORPORATION

FY08 ANNUAL INCENTIVE PLAN

TARGETS AND MAXIMUMS

Attachment 2

SARA LEE CORPORATION

FY08 ANNUAL INCENTIVE PLAN

PERFORMANCE MEASURES AND WEIGHTINGS

Attachment 3

FY08 AIP Payout Curve

Operating Profit, Cash Flow, and Individual Measures

AIP Payout Curve

FY08 Sales Component

Attachment 4

Definitions