EXHIBIT 99.1
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[GRAPHIC OMITTED]
[LOGO - THE PENN TRAFFIC COMPANY]
July 5, 2006
Mr. Xxxx Xxxxx
00 Xxxxxxxxx Xxxxx
Xxxxxxxxx, XX 00000
Dear Xxxx:
On behalf of The Penn Traffic Company and Xxx Xxxxxxx we are pleased to offer
you the position of SVP - CHIEF MARKETING OFFICER/DISTRIBUTION. Your employment
will commence on Monday, July 17, 2006. While this letter is not a contractual
agreement, it does contain the major elements of our offer to you.
1. SALARY. Your starting salary will be $300,000.00 per year.
2. SIGN-ON BONUS. $100,000.00 payable in 3 installments. First payment of 50%
upon date you start work in Syracuse, 25% after 3-months, and the final
payment after 6-months.
3. MANAGEMENT PERFORMANCE INCENTIVE PROGRAM (BONUS) At Plan, 45% of Base to
Max of 90% (Penn Traffic waives the "pro-rata" rule). You have already
been provided a copy of the Plan.
4. RELOCATION PLAN. Enhanced Executive Relocation Plan. As an offset to your
company car or car allowance request, Penn Traffic will provide $15,000 to
you after 60-days of employment for miscellaneous expenses associated with
your relocation to Central New York.
5. BENEFITS:
MEDICAL, DENTAL, VISION AND PRESCRIPTION DRUG COVERAGE: Effective on date
of hire.
TERM LIFE (CO. PAID)*: After 31 days of continuous service, Company
paid, 1 1/2 times salary.
SUPPLEMENTAL LIFE*: After 31 days of continuous service, Employee
paid 1x or 2x or 3x Salary. (Max. $650,000).
SHORT TERM DISABILITY: Effective on date of hire: Weeks 1 through 17,
100% of salary. For weeks 18-26, NYS Statutory
benefits.
LONG TERM DISABILITY: Effective on date of hire following 120 days of
disability, $5,000/mo. max. (Company paid).
*The combined maximum for Basic and Supplemental Life is $650,000.
6. VACATION. Four weeks paid vacation each year. Start August 1, 2007 you
will be entitled to five (5) weeks paid vacation each year.
7. 401(K) PLAN. Effective on date of hire. Subject to the limits required by
law and the Plan, (a) may defer from 1-25% of salary, taxed deferred, (b)
Company to match 50% of first 3% of employee deferral. In addition,
company to contribute 3% of your earned total compensation as further set
forth in Plan.
8. PENN TRAFFIC HOLIDAYS. Per Company Plan, currently six (6),
9. 5% EMPLOYEE DISCOUNT
10. SEVERANCE PLAN. 52 weeks of Severance.
11. CHANGE OF CONTROL. As described in Plan Document previously provided.
12. ANNUAL PAY AND PERFORMANCE REVIEW. Beginning of each Fiscal year.
It is important to reiterate that this letter is an offer of employment, and in
no way should be construed to be an employment contract for definite term.
Employment at The Penn Traffic Company is at-will, subject to termination by
the Company or you at any time.
We look forward to you rejoining the Penn Traffic team. If you have any
questions regarding this offer letter or the position, please contact me
directly.
Sincerely,
/s/ Xxxxxx X. Xxxxxxxx
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Xxxxxx X. Xxxxxxxx
Vice President, Human Resources
The Penn Traffic Company
cc: Xxx Xxxxxxx
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Xx. Xxxxxxx X. Xxxxx:
As agreement with the terms of this letter, please sign one
copy of this letter and retain the second copy for your files, Please
return to my attention by 12 Noon Monday, July 10, 2006
I, Xxxxxxx X. Xxxxx accept this offer on this 7th day of July, 2006.
/s/ Xxxxxxx X. Xxxxx
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(Signature)
