EXHIBIT 99.1
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December 10, 2006
Mr. Xxxxxx Xxxxxxx
000 Xxxx Xxxxxx
Xxxxxxx, XX 00000
Dear Xxxxxx,
On behalf of The Penn Traffic Company we are pleased to offer you the position
of VICE PRESIDENT, GENERAL COUNSEL. Your employment will commence on a date to
be mutually agreed upon. 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 $175,000.00 per year.
2. SIGN-ON BONUS. You will receive a sign on bonus in the total amount of
$42,500.00. The sign on bonus will be paid in two (2) installments. The first
installment of $28,750.00 will be payable on your date of hire. The second
installment of $13,750.00 will be paid three (3) months after your hire date.
3. MANAGEMENT PERFORMANCE INCENTIVE PROGRAM (BONUS). 40% of base at 100%
of Plan and increasing to 80% incrementally by exceeding the plan.
4. MISCELLANEOUS EXPENSES. Penn Traffic will provide payment for temporary
living costs for 3 months in the amount of $2,000.00 per month for your
transition. You will have one (1) year to exercise the relocation option.
5. BENEFITS. You will immediately be entitled to participate in all life,
health, and other benefits programs of the Company. The flexible spending
program will be available to you the first pay period of 2008.
6. 401(K) PLAN. You will be eligible to participate in Penn Traffic's
401(k) Plan six (6) months after your date of hire. When you contribute at
least 3% of your weekly pay, the Company will match 50% of the first 3 percent
of your pay after one year of service. You may defer up to the maximum dollar
amount allowed by law each year.
In addition, once you have completed 6 months of service and attained age 21,
The Penn Traffic Company will make a contribution of 3 percent of your total
compensation to your 401(k) plan each year. If you choose not to participate in
the 401(k) plan, an account will be set up for you for the 3 percent
contribution.
7. VACATION. You will be eligible for (four) 4 weeks paid vacation per
year.
8. SEVERANCE PLAN. Minimum of fifty-two (52) weeks of severance according
to Company policy.
9. CHANGE OF CONTROL. You will need to complete the document that will be
provided to you upon your date of hire. Your signature will need to be
witnessed here.
10. CURRENT EMPLOYER REIMBURSEMENT. In the event that your current employer
requires reimbursement for relocation/temporary living expenses, Penn Traffic
will provide that reimbursement to cover up to 4 months condo costs and
relocation related travel costs.
11. STOCK. You will participate in the company plan and receive stock
commensurate with your position at the time when the plan is executed for the
management team.
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 joining The Penn Traffic team. If you have any questions
regarding this offer letter or the position, please contact me directly.
Sincerely,
/s/ Xxxxxx Xxxxxxx
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Xxxxxx Xxxxxxx
Chief Operating Officer
The Penn Traffic Company
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Xxxxxx Xxxxxxx:
To acknowledge and accept 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 Friday, December 15, 2006.
I, _______________________ accept this offer on this ____ day of ________, 2006.
(please print)
Xxxxxx Xxxxxxx
____________________________
(signature)
cc: Xxx Xxxxxxx
Xxxxx Xxxxxx
Xxxxx Xxxxxx
Xxxxx XxXxx
