EXHIBIT 10.25
Xxxxx Xxxx Xxxxxxx
X.X. Xxx 0000, Xxxx Xxxxxx, Xxxxxxxx 61204-6700/Executive
Offices & Distribution Center: Xx. 00 & Xxxxxxxxx Xxxx, Xxxxx, Xxxxxxxx 00000
Telephone: 000-000-0000/Fax: 000-000-0000
September 8, 1997
Xx. Xxx Xxxxxxx
0000 X. Xxxxxxx Xxxxxx Xxxxxx
Xxxxx, Xxxx 00000
Dear Xxx:
This letter is intended to define the terms of the employment offer being
proposed by Eagle Food Centers, Inc. Please recognize this is by no means an
employment agreement, but simply serves to clarify our previous discussions.
Title: Vice President and Controller
Reports To: Xxxx Xxxxxxxx, Senior Vice President, CFO
Effective Date: As Soon As Possible
Duties: Responsible for all accounting functions and controls,
budgeting, internal and external reporting. Responsible for
developing a professional staff and for working closely with
operating, distribution, and marketing departments to
develop sound procedures and reporting vehicles and in
analyzing and interpreting results and trends.
Salary: $80,000
Signing Bonus: $10,000
Annual Incentive Bonus Potential: Participation in the Eagle bonus plan at
the administrative vice president targeted
norm of thirty percent (30%) of average
annual salary with a maximum potential of
sixty percent (60%) should the Company
exceed budgeted expectations as defined in
the plan. Payout or partial payout is
contingent on Company performance with
final determination solely vested with the
Board of Directors. Employment at time of
payout (late March) is a prerequisite for
payment. First year bonus is pro-rated
based on average salary earned.
Stock: Eagle will provide a stock option based on the following criteria:
Award: 15,000 shares
Xxxxx Xxxxx: The closing price on date of
employment.
Vesting Schedule: 25% at each of the first four
anniversaries of the grant and
options must be exercised within
ten (10) years of award thereof or
once eligible, within thirty (30)
days following termination of
employment.
Award Level: 10,000 shares on the first
anniversary of employment.
Xxxxx Xxxxx: Closing price on that day in 1998.
Vesting Schedule: Same as above.
Relocation: Eagle will provide reimbursement of all usual and
customary real estate fees associated with the sale of
your primary residence not to exceed seven (7%) of the
documented sale price. Packing and movement of household
goods will be provided in accordance with polity.
Execution of the physical move must be completed within
six (6) months of your date of hire or the terms described
herein shall be vacated. Relocation costs to be repaid if
employment is terminated by associate within six months.
Temporary Living: $3,000 to be paid in advance to cover temporary living
expenses. Trips home every 2 - 3 weeks would fall within
the "reasonable" guidelines.
Househunting: Reasonable costs of two househunting trips for yourself
and spouse.
Vacation: Four weeks from start date to December 31, 1998. Four
weeks per calendar year thereafter.
Benefits: Enrollment in the Eagle Food Centers, Inc. health and
welfare plan upon the completion of the ninety (90) day
eligibility period. The Company will pay for up to ninety
(90) days of documented COBRA contributions to assure
continuation of benefits throughout the eligibility period
as defined above. Another copy of the Eagle benefits
package will be mailed to you today.
Severance: Severance agreement covering one year of salary and
average bonus if employment is terminated due to change of
control.
Hopefully, you will find this summary to be acceptable. Eagle offers a great
challenge and the change to participate in an exciting turnaround effort. It
will be a pleasure working with you and I look forward to your becoming a
valuable and contributing member of the management team. Please give me a call
so we can finalize the details and answer any questions.
Very truly yours,
EAGLE FOOD CENTERS, INC. ACCEPTANCE:
/s/ Xxxxxxx X. Xxxxxxxx /s/ Xxx Xxxxxxx
XXXXXXX X. XXXXXXXX ------------------------
Senior V.P. - Finance & Administration & DATE: 9/15/97
Chief Financial Officer -------------------
