EXHIBIT 99.1
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[GRAPHIC OMITTED]
[LOGO - THE PENN TRAFFIC COMPANY]
May 2, 2007
Xx. Xxx X. Xxxxxx
0000 Xxxxx Xxxxx Xxxxx
Xxxxxxxx, XX 00000
Dear Xxx,
On behalf of Xxxxxx Xxxxxxx, President and CEO, we are pleased to offer you the
position of SENIOR VICE PRESIDENT, CHIEF FINANCIAL OFFICER. Your employment
will commence on May 14, 2007. 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 $275,000.00 per year, less
applicable withholdings, with a performance and salary review within the
first six months of employment in this role.
2. SIGN-ON BONUS. $50,000 "grossed up," 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). 45% of base at 100% of
Plan and increasing to 90% incrementally by exceeding the plan.
4. RELOCATION PLAN. At your option, not to exceed three and one-half years
for eligibility for Enhanced Executive Relocation Plan, "grossed up."
5. MISCELLANEOUS EXPENSES. In lieu of company car, Perm Traffic will provide
$15,000 "grossed up" to you after 60 days of employment. Company will pay
for temporary housing not to exceed $2,500 per month and reasonable
travel home expenses for up to nine months.
6. BENEFITS. Medical, Dental, Vision, and Prescription coverage: effective
on date of hire.
Term Life (Co. Paid)*: After 31 days of continuous service, Company paid,
1 1/2 times salary.
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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 through 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.
The flexible spending program will be available to you the first pay
period of 2008.
7. 401(K) PLAN. Effective after 6 months of employment. Subject to the
limits required by law and the Plan: a) may defer from 1 - 25% of salary,
tax deferred; b) Company to match 50% of the first 3% of employee
deferral after 1 year of employment. You may defer up to the maximum
dollar amount allowed by law each year.
In addition, once you have completed 6 months of service, 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.
8. VACATION. You will be eligible for (four) 4 weeks paid vacation per year.
9. PENN TRAFFIC HOLIDAYS: Per Company plan, currently six (6).
10. 5% Employee Discount
11. SEVERANCE PLAN. Fifty-two (52) weeks of severance according to Company
policy.
12. 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.
13. STOCK. You will participate in the company "Omnibus" plan and receive
stock commensurate with your position at the time when the plan is
executed for the management team.
14. ANNUAL PAY AND PERFORMANCE REVIEW. Beginning of each fiscal year with
rest of management team.
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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/ Xxxxxxxxx XxXxxxx
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Xxxxxxxxx XxXxxxx
Vice President, Human Resources & Labor Relations
The Penn Traffic Company
Xxx Xxxxxx:
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 Thursday May 3, 2007.
I, XXX X. XXXXXX accept this offer on this 3rd day of May, 2007.
/s/ Xxx X. Xxxxxx
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Xxx X. Xxxxxx
cc: Xxx Xxxxxxx
