Eagle Food Centers
October 7, 1997
Xx. Xxxxx 0. Xxxxxxx VIA AIRBORNE EXPRESS
0000 X Xxxxxxxxxxx Xxxxx ---------------------
Maryland Heights, MO 63043
Dear Xxxxx:
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 Human Resources
Reports To: Xxx Xxxxx, President & CEO
Effective Date: As soon as possible.
Duties: Responsible for all human resource and labor relations
functions including negotiating and administering labor
contracts, associate related legal matters, associate
training and development, compensation and benefits
administration, and workers compensation administration.
It is estimated that approximately 80% of your time will be
devoted to human resources/labor relations responsibilities
and 20% to legal matters involving associate grievances,
arbitrations and litigation as well as reviewing contracts
and other legal documents from other parts of the Company.
Salary: $115,000
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.
Xx. Xxxxx Xxxxxxx
Page Two
October 7, 1997
Stock: Eagle will provide a stock option based on the following criteria:
Award Level: 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) yerars
of award thereof or once eligible, within
thirty (30) days following terminaiton 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.
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 attached.
Xx. Xxxxx Xxxxxxx
Page Three
October 7, 1997
Hopefully, you will find this summary to be acceptable. Xxxxx 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/ Xxx Xxxxx 10/6/97 /s/ Xxxxx X. Xxxxxxx
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Xxx Xxxxx Xxxxx X. Xxxxxxx
President and CEO DATE: 10/16/97
