Document:

Exhibit 10.10

                                                                  Execution Copy

                              Pathmark Stores, Inc.

                                February 1, 2000

John Sheehan
c/o Pathmark Stores, Inc.
200 Milik Street
Carteret, New Jersey 07008

                       Sale and Retention Bonus Agreement
                       ----------------------------------
Dear John:

              The following sets forth the agreement between you and Pathmark
Stores, Inc., a corporation organized under the laws of Delaware (the
"Company"), regarding the terms of the sale bonus (the "Sale Bonus") and the
retention bonus (the "Retention Bonus") that you may be eligible to receive in
accordance with the terms and conditions set forth below. This letter agreement
(the "Letter Agreement") is in addition to, and not in substitution for, any
other agreements between or among you and the Company Group (as defined below),
including without limitation the employment agreement between you and the
Company, dated February 1, 1999 (the "Employment Agreement"), and the Retention
Bonus and the Sale Bonus are in addition to, and not in substitution for, any
other pay or benefits to which you are eligible to earn from the Company Group.

              1. Definitions. For purposes of this Letter Agreement, the
following capitalized words that are not otherwise defined in the text of the
Letter Agreement shall have the meanings set forth below:

              "Aggregate Consideration" shall mean an amount equal to the sum of
         the aggregate fair market value of any securities issued and any other
         non-cash consideration delivered, and any cash consideration paid to
         the Company Group or its security holders in connection with a Change
         in Control, plus the amount of all indebtedness of the Company Group
         which is assumed or acquired by any Purchaser in connection with a
         Change in Control or retired or defeased in connection with such Change
         in Control. The fair market value of any securities issued and any
         other non-cash consideration delivered in connection with a Change in
         Control will be the value determined in good faith by the Board.

              "Beneficial Owner" shall have the meaning given to such term in
         Rule 13D-3 under the Securities and Exchange Act of 1934, as amended.

              "Board" shall mean the Board of Directors of Holdings.

              "Change in Control" shall mean the consummation of a Triggering
         Event.

              "Company" shall mean Pathmark Stores, Inc.

              "Company Group" shall mean, individually and as a group, Holdings,
         the Company, PTK Holdings, Inc. and Supermarkets General Holdings
         Corporation, and any successors thereto.

              "Effective Date" shall mean February 1, 2000.

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<PAGE>

              "Holdings" shall mean SMG-II Holdings Corporation, a corporation
         organized under the laws of the State of Delaware.

              "Independent Third Party" shall mean any entity other than a
         member of the Company Group or any of the Stockholders or any entity
         controlled by or under common control with any of the Stockholders or
         the Company Group.

              "Payment Date" shall mean July 31, 2000.

              "Purchaser" shall mean any Independent Third Party that engages in
         a Change in Control.

              "Sellers" shall mean selling equity holders, which holders may be
         at the level of any of the Company Group.

              A "Triggering Event" shall be deemed to have occurred on the date
         that any of he following shall have occurred:

              (A) any member of the Company Group enters into a binding
         agreement with one or more Independent Third Parties to directly
         acquire, in exchange for cash, stock, claims, or property, fifty
         percent or more of the aggregate equity securities of Holdings for
         which the MLCP Investors and the Equitable Investors (as defined in the
         Amended and Restated Stockholders Agreement among Holdings and its
         Stockholders, dated January 22, 1998) (together, the "Stockholders")
         are Beneficial Owners as of the Effective Date;

              (B) any member of the Company Group enters into a binding
         agreement providing for a merger, consolidation, reorganization or
         other business combination upon consummation of which one or more
         Independent Third Parties would own or control fifty percent or more of
         either (i) the aggregate voting securities of the Company Group, (ii)
         the aggregate economic interest of the outstanding equity securities of
         the Company Group or (iii) the aggregate value of the assets of the
         Company;

              (C) any member of the Company Group enters into transaction upon
         consummation of which an Independent Third Party would acquire in
         exchange for cash, stock, claims or property fifty percent or more of
         either (I) the aggregate equity securities of the Company, PTK
         Holdings, Inc. or Supermarkets General Holdings Corporation, or (II)
         the Company's assets; or

              (D) any member of the Company Group files a plan of reorganization
         or motion for relief in a case under title 11 of the United States Code
         for the purpose of implementing an agreement or transaction of the type
         described in any of the preceding clauses (A), (B) or (C);

         provided, however, that a Triggering Event shall not include any change
         of ownership resulting from a public offering of any of the securities
         of any of the Company Group pursuant to an effective registration
         statement under the Securities Act of 1933, as amended.

              2. Term. The term of this Letter Agreement (the "Term") shall
commence on the Effective Date and shall continue until the later of (a) first
anniversary of the Effective Date if a Triggering Event does not occur prior to
such anniversary or (b) in the event that a Triggering Event occurs prior to the
first anniversary of the Effective Date, either the date of a Change in Control
that occurs subsequent to a corresponding Triggering Event or the date the
Triggering Event is definitively canceled or otherwise becomes void.

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              3. Retention Bonus.

              In consideration of, and subject to, your continued employment
with the Company during the period beginning on the Effective Date and ending on
the Payment Date, the Company will pay you a Retention Bonus equal to the annual
rate of your base salary, as in effect on the Payment Date. The Company will pay
the Retention Bonus to you in a lump sum cash amount as soon as practicable
after the Payment Date but in no event more than thirty days thereafter.

              4. Sale Bonus.

              (a) General Terms. You will become entitled to receive the Sale
Bonus in the event that (I) a Triggering Event occurs during the Term, and (ii)
a Change in Control contemplated by such Triggering Event occurs thereafter. The
amount of the Sale Bonus shall be equal to 0.0010 multiplied by the Aggregate
Consideration.

              (b) Payment of Sales Bonus. (I) Change in Control--No Post-Closing
Adjustment. In the event that the transaction resulting in a Change in Control
does not include any provisions either (A) for an earn-out with respect to which
a part of the Aggregate Consideration will be paid to the Sellers either in full
or in part in one or more installments after the Change in Control or any
similar deferral of the payment of the Aggregate Consideration or (B) that would
potentially require the Sellers to reimburse any portion of the Sale Price to
the purchaser or require the purchaser to pay to the Sellers any amount in
addition to the Aggregate Consideration, as a result of a post-closing
adjustment or any other reason, after the Change in Control (either (A) or (B),
a "Post-Closing Adjustment"), the Company shall pay to you the Sale Bonus within
five days following the date of such Change in Control; provided, however, that
in no event shall the Sale Bonus be payable to you until the full amount of the
Aggregate Consideration has been paid to the Sellers.

              (ii) Change in Control--Post-Closing Adjustment. In the event that
the Change in Control transaction includes provisions for any Post-Closing
Adjustment, the Company shall pay the Sale Bonus according to the terms of this
Section 4(b)(ii).

              (A) In the event that the Change in Control transaction includes a
         Post-Closing Adjustment described in Section 4(b)(I)(A) above, the
         Company shall pay you a portion of the Sale Bonus within five days
         after the date of such Change in Control equal to 0.0010 multiplied by
         the portion of the Aggregate Consideration paid to the Sellers on or
         about the date of the Change in Control. Thereafter, within five days
         after any additional portion of the Aggregate Consideration is paid to
         the Sellers, the Company shall pay you a portion of the Aggregate
         Consideration multiplied by 0.0010.

              (B) In the event that the Change in Control transaction is a
         Post-Closing Adjustment described in Section 4(b)(I)(B) that would
         potentially require the Sellers to reimburse any portion of the
         Aggregate Consideration to the purchaser after the Change in Control,
         within five days after the date of such Change in Control, the Company
         shall pay you a portion of the Sale Bonus determined in good faith by
         the Board immediately prior to the consummation of the Change in
         Control, less an amount that shall take into account the potential
         adjustment to the Sales Price (the "Withheld Amount"). As soon as
         practicable after the Sellers know with certainty the portion, if any,
         of the Sale Price that the Sellers must reimburse to the purchaser and
         the Sellers make such reimbursement, if any, the Company shall pay to
         you a prorated portion of the Withheld Amount corresponding to the
         portion of the maximum potential amount that Sellers may have been
         required to reimburse to the purchaser less the amount actually
         reimbursed.

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<PAGE>

              (C) In the event that the Change in Control transaction is a
         Post-Closing Adjustment described in Section 4(b)(I)(B) that would
         potentially require the purchaser to pay to the Sellers any amount in
         addition to the Sale Price after the Change in Control, within five
         days after the date of such Change in Control, the Company shall pay
         you the Sale Bonus. Thereafter, within five days after the purchaser
         knows with certainty the additional amount that such purchaser must pay
         to the Sellers, if any, and the purchaser makes such payment to the
         Sellers, the Company shall pay to you an additional amount determined
         in good faith by the Board that shall take into account the additional
         payment made by the purchaser to the Sellers.

              (c) Determination of the Board Final. The determination of whether
a Triggering Event or Change in Control has occurred, the amount of the
Aggregate Consideration and the amount of any Sale Bonus shall be made in good
faith by the Board (unless otherwise required by applicable law) and, absent
manifest error, shall be final and binding on you, the Company Group and all
other interested parties.

              (d) Single Sales Bonus. The parties hereto acknowledge and agree
that you shall be entitled to receive only one Sale Bonus under this Letter
Agreement which shall become payable in connection with the first Triggering
Event that occurs during the Term and that in the event any additional
Triggering Event occurs during the Term, you will not be entitled to any Sale
Bonus as a consequence thereof.

              5. Effect of Termination of Employment.

              (a) Involuntary Termination. In the event of your Involuntary
Termination (as defined in the Employment Agreement) prior to the Payment Date,
you shall be entitled to receive the Retention Bonus in accordance with the
terms of Section 3, as if your employment had continued until such Payment Date.
In the event of your Involuntary Termination on or after August 1, 2000 and
prior to a Triggering Event, you shall remain entitled to receive the Sale Bonus
in the event of a subsequent Triggering Event and a corresponding Change in
Control in the same manner as if your employment with the Company had continued
through the end of the Term.

              (b) Other Termination. In the event that your employment
terminates for any reason other than an Involuntary Termination prior to the
Payment Date, you shall forfeit your right to the Retention Bonus in its
entirety. Similarly, in the event that your employment terminates for any reason
other than an Involuntary Termination at any time during the Term, you shall
forfeit any right you may have to receive the Sale Bonus.

              6. Notice. For the purpose of this Letter Agreement, notices and
all other communications provided for in this Letter Agreement shall be in
writing and shall be deemed to have been duly given when delivered by hand, sent
by telecopier or mailed by United States registered mail, return receipt
requested, postage prepaid, addressed to the Chief Executive Officer, Pathmark
Stores, Inc., 200 Milik Street, Carteret, New Jersey 07008, telecopier: (732)
499-3460, with a copy to the General Counsel of the Company, or to you at the
address set forth on the first page of this Letter Agreement or to such other
address as either party may have furnished to the other in writing in accordance
herewith, except that notice of change of address shall be effective only upon
receipt.

              7. Reduction of Payments if Reduction Would Result in Greater
After-Tax Amount. Notwithstanding anything herein to the contrary, if the
payment of the Retention Bonus or the Sale Bonus (together, the "Payments")
constitute a "parachute payment" (as defined in Section 280G(b)(2) of the
Internal Revenue Code of 1986, as amended (the "Code")), and the net after-tax
amount of the parachute payment is less than the net after-tax amount if the
aggregate Payments to be made to you were three

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<PAGE>

times your "base amount" (as defined in Section 280G(b)(3) of the Code), less
$1.00, then the aggregate of the amounts of the Sale Bonus and/or Retention
Bonus constituting the parachute payment shall be reduced to an amount that will
equal three times your base amount, less $1.00.

              8. Miscellaneous.

              (a) No Rights to Continued Employment. Neither this Letter
Agreement nor any of the rights or benefits evidenced hereby shall confer upon
you any right to continuance of employment by the Company or interfere in any
way with the right of the Company to terminate your employment, subject to the
provisions of Section 5 above, for any reason, with or without Cause.

              (b) Amendments, Waivers. No provision of this Letter Agreement may
be modified, waived or discharged unless such waiver, modification or discharge
is agreed to in writing by the parties hereto. No waiver by either party hereto
at any time of any breach by the other party hereto of, or compliance with, any
condition or provision of this Letter Agreement to be performed by such other
party shall be deemed a waiver of similar or dissimilar provisions or conditions
at the same or at any prior or subsequent time.

              (c) Counterparts. This Letter Agreement may be executed in
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.

              (d) Withholding. Amounts paid to you hereunder shall be subject to
all applicable federal, state and local wage withholdings.

              (e) Headings. The headings contained in this Letter Agreement are
intended solely for convenience of reference and shall not affect the rights of
the parties to this Letter Agreement.

              (f) Stockholder Approval. This Letter Agreement shall become
effective only if it is approved by a majority of seventy-five percent of the
stockholders of Holdings, Supermarkets General Holdings Corporation, PTK
Holdings, Inc. and the Company within one-hundred and eighty days after date
first shown above. In the event that such stockholders do not approve this
Agreement on or before the one-hundred and eightieth day after the date of this
Letter Agreement, it shall automatically lapse and become void.

              (g) Governing Law. The validity, interpretation, construction and
performance of this Letter Agreement shall be governed by the laws of the State
of New Jersey applicable to contracts entered into and performed in such state.

              If this Letter Agreement sets forth our agreement on the subject
matter hereof, kindly sign and return to the Company the enclosed copy of this
letter, which will then constitute our agreement on this subject.

                                               Sincerely,

                                               PATHMARK STORES, INC.

                                               By
                                                 -------------------------------
                                                 Name:
                                                 Title:

Agreed to as of this ___th day of _______, 2000.

---------------------------------------
           John Sheehan

                                       5Exhibit 10.11

                PATHMARK STORES, INC. 2000 EMPLOYEE EQUITY PLAN

1.       Purposes

         The purposes of the Pathmark Stores, Inc. 2000 Employee Equity Plan
(the "Plan") are to attract, retain and motivate key employees of the Company,
to compensate them for their contributions to the growth and profits of the
Company and to encourage ownership by them of Common Stock.

2.       Definitions

         For purposes of the Plan, the following terms shall be defined as
follows:

                  "Administrator" means the individual or individuals to whom
         the Committee delegates authority under the Plan in accordance with
         Section 3(d).

                  "Award" means an award made pursuant to the terms of the Plan
         to an Eligible Individual in the form of Stock Options, Stock
         Appreciation Rights, Stock Awards, Restricted Stock Units, Performance
         Units or Other Awards.

                  "Award Agreement" means a written document approved in
         accordance with Section 3 which sets forth the terms and conditions of
         the Award to the Participant. An Award Agreement may be in the form of
         (i) an agreement between the Company which is executed by an officer on
         behalf of the Company and is signed by the Participant or (ii) a
         certificate issued by the Company which is executed by an officer on
         behalf of the Company but does not require the signature of the
         Participant.

                  "Board" means the Board of Directors of the Company.

                  "Change in Control" shall mean any of the following:

                           (i) the acquisition by any Person of beneficial
                  ownership (within the meaning of Rule 13d-3 promulgated under
                  the Exchange Act) of 35% or more of the Common Stock then
                  outstanding, but shall not include any such acquisition by any
                  employee benefit plan of the Company, any Person or entity
                  organized, appointed or established by the Company for or
                  pursuant to the terms of any such employee benefit plan; any
                  Person (other than any of Fidelity Management & Research
                  Company or Fidelity Management Trust Company or by any fund or
                  account associated with either Fidelity Management & Research
                  Company or Fidelity Management Trust Company) who as of
                  September 19, 2000 was the beneficial owner of 15% or more of
                  the shares of Common Stock outstanding on such date unless and
                  until such Person, together with all Affiliates of such
                  Person, becomes the beneficial owner of 35% or more of the
                  shares of Common Stock then outstanding whereupon a Change in
                  Control shall be deemed to have occurred;

                           (ii) consummation after approval by the shareholders
                  of Pathmark of either (A) a plan of complete liquidation or
                  dissolution of Pathmark or (B) a merger, amalgamation or
                  consolidation of Pathmark with any other corporation,

<PAGE>

                  the issuance of voting securities of Pathmark in connection
                  with a merger or consolidation of Pathmark or sale or other
                  disposition of all or substantially all of the assets of
                  Pathmark or the acquisition of assets of another corporation
                  (each, a "Business Combination"), unless, in each case of a
                  Business Combination, immediately following such Business
                  Combination, all or substantially all of the individuals and
                  entities who were the beneficial owners of the Common Stock
                  outstanding immediately prior to such Business Combination
                  beneficially own, directly or indirectly, more than 50% of the
                  then outstanding shares of common stock and 50% of the
                  combined voting power of the then outstanding voting
                  securities entitled to vote generally in the election of
                  directors, as the case may be, of the entity resulting from
                  such Business Combination (including, without limitation, an
                  entity which as a result of such transaction owns the Company
                  or all or substantially all of Pathmark's assets either
                  directly or through one or more subsidiaries) in substantially
                  the same proportions as their ownership, immediately prior to
                  such Business Combination, of the Common Stock; or

                           (iii) the individuals who, as of September 19, 2000,
                  constitute the Board, and subsequently elected members of the
                  Board whose election is approved or recommended by at least a
                  majority of such current members or their successors whose
                  election was so approved or recommended (other than any
                  subsequently elected members whose initial assumption of
                  office occurs as a result of an actual or threatened election
                  contest with respect to the election or removal of directors
                  or other actual or threatened solicitation of proxies or
                  consents by or on behalf of a Person other than the Board),
                  cease for any reason to constitute at least a majority of such
                  Board.

                  For purposes of the above definition of Change in Control
         only, the following defined terms shall apply:

                           "Affiliate" means, with respect to any Person, any
                  other entity which (i) is a Subsidiary of such Person, (ii)
                  is, directly or indirectly, under common control with such
                  Person, or (iii) is, directly or indirectly, controlling such
                  Person.

                           "Person" means any person, entity or "group" within
                  the meaning of Section 13(d)(3) or Section 14(d)(2) of the
                  Exchange Act, except that such term shall not include (i) the
                  Company or any of its subsidiaries, (ii) a trustee or other
                  fiduciary holding securities under an employee benefit plan of
                  the Company, (iii) an underwriter temporarily holding
                  securities pursuant to an offering of such securities, or (iv)
                  an entity owned, directly or indirectly, by the shareholders
                  of Pathmark in substantially the same proportions as their
                  ownership of stock of Pathmark.

                           "Subsidiary" means with respect to any Person, any
                  entity of which:

                           (i) if a corporation, a majority of the total voting
                  power of shares of stock entitled (without regard to the
                  occurrence of any contingency) to vote in the election of
                  directors, managers or trustees thereof is at the time of

                                       2

<PAGE>

                  determination owned or controlled, directly or indirectly,
                  collectively or individually, by such Person or by one or more
                  Affiliates of such Person, and

                           (ii) if a partnership, association, limited liability
                  company or other entity, a majority of the partnership,
                  membership or other similar ownership interest thereof is at
                  the time of determination owned or controlled, directly or
                  indirectly, collectively or individually, by such Person or by
                  one or more Affiliates of such Person.

                                      ****

                           "Code" means the Internal Revenue Code of 1986, as
                  amended, and the applicable rulings and regulations (including
                  any proposed regulations) thereunder.

                           "Committee" means the Compensation Committee of the
                  Board, any successor committee thereto or any other committee
                  appointed from time to time by the Board to administer the
                  Plan. The Committee shall consist of at least two individuals
                  and shall serve at the pleasure of the Board.

                           "Common Stock" means the Common Stock of the Company,
                  par value $.01 per share, or such other class or kind of
                  shares or other securities as may be applicable under Section
                  15 below.

                           "Company" means, individually and collectively,
                  Pathmark and its Subsidiaries, and any successor thereto.

                           "Eligible Individuals" means the individuals
                  described in Section 6 who are eligible for Awards under the
                  Plan.

                           "Exchange Act" means the Securities Exchange Act of
                  1934, as amended, and the applicable rulings and regulations
                  thereunder.

                           "Excluded Individual" means (i) any individual who is
                  designated by the Company at the time of hire as not eligible
                  to participate in the Plan or (ii) any individual who is
                  treated or designated by the Company as an independent
                  contractor, leased employee (including, without limitation, a
                  "leased employee" as defined in Section 414(n) of the Code) or
                  consultant. Excluded Individuals are not eligible to
                  participate in or receive benefits under the Plan. If any
                  Excluded Individual pursuant to the preceding clauses (i) or
                  (ii) shall be determined by a court or federal, state or local
                  regulatory or administrative authority to have served as a
                  common law employee of the Company, such determination shall
                  not alter such person's status as an Excluded Individual for
                  purposes of the Plan

                           "Fair Market Value" means, with respect to a share of
                  Common Stock, the fair market value thereof as of the relevant
                  date of determination, as determined in accordance with a
                  valuation methodology approved by the Committee, and according
                  to the following, as applicable:

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<PAGE>

                           (i) If the Common Stock is quoted on the NASDAQ
                  National Market , in the absence of any alternative valuation
                  methodology approved by the Board, the Fair Market Value of a
                  share of Common Stock shall equal the per share closing price
                  quoted on the day immediately prior to the date of grant as
                  reported in the transactions index of each such exchange, as
                  published in The Wall Street Journal, or, if no closing price
                  was quoted in any such index for such date, then as of the
                  next preceding date on which such a closing price was quoted;

                           (ii) If the Common Stock is not quoted on the NASDAQ
                  National Market, but is publicly traded on another national
                  securities exchange or quoted on an automated system, the Fair
                  Market Value of a share of Common Stock shall equal the per
                  share closing price quoted on the day immediately prior to the
                  date of grant as reported in the transactions index of each
                  such exchange or automated system, as published in The Wall
                  Street Journal, or, if no closing price was quoted in any such
                  index for such date, then as of the next preceding date on
                  which such a closing price was quoted; and

                           (iii) If the Common Stock is not publicly traded on a
                  national securities exchange or quoted on the NASDAQ National
                  Market or any other automated system, the Fair Market Value of
                  a share of Common Stock shall be reasonably determined in good
                  faith by the Board.

                           "Incentive Stock Option" means a Stock Option that is
                  an "incentive stock option" within the meaning of Section 422
                  of the Code and designated by the Committee as an Incentive
                  Stock Option in an Award Agreement.

                           "Nonqualified Stock Option" means a Stock Option that
                  is not an Incentive Stock Option.

                           "Other Award" means any other form of award
                  authorized under Section 13 of the Plan.

                           "Participant" means an Eligible Individual to whom an
                  Award has been granted under the Plan.

                           "Pathmark" means Pathmark Stores, Inc., a Delaware
                  corporation.

                           "Performance Unit" means a performance unit granted
                  to an Eligible Individual pursuant to Section 12 hereof.

                           "Restricted Stock Unit" means a restricted stock unit
                  granted to an Eligible Individual pursuant to Section 11
                  hereof.

                           "Stock Appreciation Right" means a right to receive
                  all or some portion of the appreciation on shares of Common
                  Stock granted to an Eligible Individual pursuant to Section 9
                  hereof.

                           "Stock Award" means a share of Common Stock granted
                  to an Eligible Individual for

                                       4

<PAGE>

                  no consideration other than the provision of services or offer
                  for sale to an Eligible Employee at a purchase price
                  determined by the Committee, in either case pursuant to
                  Section 10 hereof.

                           "Stock Option" means an Award to purchase shares of
                  Common Stock granted to an Eligible Individual pursuant to
                  Section 8 hereof, which Award may be either an Incentive Stock
                  Option or a Nonqualified Stock Option.

                           "Subsidiary" means (i) a corporation or other entity
                  with respect to which Pathmark, directly or indirectly, has
                  the power, whether through the ownership of voting securities,
                  by contract or otherwise, to elect at least a majority of the
                  members of such corporation's board of directors or analogous
                  governing body, or (ii) any other corporation or other entity
                  in which Pathmark, directly or indirectly, has an equity or
                  similar interest and which the Committee designates as a
                  Subsidiary for purposes of the Plan.

3.       Administration of the Plan

         (a) Power and Authority of the Committee. The Plan shall be
administered by the Committee, which shall have full power and authority,
subject to the express provisions hereof:

         (i)      to select Participants from the Eligible Individuals;

         (ii)     to make Awards in accordance with the Plan;

         (iii)    to determine the number of shares of Common Stock subject to
                  each Award or the cash amount payable in connection with an
                  Award;

         (iv)     to determine the terms and conditions of each Award, other
                  than the terms and conditions that are expressly required
                  under the terms of the Plan;

         (v)      to specify and approve the provisions of the Award Agreements
                  delivered to Participants in connection with their Awards;

         (vi)     to construe and interpret any Award Agreement delivered under
                  the Plan;

         (vii)    to prescribe, amend and rescind rules and procedures relating
                  to the Plan;

         (viii)   to vary the terms of Awards to take account of tax, securities
                  law and other regulatory requirements of foreign
                  jurisdictions;

         (ix)     subject to the provisions of the Plan and subject to such
                  additional limitations and restrictions as the Committee may
                  impose, to delegate to one or more officers of the Company
                  some or all of its authority under the Plan;

                                       5

<PAGE>

         (x)      to employ such legal counsel, independent auditors and
                  consultants as it deems desirable for the administration of
                  the Plan and to rely upon any opinion or computation received
                  therefrom; and

         (xi)     to make all other determinations and to formulate such
                  procedures as may be necessary or advisable for the
                  administration of the Plan.

         (b) Plan Construction and Interpretation. The Committee shall have full
power and authority, subject to the express provisions hereof, to construe and
interpret the Plan.

         (c) Determinations of Committee Final and Binding. All determinations
by the Committee in carrying out and administering the Plan and in construing
and interpreting the Plan shall be final, binding and conclusive for all
purposes and upon all persons interested herein.

         (d) Delegation of Authority. The Committee may, but need not, from time
to time delegate some or all of its authority under the Plan to an Administrator
consisting of one or more members of the Committee or of one or more officers of
the Company; provided, however, that the Committee may not delegate its
authority (i) to make Awards to Eligible Individuals who are officers of the
Company who are delegated authority by the Committee hereunder, or (ii) under
Sections 3(b) and 16 of the Plan. Any delegation hereunder shall be subject to
the restrictions and limits that the Committee specifies at the time of such
delegation or thereafter. Nothing in the Plan shall be construed as obligating
the Committee to delegate authority to an Administrator, and the Committee may
at any time rescind the authority delegated to an Administrator appointed
hereunder or appoint a new Administrator. At all times, the Administrator
appointed under this Section 3(d) shall serve in such capacity at the pleasure
of the Committee. Any action undertaken by the Administrator in accordance with
the Committee's delegation of authority shall have the same force and effect as
if undertaken directly by the Committee, and any reference in the Plan to the
Committee shall, to the extent consistent with the terms and limitations of such
delegation, be deemed to include a reference to the Administrator.

         (e) Liability of Committee. No member of the Committee shall be liable
for any action or determination made in good faith, and the members of the
Committee shall be entitled to indemnification and reimbursement in the manner
provided in Pathmark's Certificate of Incorporation as it may be amended from
time to time. In the performance of its responsibilities with respect to the
Plan, the Committee shall be entitled to rely upon information and advice
furnished by the Company's officers, the Company's accountants, the Company's
counsel and any other party the Committee deems necessary, and no member of the
Committee shall be liable for any action taken or not taken in reliance upon any
such advice.

         (f) Action by the Board. Anything in the Plan to the contrary
notwithstanding, any authority or responsibility which, under the terms of the
Plan, may be exercised by the Committee may alternatively be exercised by the
Board.

4.       Effective Date and Term

         The Plan shall become effective upon its adoption by the Board subject
to its approval by the stockholders of Pathmark. Prior to such stockholder
approval, the Committee may grant

                                       6

<PAGE>

Awards conditioned on stockholder approval. If such stockholder approval is not
obtained at or before the first annual meeting of stockholders to occur after
the adoption of the Plan by the Board (including any adjournment or adjournments
thereof), the Plan and any Awards made thereunder shall terminate ab initio and
be of no further force and effect. In no event shall any Awards be made under
the Plan after the tenth anniversary of the date of stockholder approval.

5.       Shares of Common Stock Subject to the Plan

         (a) General. Subject to adjustment as provided in Section 15(b) hereof,
the number of shares of Common Stock that may be issued pursuant to Awards under
the Plan (the "Section 5 Limit") shall not exceed, in the aggregate 5,164,118
shares. Shares issued under this Plan may be either authorized but unissued
shares, treasury shares or any combination thereof.

         (b) Rules Applicable to Determining Shares Available for Issuance. For
purposes of determining the number of shares of Common Stock that remain
available for issuance, the following shares shall be added back to the Section
5 Limit and again be available for Awards:

         (i)      The number of shares tendered to pay the exercise price of a
                  Stock Option or other Award; and

         (ii)     The number of shares withheld from any Award to satisfy a
                  Participant's tax withholding obligations or, if applicable,
                  to pay the exercise price of a Stock Option or other Award.

In addition, any shares underlying Substitute Awards shall not be counted
against the Section 5 Limit.

6.       Eligible Individuals

         Awards may be granted by the Committee to individuals ("Eligible
Individuals") who are: (i) officers or other key employees of the Company; (ii)
employees of joint ventures, partnerships or similar business organizations in
which the Company has a direct or indirect equity interest; and (iii)
individuals who provide services to any similar joint ventures or business
organizations in which the Company may participate in the future. Excluded
Individuals are not eligible to receive Awards under the Plan. Members of the
Committee will not be eligible to receive Awards under the Plan. An individual's
status as an Administrator will not affect his or her eligibility to participate
in the Plan.

7.       Awards in General

         (a) Types of Award and Award Agreement. Awards under the Plan may
consist of Stock Options, Stock Appreciation Rights, Stock Awards, Restricted
Stock Units, Performance Units or Other Awards. Any Award described in Sections
8 through 13 of the Plan may be granted singly or in combination or tandem with
any other Award, as the Committee may determine. Awards may be made in
combination with, in replacement of, or as alternatives to grants of rights
under any other employee compensation plan of the Company, including the plan of
any acquired entity, or may be granted in satisfaction of the Company's
obligations under any such plan.

                                       7

<PAGE>

         (b) Terms Set Forth in Award Agreement. The terms and provisions of an
Award shall be set forth in a written Award Agreement approved by the Committee
and delivered or made available to the Participant as soon as practicable
following the date of the award. The vesting, exercisability, payment and other
restrictions applicable to an Award (which may include, without limitation,
restrictions on transferability or provision for mandatory resale to the
Company) shall be determined by the Committee and set forth in the applicable
Award Agreement. Notwithstanding the foregoing, the Committee may accelerate (i)
the vesting or payment of any Award, (ii) the lapse of restrictions on any Award
or (iii) the date on which any Stock Option, Stock Appreciation Right or other
Award first becomes exercisable. The terms of Awards may vary among Participants
and the Plan does not impose upon the Committee any requirement to make Awards
subject to uniform terms. Accordingly, the terms of individual Award Agreements
may vary.

         (c) Termination of Employment and Change in Control. The terms of this
Section 7(c) shall apply unless the Committee, in its sole discretion,
determines that alternative terms shall be included in any Award Agreement in
which case the terms in such Award Agreement shall govern the rights of the
Participant.

         (i)      In the event of a Change in Control, all unvested Awards under
                  the Plan shall become vested immediately prior to the Change
                  in Control.

         (ii)     Except as provided in Sections 7(c)(iii), 7(c)(iv) and 7(c)(v)
                  below, in the event that a Participant's employment with the
                  Company is terminated for any reason unless otherwise
                  determined by the Committee in its sole discretion, the
                  unvested portion of any outstanding Award held by such
                  Participant shall lapse and become void and the vested portion
                  of any such Awards will remain exercisable for a period of
                  sixty days after the date of such termination.

         (iii)    With respect to any Stock Option, if a Participant ceases to
                  be employed by the Company by reason of death or permanent and
                  total disability within the meaning of Section 22(e)(3) of the
                  Code, the unvested portion of any outstanding Stock Option
                  held by such Participant shall lapse and become void and the
                  vested portion of any such Stock Option will remain
                  exercisable for a period of twelve months after the date of
                  such termination.

         (iv)     With respect to any Nonqualified Stock Option, if a
                  Participant ceases to be employed by the Company by reason of
                  his or her retirement on or after the Participant's 65th
                  birthday, the unvested portion of any outstanding Nonqualified
                  Option held by such Participant shall lapse and become void
                  and the vested portion of any such Nonqualified Stock Option
                  will remain exercisable for a period of twelve months after
                  the date of such termination.

         (v)      With respect to any Incentive Stock Option, in the event that
                  a Participant's employment with the Company is terminated for
                  any reason other than death or disability, the unvested
                  portion of any outstanding Incentive Stock Option held by such
                  Participant shall lapse

                                       8

<PAGE>

                  and become void and the vested portion of any such Incentive
                  Stock Option will remain exercisable for a period of ninety
                  days after the date of such termination.

         (vi)     The date of a Participant's termination of employment for any
                  reason shall be determined in the sole discretion of the
                  Committee.

         (d)      Dividends and Dividend Equivalents. The Committee may provide
                  Participants with the right to receive dividends or payments
                  equivalent to dividends or interest with respect to an
                  outstanding Awards, which payments can either be paid
                  currently or deemed to have been reinvested in shares of
                  Common Stock, and can be made in Common Stock, cash or a
                  combination thereof, as the Committee shall determine.

8.       Stock Options

         (a) Terms of Stock Options Generally. A Stock Option shall entitle the
Participant to whom the Stock Option was granted to purchase a specified number
of shares of Common Stock during a specified period at a price that is
determined in accordance with Section 8(b) below. Stock Options may be either
Nonqualified Stock Options or Incentive Stock Options. The Committee will fix
the vesting and exercisability conditions applicable to a Stock Option, provided
that no Stock Option shall vest sooner than one year from the date of grant
(subject to early vesting as provided in Section 7(c) above and such other
additional circumstances as the Committee may determine, in its discretion ).

         (b) Exercise Price. The exercise price per share of Common Stock
purchasable under a Stock Option shall be fixed by the Committee at the time of
grant or, alternatively, shall be determined by a method specified by the
Committee at the time of grant; provided, however, that the exercise price per
share shall be no less than 100% of the Fair Market Value per share on the date
of grant (or it the exercise price is not fixed on the date of grant, then on
such date as the exercise price is fixed); and provided further, that, except as
provided in Section 15(b) below, the exercise price per share of Common Stock
applicable to a Stock Option may not be adjusted or amended, including by means
of amendment, cancellation or the replacement of such Stock Option with a
subsequently awarded Stock Option.

         (c) Option Term. The term of each Stock Option shall be fixed by the
Committee and shall not exceed ten years from the date of grant.

         (d) Method of Exercise. Subject to the provisions of the applicable
Award Agreement, the exercise price of a Stock Option may be paid in cash or
previously owned shares or a combination thereof and, if the applicable Award
Agreement so provides, in whole or in part through the withholding of shares
subject to the Stock Option with a value equal to the exercise price. In
accordance with the rules and procedures established by the Committee for this
purpose, the Stock Option may also be exercised through a "cashless exercise"
procedure approved by the Committee involving a broker or dealer approved by the
Committee, that affords Participants the opportunity to sell immediately some or
all of the shares underlying the exercised portion of the Stock Option in order
to generate sufficient cash to pay the Stock Option exercise price and/or to
satisfy withholding tax obligations related to the Stock Option.

                                       9

<PAGE>

9.       Stock Appreciation Rights

         (a) General. A Stock Appreciation Right shall entitle a Participant to
receive, upon satisfaction of the conditions to the payment specified in the
applicable Award Agreement, an amount equal to the excess, if any, of the Fair
Market Value on the exercise date of the number of shares of Common Stock for
which the Stock Appreciation Right is exercised, over the exercise price for
such Stock Appreciation Right specified in the applicable Award Agreement. The
exercise price per share of Common Stock covered by a Stock Appreciation Right
shall be fixed by the Committee at the time of grant or, alternatively, shall be
determined by a method specified by the Committee at the time of grant;
provided, however, that, except as provided in Section 9(b) below, the exercise
price per share shall be no less than 100% of the Fair Market Value per share on
the date of grant (or if the exercise price is not fixed on the date of grant,
then on such date as the exercise price is fixed); and provided further, that,
except as provided in Section 15(b) below, the exercise price per share of
Common Stock subject to a Stock Appreciation Right may not be adjusted or
amended, including by means of amendment, cancellation or the replacement of
such Stock Appreciation Right with a subsequently awarded Stock Appreciation
Right. Notwithstanding the foregoing, the exercise price per share of a Stock
Appreciation Right that is a Substitute Award may be less than the Fair Market
Value per share on the date of award, provided, that such exercise price is not
less than the minimum exercise price that would be permitted for an equivalent
Stock Option as determined in accordance with Section 8(b) above. At the sole
discretion of the Committee, payments to a Participant upon exercise of a Stock
Appreciation Right may be made in cash, in shares of Common Stock having an
aggregate Fair Market Value as of the date of exercise equal to such amount, or
in a combination of cash and shares having an aggregate value as of the date of
exercise equal to such amount.

         (b) Stock Appreciation Rights in Tandem with Stock Options. A Stock
Appreciation Right may be granted alone or in addition to other Awards, or in
tandem with a Stock Option. A Stock Appreciation Right granted in tandem with a
Stock Option may be granted either at the same time as such Stock Option or
subsequent thereto. If granted in tandem with a Stock Option, a Stock
Appreciation Right shall cover the same number of shares of Common Stock as
covered by the Stock Option (or such lesser number of shares as the Committee
may determine) and shall be exercisable only at such time or times and to the
extent the related Stock Option shall be exercisable, and shall have the same
term and exercise price as the related Stock Option (which, in the case of a
Stock Appreciation Right granted after the grant of the related Stock Option,
may be less than the Fair Market Value per share on the date of grant of the
tandem Stock Appreciation Right). Upon exercise of a Stock Appreciation Right
granted in tandem with a Stock Option, the related Stock Option shall be
canceled automatically to the extent of the number of shares covered by such
exercise; conversely, if the related Stock Option is exercised as to some or all
of the shares covered by the tandem grant, the tandem Stock Appreciation Right
shall be canceled automatically to the extent of the number of shares covered by
the Stock Option exercise.

10.      Stock Awards

         (a) General. A Stock Award shall consist of one or more shares of
Common Stock granted to a Participant for no consideration other than the
provision of services (or, if required by applicable law in the reasonable
judgment of the Company, for payment of the par value of such shares). Stock
Awards shall be subject to such restrictions (if any) on transfer

                                       10

<PAGE>

or other incidents of ownership for such periods of time, and shall be subject
to such conditions of vesting, as the Committee may determine and as shall be
set forth in the applicable Award Agreement.

         (b) Distributions. Any shares of Common Stock or other securities of
the Company received by a Participant to whom a Stock Award has been granted as
a result of a stock distribution to holders of Common Stock or as a stock
dividend on Common Stock shall be subject to the same terms, conditions and
restrictions as such Stock Award.

11.      Restricted Stock Units

         An Award of Restricted Stock Units shall consist of a grant of units,
each of which represents the right of the Participant to receive one share of
Common Stock, subject to the terms and conditions established by the Committee
in connection with the Award and set forth in the applicable Award Agreement.
Upon satisfaction of the conditions to vesting and payment specified in the
applicable Award Agreement, Restricted Stock Units will be payable in Common
Stock, equal to the Fair Market Value of the shares subject to such Restricted
Stock Units. Restricted Stock Units that are granted in respect to individual or
corporate performance shall vest no sooner than one year from the date of grant,
and Restricted Stock Units that are granted in connection with hiring or
retention arrangements between the Company and a Participant shall vest no
sooner than three years from the date of grant (subject to early vesting as
provided in Section 7(c) above and such other additional circumstances as the
Committee may determine, in its discretion ).

12.      Performance Units

         Performance units may be granted as fixed or variable share- or
dollar-denominated units subject to such conditions of vesting and time of
payment as the Committee may determine and as shall be set forth in the
applicable Award Agreement relating to such Performance Units. Performance Units
may be paid in Common Stock, cash or a combination of Common Stock and cash, as
the Committee may determine.

13.      Other Awards

         The Committee shall have the authority to specify the terms and
provisions of other forms of equity-based or equity-related Awards not described
above which the Committee determines to be consistent with the purpose of the
Plan and the interests of the Company, which Awards may provide for cash
payments based in whole or in part on the value or future value of Common Stock,
for the acquisition or future acquisition of Common Stock, or any combination
thereof. Other Awards shall also include cash payments (including the cash
payment of dividend equivalents) under the Plan which may be based on one or
more criteria determined by the Committee which are unrelated to the value of
Common Stock and which may be granted in tandem with, or independent of, other
Awards under the Plan.

14.      Certain Restrictions

         (a) Transfers. Unless the Committee determines otherwise, no Award
shall be transferable other than by will or by the laws of descent and
distribution or pursuant to a domestic relations order; provided, however, that
the Committee may, in its discretion

                                       11

<PAGE>

and subject to such terms and conditions as it shall specify, permit the
transfer of an Award for no consideration to a Participant's family members or
to one or more trusts or partnerships established in whole or in part for the
benefit of one or more of such family members (collectively, "Permitted
Transferees"). Any Award transferred to a Permitted Transferee shall be further
transferable only by will or the laws of descent and distribution or, for no
consideration, to another Permitted Transferee of the Participant. The Committee
may in its discretion permit transfers of Awards other than those contemplated
by this Section.

         (b) Exercise. During the lifetime of the Participant, a Stock Option,
Stock Appreciation Right or similar-type Other Award shall be exercisable only
by the Participant or by a Permitted Transferee to whom such Stock Option, Stock
Appreciation Right or Other Award has been transferred in accordance with
Section 14(a).

15.      Recapitalization or Reorganization

         (a) Authority of the Company and Stockholders. The existence of the
Plan, the Award Agreements and the Awards granted hereunder shall not affect or
restrict in any way the right or power of the Company or the stockholders of the
Company to make or authorize any adjustment, recapitalization, reorganization or
other change in the Company's capital structure or its business, any merger or
consolidation of the Company, any issue of stock or of options, warrants or
rights to purchase stock or of bonds, debentures, preferred or prior preference
stocks whose rights are superior to or affect the Common Stock or the rights
thereof or which are convertible into or exchangeable for Common Stock, or the
dissolution or liquidation of the Company, or any sale or transfer of all or any
part of its assets or business, or any other corporate act or proceeding,
whether of a similar character or otherwise.

         (b) Change in Capitalization. The number and kind of shares authorized
for issuance under Section 5(a) above, shall be equitably adjusted in the event
of a stock split, stock dividend, recapitalization, reorganization, merger,
consolidation, extraordinary dividend, split-up, spin-off, combination, exchange
of shares, warrants or rights offering to purchase Common Stock at a price
substantially below Fair Market Value or other similar corporate event affecting
the Common Stock in order to preserve, but not increase, the benefits or
potential benefits intended to be made available under the Plan. In addition,
upon the occurrence of any of the foregoing events, the number of outstanding
Awards and the number and kind of shares subject to any outstanding Award and
the purchase price per share, if any, under any outstanding Award shall be
equitably adjusted (including by payment of cash to a Participant) in order to
preserve the benefits or potential benefits intended to be made available to
Participants granted Awards. Such adjustments shall be made by the Committee,
whose determination as to what adjustments shall be made, and the extent
thereof, shall be final. Unless otherwise determined by the Committee, such
adjusted Awards shall be subject to the same vesting schedule and restrictions
to which the underlying Award is subject.

                                       12

<PAGE>

16.      Amendments

         The Board or Committee may at any time and from time to time alter,
amend, suspend or amend the Plan in whole or in part; provided, however, that
any amendment which under the requirements of any applicable law or stock
exchange rule must be approved by the stockholders of the Company shall not be
effective unless and until such stockholder approval has been obtained in
compliance with such law or rule; and provided further, that, except as
contemplated by Section 15(b) above, the Board or Committee may not, without the
approval of the Company's stockholders, increase the maximum number of shares
issuable under the Plan or reduce the exercise price of a Stock Option or Stock
Appreciation Right. No termination or amendment of the Plan may, without the
consent of the Participant to whom an Award has been granted, adversely affect
the rights of such Participant under such Award. Notwithstanding any provision
herein to the contrary, the Board or Committee shall have broad authority to
amend the Plan or any Award under the Plan to take into account changes in
applicable tax laws, securities laws, accounting rules and other applicable
state and federal laws.

17.      Miscellaneous

         (a) Tax Withholding. The Company may require any individual entitled to
receive a payment in respect of an Award to remit to the Company, prior to such
payment, an amount sufficient to satisfy any Federal, state or local tax
withholding requirements. The Company shall also have the right to deduct from
all cash payments made pursuant to or in connection with any Award any Federal,
state or local taxes required to be withheld with respect to such payments. In
the case of an Award payable in shares of Common Stock, the Company may permit
such individual to satisfy, in whole or in part, such obligation to remit taxes
by directing the Company to withhold shares of Common Stock that would otherwise
be received by such individual, pursuant to such rules as the Committee may
establish from time to time.

         (b) No Right to Grants or Employment. No Eligible Individual or
Participant shall have any claim or right to receive grants of Awards under the
Plan. Nothing in the Plan or in any Award or Award Agreement shall confer upon
any employee of the Company any right to continued employment with the Company
or interfere in any way with the right of the Company to terminate the
employment of any of its employees at any time, with or without cause.

         (c) Other Compensation. Nothing in this Plan shall preclude or limit
the ability of the Company to pay any compensation to a Participant under the
Company's other compensation and benefit plans and programs.

         (d) Other Employee Benefit Plans. Payments received by a Participant
under any Award made pursuant to the Plan shall not be included in, nor have any
effect on, the determination of benefits under any other employee benefit plan
or similar arrangement provided by the Company, unless otherwise specifically
provided for under the terms of such plan or arrangement or by the Committee.

         (e) Unfunded Plan. The Plan is intended to constitute an unfunded plan
for incentive compensation. Prior to the payment or settlement of any Award,
nothing contained herein shall give any Participant any rights that are greater
than those of a general creditor of the Company. In its sole discretion, the
Committee may authorize the creation of trusts or other

                                       13

<PAGE>

arrangements to meet the obligations created under the Plan to deliver Common
Stock or payments in lieu thereof with respect to awards hereunder.

         (f) Securities Law Restrictions. The Committee may require each
Eligible Individual purchasing or acquiring shares of Common Stock pursuant to a
Stock Option or other Award under the Plan to represent to and agree with the
Company in writing that such Eligible Individual is acquiring the shares for
investment and not with a view to the distribution thereof. All certificates for
shares of Common Stock delivered under the Plan shall be subject to such
stock-transfer orders and other restrictions as the Committee may deem advisable
under the rules, regulations, and other requirements of the Securities and
Exchange Commission, any exchange upon which the Common Stock is then listed,
and any applicable federal or state securities law, and the Committee may cause
a legend or legends to be put on any such certificates to make appropriate
reference to such restrictions. No shares of Common Stock shall be issued
hereunder unless the Company shall have determined that such issuance is in
compliance with, or pursuant to an exemption from, all applicable federal and
state securities laws.

         (g) Compliance with Rule 16b-3. Notwithstanding anything contained in
the Plan or in any Award Agreement to the contrary, if the consummation of any
transaction under the Plan would result in the possible imposition of liability
on a Participant pursuant to Section 16(b) of the Exchange Act, the Committee
shall have the right, in its sole discretion, but shall not be obligated, to
defer such transaction or the effectiveness of such action to the extent
necessary to avoid such liability, but in no event for a period longer than six
months.

         (h) Award Agreement. In the event of any conflict or inconsistency
between the Plan and any Award Agreement, the Plan shall govern, and the Award
Agreement shall be interpreted to minimize or eliminate any such conflict or
inconsistency.

         (i) Expenses. The costs and expenses of administering the Plan shall be
borne by the Company.

         (j) Application of Funds. The proceeds received from the Company from
the sale of Common Stock or other securities pursuant to Awards will be used for
general corporate purposes.

         (k) Applicable Law. Except as to matters of federal law, the Plan and
all actions taken thereunder shall be governed by and construed in accordance
with the laws of the State of Delaware.

                                       14

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