Document:

Exhibit 10.26

 

EXECUTION COPY

 

Pathmark Stores, Inc.

 

July 1, 2000

 

Marc Strassler

c/o Pathmark Stores, Inc.

200 Milik Street

Carteret, New Jersey 07008

 

Side Letter to the Sale and Retention Bonus Agreement,

The Employment Agreement and Certain Additional Understandings

 

Dear Marc:

 

This side letter (the “Letter”) sets forth the agreement between you and Pathmark Stores, Inc., a corporation organized under the laws of Delaware (the “Company”), regarding the amendment to the terms of the Sale and Retention Bonus Agreement between you and the Company dated February 1, 2000 (the “Bonus Agreement”) and to the terms of the employment agreement between you and the Company, dated February 1, 1999 (the “Employment Agreement”). In addition, this Letter includes an acknowledgement of certain occurrences in connection with the terms of the Employment Agreement. This Letter shall be effective as of the
date first set forth above.

 

	
            A.
 	
            Amendments to the Bonus Agreement.
 

 

1.           New Definitions. (a) The following definition is hereby added to Section 1 of the Bonus Agreement immediately prior to the definition of “Payment Date”:

 

“Liquidation Date” shall mean January 31, 2001.

 

(b) The following definition is hereby added to Section 1 of the Bonus Agreement immediately prior to the definition of “Purchaser”:

 

“Plan Effective Date” shall mean the effective date of the judicial consent to the Joint Prepackaged Chapter 11 Plan of Reorganization of the Company, its parent companies and subsidiaries.

 

(c)           The following definition is hereby added to Section 1 of the Bonus Agreement immediately prior to the definition of “Triggering Event”:

 

“Stock Option” shall mean any vested or unvested outstanding stock option awarded under any equity compensation plan of the Company or its subsidiaries that is exercisable upon vesting for shares of common stock of the Company or any of its subsidiaries.

 

2.            Modified Definition. The definition of “Triggering Event” in Section 1 of the Bonus Agreement is hereby deleted in its entirety and replaced by the following:

 

Prior to the Plan Effective Date, 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.

 

On and after the Plan Effective Date, a “Triggering Event” shall be deemed to have occurred on the date that any of the following shall have occurred, provided that a Triggering Event may occur only during the Term (as defined in Section 2 below):

 

(A)          the acquisition by any Person of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended) of 35% or more of the common stock of the Company (the “Common Stock”) then outstanding, and the individuals who, as of the Plan Effective Date, 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; provided, however, that in no event shall a Triggering Event be deemed to have occurred upon any such acquisition by (i) any employee benefit plan of the Company, (ii) any Person or entity organized, appointed or established by the Company for or pursuant to the terms of any such employee benefit plan, or (iii) 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 the Plan Effective Date 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;

 

(B)          the Company enters into a binding agreement with one or more Persons to directly acquire, in exchange for cash, stock, claims or property, 50% or more of the aggregate equity securities of the Company; or

 

(C)          the Company enters into a binding agreement providing for a merger, consolidation, reorganization or other business combination upon consummation of which one or more Persons would own or control 50% or more of either (i) the aggregate voting securities of the Company, or (ii) the aggregate value of the assets of the Company.

 

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For purposes of the above definition of Triggering Event 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 or any
of its subsidiaries, (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 the Company.

 

“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 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.

 

3.           Term. Section of the Bonus Agreement is hereby deleted in its entirety and replaced by the following:

 

2.             Term. The term of this Letter Agreement (the “Term”) shall commence on the Effective Date and shall continue until the second anniversary of the Plan Effective Date.

 

4.           Retention Bonus. Section 3 of the Bonus Agreement is hereby deleted in its entirety and replaced by the following:

 

	
             
 	
            3.
 	
            Retention Bonus.
 

 

(a)           Prior to a Triggering
Event. In consideration of, and subject to, your continued employment with the Company prior to a Triggering Event and during
the period beginning on the Effective Date and ending on the Liquidation 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 Retention Bonus will be paid in two substantially equal
installments on each of the Payment Date and the Liquidation Date, subject to your continued employment with the Company on each
such date. The Company will pay the Retention Bonus to you in lump sum cash amounts as soon as practicable after the Payment
Date and the Liquidation Date but in no event more than thirty days thereafter, respectively.

 

(b)           Upon a Triggering Event. Upon the occurrence of a Triggering Event, the Retention Bonus shall become immediately payable in full. For purposes of calculating the amount of the Retention Bonus the date of the Triggering Event shall be considered the Payment Date. The Retention Bonus will be paid in a lump sum cash amount as soon as practicable after the date of the Triggering Event.

 

5.           Section 4(a) of the Bonus Agreement is hereby deleted in its entirety and replaced by the following:

 

(a)           General Terms. You will become entitled to receive the Sale Bonus in the event that (i) a Triggering Event occurs on or before the end of 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; provided, however, that the Sale Bonus shall be reduced by the net value you receive in connection with your Stock Options, if any, that are redeemed for cash or exchanged for other securities at the time of or prior to a Change in Control.

 

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6.          Section 5 of the Bonus Agreement is hereby deleted in its entirety and replaced by the following:

 

	
             
 	
            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 Liquidation 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 Liquidation 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. In the event that your employment terminates for any reason other than an Involuntary Termination after the Payment Date but prior to the Liquidation Date, you shall forfeit your right to any unpaid portion of the Retention Bonus. 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.

 

	
            B.
 	
            Acknowledgement; Amendment to the Employment Agreement.
 

 

1.           Acknowledgement of a Sale of the Company. You and the Company hereby acknowledge and agree that, prior to the date of this Letter, a “Sale of the Company” (within the meaning of Section 4(d) of the Employment Agreement) has occurred by virtue of the execution of the merger agreement dated March 9, 1999 among two of the Company’s parent companies and Royal Ahold N.V., and that any Involuntary Termination (as such term is defined in the Employment Agreement) will be governed by the terms of Section 5(a)(iii) of the Employment Agreement.

 

2.           Amendment of “Good Reason”. The definition of “Good Reason” as set forth in Section 5(g)(iii) of the Employment Agreement is hereby amended to add the following subsection (E) immediately after subsection (D):

 

or (E) a material, adverse reduction or diminution in your title, duties, positions or responsibilities with the Company.

 

	
            C. 
 	
            Forgiveness of Indebtedness.
 

 

1.           Description of the Debt. You and the Company acknowledge and agree that immediately prior to the date of this Letter, you owed the a parent of the Company, Supermarkets General Holdings Corporation (“Holdings”), $28,000 with respect to a loan made to you by Holdings on March 15, 1990 (the “Loan Amount”).

 

2.           Forgiveness of Debt. In consideration of, among other things, your agreement to the amendments set forth above with respect to the Retention Bonus and the Sale Bonus, as of the date of your termination of employment with the Company, its parents, subsidiaries and affiliates, without any further action on your part or on the part of the Company, the Company, as successor to the lending entity, shall automatically forgive the Loan Amount in full and all interest and other accrued amounts

 

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associated with the Loan Amount and the loan corresponding to such Loan Amount.

 

If this Letter 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
 	
            /s/ James L. Donald
 
	
             
 	
             
 	
            Name:
 	
            JAMES L. DONALD
 
	
             
 	
             
 	
            Title: 
 	
            President
 

 

 

Agreed to as of this 8th day of August, 2000.

 

 

	
            /s/ Marc Strassler
 
	
            Marc Strassler
 

 

 

5Exhibit 10.27

 

SUPPLEMENTAL RETIREMENT AGREEMENT

 

AGREEMENT, made and entered into as of the 1st day of June, 1994, by and between PATHMARK STORES, INC., a Delaware corporation (the “Company”), and MARC A. STRASSLER (the “Executive”), residing at 10 Georgian Bay Drive, Morganville, NJ 07751.

 

WHEREAS, to induce the Executive to continue employment with the Company, the Company desires to provide a minimum retirement income for the Executive on the terms hereinafter set forth;

 

WHEREAS, the Company considers the Executive, as one of a select group of management or highly compensated employees of the Company, to be of unique value to the Company.

 

NOW, THEREFORE, the Company and the Executive agree as follows:

 

	
            1.
 	
            Definitions
 

 

The following terms whenever used in this Agreement shall have the meanings set forth in this Section 1. Each capitalized term used in this Agreement and not defined in this Section 1 shall be deemed to have such meaning as in the SGC Pension Plan (as defined below).

 

1.1  “Actuarial Equivalent” means a benefit of equivalent value to the benefit that would otherwise be payable when computed on the basis of the rate of interest specified by the Pension Benefit Guaranty Corporation for the period after

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payment begins for purposes of determining the value of lump sum payments as of the date of the Executive’s termination of employment and using the 1983 Basic Group Annuity Mortality Table projected to 1988 with Scale H. For purposes of determining Actuarial Equivalent, male mortality shall be used for the Executive and female mortality shall be used for any Beneficiary.

 

1.2  “Agreement” means this Supplemental Retirement Agreement by and between the Company and the Executive, dated as of the 1st day of June, 1994.

 

1.3  “Average Final Compensation” shall mean the highest average annual Compensation (whether or not consecutive) paid to the Executive for the five (5) full calendar years within the most recent ten (10) consecutive calendar years during which the Executive received Compensation, ending with the December 31 coincident with or next preceding the date of Termination of Employment, Retirement, date of death, or Disability, whichever is applicable, provided, however that an Executive whose Retirement or death occurs on or after December 1 of his/her final Plan Year shall be deemed to have a full calendar year of Compensation. Notwithstanding the foregoing, if an Executive is employed less than 12 full months in his/her final calendar year of employment, Compensation earned in such year shall, if higher than the lowest year’s
Compensation used in determining Average Final Compensation, be substituted for such lowest

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year’s Compensation and the determination of Average Final Compensation shall be made based on the most recent eleven (11) consecutive calendar years during which the Executive received Compensation.

 

1.4  “Beneficiary” means the Executive’s surviving spouse to whom the Executive was married for the six-month period immediately preceding the earlier of the date of commencement of the Executive’s Supplemental Retirement Benefit or the date of the Executive’s death.

 

1.5  “Board of Directors” means the Board of Directors of the Company as constituted from time to time.

 

1.6  “Code” means the Internal Revenue Code of 1986, as may be amended from time to time.

 

1.7  “Company” means with respect to periods prior to October 22, 1993, Supermarkets General Corporation, and with respect to periods on or after October 22, 1993, Pathmark Stores, Inc., or Plainbridge, Inc., or any successor thereto.

 

1.8  “Compensation” means Compensation as defined under the SGC Pension Plan as in effect on the date of this Agreement, determined, however, without regard to any dollar limitation imposed by Section 401(a)(17) of the Code on the amount of compensation which may be taken into account under such Plan.

 

1.9  “Disability” means “Total and Permanent Disability” as defined under the SGC Pension Plan.

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1.10  “Disability Retirement” means the termination of the Executive’s employment with the Company by reason of Disability.

 

1.11  “Pension Plan Benefit” means the annual retirement benefit payable to or on account of the Executive pursuant to the SGC Pension Plan.

 

1.12  “SGC Pension Plan” means the SGC Pension Plan, as amended and restated effective January 1, 1989, and as amended from time to time thereafter.

 

1.13  “SGC Profit Sharing Plan” means the SGC Profit Sharing Plan, as in effect immediately prior to April 1, 1983.

 

1.14  “SGC Savings Plan” means the SGC Savings Plan, as amended and restated effective January 1, 1989, and as amended from time to time thereafter.

 

1.15  “Supplemental Retirement Benefit” means the Executive’s benefit under this Agreement.

 

	
            2.
 	
            Amount of Supplemental Retirement Benefit; Termination of Employment After Age 60

 

Except as provided in Sections 3 and 4 of this Agreement,
the annual amount of the Executive’s Supplemental Retirement Benefit shall be equal to the excess, if any, of the amount of the
Executive’s “Unreduced Supplemental Retirement Benefit” as described in subparagraph (a) over the Executive’s
“Other Company Plan Benefits” as described in subparagraph (b), where

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(a)    “Unreduced Supplemental Retirement Benefit” is equal to the sum of 30% of the Executive’s Average Final Compensation after completion of 10 years of Vesting Service, plus 1% of the Executive’s Average Final Compensation multiplied by each additional year of Vesting Service in excess of 10; provided, however, that in no event shall the Executive’s Unreduced Supplemental Retirement Benefit exceed the lesser of (i) 40% of his Average Final Compensation or (ii) $100,000; and

 

(b)    “Other Company Plan Benefits” are the amounts payable under
the SGC Pension Plan, the SGC Profit Sharing Plan, the Company’s Excess Benefit Plan and the Company’s disability income
plan (other than (i) amounts payable under group life insurance, Retirement and Survivor’s Insurance under the Federal Social
Security Act, Workman’s Compensation and other Company plans required by any governmental authority, (ii) amounts payable under
the SGC Savings Plan) to the extent attributed to amounts paid or contributed by the Company or any predecessor thereto, and any
amounts payable after termination of employment as retirement, death or disability benefits (other than severance benefits) under a
contract between the Company and the Executive.

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If the Executive has a Beneficiary on the date Supplemental Retirement Benefits commence under this Agreement, Other Company Plan Benefits shall be determined, on a joint and two-thirds survivor annuity basis, except as otherwise provided in this Agreement, as of such date, with the Executive’s Beneficiary as joint annuitant. The adjustment to the amount otherwise payable under the applicable Company plan for the applicable joint survivor annuity form of payment shall be made on the basis of the factors specified in such Company plan or, if no such factors are set forth in such Company plan, on an Actuarial Equivalent basis. If the Executive does not have a Beneficiary on the date Supplemental Retirement Benefits are to commence under this Agreement, Other Company Plan Benefits shall be determined on a single life annuity basis.

 

The Executive’s Supplemental Retirement Benefit under this Section 2 shall be payable monthly for life commencing on the first day of the month following the Executive’s termination of employment after attainment of age 60.

 

	
            3.
 	
            Termination of Employment Prior to Age 60
 

 

In the case of the Executive’s termination of employment with the Company prior to attaining age 60 (other than by reason of the Executive’s death or Disability) but after completing 10 years of Vesting Service, the amount of the Executive’s Supplemental Retirement Benefit shall be equal to the Executive’s Unreduced Supplemental Retirement Benefit

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(computed on the basis of the Vesting Service which the Executive would have completed had the Executive remained in the employ of the Company until attainment of age 60), multiplied by a fraction the numerator of which is the number of the Executive’s years of Vesting Service at termination of employment (up to a maximum of 20) and the denominator of which is the number of years of Vesting Service (up to a maximum of 20) which the Executive would have completed had the Executive remained in the employ of the Company until attainment of age 60, offset by the amount of the Executive’s Other Company Plan Benefits; provided that Other Company Plan Benefits shall be assumed to commence on the first day of the month after the Executive’s attainment of age 60 and to be paid in the form of a joint and two-thirds survivor annuity unless Executive does not have a Beneficiary in which case benefits shall
be assumed paid in the form of a life annuity. The Executive’s Supplemental Retirement Benefit under this Section 3 shall be payable monthly for life commencing on the first day of the month following the Executive’s attainment of age 60.

 

	
            4.
 	
            Disability Retirement
 

 

In the case of the Executive’s Disability Retirement, the amount of the Executive’s Supplemental Retirement Benefit shall be the amount determined under Section 2 of this Agreement; provided, however, that the Executive’s Unreduced Supplemental Retirement Benefit shall be computed on the basis

8

 

of the Vesting Service which the Executive would have completed had the Executive remained in the employ of the Company until attainment of age 60, and the Executive’s Unreduced Supplemental Retirement Benefit shall not be offset by Other Company Plan Benefits prior to the date on which payment of such Other Company Plan Benefits commence. The Executive’s Supplemental Retirement Benefit under this Section 4 shall be payable monthly for life commencing on the first day of the month following the Executive’s Disability Retirement.

 

	
            5.
 	
            Death Prior to Retirement
 

 

(a)  In the event that the Executive dies while in the employ of the Company, and has a Beneficiary on the date of his death, the Executive’s Beneficiary shall receive, beginning with the first day of the month following the Executive’s death and payable monthly, an annual amount equal to two-thirds of the Executive’s Unreduced Supplemental Retirement Benefit (computed on the basis of the Vesting Service which the Executive would have completed had the executive remained in the employ of the Company until attainment of age 60) offset by the Other Company Plan Benefits; provided, however, that such offset shall be made at such time as Other Company Plan Benefits are payable (whether or not the Beneficiary has elected to defer payment to a later date) and in an amount equal to (i) a life annuity payable to the Executive’s Beneficiary that is equal to the Actuarial Equivalent of the

9

 

SGC Profit Sharing Plan balance and (ii) the survivor annuity
actually payable to Executive’s Beneficiary pursuant to any Other Company Plan, each determined as of the earliest date on
which payments of Other Company Plan Benefits are payable to the Beneficiary.

 

(b)    In the event that the Executive dies after termination of employment with the Company but prior to commencement of Supplemental Retirement Benefit payments under this Agreement, and has a Beneficiary on the date of his death, the Executive’s Beneficiary shall receive, beginning with the first day of the month following the Executive’s death and payable monthly, an annual amount equal to two-thirds of the Executive’s Unreduced Supplemental Retirement Benefit offset by the amount of Other Company Plan Benefits; provided, however, that such offset shall be made at such time as Other Company Plan Benefits are payable (whether or not the Beneficiary has elected to defer payment to a later date) and in an amount equal to the benefit that would have been payable to Executive’s Beneficiary had Executive retired on the date of his or
her death and commenced benefit payments in the form of a joint and two-thirds annuity on such date.

 

	
            6.
 	
            Death After Retirement
 

 

In the event of the Executive’s death after commencement of the Executive’s Supplemental Retirement Benefit, the Executive’s Beneficiary shall receive, beginning

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with the first day of the month following the Executive’s death and payable monthly, an annual amount equal to two-thirds of the Supplemental Retirement Benefit that was being paid to the Executive prior to the Executive’s death.

 

	
            7.
 	
            Limitation on Spouse’s Benefits
 

 

Payment of Supplemental Retirement Benefits to the Executive’s Beneficiary under Sections 5 or 6 hereof shall terminate on the earlier of the date of death or remarriage of such Beneficiary.

 

	
            8.
 	
            Benefits Payable by Company
 

 

All benefits payable under this Agreement shall constitute an unfunded obligation of the Company. Payments shall be made, as due, from the general funds of the Company. The Company may, in its sole and absolute discretion, establish one or more accounts, funds or trusts to reflect its obligations under the Agreement and may make such investments as it may deem desirable to assist it in meeting such obligations. Any assets held in such accounts, funds or trusts shall remain assets of the Company subject to claims of its creditors. No person eligible for a benefit under this Agreement shall have any right, title or interest in any such assets. This Agreement shall constitute solely an unsecured promise by the Company to pay supplemental retirement benefits to the extent provided herein.

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            9.
 	
            Inalienability of Benefits
 

 

The right of any person to any benefit or payment under this Agreement shall not be subject to voluntary or involuntary transfer, alienation or assignment, and, to the fullest extent permitted by law, shall not be subject to attachment, execution, garnishment, sequestration or other legal or equitable process or be transferable by operation of law in the event of bankruptcy or insolvency of the Executive or any Beneficiary. In the event a person who is receiving or is entitled to receive benefits under the Agreement attempts to assign, transfer or dispose of such right, or if an attempt is made to subject said right to such process, such assignment, transfer or disposition shall be null and void.

 

	
            10.
 	
            Forfeiture of Benefits
 

 

The Executive shall forfeit his Supplemental Retirement Benefit in the event of the Executive’s conviction of a felony relating to the conduct of the business of the Company or willful unauthorized disclosure of a trade secret of the Company.

 

	
            11.
 	
            Payments to Minors and Incompetents
 

 

If the Executive or Beneficiary entitled to receive any benefits hereunder is a minor or is deemed by the Company or is adjudged to be legally incapable of giving valid receipt and discharge for such benefits, payment of benefits will be

12

 

made to the duly appointed guardian or legal representative of such minor or incompetent or to such other legally appointed person as the Company may designate. Such payment shall, to the extent made, be deemed a complete discharge of any liability for such payment under the Agreement.

 

	
            12.
 	
            Withholding
 

 

The Company shall have the right to deduct from any payments due under this Agreement any taxes required to be withheld with respect to such payments.

 

	
            13.
 	
            Merger, Consolidation or Sale of Assets
 

 

In the event the Company shall at any time be merged or consolidated with or into any corporation or corporations or in the event that all or substantially all of the assets of the Company shall be sold or otherwise transferred to another corporation, the provisions of this Agreement, including the provisions of this Section, shall be binding upon and inure to the benefit of the successor of the Company resulting from such merger, consolidation or sale of assets.

 

	
            14.
 	
            Governing Law
 

 

Except to the extent pre-empted by federal law, the provisions of this Agreement will be construed according to the laws of the State of Delaware (without giving effect to the provisions thereof relating to conflicts of law).

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IN WITNESS WHEREOF, the Company and the Executive have caused this Agreement to be executed effective as of this 1st day of June, 1994.

 

 

	
             
 	
             
 	
            PATHMARK STORES, INC.
 
	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 
	
             
 	
             
 	
            By 
 	
            /s/ Jack Futterman 
 
	
            ATTEST:
 	
             
 	
             
 	
            Chairman and Chief Executive Officer
 
	
             
 	
             
 	
             
 	
             
 
	
            /s/ Harvey Gutman
 	
             
 	
             
 	
             
 
	
            Sr. V.P.
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
            /s/ Marc Strassler
 
	
             
 	
             
 	
            EXECUTIVE

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