Supplemental Employment Agreement Regarding Pension and Retiree Medical Benefits for Jim Levine and Pinnacle West

Summary

This letter supplements Jim Levine's Employment Agreement with Pinnacle West, clarifying enhancements to his pension and retiree medical benefits. Levine will receive an additional five years of service credit effective January 2002, and his pension benefit will increase by 3% each year until it reaches 70%. Additional years of service will also increase the percentage of company-paid retiree medical premiums. These changes are approved by the Pinnacle West Board and are intended to improve Levine's retirement benefits.

EX-10.1 3 ex10-1.txt EMPLOYMENT AGREEMENT - LEVINE Exhibit 10.1 February 27, 2003 Jim Levine 4817 N. Greentree Dr. E. Litchfield Park, AZ 85340 Dear Jim: As a supplement to your Employment Agreement dated October 11, 2002 the following clarifies the benefit items that the Pinnacle West Board has approved for you: o Pension - Add 5 years of service effective 1/2002 and each subsequent year 3% will be added to the percent of average monthly wage you'll receive until the 70% benefit is reached: - 18 years of service in 2002 (3%x10 - 30% + 2%x8 = 16%), 46% pension benefit - 2002 +5 years at 2% 46% - 2002 +3% 49% - 2003 +3% 52% - 2004 +3% 55% age 55 - 2005 +3% 58% - 2006 +3% 61% - 2007 +3% 64% - 2008 +3% 67% - 2009 +3% 70% age 60 o Additional years of service will count towards the percentage of your premium costs for retiree medical coverage. If you have any questions, please feel free to contact me. Sincerely, William J. Post WP/DO/ch cc: Armando Flores