Letter Agreement Regarding Pension Enhancement and Post-Retirement Relocation for Gus Pagonis
This letter from Sears to Gus Pagonis confirms two employment-related benefits. First, Sears will extend a special pension enhancement, granting Pagonis an extra year of credited service for each year worked from January 1, 2002, until his last day at Sears or his 65th birthday, whichever comes first. Second, upon his retirement, Sears will reimburse him for standard moving expenses to relocate to Pittsburgh, Pennsylvania, but will not provide an advance moving allowance or eligibility for the home purchase program. The agreement clarifies these commitments and their conditions.
Exhibit 10.38
Memo
To: Gus Pagonis From: Greg Lee cc: Alan Lacy, Paul Liska Date: April 9, 2002 Re: Resolution of Two Issues
| I wanted to provide you some closure regarding two issues that we have discussed recently. | |
| Pension enhancement | |
| As you are aware, you received a special, non-qualified benefit from January 1, 1997 through December 31, 2001 that supplemented your regular benefit from the Sears Pension Plan and the Supplemental Retirement Income Plan at the rate of one additional year of credited service for each completed year of service. | |
| I have authorized the extension of this enhanced benefit. The extended enhancement will also provide one additional year of credited service for each completed year of service for the time period beginning January 1, 2002 through your last day worked at Sears, not to extend past your 65th birthday. Attached is a schedule which estimates the regular and enhanced benefits. | |
| Relocation after retirement | |
| Regarding your request for a company-paid relocation back to Pittsburgh after your eventual retirement, we have confirmed with Tony Rucci that a commitment to this effect was made to you at the time of your hire. Accordingly, Sears will reimburse you for the normal expenses required to move your household to Pittsburgh, Pennsylvania upon your retirement. Sears will not provide a moving allowance in advance of the move nor will you be eligible for the Sears home purchase program as part of this agreement. | |
| Please let me know if you have any questions. |
