MEMORANDUM OF UNDERSTANDING REGARDING SERP

December 30, 2009

The Pajaro Valley Unified School District (District) and the Pajaro Valley Federation of Teachers (PVFT) agree that it is in the best interest of the District and the PVFT bargaining unit to offer a Supplemental Employee Retirement Plan (SERP) in order to encourage employees contemplating retirement to retire by the end of the 2009-2010 school year. The SERP is intended help to provide budgetary relief to the District and to reduce the number of layoffs that may be required for 2010-2011.