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Blount, Inc. (Blount). In late 1988, Blount decided to develop
an information package for the purpose of exploring the potential
sale of BERC.
In March 1989, the management of Blount and BERC decided to
reduce operating expenses at BERC in anticipation of the possible
sale of the subsidiary. As part of the expense reduction plan,
BERC's Montgomery-based staff was cut by approximately 50
percent. Approximately 20 employees of BERC's Montgomery office
were either discharged or reassigned to other business entities
owned by Blount.
As an incentive to many of BERC's remaining employees,
including petitioner, and in order to induce them to continue
their employment with BERC pending the sale, Blount offered
certain bonuses and severance benefits. In so doing, Blount
sought to preserve BERC's value as a functioning business while
looking for a buyer. Blount's use of incentive packages in such
a manner is a common business practice.
The benefits were outlined in a letter from R. William Van
Sant (Van Sant), then president and chief operating officer of
Blount, to petitioner dated April 6, 1989 (the April 6 letter).
The April 6 letter provided a lump-sum bonus equal to 12 months'
salary, among other things, in the event that BERC was sold.
Due to petitioner's request, Blount, by letter dated April
27, 1989 (the April 27 letter), offered petitioner an additional
arrangement whereby, among other things, petitioner would receive
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