Lance R. and Elaine C. LeFleur - Page 4

                                                - 4 -                                                 
            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                         

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011