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EXHIBIT 10.7
XXXXXX X. XXX COMPANY
00 Xxxxx Xxxxxx
Xxxxxx, Xxxxxxxxxxxxx 00000
Anchor Acquisition Co.
Attn: Xx. Xxxxxx X. Xxxxx
March 19, 1998
Dear Xx. Xxxxx:
In connection with the proposed sale of the capital stock of Anchor
Holdings, Inc. (the "Company") to Anchor Acquisition Co. ("Acquisition Co.")
(the "Transaction"), Acquisition Co., provided that the closing of the
Transaction occurs, hereby agrees to cause the Company (and any successor
thereto) to pay to Xxxxxxxx X. xx Xxxxx a stay bonus in the amount of Four
Hundred Thousand Dollars ($400,000) (the "Stay Bonus"). Such Stay Bonus shall be
payable One Hundred Fifty Thousand Dollars ($150,000) within one week of the
closing of the Transaction, and the remaining Two Hundred Fifty Thousand Dollars
($250,000) in equal monthly payments in arrears for the twelve months following
the close of the Transaction. All such payments shall be subject to all
applicable tax withholding.
All payments provided for herein shall be made in full by the Company
unless (i) Xx. xx Xxxxx voluntarily terminates his employment with the Company
other than as permitted by Section 4(a) of the Employment Agreement dated April
1, 1996 by and between Xx. xx Xxxxx and the Company (the "Employment Agreement")
or (ii) the Company terminates Xx. xx Xxxxx'x employment for "just cause" as
defined in the Employment Agreement. In the event of the occurrence of either of
the events described in (i) or (ii) above, Acquisition Co. shall be released
from all obligations hereunder.
XXXXXX X. XXX COMPANY
By: /s/ Xxxxx X. Xxxxxx
--------------------------------
Name:
Title:
AGREED AND ACCEPTED THIS
19 DAY OF MARCH, 1998
ANCHOR ACQUISITION CO.
By: /s/ Xxxxxx X. Xxxxx
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Name:
Title:
