Opinion ID: 195995
Heading Depth: 2
Heading Rank: 2

Heading: The offer letters

Text: 5 After meeting with several other PB representatives, Coll determined that he was interested in managing PB. On December 4, 1987, Kliem sent Coll a letter offering Coll the CEO position at PB (the First Offer Letter). The First Offer Letter set forth the salary and annual bonus to be paid Coll, and further stated: It is our intent, that in 1989, we would jointly engage in establishing criteria to appropriately reflect your direct contribution to the success of the venture in 1990. Coll called Fronzaglia and expressed his concern that the First Offer Letter did not adequately address the LTIP or what would happen in the event that the venture failed. 6 In response to Coll's concerns, Kliem sent Coll another offer letter, dated December 14, 1989 (the Second Offer Letter). This letter stated:As we have discussed, we are pleased to confirm our offer of employment as General Manager, PB Diagnostic Systems, Inc. (PBDS, Inc.).... 7 You will be an employee of PBDS, Inc. at a starting salary of $160,000.00 per year, with a guaranteed bonus of $40,000.00 per year for 1988 and 1989, payable on your first and second anniversary of employment. You must be an employee of PBDS, Inc. on those dates to receive payment of these bonuses. 8 During 1989, we intend to jointly explore with you appropriate methods of compensation to reflect your contribution to the success of the venture in 1990 and beyond. 9 In the event PBDS, Inc. initiates your termination of employment in the period between your employment date and December 31st, 1989, PBDS, Inc. will provide you one year's base salary. 10 Further, in the event of your separation, for any reason, you will refrain from working directly or indirectly for a competitor in the field of medical diagnostics for a period of one year. This provision, of course, will not apply if PBDS, Inc. has chosen to cease this joint venture. 11 For purposes of administration only, Polaroid Corporation will provide benefits in areas of medical and dental insurance, life insurance and 401K savings plans. 12 We are enthusiastic about your contribution and leadership as we look forward to the long-term success of PBDS, Inc. 13 (emphasis added). 14 After Coll received the Second Offer Letter, he telephoned Fronzaglia and accepted the offer. During this conversation, Fronzaglia said: Does that take care of it? Coll replied, You and I understand what it is, so I guess it's O.K. Coll admitted in his deposition that at that time he believed that the Second Offer Letter incorporated all the terms and conditions of his employment, and that he believed that there was no material difference between the First and Second Offer Letters with regard to the LTIP.