EXHIBIT 10.7
PERSONAL AND CONFIDENTIAL
October 28, 1999
Mr. James J. Cotter
Chairman & CEO
Craig Corporation
This memo will set out the details of the job offer discussed between us in our
meetings of October 21 and October 27, 1999.
Position Description: CFO Craig Corporation
CFO Citadel Holding Corporation
CAO Reading Entertainment, Inc.
Reporting To: James J. Cotter, Chairman & CEO
Main Responsibilities: All financial and administrative functions for the
above mentioned three (3) Companies with reporting
lines from all finance/accounting Managers in the
various subsidiaries.
Salary: Base salary $180,000/annum
Bonus: Unconditional - 12,0000/annum
Conditional - 25% of base salary.
In the first year, conditional bonus will be
conditioned on the successful transfer of the
finance group from Philadelphia to California.
Signing Bonus - $40,0000 payable on starting date.
Interest Free Loan: $33,000 payable on starting date. This amount will
be repaid on the date of my leaving Craig
Corporation employment, at which time a $50,000
leaving bonus will be paid to offset the loan.
James J. Cotter
Craig Corporation
October 28, 1999
Page 2
Leaving Bonus: In the event of termination of employment for other
than unlawful causes, a 6-month base salary will be
paid.
Stock Options: 30,000 stock options from Craig Corporation.
30,000 stock options from Citadel Holding
Corporation.
The above stock options will be deeded to me on the
starting date. These 60,000 stock options will vest
in the following manner:
- 30,000 shares at the end of 12 months from start
of employment.
- 10,000 shares at the end of 24 months from start
of employment.
- 10,000 shares at the end of 36 months from start
of employment.
- 10,000 shares at the end of 48 months from start
of employment.
Company Car: A company car will be available for this position
valued at $1000/month for the total package.
401K Contribution: The Company will contribute a matching amount of 3%
of total pay (salary & unconditional and
conditional bonus) into the 401K Plan.
Vacation: Official vacation of 2 weeks/annum.
3 weeks after 5 years, however, flexibility will be
available at the discretion of the Chairman/CEO.
Medical: Benefits to be the same as currently being enjoyed
under the Beckman Coulter, Inc. Plan for medical,
dental and vision and will be reimbursed by the
Company.
Incidentals: Parking fees will be paid by the Company.
Cellular phone and internet connection at home will
be paid by the Company.
Normal business expenses will be reimbursed.
Starting date: ASAP
James J. Cotter
Craig Corporation
October 28, 1999
Page 3
Based on the above, if this is acceptable to you, can you please sign and refax
back to me at (714) 508-5726.
ACCEPTED: /s/ James J. Cotter
-------------------------
James J. Cotter
Chairman and CEO
Best regards,
Andrzej Matyczynski