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Exhibit 10.7
FORM OF DEFERRED COMPENSATION AGREEMENT
This deferred compensation agreement is made and entered into [date
of agreement](1) and between Nebraska Book Company, Inc., a Kansas corporation,
and [name and address of executive].
W I T N E S S E T H
WHEREAS, [executive] is an employee of Nebraska Book Company, Inc.
and the parties wish to enter into an agreement providing for the deferment of a
portion of the annual compensation earned by [executive]; and
WHEREAS, the parties wish to reduce their agreement to a written
instrument, and
NOW, THEREFORE, in consideration of the mutual promises herein
contained, the parties hereby contract and agree as follows:
1. That Nebraska Book Company, Inc. shall reserve $[ ](2)
which would have been paid to [executive] as annual compensation with Nebraska
Book Company, Inc. beginning with the calendar year [year following year in
which agreement is signed]. All sums reserved shall be paid to [executive] on
the 1st day of January of the year following his resignation or other
termination, voluntary or involuntary, from Nebraska Book Company, Inc. or to
his heirs or assigns, upon his death, subject to the terms and conditions set
forth hereafter.
2. All sums reserved shall bear interest at the prime interest rate
at Boatmen's First National Bank of Kansas City, Missouri adjusted semi-annually
on January 1 and July 1, and interest computed under this Deferred Compensation
Agreement shall be compounded March 31, of each year.
3. Payments to [executive] upon his resignation or other
termination, voluntary or involuntary, or to his heirs or assigns upon his
death, of all sums reserved, plus interest, shall be paid in one annual
installment, plus accrued interest, on January 1 of the year following the date
of death, resignation or other termination, voluntary or involuntary.
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(1) The agreement was entered into by Xxxx X. Xxxxxxxx on December 30, 1991;
by Xxxxx X. Xxxxxx on December 23, 1991; by Xxxxx X. Xxxxx on December 20,
1990 and by Xxxxxx X. Xxxx on December 18, 1992.
(2) The amount reserved by Xx. Xxxxxxxx is $5,000; by Xx. Xxxxxx is $2,500; by
Xx. Xxxxx is $1,000 and by Xx. Xxxx is $2,080.
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4. All decisions concerning the use or investment of all sums,
including interest, held by Nebraska Book Company, Inc. shall be made by the
Board of Directors of Nebraska Book Company, Inc. [executive] shall have no
control over said funds or interest in any manner whatsoever and shall totally
divest himself with reference to any and all control over said funds, including
interest, except as otherwise provided in this agreement.
5. Neither party shall have the right to amend this Deferred
Compensation Agreement; provided, however, that prior to January 1 of any year,
[executive] shall have the right to amend this agreement by increasing or
decreasing the amount reserved as of January 1 of such subsequent calendar year.
The decision to amend this agreement by increasing or decreasing such annual
compensation shall be in writing and be delivered to Nebraska Book Company, Inc.
prior to January 1 of the year for which such amendment shall be effective.
6. This agreement shall be irrevocable by either party and shall be
binding upon the heirs, administrators, executors, successors and assigns of all
parties hereto.
Executed the [date of agreement].
ATTEST: Nebraska Book Company, Inc.
by: by:
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Secretary Vice President
WITNESS:
by: by:
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[Executive]
