Select Committee on Standards and Privileges Seventh Report

Annex J

Letter to Mr Kevin Maxwell

from Mr Michael Stoney, Pergamon ABG plc


1.  I had a meeting yesterday with Geoffrey Robinson at which I discussed with him briefly his proposal for a management agreement between Transtec and Lock.

2.  As you may remember, under his proposal Transtec would receive up to 30% of the profits of Lock over the next 2 year period.

3.  I indicated to Geoffrey that we felt it would be of greater benefit if Transtec received:

    a. a flat fee of an amount to be agree (between £150k-£200k);

    b. a share of the profits over and above an agreed base figure.

4.  Surprising, Geoffrey strongly felt that the receiving of a share of the profits would be a greater incentive to Transtec (bearing in mind that Lock are only forecasting to breakeven this year).

5.  Geoffrey reiterated that he remained extremely interested in buying Lock within the next couple of years to merge it with his other business and a further potential acquisition he is currently considering. This would then given him a Group with a turnover of approximately £25m which could be floated.

6.  Geoffrey indicated that he preferred to discuss the matter directly with you. However, I said that after further discussion with you I would inform him of our outline proposals.

23 May 1990

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