Exhibit 10.55
RENT A WRECK
March 7, 2002
Xx. Xxx Xxxxxxxxx
Xxxxxxxxx Insurance Services
0000 Xxxxxxxx Xxxxx
Xxxxxx, XX 00000
Sent via Federal Express #8257 6979 55111
Re: Letter of Agreement
Dear Xxx:
The following letter of agreement between Rent-A-Wreck of America, Inc. (XXXX)
and Xxxxxxxxx Insurance Services (DIS) is to be effective as of March 1, 2002. A
self-addressed and stamped envelope is enclosed for your convenience. Please
sign and return for our records.
* Xxxxxxxx Insurance Services will manage the captive, Consolidated
American Rental Insurance Company, LTD, regarding processing of
renewals, adding new accounts, issuing COI's and ID cards, monitoring
claims experience, and acting as underwriter and actuary.
* DIS will attend meetings, seminars, conventions and classes, at the
direction and discretion of RAWA.
* DIS will submit applications to other markets that may come available
for non-captive states, pertaining to all non-physical damage
coverages. If possible and with expected profitability, physical
damage will be offered through the captive.
* DIS will continue to solicit markets for excess coverage with the
intent of brining this under the new joint venture as well.
* First year compensation to DIS will be $6,000 per month, payable
monthly, with annual adjustments based on growth. At no time will the
monthly fee be less than $6,000.
* Ongoing expenses will be borne by mutual agreement, some by DIS, some
by XXXX and some by the new joint venture.
* RAWA will pay for Xxx Xxxxxxxxx and the new joint venture to become
licensed in all states as soon as possible.
* This agreement will have a minimum term of three years.
* All commissions generated from all other sources will be split 75% to
RAWA and 25% to DIS, subject to an annual review.
* It's agreed that all business generated from the car rental
marketplace will be placed through this joint venture.
* DIS agrees not to compete with the captive, and not to solicit
business from customers within this program after the expiration and
termination of this agreement.
* All disputes arising out of this agreement will be resolved by
arbitration before the American Arbitration Association. Arbitration
Hearings will be held in Baltimore, Maryland.
Sincerely,
Xxxxxxx X. Xxxx, Xx.
President
KLB/rld
cc: Xxxxx Xxxxxxxxxxxx
AGREED TO: /s/ Xxx Xxxxxxxxx 3/8/02
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Xxx Xxxxxxxxx
AGREED TO: /s/ Xxxxxxx X. Xxxx, Xx. 3/18/02
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Xxxxxxx X. Xxxx, Xx.
President, RAWA
