EXHIBIT 10.12
July 22, 2002
Xx. Xxxxxx X. Xxxxxxxxx
0000 Xxxx Xxxxx
Xxxxxxxx Xxxxxxx, XX 00000
Dear Xxxxxx:
In connection with the termination of your employment with Bestway
Rental, Inc. (the "Company") effective July 22, 2002, this letter sets forth the
severance package the Company is willing to pay you provided that you release
the Company from any and all claims.
In consideration for your agreement to the terms of this letter, the
Company will pay and/or deliver to you the following compensation package:
1. Fourteen months severance ($175,000) paid biweekly beginning
with payroll paid August 16, 2002.
2. 35,800 shares of the Company's treasury stock purchased in at
$4.00 per share.
3. $45,000 tax liability bonus check on treasury stock paid by
April 1, 2003.
4. Clear title to 2001 Jeep Grand Cherokee VIN #0X0XX00X00X000000
5. Cobra insurance for employee and dependents through February
28, 2003 paid by the Company.
6. All office equipment, documentation, files, Company credit
card and any other assets of the organization being returned
to the Company.
Xxxxxxx X. Xxxxxxxxx
July 22, 2002
Page 2
Available stock options exercisable are:
DATE OF GRANT JULY 24, 1995
Total number of shares 45,800 exercisable @ 25% on the 1st
anniversary date and an
additional 25% on the 2nd, 3rd
and 4th anniversary dates
Shares exercisable on 7/22/02; 45,800 @ $5.00 = $229,000.00
Per the agreement, options must be exercised within three months of
termination of employment and such purchase price payable to Bestway, Inc.
Please inform the Company by written form as to your intent of exercising such
options at your earliest convenience.
Sincerely,
/s/ R. XXXXXX XXXX
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R. Xxxxxx Xxxx
Chairman of the Board of Directors
ACKNOWLEDGMENT OF SEPARATION PAY AND RELEASE
I, Xxxxxx X. Xxxxxxxxx, have agreed to the above severance package from Bestway
Rental, Inc., consisting of fourteen months ($175,000) severance pay, 35,800
shares of treasury stock purchased in at $4.00 per share, $45,000 tax liability
bonus check, clear title to 2001 Jeep Grand Cherokee VIN #0X0XX00X00X000000, and
Cobra insurance paid by the Company through February 28, 2003.
In exchange for this payment, I will release Bestway Rental, Inc., as well as
their Directors, Officers, Managers, Staff Members and any other agents from any
claim or causes of action that are connected in any way with my employment or
the termination of my employment with Bestway Rental, Inc.
I have read this release and understand it in its entirety. I also accept the
payment described above as final and complete settlement of all claims and
causes of action that I have or may have against Bestway Rental, Inc.
Signed this 22 day of July , 2002.
/s/ XXXXXX X. XXXXXXXXX /s/ XXXXXX X. XXXXXXX
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Xxxxxx X. Xxxxxxxxx Witness
Xxxxxx X. Xxxxxxx
/s/ R. XXXXXX XXXX
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R. Xxxxxx Xxxx
