Free Declaration - District Court of Arizona - Arizona

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‘ g l ' RQE: Christine Kirk Settlemenmx) Page 1 of 3
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SAVAGE, STEVE
From: Steve Brown [[email protected]]
Sent: Wednesday, December 26. 2001 1 29 PM
R To: SAVAGE, STEVE .
Subject: RE. Christine Kirk Settlement
Hi Steve: Thanks for the quick response I just left you a message to talk further, though I have now talked to the
Trustee and can grve you our response. Ms K•rk's counteroffer was recelved as a respectable attempt to resolve
these Issues. However, to cut to the chase so that we can proceed on a unified front against GTCR, the Trustee .
will not accept less than $200,000. cash. We are not walling to accept a note from GTCR, for obvious reasons.
The bad blood between Ms Kirk and GTCR will no doubt carry with it all kinds of allegations of setoff,
oounterclaims etc. from GTCR that could be used as defenses against any note collection, and would mire the
s estate in additional. unwanted litigation. tf Ms Kirk believes the note is collectable, she may keep it and collect rt,
t and use the proceeds toward this settlement As for the Trustee's proposal, a $200,000 settlement on over
$808,000 of undisputed Promissory Notes is extremely generous and is a bottom line price. While Ms. Kirk may
have disputed offsets and/or counlerclarms, most if not all of those claims (except the severance clalm) appear to
` be against GTCR directly, not against Leapsource. The Tmstee is grvrng Ms. Kirk full credit for the severance
i claim as if she already won the litigation, which is by no means a certainty. Remember, on the company's books
I she was severed 'for cause" and Ms. Kirk would bear the burden of proving that the unilateral forgiveness of the
other ernp1oyees’ Notes due the company. without consideration, was not a sufficient "cause" for termination. A
loss on that point could result ln an addrtnonal $400,000 In liability on the Notes. Further, although l‘ve not
— researched this question recently, there are grounds for subordlnatmg severance claims to other general creditor
claims depending on the role of that former inscder/employee and the timing Thus it is also possible that a victory
for Ms. Kirk on the severance issue would STILL not create an offset, since she may not be able to offset a
subordinated claim against a debt owed to the Estate which would benefit creditors with a higher pnonty.
In any event, the Trustee's b . She is willing to provide some terms to Ms Kirk, as follows;
$1 the Settlement is not yet approved by that time, the funds will
be heldbythe Trustee pending approve erea er, Ms. Kirk would ma1 00
q•:égn•g•• ·•· ¢· - •:.~·..e.:e ra · ••:• • ;•• •— ea. s
per month would be due for any late payment, with the settlement being declared automatically in default if any
payment is more than 10 calendar days lata a
default
?_,,,.é*&
If acceptable, please let me know immediately, and I will prepare the settlement papers. The offer remains open
until close of business, Fnday January 4, 2002 Thank you for your prompt attention to this matter. Steve.
Steven J. Brown ‘ ;
Steve Broum & Associates, LLC
1440 E. Missouri, Suite 185
Phoenix, Arizona 85014
Phone: (602) 264-9224 I
Fax: (602) 264-8158 .
Email:»[email protected]
CONFIDENTIAL COMMUNICATION: Any unauthorized Interception of this message may carry
criminal consequences. If you have received this message ln error, destroy It and contact the
sender to let them know of the error.
——····Origlnal Message--·»
From: [email protected] [mailto:[email protected]]
Sent: Friday, December 21, 2001 5:17 PM
To: [email protected]
Subject: RE: Christine Kirk Settlement . (
` exulelr 94
FC·cK"00
12/27/O1 ‘ Carrie Smalnnckas, RPR
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{ · ' RE: Christine Kirk Settlement`) ····—U Page 2 of 3
S Steve,
The assumption is incorrect. Chris is willing to pay $100,000 in cash (l think
within 30 days, which will be required to get the money) and is willing to assign
a $75,000 note to her from GTCR or a GTCR investment entity. l have been
tied up with year end work and have not yet had a chance to get organized to
S explain why this offer makes sense. l also need to find out more about the
i note and get a copy of it, which l'|l do.
l promise to pursue this further next week. Sorry for the delay.
Best wishes for a Merry Christmas.
Steve
-··-Original Message-···
From: Steve Brown [mailto sbrowngbrownlaw ggm]
Sent: Friday, December 21, 1001 3 42 PM I
rs: skwice, srzvs ‘ _
Cc: Diane H. Mann
Subject: Christine Kirk Settlement
Steve
On December 10 we faxed and mailed you an offer of settlement regarding Chris K»rk's Promissory
Notes. The letter stated that offer would expire 10 days from the date of the letter, which was
yesterday. l am assuming Ms. Kirk ls rejecting the offer, without counteroffer, and we will proceed
accordingly Please let me know if that assumption is incorrect. Thanks. Steve.
Steven J. Brown
Steve Brown & Associates, LLC
1440 E. Missouri, Suite 185
Phoenix, Arizona 85014
Phone: (602) 264-9224
Fax: (602) 264-8158
Email: [email protected]
CONFIDENTIAL COMMUNICATION: Any unauthorized interception of this message
may carry criminal consequences. Ifyou have received this message in error, destroy
it and contact the sender to let them know of the error.
The information contained ln this e-mail message ls attomey privileged and confidential information,
intended only for the use of the lndtvldual or entity named above. lf the reader of this message is not the
intended recipient, you are hereby notified that any dissemination, distribution. or copy of this
communication is strictly prohibited. lf you have received this communication lh error, please notify us
_ immediately by telephone (602) 916-5000 or reply by e—mal| and delete or discard the message. Although
FC-CK-0092
12/27/01
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4 · • RE: Christine Kirk Settlemcnt»··.) Page 3 of 3
{· ’_ x. , ’~
this e-matt and any attachments are betteved to be free of any vtrus or other defect that might affect any
? computer system tnto which st ts recetved and opened, rt is the responsnbtltty of the reclptent to ensure that
it is vtrus free and no responsabtltty ts accepted by Fennemore Craig, P C. for any toss or damage ansmg in
any _way from tts use. Thank you. ° 1
Fc-cx-cues
I2/27/Ol V
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