Free Declaration - District Court of Arizona - Arizona

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Case 2:02-cv-02099-RCB Document 345-80 Filed O3/10/2006 Page10f3

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M M U M" if Mw _ ' ` A I A E A '''''A ` " if i st . to '’ '
r Steven D Ncmecek, Esq
j Cindy Gillean, Paralegal
December 10, 2001
VIA FACSIMILE
i AND FIRST CLASS MAIL
(602) 916-5999
Stephen M. Savage
FENNEMORE CRAIG
3003 N. Central Ave Suite 2600
Phoenix, Arizona 85012-2913
RE: In re LeapSource, Inc.
Arizona Chapter 7 Bankruptcy Case No. 01-09020 PHX IMM
Dear Steve: _
This letter follows up our meetmg on November 15 with the Trustee and your client Chris
Kirk, specifically on the issue of amounts due on Promissory Notes owed by Ms. Kirk to the Estate.
Transmitted herewith is an updated chart ofthe Notes and balances due At our meeting, Ms
Kirk stated that she had no disagreement with the principal balances owed as reflected in the April 5
2001 memo prepared by Tina Rhodes. That principal balance was $712,012.06 On the
accompanying chart I have added the rough figures for interest accrued through December 31, 2001
on each of those notes Total principal and interest is therefore approximately $808,000. ,
We are both aware ofthe various issues and conflicts between Ms. Kirk and Leapsource, first
and foremost of which was whether her termmation was properly "with cause" or instead whether
she is entitled to full severance. The Trustee would prefer not to htigate the various employment
issues with Ms. Kirk. Given that Leapsource (i.e. this Estate) may very well have issues with GTCR
and others on which our c1ients’ interests may be aligned, it would behcove both parties to resolve
these notes, enter into full mutual releases of all issues between them, and focus our energies
elsewhere.
The Trustee therefore proposes the following settlement: The Estate will allow Ms. Kirk a
hill credit for her $400,000 severance, will waive all outstanding interest (in some cases over two
years worth of interest) and will release Ms. Kirk from all other claims held by the Estate, in
exchange for payment of the remaining balance of $312,012.06 ln addition, if a substantial
downpayment is made, the Trustee might consider short-tenn payment accommodations as well.
Ms. Kirk will release any further claims she may have against the Leapsource Estate (making sure
1440 E. Missouri Suite 185 ~ Phoenix, Arizona 85014
Phone (602) 26*1*-9224 ~ Pa: (602) 264-3].58 ‘*’ Email 1l>rown@s)l>rownlaw com
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Stephen M Savage
gx December 5, 2001
Page 2 of 2
such release will not impact her claims against GTCR and others), and will make herself readily
available for assistance and cooperation with the Trustee and counsel in their pursuit of claims
against other parties and proper administration of the assets of the Estate
We believe this offer to be extremely generous and m the spirit of good faith, prompt
D resolution of these Notes. The offer remains open for ten (10) days from the date of this letter. We
look forward to hearing from you soon.
r Very tru urs, 4
‘ Stev . Brown
SJB/jrp
· cc: Diane Mann, Trustee (via First Class Mail)
Fc-cK»01os
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