Document:

EXHIBIT 10.L

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Memorandum                                               [LOGO APPEARS HERE]
                                                         FINANCIAL INNOVATORS

Date     February 6, 2002

To:      *FNAME** *MI** *LNAME**, *TITLE**

From:    William C. Roche, Sr. Vice President-Chief Administrative Officer

Re:      2002 ANNUAL INCENTIVE PLAN

Just before the Christmas holiday, I announced we had finalized our 2002 Annual
Incentive Plan. In that same memo, I indicated that you would receive details,
in January, of what the plan would specifically mean to you. Although it's a
bit later than anticipated, this letter describes your bonus opportunities
under the 2002 Annual Incentive Plan and reiterates your benefits under the
FINOVA Enhanced Severance Plan.

..     Bonus opportunities: Your range of bonus opportunities under this plan is
      from 0% to *MAX**% of your base salary. The Plan has been specifically
      designed to be discretionary in nature. In addition to your personal
      performance, other factors bearing on your bonus award will be (1) the
      company's results (2) the results of your function or department and (3)
      the circumstances under which the results were achieved. Results will be
      measured primarily against your function's or department's Key
      Performance Drivers (which will be developed and communicated to you in
      February) and your individual 2002 performance objectives. Your Year-End
      Performance Review will evaluate how you achieved your objectives, such
      as your attitude, commitment and support for others with whom you work.

      If you do well, your department or function does well and the company
      achieves everything expected of it, you should expect a bonus midway of
      the range of bonus opportunities - approximately *MID**% of your annual
      base salary. Falling short of expectations - either personally or as a
      department and/or as a company - will likely result in a bonus of less
      than *MID**% of annual base salary. The degree to which you, your
      department and/or the company exceed expectations will determine the
      level of your bonus above *MID**% of your annual salary.

..     Payment of award: Any bonus will be paid in February 2003, less
      applicable taxes.

..     Leaves of absence: As under prior bonus plans, periods of approved
      leaves of absence (e.g. medical, workers' compensation or personal) will
      not be eligible for bonus consideration, except as required by law. Any
      bonus paid will be pro-rated to take into account the absence period.

..     Reductions in force: Employees who are terminated by the company for
      reasons other than cause or performance will receive a pro-rata portion
      of their bonus award based upon recommendations by their supervisor.
      Company, function/department results and individual performance will be
      taken into account.

Severance: The Board of Directors voted to extend the existing enhanced levels
of severance benefits beyond 2002 for most employees in accordance the FINOVA
Enhanced Severance Plan. For your convenience, summary information on the
enhanced severance plan follows.

..     Enhanced Severance: In the event you are involuntarily terminated for
      reasons other than cause or performance, you will be eligible to receive
      severance pay in a lump sum, less applicable taxes, equal to *SWKS**
      weeks of your base salary based on the years of service you have with
      FINOVA with a

 * is for less than less than

** is for greater than greater than

<PAGE>

      minimum of *SMIN** weeks and a maximum of 52 weeks. The calculation will
      be based on whole years and pro-rated for any portion of a year.

..     COBRA: Additionally, the Company will pay COBRA premiums (medical only)
      on your behalf for a period of time equal to the number of weeks of
      severance pay you receive, rounded up to the next whole month. You must
      be a participant in the medical plan at the time you are terminated,
      enroll in the plan through COBRA, and send a copy of the enrollment
      materials to FINOVA to receive this benefit.

..     Career Continuation Counseling: You will also receive career-planning
      services to help you obtain future employment, details of which will be
      provided to you by your Human Resource Manager.

..     Resignations and Terminations for Cause or Performance: Employees who
      voluntarily resign or are terminated for cause or performance are not
      eligible to receive the enhanced severance benefits.

..     Retirements: Employees who retire are not eligible for severance
      benefits, but may be eligible for other payments under the 2002
      Incentive Plan, depending upon, among other things, the timing of their
      retirements, the amounts of notice and performance. Determinations will
      be made on a case-by-case basis, with the approval of the SVP-Chief
      Administration Officer.

I hope this information is helpful. In the event you have questions about the
bonus plan, the severance plan, or any other HR-related matters, I am making
arrangements to be available and conduct presentations. Your HR manager will
provide further details when these arrangements are finalized. In the meantime,
please feel free to contact your HR manager, Peggy Taylor, or me.<PAGE>
                                                                  EXHIBIT 10.M.1

                                THE FINOVA GROUP
                SEVERANCE PAY PLAN AND SUMMARY PLAN DESCRIPTION

POLICY
------

It is the policy of The FINOVA Group Inc. and its subsidiaries electing to
participate in this Plan (collectively, "FINOVA" or the "Company") that
severance pay may be granted to terminated employees under certain limited
circumstances. Other FINOVA subsidiaries may have different policies as
approved by FINOVA. The Company retains the right to amend or terminate this
Severance Pay Plan (the "Plan") from time to time at its sole discretion.

The Plan is not intended to modify or restrict the Company's right to make
termination decisions and in no way modifies the employment-at-will
relationship between any employee and the Company. The Company retains the
discretion to determine which employee or employees are to be discharged based
on any criteria or factors selected by the Company.

SCOPE
-----

The Plan applies to all eligible Company employees and is effective June 1,
1997, and as amended January 1, 2002. The Plan replaces all other separation or
severance pay practices or plans previously maintained by the Company, except
for written severance arrangements offered to individuals. The terms of this
Plan may be modified for discrete groups of employees in a writing executed by
a Vice President of Human Resources or by any individual or groups of
individuals authorized to amend the Plan under the Amendment Section below.
Except to the extent specified in any such writing, in the event of any
conflict between such writing and the Plan, or in the event of any omission
from such writing, the terms of this plan shall control.

PRACTICE
--------

1.   The Severance Pay Plan is designed to provide transitional income to
     eligible employees while they seek other employment.

2.   The Vice President of Human Resources (VP-HR) is responsible for initially
     administering the Severance Pay Plan. The Severance Appeals Committee (the
     "Committee") will administer any employee claims or complaints. All
     severance packages will remain confidential between the employee, the
     Committee, and others at the Company (including its outside advisors) who
     have a need to know.

  3.   Any employee is potentially eligible for benefits, except as provided
       below.

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<PAGE>

  4.   Employees will be considered eligible for severance pay if they are an
       employee in 'good standing' and are permanently terminated because of the
       following (unless the employee refuses a transfer deemed suitable by the
       Company):

       .  the business they work in being sold or discontinued, or

       .  a reduction in force, or

       .  an impending Change of control, or

       .  within 12 months after a Change of Control

       .  Unsatisfactory performance or insufficient aptitude not due to
          misconduct, disloyalty, insubordination, malfeasance, failure to
          perform assigned duties, failure to comply with Company directives
          or policies, violation of the Code of Conduct or other prohibited
          actions, as determined by the Severance Committee.

4.   Employees are not eligible to receive severance pay under any other
     circumstances which are not mentioned in paragraph 3, including, but not
     limited to the following circumstances:

     .    Employee-initiated (as compared to employer-initiated) voluntary
          resignation or retirement.
     .    Death of the employee.
     .    Failure to report to work in violation of Company policy.
     .    Discharged for misconduct, disloyalty, insubordination,
          malfeasance, failure to perform assigned duties, failure to comply
          with Company directives or policies, violation of the Code of
          Conduct or other prohibited actions.
     .    Covered by an authorized written employment agreement or salary
          continuation plan.
     .    Entitled to receive any other income replacement benefit
          including, but not limited to a long-term disability benefit or
          worker's compensation under current employer plans and policies.
     .    Offered a reasonably comparable position at FINOVA or any of its
          affiliates or successors, provided that the employee's base salary
          for the position offered is at least 80 percent of his/her previous
          base salary and does not require relocation to a new facility more
          than thirty miles from the employee's current work location.

5.   The amount of severance pay to employees is as follows (severance pay
     is calculated on base salary only and excludes incentives, overtime,
     bonuses, commissions, perquisites, or any other forms of compensation
     including payments made under the Plan, except as otherwise may be
     required by Law):

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<PAGE>

A)   REDUCTION IN FORCE (includes elimination of job or position, the
     ------------------
     business an employee works in being sold or discontinued, impending
     Change of Control or, termination (other than for cause) within 12 months
     after a Change of Control)

     .    Less than three months service, two (2) weeks severance pay.
     .    More than three months but less than one years service, four (4)
          weeks pay
     .    More than one years service:

          .    Grade A-E and 11:

          Two (2) weeks of pay for each year of service with a minimum of 8
          weeks of pay and a maximum of 52 weeks of pay.

          .    Grade F-I, S and 00:

          Three (3) weeks of pay for each year of service with a minimum of 16
          weeks of pay and a maximum of 52 weeks of pay.

          .    Grade J:

          Four (4) weeks of pay for each year of service with a minimum of 26
          weeks of pay and a maximum of 52 weeks of pay.

     The Company may pay such amount in a lump-sum payment or semi-monthly
     over the period of weeks for which severance pay is due, at the Company's
     election. Outplacement services will be provided.

B)   RELATED TO UNSATISFACTORY PERFORMANCE (includes demonstrated
     -------------------------------------
     insufficient aptitude) - The amount of severance granted is determined as
     set forth below.

     .    Two (2) weeks of severance pay at a maximum, regardless of years
          of service. Outplacement may be provided at the Company's sole
          discretion.

     NOTES:

          (1)  Full year of service is defined as 12 full calendar months,
               beginning on the employee's date of hire and omitting any interim
               breaks in service in excess of 30 days in duration. Severance
               benefits paid under (A) above accrue for any remaining partial
               year of service.

          (2)  Severance benefits shall not be benefit-bearing compensation for
               any benefit play maintained by the Company, except as otherwise
               required by law.

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<PAGE>

          (3)  Severance pay is in addition to accrued salary and vacation
               benefits due the employee through the date of separation, which
               will be paid on or about that date or as otherwise required by
               law.

6.   Company provided outplacement assistance may be available to employees
     to the extent and with a service or services selected by the Company for
     help in making a smooth transition to a new company or career. The type
     of outplacement assistance (if any) provided will be determined by the
     Supervisor/Department Head and VP-HR.

7.   To the extent offered, severance pay, outplacement assistance and
     other severance benefits, other than those required by law to be provided
     upon termination of employment, if any, will be provided only in exchange
                                                              ----
     for a general release and confidentiality agreement in form and substance
     satisfactory to the Company from the employee. The release will contain a
     release of all claims by the employee, confidentiality provisions and
     other terms deemed necessary or appropriate by the Company. Severance
     pay, outplacement assistance and other non-legally mandated benefits will
     not be paid to employees who do not execute such releases within the time
     frame set forth in the severance agreement and release.

8.   Vacation eligibility does not accrue during the severance pay
     continuation period. Any unused vacation days will be paid in a lump sum
     on or about the time active employment is terminated.

9.   Severance pay (not paid in a lump-sum) will occur in the same payroll
     manner as for regular employees. Outplacement assistance and other
     non-legally mandated benefits under this Plan will cease when the
     employee secures employment prior to the termination of the severance pay
     period, except as otherwise required by law. COBRA rights, discussed
     below, will be terminated in accordance with law.

10.  Medical (including employee assistance program), dental and vision
     are available if the employee, his or her spouse or eligible dependents
     are eligible and elect to continue coverage under the terms and
     conditions of the applicable plans and federal law ("COBRA"). If any such
     persons elect to continue these coverages under COBRA, the Company will,
     if requested in writing by employee, deduct the COBRA premium from the
     -----------------------------------
     employee's semi-monthly severance check, if any. Once severance pay
     continuation ceases, the employee or such other person shall continue
     making any remaining COBRA payments in a timely manner to receive
     continued coverage.

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<PAGE>

11.  An employee receiving severance pay shall not be entitled to any type
     of incentive plan compensation or other perquisites, payable after
     commencement of severance pay, unless the terms of the applicable
     inventive compensation plan specifically provide for post-termination
     payments. Severance pay shall not be benefit-bearing compensation for
     purposes of any of the Company's qualified plans under ERISA including
     retirement, pension, savings or other similar plans, or under any other
     non-qualified plans.

12.  The Committee shall have absolute discretion and authority to
     administer the Plan, and any modifications to the Plan for discrete
     groups of employees, according to their terms, to construe such terms and
     to determine all questions of interpretation or policy thereunder,
     including, but not limited to, questions regarding employees' eligibility
     for, and entitlement of employees to, any benefits. The Committee's
     construction or determination in good faith shall be final and
     conclusive. The Committee may correct any defect, supply any omission, or
     reconcile any inconsistency in such manner and to such extent as shall be
     deemed necessary or advisable to carry out the purpose of the Company's
     severance pay policies; provided, however, that any interpretation or
     construction shall be done in a nondiscriminatory manner. The Committee
     shall have all powers necessary or appropriate to accomplish the
     Committee's duties.

SEVERANCE APPEALS COMMITTEE
---------------------------

The Severance Appeals Committee (the "Committee"), consisting of three members,
is appointed by the FINOVA Chairman of the Board (the "Chairman"). The
Committee is charged with the authority to determine eligibility for and the
type, amount and method of distribution of benefits under the Plan.

Any member of the Committee may resign at any time by delivering to the
Chairman a written notice of resignation, to take effect at a date specified
therein. Any member of the Committee may be removed with or without cause by
the Chairman by delivery of written notice of removal, to take effect at a date
specified therein. The Chairman, upon receipt of or giving notice of the
resignation or removal of the member of the Committee, shall promptly designate
a successor administrator who must signify acceptance of this position in
writing. In the event no successor is appointed, the remaining member(s) or, if
none, the head of the Human Resources Department for FINOVA, will function as
the Committee until vacancies have been filled:

The Committee may engage agents to assist in carrying out the Committee's
functions hereunder. The signature of one member of the Committee may be
accepted by any interested party as conclusive evidence that the Committee has
duly authorized the action therein set forth. No person receiving documents or
written instructions and acting in good faith and in reliance thereon shall be
obligated to ascertain the validity of such action under the terms of the Plan.
The Committee shall act by a majority of its members at the

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<PAGE>

time in office and such action may be taken either by a vote at a meeting or in
writing without a meeting.

CLAIMS PROCEDURE
----------------

Any person who believes he/she is entitled to receive benefits under the Plan
may file a claim for benefits. The claim must be in writing and submitted to
FINOVA c/o its HR Department, 4800 N. Scottsdale Road, Scottsdale, AZ 85251.
The claim must also set forth the specific reasons the claimant believes he/she
is entitled to receive benefits. The Plan Administrator will, within 90 days of
a claim, either allow or deny the claim in writing.

If all or part of the claim for benefits is denied the claimant will receive
written notice from the Committee explaining the reason for the denial. The
notice will identify the Plan provision upon which the denial is based and
describe any additional information or material which may be needed to complete
the claim, and explain the Plan's claim review procedure.

In the event of a denial, the claimant has the right to file an appeal with the
Committee. To file an appeal, he/she must submit a written request for a claim
review to the following:

          Severance Appeals Committee
          Human Resource Department
          The FINOVA Group
          4800 N. Scottsdale Road, MS 6E50
          Scottsdale, AZ 85251

The claimant must submit the appeal in writing within 60 days from the date
that he/she receives the denial from the Committee. The claimant must also
specify the reasons upon which he/she bases the appeal and provide any
supporting evidence or documents, and submit the issues and comments in writing.

The Committee will notify the claimant in writing of its decision on review
within 60 days after the date the request for review is received. The decision
will include specific reasons for the decision and make reference to the
pertinent Plan provisions.

The 90-day and 60-day time periods described above may be extended at the
discretion of the Committee, as the case may be, for their respective second
90-day or 60-day periods, provided written notice of the extension is furnished
the claimant prior to the expiration of the initial periods. In such a case the
claimant will be notified of the special circumstances requiring the extension
of time and the date by which a final decision is expected. Participants and
beneficiaries shall not be entitled to challenge the Committee's determinations
in any judicial or administrative proceedings without first complying with the
claims procedure contained in the Plan. The Committee's decisions made pursuant
to the claims procedure contained in the Plan. The Committee's decisions made
pursuant to

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<PAGE>

the claims procedure are intended to be final and binding on participants,
beneficiaries and others.

RIGHTS UNDER ERISA
------------------

Participants in this Plan are entitled to certain rights and protections under
the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), as
may be applicable. In general, ERISA provides that all Plan participants shall
be entitled to:

     1.   Examine without charge at the Plan Administrator's office and
          other specified locations all Plan documents, including copies of
          all documents filed by the Plan with the U.S. Department of Labor.

     2.   Obtain copies of all Plan documents and certain other Plan
          information upon written request to the Plan Administrator, who may
          require a reasonable charge for the copies.

     3.   Receive a summary of the Plan's annual financial reports, if any
          are required. In some Plans, the Plan Administrator is required by
          law to furnish each participant with a copy of the summary annual
          report. However, in totally unfunded welfare benefit plans which pay
          benefits from the general assets of the sponsoring employer, such as
          is the case with this Plan, the Administrator is not required to
          furnish summary annual reports.

In addition to creating rights for Plan participants, ERISA imposes duties upon
persons who are responsible for the operation of the Plan. These persons are
called "fiduciaries" of the Plan and have a duty to act prudently and in the
interest of Plan participant and beneficiaries. No one may terminate the
participant's employment or otherwise discriminate against a participant or
beneficiary to prevent him/her from obtaining a benefit or exercising his/her
rights under ERISA. If a claim for a benefit is denied in whole or in part, the
claimant must receive a written explanation of the reason for the denial. A
claimant has the right to have the Committee review and reconsider his/her
claim. Under ERISA, there are steps a participant or beneficiary may take to
enforce the above rights. For instance, if the individual requests materials
from the Plan Administrator and does not receive them within 30 days from the
date of the receipt of the request, he/she may file suit in a federal court. In
such a case, the court may require the Plan Administrator to provide the
materials and pay the individual up to $100 a day until he/she receives the
materials, unless the materials were not sent because of reasons beyond the
control of the Administrator.

If the individual has a claim for benefits which is denied or ignored, in whole
or in part, he/she may file suit in state or federal court. If it should happen
that Plan fiduciaries breach their fiduciary duties, or if the participant or
beneficiary is discriminated against for asserting his/her rights, he/she may
seek assistance from the U.S. Department of Labor, or may file suit in a
federal court. The court will decide who should pay court costs

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<PAGE>

and legal fees. If the participant or beneficiary is successful, the court may
order the defendant to pay these costs and fees. If the participant or
beneficiary loses, the court may order him/her to pay these costs and fees; for
example, if it finds the claim is frivolous.

If the employee has questions about the Plan, he/she should contact HR. If the
employee has questions about this general statement or about his/her rights
under ERISA, he/she should contact the nearest Area Office of the U.S.
Labor-Management Services Administration, Department of Labor.

PLAN NAME AND I.D. NUMBER
-------------------------

The name of the Plan is The FINOVA Group Inc. Severance Pay Plan. The Plan
identification number is 501. The Plan is a severance pay plan within the
meaning of Section 2510.3-2(b) if the Department of Labor regulations under
ERISA.

PLAN ADMINISTRATOR
------------------

The Plan Administrator is The FINOVA Group Inc. Severance Appeals Committee.
Any persons may contact the Plan Administrator, in care of the Human Resources
Department, The FINOVA Group Inc., 4800 N. Scottsdale Road, Scottsdale, AZ
85251. The named fiduciary for the Plan shall be the Severance Appeals
Committee. The names and addresses of the member of the Severance Appeals
Committee are William C. Roche, Stu Tashlik, and Peggy Taylor, all of whose
addresses are the same as for the Plan administrator.

FUNDING FOR THE PLAN
--------------------

The Plan is a totally unfunded welfare benefit plan and the Plan benefits are
paid solely from general assets of FINOVA or its participating subsidiaries, as
the case may be.

EMPLOYER I.D. NUMBER AND ADDRESS
--------------------------------

The employer's identification number EIN is 86-0695381. FINOVA is located at
4800 N. Scottsdale Road, Scottsdale, AZ 85251. Its participating subsidiaries
are: FINOVA Capital Corporation, FINOVA Portfolio Services, Inc., FINOVA
Government Finance Inc.

PLAN YEAR
---------

The financial records for the Plan are maintained on a calendar year basis.

SERVING LEGAL PROCESS
---------------------

The C.T. Corporation System, located at 3225 North Central Avenue, Phoenix,
Arizona 85012, is designated as agent for the FINOVA Group Inc. for the service
of legal process.

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<PAGE>

All papers concerning a lawsuit should be directed to this office. Legal Process
may also be served on the Plan Administrator at FINOVA's Human Resources
Department. In addition, service of legal process may be made on any member of
the Committee.

NON-GUARANTEE OF EMPLOYMENT
---------------------------

Participation in the Plan is not and should not be considered a contract of
employment.

AMENDMENT AND TERMINATION
-------------------------

FINOVA reserves the right to suspend, withdraw, amend, modify or terminate the
Plan, in whole or in part, at any time for any reason. In such a case the
employee may be entitled to receive different benefits under different
conditions, or it is possible that he/she will lose all benefit coverage. In no
event will the employee become entitled to any vested rights under the Plan.

FINOVA may amend the Plan at any time and from time to time in writing, by
action of the Board of Directors, its Executive or Executive Compensation
Committees, the Chairman, the President, or the Chief Executive Officer, or any
one or more of them. The Board of Directors, any such Committee, or the
Chairman may delegate authority to amend the Plan in writing to the FINOVA's
Senior Vice President-Chief Administrative Officer. Amendments may be made in
writing and notice of such modifications shall be given to employees as
required by law. Amendments may also be contained in separate severance
agreements, executed pursuant to the authority granted above. The Plan may be
amended with respect to a single employee and different benefits may be in
effect for different employees simultaneously, in the Company's sole discretion.

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