Document:

Exhibit 10(a) 

	
  

 
	
 Edward M. Kress

937-449-2830

937-463-4947 - Fax

edward.kress@dinslaw.com

 

September 30, 2009

VIA E-MAIL AND FEDEX 

Mr. Sam Pak 

Chief Executive Officer

Appliance Direct, Inc.

397 North Babcock Street

Melbourne, Florida 32935 

          RE:     Leases
dated as of January 29, 2009 between Rex Affiliates and Appliance Direct
Affiliates 

Dear Sam: 

          Pursuant
to the parties’ discussions, this letter memorializes the terms for the
Appliance Direct affiliates (collectively, “Tenants”) to vacate the Leased
Premises listed on Schedule A attached to this letter, remove Tenants’ personal
property and inventory and turn over possession of the Premises to Rex Radio
and Television, Inc., Kelly & Cohen Appliances, Inc. and Stereo Town, Inc.
(collectively, “Landlords”). 

          On
or before October 1, 2009, Tenants shall pay to Landlords, by wire transfer of
good funds, the Minimum Rent and Additional Rent (collectively, the “Rent”) for
each of the locations prorated on a weekly basis. On each Wednesday of the
month of October, by the close of business, Tenants shall pay Landlords, by
wire transfer of good funds, the Rent prorated on a weekly basis for those
locations which Tenants have not returned possession of the Leased Premises to
Landlords. Tenant shall also be responsible for payment of the costs of all
utilities through the date Tenant returns possession of a given location to
Landlords. Tenants shall deliver to Landlords a list of those locations and
return the keys for those locations that have already been vacated and which
Tenants are delivering possession to Landlords as of October 1, 2009. In the
event Tenants fail to pay Rent as required by this letter agreement, Tenants
shall immediately, without notice or opportunity to cure, surrender possession
of the Leased Premises to Landlords and Landlords may take all action necessary
to secure possession of the Leased Premises. 

          As
each Tenant vacate a given Leased Premises, Tenant shall give Landlord written
notice that the location has been vacated and overnight the keys to that
location to Landlord. Possession of that Leased Premises shall be deemed to
have been delivered to Landlord effective 

	
  

 
	
 Sam Pak 

 September 30,
 2009 
Page 2

 
	
  

	

 

 

the date the keys are placed
in overnight mail to Landlord. Tenant shall discontinue all utilities no
earlier than one day following receipt by Landlord of written notice of
vacating and return of keys to Landlord. The parties agree and acknowledge that
AD-Gainesville, Inc. has returned the keys to Stereo Town, Inc. and delivered
possession of the Leased Premises in Gainesville to Stereo Town, Inc. as
Landlord. 

          If
a Tenant vacates a Leased Premises prior to the date through which Rent is
paid, Landlords shall credit against the next week’s Rent (or refund to Tenants
if no Rent is due because all of the Leased Premises have been turned over to
Landlord) for any Rent prepaid for such location. Once Tenant delivers written
notice to Landlord that a location has been vacated, Landlord shall have the
right to change the security system at that location to Landlord’s name and
change the locks if Landlord so desires. 

          The
parties acknowledge that bona fide disputes and controversies exist between the
parties, and by reason of such disputes and controversies the parties desire to
compromise and settle all claims and causes of action of any kind whatsoever
which the parties have or may have in the future against each other arising out
of the Leases, excluding any claims first occurring after the date of this
letter agreement or any damage to the Leased Premises caused by Tenants. It is
understood and agreed that this is a compromise of disputed claims, and nothing
contained herein shall be construed as an admission of liability by or on
behalf of any party, all such liability being expressly denied. Further, by
executing this letter, the parties release and forever discharge each other and
all of their respective successor or predecessor entities, all of their past
and present directors, officers, employees, members, representatives,
attorneys, agents, successors, and assigns from any and all claims which they
or any of them may have or claim to have from the beginning of time through the
date of this Letter arising from any claims or causes of action whatsoever,
including but not limited to claims or causes of action arising out of or
relating to the Leases, excluding any claims first occurring after the date of
this letter agreement or any damage to the Leased Premises caused by Tenants.
Notwithstanding this paragraph the parties agree to cooperate in the filing of
any reports with law enforcement or insurance companies where applicable for
any inventory determined after inspection to be missing. 

          All
capitalized terms not defined herein shall have the meaning ascribed to such
term in the respective Leases between Landlords and Tenants. 

          In
the interest of time, each party agrees to accept any notice required by this
letter agreement by email, with a copy to their respective counsel by email,
with the original notice to be subsequently sent by either overnight mail or
certified mail. 

          If
at any time any of the parties hereto reasonably determine that any further
documentation or assurances are reasonably necessary or desirable to carry out
the provisions of this letter agreement and the transactions contemplated
herein, the appropriate parties hereto shall execute and deliver, or cause to
be executed and delivered, any and all proper documentation or assurances and
to do, or cause to be done, all things reasonably necessary or proper to carry
out fully the provisions hereof. 

	
  

 
	
 Sam Pak

 September 30, 2009
Page 3

 
	
  

	

 

 

          Please
sign a copy of this letter and return it to my attention to evidence your
agreement to the terms set forth herein. 

	
  

 	
  

 
	
  

 	
 Sincerely, 

 
	
  

 	
  

 
	
  

 	
 /s/ Edward M. Kress

 
	
  

 	

 

 
	
  

 	
 Edward M. Kress, Secretary
 of

 Rex Radio and Television, Inc, Kelly & Cohen

 Appliances, Inc. and Stereo Town, Inc.

 

Agreed to and acknowledged

this ____ day of September, 2009

Appliance Direct, Inc., AD-Mobile, Inc.,

AD-Daphne, Inc., AD-Gadsden, Inc.,

AD-Auburn, Inc., AD-Florence, Inc.,

AD-Decatur, Inc., AD-Montgomery, Inc.,

AD-Brunswick, Inc., AD-Gautier, Inc.,

AD-Greenville, Inc., AD-Meridian, Inc.,

AD-Columbus, Inc., AD-Natchez, Inc.,

AD-Vicksburg, Inc. and AD-Gainesville, Inc. 

	
  

 	
  

 	
  

 
	
 By:

 	
 Appliance Direct, Inc.

 	
  

 
	
  

 	

 

 	
  

 

	
  

 	
  

 	
  

 
	
 Name: 

 	
 /s/ Sam Pak

 	
  

 
	
  

 	

 

 	
  

 

	
  

 	
  

 	
  

 
	
 Title: 

 	
 CEO

 	
  

 
	
  

 	

 

 	
  

 

	
  

 	
  

 
	
 EMK-KRA:pas\45915 1

 
	
 cc:

 	
 Christopher J. Coleman,
 Esq. (Via E-mail and Fedex)

 
	
  

 	
 Douglas L. Bruggeman

 

Schedule A

	
  

 	
  

 	
  

 
	
 Store

Number 

 	
 Location 

 	
 Weekly Rent 

 
	
  

 	
  

 	
  

 
	
 14

 	
 7163 Airport
 Boulevard

 	
 $1,467.21

 
	
  

 	
 Mobile,
 Alabama

 	
  

 
	
 23

 	
 Daphne,
 Alabama

 	
 $1,484.54

 
	
 27

 	
 Dothan,
 Alabama

 	
 $1,423.41

 
	
 24

 	
 Gadsden,
 Alabama

 	
 $1,492.01

 
	
 29

 	
 Auburn,
 Alabama

 	
 $1,494.50

 
	
 102

 	
 Florence,
 Alabama

 	
 $1,416.57

 
	
 103

 	
 Decatur, Alabama

 	
 $1,427.51

 
	
 181

 	
 Montgomery,
 Alabama

 	
 $1,459.47

 
	
 154

 	
 Brunswick,
 Georgia

 	
 $1,467.04

 
	
 17

 	
 Gautier,
 Mississippi

 	
 $1,510.44

 
	
 25

 	
 Greenville,
 Mississippi

 	
 $1,608.06

 
	
 137

 	
 Meridian,
 Mississippi

 	
 $1,575.23

 
	
 138

 	
 Columbus,
 Mississippi

 	
 $1,597.48

 
	
 296

 	
 Natchez,
 Mississippi

 	
 $1,571.03

 
	
 127

 	
 Vicksburg,
 Mississippi

 	
 $1,582.54Exhibit 10(b)

AMENDMENT NO. 4 TO EMPLOYMENT AGREEMENT

          THIS AMENDMENT NO. 4 TO EMPLOYMENT AGREEMENT
(this “Amendment”) is entered into as of the 30th day of September, 2009
between Rex Radio and Television, Inc., an Ohio corporation (the “Corporation”),
and David L. Bearden (“Employee”).

Recitals

          A.
The Corporation and Employee entered into an Employment Agreement dated
October 11, 2005, as amended by Amendment No. 1 to Employment Agreement
dated December 10, 2007, Amendment No. 2 to Employment Agreement dated March 6,
2008 and Amendment No. 3 to Employment Agreement dated February 19, 2009
(collectively, the “Agreement”).

          B.
Amendment No. 3 to Employment Agreement provided for payment of a “Transition
Bonus” and the Corporation and Employee desire to amend the Agreement with
respect to the termination of Employee’s employment and payment of the
Severance Payment as described herein.

          NOW,
THEREFORE, the Corporation and Employee hereby amend the Agreement as follows:

1. Definitions.
All capitalized terms used herein and not otherwise defined shall have the same
meaning herein as in the Agreement.

2. Payment
Effective as of Termination of Employment. Employee’s employment with the
Corporation was terminated effective as of June 30, 2009. As of June 30, 2009,
the Chief Executive Officer of the Corporation determined that the transition
of operational control of retail stores to Appliance Direct, Inc. (“AD”) had
not occurred. Notwithstanding the fact that the Corporation maintains that the
transition has not occurred and in lieu of any other payment from Corporation
to Employee pursuant to the Employment Agreement, the Corporation agrees to pay
to Employee a non-refundable Severance Payment in the amount of $450,000.00
payable as follows: (i) $225,000.00 on or before January 31, 2010 (but not
before January 1, 2010); and (ii) $225,000.00 on or before January 31, 2011
(but not before January 1, 2011), subject to the execution of, and expiration
of any applicable waiting period pursuant to, the Employment Severance
Agreement and Release of Claims in the form attached hereto as Exhibit “A”.

3. Effectiveness.
This Amendment shall be effective as of the date first written above. Except as
specifically amended by this Amendment, all other applicable terms and
conditions of the Agreement shall remain in full force and effect and are
hereby ratified and confirmed.

4. Miscellaneous.
This Amendment shall be deemed to be a contract made under the laws of the
State of Ohio and for all purposes shall be governed by and construed in
accordance with the laws of such State applicable to contracts made and to be
performed entirely within such State. If any term, provision, covenant or
restriction of this Amendment is held by a court of competent jurisdiction or
other authority to be invalid, void or unenforceable, the remainder of the
terms, provisions, covenants, and restrictions of this Agreement shall remain
in full force and effect and shall in no way be affected, impaired or
invalidated.

          IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed, all as of the day and year first above written.

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 REX RADIO
 AND TELEVISION, INC.

 
	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
 /s/ Douglas
 Bruggeman

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Douglas
 Bruggeman

 	
  

 
	
  

 	
  

 	
 Vice
 President-Finance

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 EMPLOYEE

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 /s/ David L.
 Bearden

 	
  

 
	
  

 	

 

 	
  

 
	
  

 	
 David L.
 Bearden

 	
  

 

2

EXHIBIT “A” 

EMPLOYMENT
SEVERANCE AGREEMENT AND

RELEASE OF CLAIMS

          This
Employment Severance Agreement and Release of Claims (hereinafter referred to
as the “Agreement”) is made and entered into by and between David L. Bearden,
on behalf of himself individually, and on behalf of his heirs, executors,
administrators, representatives, agents, attorneys and assigns (hereinafter
collectively referred to as “Employee”) and Rex Radio and Television, Inc., on
behalf of its past and present officers, directors, partners, associates,
employees, agents, shareholders, representatives, attorneys and assigns
(hereinafter collectively referred to as “Employer”).

          In
consideration of the mutual promises herein contained, the parties agree as
follows:

          1.
Termination Date. Employee has been employed by Employer since October
11, 2005 pursuant to the terms and conditions of an Employment Agreement
between Employee and Employer, as amended by that certain Amendment No. 1 to
Employment Agreement dated December 10, 2007, that certain Amendment No. 2 to
Employment Agreement dated March 6, 2008, that certain Amendment No. 3 to
Employment Agreement dated February 19, 2009 and that certain Amendment No. 4
to Employment Agreement dated concurrently herewith (collectively, the
“Employment Agreement”). Employee and Employer have agreed that Employee was
terminated from his employment with Employer effective June 30, 2009 (“Employee’s
Termination Date”). As of Employee’s Termination Date, Employee was no longer
required to perform any services or report to work at Employer and was not
considered an employee of Employer for any purpose or under any circumstance,
including in the event Employee exercises his right to rescind this Agreement
under Section 6 below.

          2.
Payment. In accordance with the terms of this Agreement, Employer shall
pay to Employee the sum of $450,000.00 (the “Severance Payment”) as provided in
the Employment Agreement, as follows: (i) $225,000.00 on or before January 31,
2010 (but not before January 1, 2010); and (ii) $225,000.0 on or before January
31, 2011 (but not before January 1, 2011, except as such payment may be
accelerated in the event of a Change in Control). All applicable federal, state
and local taxes will be deducted from the Severance Payment at the regular
rate. In the event of a Change in Control (as hereinafter defined), the
Employer’s obligation to make payment of the Severance Payment (or the balance
thereof then due hereunder) shall be accelerated so that such amount is
immediately payable by Employer to Employee in full. Employee is not obligated
to seek other employment or take any other action as a condition for receiving
the amount payable to Employee hereunder, nor shall the amount of any payment
hereunder be reduced by any setoff or compensation earned as a result of
Employee’s employment by another employer because the Severance Payment is
non-refundable and not subject to reduction or forfeiture.

          3.
Additional Consideration. Employee acknowledges that, in exchange for a
waiver of any potential claims under the Age Discrimination in Employment Act
as specified in Section 5(b) below, he is receiving consideration in addition
to anything of value to which he is entitled.

          4.
Insurance. Employer agrees to extend all rights pursuant to the
Comprehensive Omnibus Budget Reconciliation Act of 1986, as amended, 29 U.S.C.
§§ 1161-1168 (“COBRA”) for a period of eighteen (18) months from Employee’s
Termination Date. Payment of all premiums during that period shall be at
Employee’s sole cost and expense.

          5.
Release.

	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 As a
 material inducement to enter into this Agreement, Employee knowingly and
 voluntarily releases, acquits and forever discharges Employer and its past
 and present officers, directors, partners, associates, employees, agents,
 shareholders,

 

4

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 representatives,
 attorneys and assigns from any and all charges, complaints, claims, liabilities,
 obligations, promises, agreements, controversies, damages, actions, causes of
 action, suits, rights, demands, costs, losses, debts and expenses of any
 nature which arise from or are related to his employment with Employer and/or
 the termination of his employment with Employer that existed on or before the
 date this Agreement was signed.

 

          By
executing this Agreement, Employee is waiving all claims against Employer and
its present officers, directors, partners, associates, employees, agents, shareholders,
representatives, attorneys and assigns arising under federal, state and local
labor and antidiscrimination laws and any other restriction on Employer’s right
to terminate employment, including, without limitation:

	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 Title VII of
 the Civil Rights Act of 1964, as amended by the Civil Rights Act of 1991, 42
 U.S.C. § 2000e, et. seq., and 42 U.S.C. § 1981A;

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 The Age
 Discrimination in Employment Act of 1967 (“ADEA”), as amended, 29 U.S.C. §
 621, et seq., including The Older Workers Benefit Protection
 Act, 29 U.S.C. § 626;

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 The
 Employment Retirement Income Security Act of 1974, as amended, 29 U.S.C. §
 1001, et seq.;

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 The Family
 and Medical Leave Act of 1993, 29 U.S.C. § 2601, et seq.;

 
	
  

 	
  

 	
  

 
	
  

 	
 (e)

 	
 The
 Americans with Disabilities Act of 1990, 42 U.S.C. § 12201, et seq.;
 and

 
	
  

 	
  

 	
  

 
	
  

 	
 (f)

 	
 All
applicable local and state statutes, including but not limited to Missouri
Revised Statutes § 213.055, et seq.  

 

          For
purposes of implementing a full and complete release and discharge, Employee
expressly acknowledges that he has not filed and will not file a claim(s) with
an administrative agency, including but not limited to, the Equal Employment
Opportunity Commission (“EEOC”) and any state or local agency with the same or
comparable jurisdiction. 

5

	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 Employer
 hereby irrevocably releases, acquits and forever discharges Employee and
 Employee’s heirs, successors and assigns from any and all charges,
 complaints, claims, liabilities, obligations, powers, agreements,
 controversies, damages, actions, causes of action, suits, rights, demands,
 defenses, costs, losses, debts, setoffs and expenses of any nature which
 arise from or are related in any way to the October 11, 2005 Employment
 Agreement between Employer and Employee, as amended, Employee’s employment by
 the Employer, and/or the termination of his employment with Employer. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 This
 Agreement is intended to include within its effect all claims, which exist at
 the time of execution, respecting events occurring through the date of
 execution, and this Agreement contemplates the extinguishment of any such
 claim or claims; provided, however, the foregoing provisions of this Section
 5 shall not apply to any claims that may arise after the date hereof,
 including but not limited to any claim relating to the Employer’s performance
 of this Agreement. 

 

          6.
Older Workers Benefit Protection Act. YOU WILL WANT TO DISCUSS THIS AGREEMENT
WITH A LAWYER. PLEASE REVIEW THIS AGREEMENT AND THE NOTICE ATTACHED AS EXHIBIT
1 AND CONSIDER THEM FOR UP TO TWENTY-ONE (21) DAYS. YOU SHOULD THOROUGHLY
REVIEW AND UNDERSTAND THE EFFECT OF THIS AGREEMENT BEFORE ACTING UPON IT. 

          IF
YOU SIGN THIS AGREEMENT, YOU WILL HAVE SEVEN (7) DAYS AFTER YOU HAVE SIGNED TO
CHANGE YOUR MIND. IF YOU DECIDE WITHIN THIS SEVEN (7) DAY PERIOD THAT YOU WILL
ACCEPT THE AGREEMENT, YOU MUST SIGN EXHIBIT 1 ATTACHED TO THIS AGREEMENT AND
RETURN IT TO EMPLOYER BY CERTIFIED MAIL. 

6

          THIS
AGREEMENT WILL NOT BECOME EFFECTIVE UNTIL THE SEVEN (7) DAY PERIOD AFTER YOU
HAVE SIGNED THIS AGREEMENT HAS EXPIRED (“THE EFFECTIVE DATE”). UPON THE
EFFECTIVE DATE, YOU SHALL RECEIVE PAYMENT AS DESCRIBED IN SECTION 2. 

          7. Change
      in Control. Change in Control for purposes of this Agreement means the
Employer’s written agreement to enter into a transaction the consummation of
which would constitute a change in ownership or effective control as defined by
Treasury Regulations issued pursuant to Section 409A of the Internal Revenue
Code. 

          8.
Non-Disparagement. Each party agrees that he or it will not make or
induce others to make any public or private disparaging statements, oral or
written regarding the other party or his or its business or work performance.
Employer agrees that it will respond to any request for employment references
for Employee by providing a neutral reference containing Employee’s dates of
employment and position(s) held. 

          9.
No Reliance. The parties represent to each other that in executing this
Agreement they do not rely and have not relied upon any representation or
statement not set forth herein made by the other party or by any of the other
party’s agents, representatives or attorneys with regard to the subject matter,
basis or effect of this Agreement or otherwise. 

          10.
Choice of Law, Venue & Jurisdiction. This Agreement will be governed
by and construed and enforced under the laws of the State of Ohio. The parties
further consent to the jurisdiction and venue of a court of competent
jurisdiction in Montgomery County, Ohio with respect to any dispute or claim
arising under this Agreement or relating to the subject matter of this
Agreement. Amounts payable hereunder shall bear interest at the rate of six
percent (6%) per annum from the date due hereunder until payment, and in the event
of any litigation to enforce the terms of this Agreement, the prevailing party
shall be awarded reasonable attorneys’ fees and costs.

7

          11.
Severability. In the event that any one or more of the provisions of
this Agreement is held to be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions will not in any way be
affected or impaired thereby. 

          12.
Integration. This Agreement sets forth the entire agreement between the
parties hereto concerning the subject matter hereof and may not be changed
without the written consent of the parties. This Agreement supersedes all prior
agreements and understandings concerning the subject matter hereof. 

          13.
Assignment. This Agreement is intended to be binding upon and shall
inure to the benefit of the parties hereto and their respective successors and
assigns. 

          14.
Counterparts. This Agreement may be executed in one or more identical
counterparts, each of which shall be deemed an original but all of which
together shall constitute but one and the same instrument. 

          15.
No Admission. Nothing in this Agreement shall be construed as an
admission by Employee or Employer of any intentional or unintentional
wrongdoing or any violation of any local, state or federal law. Rather, it is
understood by the parties that the execution of this Agreement is a voluntary
act to provide an amicable conclusion to Employee’s employment with Employer. 

          IN
WITNESS WHEREOF, the parties have executed this Agreement as of the dates
written below. 

	
  

 	
  

 
	
  

 	
 Employee

 
	
  

 	
  

 
	
  

 	

 

 
	
  

 	
 David L.
 Bearden

 
	
  

 	
  

 
	
  

 	
 Execution
 Date: ______________, 2009

 

Sworn to and
subscribed to in my presence on this _____ day of _____________, 2009.

	
  

 	
  

 
	
  

 	

 

 
	
  

 	
 NOTARY
 PUBLIC 

 

8

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Employer: 

 
	
  

 	
  

 
	
  

 	
 Rex Radio
 and Television, Inc.

 
	
  

 	
  

 
	
  

 	
 By: 

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:  Douglas Bruggeman

 
	
  

 	
  

 	
  

 	

 

 
	
  

 	
 Title:    Vice President-Finance

 
	
  

 	
  

 	
  

 	

 

 

Sworn to and
subscribed in my presence on this ____ day of ______________, 2009.

	
  

 	
  

 
	
  

 	

 

 
	
  

 	
 NOTARY
 PUBLIC

 

9

EXHIBIT 1

NOTICE OF
ACCEPTANCE OF EMPLOYMENT SEVERANCE AGREEMENT

          I, David L.
Bearden, signed the Employment Severance Agreement and Release of Claims
between myself and Employer on ______________________, 2009. Seven (7) days have now passed since my signing
of the Employment Severance Agreement and Release of Claims. I have carefully read the Agreement, fully
understand the Agreement, and completely accept the Agreement. Upon further reflection during the past
seven (7) days, I have decided not to revoke the Employment Severance Agreement
and Release of Claims.

	
  

 	
  

 
	
  

 	

 

 
	
  

 	
 David L.
 Bearden

 
	
  

 	
  

 
	
  

 	
 Date:
 _____________________, 2009

 

	
  

 	
  

 
	
 Please send
 payment to the following address:

 
	
  

 	
  

 
	

 

 	
  

 
	
  

 	
  

 
	

 

 	
  

 
	
  

 	
  

 
	

 

 	
  

 

10

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