Document:

<PAGE>
                                                                  EXHIBIT 10.M.2

                               THE FINOVA GROUP
                    Description of Enhanced Severance Plan

Effective from May 25th 2000 until further notice.

In the event that an employee is involuntarily terminated, other than for
Cause, (defined below) as a result of:

  .   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

a lump sum severance payment will be paid to the employee, less applicable
taxes. This lump sum amount is based on the grade in effect at the employee's
termination date and the employee's length of service with FINOVA and/or its
successor on the severance date:

      Grade A-E and 11:
      A lump sum equivalent to 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:
      A lump sum equivalent to 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:
      A lump sum equivalent to 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.

Employees otherwise entitled to severance benefits greater than those outlined
above, will receive the greater of these benefits.

"Change in Control" and "Termination for Cause" is defined in Appendix I.

In the event of a Change of Control, the employee will also be eligible for
enhanced severance benefits if:

     1.     the only position the employee is offered by the new Company
            requires a change of work location of more than 30 miles, or

     2.     requires a reduction in base salary of more than 20% and the
                                                                 ---
            employee does not accept the position.

<PAGE>

COBRA
-----
Additionally, the Company will pay COBRA premiums on the employee's behalf for
a period of time equal to the number of weeks of severance pay received,
rounded up to the next whole month, up to a maximum of one year of COBRA. The
employee must affirmatively enroll in that plan through COBRA within the
specified period and send a copy of the enrollment materials to FINOVA to
receive this benefit.

Paid Time Off pay
-----------------
Employees receiving a benefit under this Plan will also be paid upon
termination for accrued vacation and personal days.

Career Continuation Counseling
------------------------------
A career planning service will be made available to employees terminated under
this Plan to help obtain future employment.

Release of Liability.
--------------------
Consistent with FINOVA's existing severance plan, payment of any severance
benefits under this Plan will be contingent on your signing a release of
liability of FINOVA, its affiliates and their personnel in the Company's
standard form, at the election of the Company.

<PAGE>

     APPENDIX I

DEFINITION OF CHANGE OF CONTROL: For purposes of this Plan, a "Change of
Control" shall mean any of the following events:

     (a)     The acquisition by an individual, entity or group (within the
             meaning of Section 13(d)(3) or 14(d)(2) of the Securities
             Exchange Act of 1934, as amended (the "Exchange Act")) (a
             "Person") of beneficial ownership (within the meaning of Rule
             13d-3 promulgated under the Exchange Act) of 20% or more of
             either (i) the then outstanding shares of common stock of the
             Corporation (the "Outstanding Corporation Common Stock") or (ii)
             the combined voting power of the then outstanding voting
             securities of the Corporation entitled to vote generally in the
             election of directors (the "Outstanding Corporation Voting
             Securities"); provided, however, that for purposes of this
             subsection (a), the following acquisition shall not constitute a
             Change of Control: (i) any acquisition directly from the
             Corporation, (ii) any acquisition by the Corporation other than
             an acquisition by virtue of the exercise of a conversion
             privilege unless the security being so converted was itself
             acquired directly from the Corporation, (iii) any acquisition by
             any employee benefit plan (or related trust) sponsored or
             maintained by the Corporation or any corporation controlled by
             the Corporation or (iv) any acquisition by any corporation
             pursuant to a transaction which complies with clauses (i), (ii)
             and (iii) of subsection (c) of this Section 4; or

     (b)     individuals who, as of the date hereof, constitute the Board
             (the "Incumbent Board") cease for any reason to constitute at
             least a majority of the Board; provided, however, that any
             individual becoming a director subsequent to the date hereof
             whose election, or nomination for election by the Corporation's
             shareholders, was approved by a vote of at least a majority of
             the directors then comprising the Incumbent Board shall be
             considered as through such individual were a member of the
             Incumbent Board, but excluding, for this purpose, any such
             individual whose initial assumption of office occurs as a result
             of an actual or threatened election contest with respect to the
             election or removal of directors or other actual or threatened
             solicitation of proxies or consents by or on behalf of a Person
             other than the Board; or

     (c)     approval by the shareholders of the Corporation of a
             reorganization, merger or consolidation or sale or other
             disposition of all or substantially all of the assets of the
             Corporation (a "Business Combination"), in each case, unless,
             following such Business Combination, (i) all or substantially
             all of the individuals and entities who were the beneficial
             owners, respectively, of the Outstanding Corporation Common
             Stock and Outstanding Corporation Voting Securities immediately
             prior to such Business Combination beneficially own, directly or
             indirectly, more than 60% of, respectively, the then outstanding
             shares of common stock and the combined voting power of the then
             outstanding voting securities entitled to vote generally in the
             election of directors, as the case may be, of the corporation
             resulting from such Business Combination (including, without
             limitation, a corporation which as a result of such transaction
             owns the Corporation or all or substantially all of the
             Corporation's assets either directly or through one or more
             subsidiaries) in substantially the same proportions as their
             ownership, immediately prior to such Business Combination of the
             Outstanding Corporation Common Stock and Outstanding Corporation
             Voting Securities, as the case may be, (ii) no Person (excluding
             any employee benefit plan (or related trust) of the Corporation
             or such corporation resulting from such Business Combination)
             beneficially owns, directly or indirectly, 20% or more of,
             respectively, the then outstanding shares of common stock of the
             corporation resulting from such Business Combination or the
             combined voting power of the then outstanding voting securities
             of such corporation except to the extent that such ownership
             existed prior to the Business Combination and (iii) at least a
             majority of the members of the board of directors of the
             corporation resulting from such Business Combination were
             members of the Incumbent Board at the time of the execution of
             the initial agreement, or of the action of the Board, providing
             for such Business Combination; or

<PAGE>

     (d)     approval by the shareholders of the Corporation of a
             complete liquidation or dissolution of the Corporation; or

     (e)     consummation of a recapitalization of the Corporation or sale of
             equity securities which, in either event, results in the
             issuance to one Person of equity securities (whether common
             stock, preferred stock, or securities convertible into common
             stock or preferred stock) of the Corporation equal to or greater
             than 20% or more of the Outstanding Corporation Common Stock or
             the Outstanding Corporation Voting Securities. For purposes of
             this clause (e), that 20% level will have been reached if:

             (i)    the price paid for the equity securities issued (or if
                    none, their fair market value) equals or exceeds 20% of
                    the fair market value of the Outstanding Corporation
                    Common Stock or the Outstanding Corporation Voting
                    Securities, whichever is less,

             (ii)   the number of shares of equity securities issued (or the
                    number to be issued after conversion into common or
                    preferred stock, if permitted by the terms of those
                    securities) equals or exceeds 20% of the number of the
                    Outstanding Corporation Common Stock or the Outstanding
                    Corporation Voting Securities, whichever is less, or

             (iii)  the voting rights of the equity securities issued
                    (without regard to any conditions on the rights to vote
                    those securities and regardless of whether those
                    securities are voted together or as a separate class)
                    equals or exceeds 20% of the voting rights of the
                    Outstanding Corporation Common Stock or the Outstanding
                    Corporation Voting Securities, whichever is less.

             For purposes of this clause (e), options, warrants and similar
             rights shall not be deemed issued until the underlying
             securities are issued. Convertible debt securities, depositary
             shares [and other securities convertible into common or
             preferred securities] shall be deemed issued upon payment of the
             purchase price for those securities, regardless of whether those
             securities have been converted or are then-eligible to be
             converted into common or preferred stock.

       DEFINITION OF CAUSE:

      (a)    For purposes of this Plan, "cause" shall mean:

                 (i)     the willful and continued failure of the Employee to
             perform substantially the Employee's duties with the Corporation
             or one of its affiliates (other than any such failure resulting
             from incapacity due to physical or mental illness), after a
             written demand for substantial performance is delivered to the
             Employee by an Officer of the Corporation which specifically
             identifies the manner in which the Officer believes that the
             Employee has not substantially performed the Employee's duties, or

                 (ii)    the willful engaging by the Employee in illegal
             conduct or gross misconduct which is materially and demonstrably
            injurious to the Corporation. For purposes of this provision, no
            act or failure to act, on the part of the Employee, shall be
            considered "willful" unless it is done, or omitted to be done, by
            the Employee in bad faith or without reasonable belief that the
            Employee's action or omission was in the best interests of the
            Corporation. Any act, or failure to act, based upon the
            instructions of a senior officer of the Corporation or based upon
            the advise of counsel for the Corporation shall be conclusively
            presumed to be done, or omitted to be done, by the Employee in good
            faith and in the best interests of the Corporation.<PAGE>
                                                                    EXHIBIT 10.Q

                             SEVERANCE AGREEMENT AND RELEASE

     This Severance Agreement and Release (this "Agreement") is made this
second day of January, 2002, between the FINOVA Group Inc. (the "Company") and
William J. Hallinan ("Employee").

     In consideration of the sums to be paid and the other promises of the
parties provided below, the parties agree as follows:

                                   I. GENERAL
                                      -------

     I.1.     Severance Date. Employee's Severance Date is January 2, 2002.
              --------------

     I.2.     Time for Acceptance. Employee may accept this Agreement within
              -------------------
forty-five (45) days from the date of this Agreement. If it is not accepted
within this time period, the Company's offer of these terms shall be
automatically revoked.

     I.3.     Revocation of Acceptance. Employee may revoke acceptance of this
              ------------------------
Agreement provided Employee does so in writing, addressed to William C. Roche,
Sr. Vice President-Chief Administrative Officer, The FINOVA Group Inc., 4800 N.
Scottsdale Road, Scottsdale, Arizona 85251-7623, (telecopier 480/636-6757),
which revocation must be delivered by hand or telecopier within seven (7) days
of the date Employee signs a counterpart of this Agreement.

     I.4.     Effective Date of Agreement. The effective date of this Agreement
              ---------------------------
will be at 8:00 a.m. on the eighth (8th) day after the Company receives
Employee's signed Agreement, provided Employee has not previously revoked
acceptance on or before that date.

                         II. BASIC TERMINATION BENEFITS
                             --------------------------

     The Basic Termination Benefits contained in this Part II will be provided
to Employee regardless of whether Employee enters into this Agreement, subject
to customary payroll deduction in accordance with Company policy.

     II.1.    Salary. On or about January 15, 2002, the Company will direct
              ------
deposit to Employee's account any salary, wages or other compensation due
Employee through the Severance Date. This payment will also include the January
2, 2002 bonus payment due employee of $150,000.

     II.2.    Vacation. The check noted in Section II.1 above will include
              --------
payment for any unused current and carry-over year vacation days earned through
the Severance Date, in the amount of $46,153.85.

     II.3.    Insurance and Consolidated Omnibus Budget Reconciliation Act
              ------------------------------------------------------------
(COBRA) Benefits. Employee's medical (including Executive Medical), vision,
----------------
dental and life insurance coverages in effect on the Severance Date will remain
intact through the end of the month in which Severance occurs. Employee may
make any changes to Employee's coverages under the

<PAGE>

Company's various insurance plans only as permitted by such plans or as
otherwise required by law. Employee shall continue to be responsible for
Employee's share of the premiums, co-payments, deductibles and other Employee
charges attributable to such coverage as if Employee had remained in active
service. Following the end of the month in which Severance occurs, Employee,
Employee's spouse and dependents have rights to continue health care coverage
at their expense but at the Company's group rates, pursuant to the federal law
commonly known as COBRA, for the period permitted by that law. Employee will
receive a separate letter more fully describing COBRA benefits within fourteen
(14) days of the Severance Date. Employee may continue other insurance benefits
(such as life insurance) or convert them to a personal policy, in either case
only to the extent permitted in such plans, if at all.

     II.4.    Vested Benefits. Nothing in this Agreement shall limit
              ---------------
Employee's rights, if any, to vested and accrued benefits under the following
plans, as such plans may be amended or terminated by the Company from time to
time:

     a.     The FINOVA Group Inc. Pension Plan, the Supplemental Executive
            Retirement Plan or any other supplemental or other retirement plan.
     b.     The FINOVA Group Inc. Savings Plan (401(k) plan), including the
            former Employee Stock Ownership Plan (ESOP).
     c.     Claims Employee may have with respect to awards or amounts under
            The FINOVA Group Inc. 1992 Stock Incentive Plan.

Employee may exercise rights and obtain payments and benefits pursuant to those
plans, as they may be amended from time to time. Nothing in this Agreement,
however, shall modify or amend any provisions of those plans or create rights
of Employee to participate in those plans or to receive any benefits
thereunder, other than those to which Employee is otherwise entitled to
receive. In addition, Employee shall be entitled to reimbursement and payment
of all health insurance claims, financial counseling, and health club expenses
incurred prior to Severance Date, in each case according to the respective
plans in effect prior to that Date.

                            III. SEVERANCE BENEFITS
                                 ------------------

     The following Severance benefits shall be provided to Employee in exchange
for acceptance and honor of this Agreement, subject to customary payroll
deduction in accordance with Company policy.

     III.1.   Severance Pay. Employee shall be paid a lump-sum cash payment
              -------------
equal to One Million and no/100ths dollars ($1,000,000.00), less any applicable
taxes.

     III.2.   Insurance Benefits. Upon completion and return of the applicable
              ------------------
COBRA or similar enrollment paperwork, the Company will pay any applicable
premiums for medical, dental and vision insurance COBRA continuation coverage
for the Employee (and the Employee's covered spouse and eligible dependents)
through the 12th month anniversary of the end of the calendar month in which
the Severance Date occurs, for the coverage in effect as of the Severance Date
(and for any additional children born or adopted between then and the Severance
Date). The period during which the Company pays the Employee's medical
insurance COBRA premiums

                                    -2-

<PAGE>

will not extend the period that such coverage is available. The Employee must
contact the Company Benefits Assistant within ten (10) days after the Employee
or spouse or dependents become enrolled in another group health plan. The
Company will also continue to provide executive medical coverage substantially
similar to that provided by the Company immediately preceding the Severance
Date.

     III.3.   Outplacement Services. The Company will provide Executive Level
              ---------------------
outplacement services with a provider selected by the Company, to be used
within 12 months of the Severance Date.

     III.4.   Financial Counseling. The Company shall pay for financial
              --------------------
counseling services similar to those available to the Employee for twelve
months following the Severance Date.

     III.5.   Life Insurance. The Company shall pay twelve months of premiums
              --------------
for life insurance benefits at the Employee's elections for 2001.

     III.6.   PBRS. Employee shall continue to be eligible to participate in
              ----
the settlement of Employee's PBRS claims to the same extent previously offered
to Employee.

     III.7.   Laptop computer and other equipment. Employee shall be entitled
              -----------------------------------
to retain the laptop computer and printer, office chair, and large wall print
issued to Employee, subject to the provisions of Section IV.4, relating to
confidential information.

     III.8.   SERP Payment. The Company will pay or will cause the trustee of
              ------------
the Rabbi Trust to pay to Employee the value of Employee's account under the
Supplemental Executive Retirement Plan, which is being terminated as of
December 31, 2001. The amount due is $1,493,690. The funds will be paid on
January 15, 2002. This payment is contingent on Employee's execution and
delivery of a release in the Company's standard form for the termination and
amendment of the SERP.

     III.9.   Executive Physical. The Company shall pay for one executive
              ------------------
physical at a facility of Employee's choice, the cost of which shall not exceed
the cost of a comparable physical at The Mayo Clinic in Scottsdale, Arizona.

                       IV. COVENANTS AND ADDITIONAL TERMS
                           ------------------------------

     IV.1.    Timing of Severance Benefits. The Company will direct deposit to
              ----------------------------
Employee's account the amounts to be paid under Sections III.1 on or about the
next payroll that occurs after the effective date of this agreement, subject to
normal payroll cutoff dates. If this Agreement is received no later than
January 4, 2002, payment will be made on January 15, 2002, assuming the
Agreement is not revoked.

     IV.2.    Form W-2 or 1099. FINOVA will issue to the Internal Revenue
              ----------------
Service ("IRS") and the Employee's state appropriate Forms W-2 or 1099 for all
monies or other benefits paid to Employee under this Agreement.

                                    -3-

<PAGE>

     IV.3.    Expense Reimbursement/Offset Rights.  If Employee has incurred
              -----------------------------------
expenses prior to the Severance Date in accordance with Company policies and
with proper approvals, and provided Employee documents such expenses on a
properly completed expense reimbursement in a form approved by the Company, the
Company shall reimburse Employee for such authorized expenses. Notwithstanding
anything in this Agreement to the contrary, to the extent permitted by law, the
Company may direct any expense reimbursements, Severance pay or other amounts
due Employee to any person or entity (including the Company) to which any
expenses or other amounts are owed by the Employee, including without
limitation any credit card companies or other vendors which have extended
credit to the Employee through Company-sponsored programs. The ability of the
Company to do so shall not relieve the Employee of Employee's obligation to pay
any such vendor, except to the extent actually applied to the account balance.

     IV.4.    Confidentiality of FINOVA Information. Employee agrees not to
              -------------------------------------
disclose, duplicate, use or otherwise appropriate any information that is
confidential or proprietary to the Company, except as otherwise required by
law. Confidential or proprietary information includes but is not limited to
computer programs, applications, systems, techniques, policies, strategies,
financial information, customer information or lists, methods of doing business
or any other information Employee has learned or obtained during the course of
employment with the Company or any of its predecessors. Upon Severance,
Employee shall immediately turn over to the Company all Company property and
other materials generated by Employee during employment or used by Employee in
connection with employment at the Company or any of its predecessors, including
copies thereof, in Employee's possession or control except as noted in Section
III.7 above. Employee represents and understands that Employee is not entitled
to receive any amounts under this Agreement until all confidential and
proprietary information within Employee's possession or control is returned to
the Company. Employee agrees not to discuss FINOVA business or the terms of
this Agreement with the media.

     IV.5.    Confidentiality of This Agreement. Employee agrees not to
              ---------------------------------
disclose the terms of this Agreement to anyone other than Employee's attorney,
accountant or other professional advisors, or Employee's family members,
requiring any of them to also keep these terms confidential, except as required
by law.

     IV.6.    Entire Agreement. Employee agrees that Employee is not relying on
              ----------------
any representations, promises, statements or agreements not contained in or
incorporated by reference into this Agreement or in the other written materials
furnished in connection with this Agreement or Employee's Severance. Employee
agrees that this Agreement, including the escrow agreement, and any documents
incorporated by reference are all-inclusive and that no additional oral or
written representations, promises or agreements exist with the Company, the
persons or entities referenced in the release paragraphs below or any one else
concerning the subject matter hereof. This Agreement can not be modified,
amended, terminated or otherwise changed unless it is done pursuant to a
written document or documents signed by both the Employee and the Company's Sr.
Vice President-Chief Administrative Officer (currently William C. Roche) or
other person authorized by the Company's Chief Executive Officer.

     IV.7.    Advice of Counsel. Employee acknowledges that Employee has been
              -----------------
advised to consult with an attorney to review the terms and legal effect of
this Agreement,

                                    -4-

<PAGE>

including the release, at Employee's expense, and that Employee has been given
a sufficient opportunity to do so to the extent Employee believes it
appropriate.

     IV.8.    No Other Amounts or Benefits Due Employee. Employee acknowledges
              -----------------------------------------
that there are no other sums due Employee for salary, overtime, vacation, sick
pay, severance pay, change-in-control pay, bonuses or other compensation or
benefits by the Company or any of its predecessors or their affiliates except
for: (a) the Basic Termination Benefits set forth in Part II, (b) the Severance
Benefits, (c) any compensation to be paid prior to the Severance Date, (d)
Employee's vested and accrued benefits (if any), as discussed more fully in
Section II.4 above, and (e) rights to indemnification and directors' and
officers' liability insurance pursuant to the Company's organizational
documents, written agreement or otherwise. Without limitation, Employee
acknowledges that there are no other amounts due Employee pursuant to
Employee's Compensation Agreement and Release dated March 19, 2001.

     IV.9.    Resignation from All Positions. Employee hereby resigns as of the
              ------------------------------
Severance Date from all positions Employee holds with the Company and all of
its affiliates, plans and programs, including without limitation any positions
as a director, officer and committee member. Employee agrees to execute the
resignation in the form attached hereto to more fully acknowledge this
resignation.

     IV.10.   No Solicitation. Employee agrees not to directly or indirectly
              ---------------
solicit for employment any FINOVA employees for one year from the Severance
Date. This prohibition includes directing others to solicit FINOVA employees,
either for the benefit of Employee, Employee's subsequent employer, or
otherwise.

                           V. RELEASE FROM LIABILITY
                              ----------------------

     V.1.   Release :
            --------

     a.  Subject to the terms of this Agreement and in consideration of the
Severance Benefits set forth above, Employee voluntarily and irrevocably
(except for the seven (7) day revocation period noted above) releases and
discharges the Company, its predecessors, their respective affiliates, and
their respective stockholders, directors, officers, employees, plan
fiduciaries, agents, successors and assigns (collectively, "Released Parties")
from and against any and all claims, obligations, debts, demands, judgments, or
causes of action of any kind whatsoever, known or unknown, actual or
contingent, whether brought at law, in equity or otherwise, based on tort,
contract, statute, or on any other basis, which Employee has or may have
against any of them or liabilities they may have to Employee (collectively,
"Claims"), which arise from or are related to Employee's employment or
relationship with the Company or any other Released Party, Employee's
separation from employment from any of them, or any other matter, cause or
thing whatsoever which may have occurred involving Employee and any Released
Party prior to the date of Employee's acceptance of this Agreement. This
release includes all Claims for equitable relief, actual, compensatory,
consequential, punitive, special, multiple or other damages, expenses
(including without limitation attorney's fees and court costs), and all other
reimbursements or charges of any kind. Employee hereby waives any remedy or
recovery that may be sought on Employee's behalf by any government agency or
other person, to the fullest extent permitted by law.

                                    -5-

<PAGE>

     b.  This release includes without limitation any and all Claims Employee
has or may have against the Company or any other Released Party arising under
any federal, state, local or foreign statute, common or other law, including
without limitation those relating to discrimination of any type, unfair
employment practices, sexual or other harassment, the Age Discrimination in
Employment Act of 1967, the Americans With Disabilities Act, the Civil Rights
Acts of 1866, 1871, 1964 and 1991, the Equal Pay Act of 1963, the Employee
Retirement Income Security Act of 1974, the Internal Revenue Code of 1986, the
Fair Labor Standards Act of 1938, the Family and Medical Leave Act of 1993, the
Labor Management Relations Act of 1947, the National Labor Relations Act, the
Rehabilitation Act of 1973, and any other employment-related laws and
regulations, as they may be amended from time to time, as well as all other
Claims Employee has or may have, including without limitation
misrepresentation, fraud, duress, unfair dealing, wrongful termination,
infliction of emotional distress, breach of fiduciary or other duty, invasion
of privacy, failure to supervise or train, defamation, breach of contract,
interference with contract, and all other causes of action of any kind, by
whatever name known.

     c.  Employee agrees to release all such Claims, whether they are known to
Employee or unknown at this time. Employee therefore waives and releases
Employee's rights under any provision of law which states that a general
release does not extend to Claims which the person does not know or suspect to
exist in his or her favor at the time of executing the release, which if known
to him or her must have materially affected the settlement.

     V.2.   Continuing Rights to Enforce this Agreement. The above release does
            -------------------------------------------
not limit Employee's rights to enforce the terms of this Agreement to its
fullest extent. Employee agrees, however, not to initiate or include as a Claim
in any lawsuit, arbitration or other proceeding against the Company or any
other Released Party in any court, before any governmental body, arbitration
forum or otherwise, any Claim which Employee has released above, except for an
action alleging a breach of this, but only this Agreement. In the event that
Employee or the escrow agent is required to return all or a portion of the
funds due under this agreement to or for the benefit of the Company or its
creditors, Employee shall be permitted to assert a claim against the Company
for amounts Employee can establish to be due to Employee pursuant to those
items noted in Recital A and Section II above, but no others. Employee intends
to release all other claims Employee may have against the Company at this time.

     V.3.   Prohibition on Other Suits/Attorney's and Expert's Fees. If
            -------------------------------------------------------
Employee brings any such Claim (except one to enforce this Agreement), Employee
agrees to repay the Company an amount equal to the Severance Benefits and to
pay all of the Company's and other Released Parties' costs expenses and charges
(including without limitation their in-house and outside attorneys' and
experts' fees and expenses) incurred in defending such Claim or enforcing this
Agreement.

                               VI. MISCELLANEOUS
                                   -------------

     VI.1.    No Admission of Liability. Employee agrees that nothing
              -------------------------
contained in this Agreement or otherwise shall constitute or be construed as an
admission of any alleged liability or wrongdoing by the Company. The Company
denies that it has ever engaged in any wrongdoing of any kind with respect to
Employee.

                                    -6-

<PAGE>

     VI.2.    Severability. Should any part or interpretation of this Agreement
              ------------
be declared by any court or arbitrator of competent jurisdiction to be illegal
or invalid, the remainder of this Agreement shall remain valid and in effect,
the invalid provision shall be deemed to conform to a valid provision most
closely approximating the intent of the invalid provision, and the invalid
provision shall not be deemed to be a part of this Agreement.

     VI.3.    Governing Law. This Agreement shall be governed by and construed
              -------------
in accordance with the laws of the State of Arizona, without regard to its
choice of law principles; provided, however, to the extent that Federal laws of
the United States control interpretation or enforcement of this Agreement, such
Federal law shall control.

     VI.4.    Severance Pay Plan. This Agreement contains provisions greater
              ------------------
than those offered by The FINOVA Group Inc. Severance Pay Plan for Senior
Executives (the "Plan"), in which the Company participates. To the extent the
provisions of this Agreement differ from the Plan, the terms of this Agreement
shall control. The remaining terms of the Plan are hereby incorporated by
reference. A copy of the Plan as currently in effect has been furnished to
Employee.

     VI.5.    Successors and Assigns. This Agreement is binding on and shall
              ----------------------
inure to benefit of the parties hereto and their respective successors, heirs,
personal representatives and assigns.

     VI.6.    Arbitration. The parties irrevocably agree that any disputes,
              -----------
controversies or claims they may have arising out of this agreement shall be
settled by binding arbitration pursuant to the rules of the American
Arbitration Association for employment disputes. The matter shall be heard by a
single arbitrator in Maricopa County, Arizona. The arbitrator shall award the
prevailing party its costs, attorney's fees and disbursements (including those
of in-house counsel) and other damages. The decision of the arbitrator shall be
final, except as otherwise required by law.

     VI.7.    WAIVER OF JURY TRIAL. EMPLOYEE AND COMPANY HEREBY WAIVE THEIR
              --------------------
RESPECTIVE RIGHTS TO A JURY TRIAL IN ANY PROCEEDINGS ARISING OUT OF OR RELATED
TO THIS AGREEMENT OR THE SUBJECT MATTER HEREOF.

     DATED: As of the date and year first noted above.

                          THE FINOVA GROUP INC.

                    By:     /s/ William C. Roche
                            --------------------------------
                       William C. Roche
                           Sr. Vice President-Chief Administrative Officer

                                    -7-

<PAGE>

                ACCEPTANCE OF SEVERANCE AGREEMENT AND RELEASE
 Between The FINOVA Group Inc. and William J. Hallinan, dated January 2, 2002.

     I AGREE TO BE BOUND BY THE TERMS AND CONDITIONS OF THE ABOVE SEVERANCE
AGREEMENT AND RELEASE, INCLUDING THE RELEASE FROM LIABILITY INCLUDED IN THE
AGREEMENT. I HAVE CAREFULLY READ AND UNDERSTAND THE PROVISIONS OF THIS
AGREEMENT. I HAVE HAD AN OPPORTUNITY TO REVIEW THIS AGREEMENT WITH AN ATTORNEY
AND OTHER ADVISORS OF MY CHOICE, AND I HAVE BEEN ADVISED TO DO SO. I ENTER INTO
THIS AGREEMENT FREELY AND VOLUNTARILY. I INTEND TO BE LEGALLY BOUND BY THESE
TERMS. I FOREVER WAIVE MY RIGHTS TO A JURY TRIAL AND CONSENT TO BINDING
ARBITRATION. I UNDERSTAND THAT I MAY REVOKE THIS AGREEMENT AT ANY TIME WITHIN 7
DAYS OF THE DATE OF MY ACCEPTANCE OF THESE TERMS, provided I deliver by hand or
facsimile a written signed statement to William C. Roche, Sr. Vice
President-Chief Administrative Officer, The FINOVA Group Inc., 4800 N.
Scottsdale Road, Scottsdale, AZ 85251-7623, (480) 636-6757, within that time
period. I have signed this release before a witness who is at least 21 years of
age.

              Date:               January 2, 2002

              Signature:          /s/ William J. Hallinan
                                  -----------------------

              Witness Signature:  /s/ Amy R. Guthart
                                  ------------------

              Witness Name:       Amy R. Guthart
                                  --------------

              Witness Address:    OMITTED

                     THIS IS A RELEASE AND LEGAL AGREEMENT
                         READ CAREFULLY BEFORE SIGNING

                                    -8-

<PAGE>

January 2, 2002

                                  RESIGNATION

Board of Directors
The FINOVA Group Inc.

Ladies and Gentlemen:

I hereby resign as a director, officer and/or committee member of The FINOVA
Group Inc. and all its subsidiaries or other affiliates and their respective
plans, to be effective as of the date hereof.

Signature:           /s/ William J. Hallinan
                     ------------------------------------
                     William J. Hallinan

                                    -9-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}]]