EXHIBIT 4.12
[WINS LETTERHEAD]
October 8, 1996
Xx. Xxxxx X. Xxxxxx
000 Xxxxxxxx Xxxx
Xxxxx Xxxxx, XX 00000
Re: Severance Agreement
Dear Xxxxx:
This shall confirm the terms of severance of your employment with Winners
Entertainment, Inc. (the "Company") which commenced on August 3, 1992.
1. Your date of separation from the company will be November 30, 1996
("Separation Date"), until which time your employment with the Company will
continue at your current salary.
2. You will receive severance pay at your current salary for a period of
ninety (90) days ("Severance Period") following the Separation Date.
3. Your family's medical insurance will continue, at the Company's
expense, during the Separation Period.
4. On or before the Separation Date, you will a receive the sum of
$5,992.51 in compensation for 35.33 days (282.64 hours) of accrued vacation
time since the inception of your employment with the Company.
5. On or before the Separation Date, you will receive a certificate for
15,000 shares of the common stock. The shares shall be subject to
registration by the Company on either Form S-3 or Form S-8 with the
Securities Exchange Commission at the earliest practicable date.
6. On or before the Separation date, you will receive a certificate for
options to purchase 30,000 shares of the Company's common stock at a price of
$.5625 per share for a term of five years from the date of grant on January
23, 1996. The shares will be subject to registration by the Company on Form
S-8 with the Securities Exchange Commission at the earliest practicable date.
If the above terms are satisfactory, please indicate your acceptance of
this agreement by signature below.
Very truly yours,
/s/ Xxxxxx X. Xxxxxxx
Xxxxxx X. Xxxxxxx
Secretary
Accepted this 7th of October, 1996 at Laguna Beach, California.
/s/ Xxxxx X. Xxxxxx
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Xxxxx X. Xxxxxx
