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<SEC-DOCUMENT>0000950144-07-000022.txt : 20070103
<SEC-HEADER>0000950144-07-000022.hdr.sgml : 20070101
<ACCEPTANCE-DATETIME>20070103110207
ACCESSION NUMBER:		0000950144-07-000022
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20070102
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20070103
DATE AS OF CHANGE:		20070103

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			LANDSTAR SYSTEM INC
		CENTRAL INDEX KEY:			0000853816
		STANDARD INDUSTRIAL CLASSIFICATION:	TRUCKING (NO LOCAL) [4213]
		IRS NUMBER:				061313069
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1226

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-21238
		FILM NUMBER:		07501680

	BUSINESS ADDRESS:	
		STREET 1:		13410 SUTTON PARK DRIVE SOUTH
		CITY:			JACKSONVILLE
		STATE:			FL
		ZIP:			32224
		BUSINESS PHONE:		9043901234

	MAIL ADDRESS:	
		STREET 1:		LANDSTAR SYSTEM INC
		STREET 2:		13410 SUTTON PARK DRIVE SOUTH
		CITY:			JACKSONVILLE
		STATE:			FL
		ZIP:			32224
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>g04924e8vk.htm
<DESCRIPTION>LANDSTAR SYSTEM, INC.
<TEXT>
<HTML>
<HEAD>
<TITLE>Landstar System, Inc.</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif">


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<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>








<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 8-K</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Current Report
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Pursuant to Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Date of Report (Date of earliest event reported) January&nbsp;2, 2007
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><IMG src="g04924g04924a01.gif" alt="(Landstar)">
</DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>LANDSTAR SYSTEM, INC.</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact name of registrant as specified in its charter)</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
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    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
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<TR valign="bottom">
    <TD align="center" valign="top"><B>Delaware</B><BR>
(State or other jurisdiction <BR>
of incorporation)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>021238</B><BR>
(Commission<BR>
File Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>06-1313069</B><BR>
(I.R.S. Employer<BR>
Identification No.)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>13410 Sutton Park Drive South, Jacksonville, Florida</B><BR>
(Address of principal executive offices)
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>32224</B><BR>
(Zip Code)
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>(904)&nbsp;398-9400</B><BR>
(Registrant&#146;s telephone number, including area code)
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">N/A<BR>
(Former name, former address and former fiscal year, if changed since last report)
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Check the appropriate box below if the Form&nbsp;8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-family: Wingdings">&#111;</FONT> Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-family: Wingdings">&#111;</FONT> Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-family: Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-family: Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
</DIV>


<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>







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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Item&nbsp;1.01 Entry Into a Material Definitive Agreement
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On January&nbsp;2, 2007, Landstar System, Inc. (the &#147;Company&#148;) entered into a letter agreement (the
&#147;Letter Agreement&#148;) with Robert C. LaRose, its Executive Vice President and Chief Financial
Officer, providing for certain changes in Mr.&nbsp;LaRose&#146;s title, duties and compensation as an
employee of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Effective as of the date of the Letter Agreement, Mr.&nbsp;LaRose became the Company&#146;s Executive Vice
President and Co-Chief Financial Officer. Under the Letter Agreement, on June&nbsp;1, 2007, Mr.&nbsp;LaRose
is scheduled to cease to be an executive officer of the Company and will instead serve as Special
Advisor to the President and Chief Executive Officer. The term of Mr.&nbsp;LaRose&#146;s employment under
the Letter Agreement will expire on December&nbsp;31, 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Under the Letter Agreement, Mr.&nbsp;LaRose&#146;s compensation and benefits will remain unchanged through
May&nbsp;31, 2007. Thereafter, his salary will be reduced to $100,000 (on an annualized basis). Mr.
LaRose will be eligible for an Executive Incentive Compensation Plan
(&#147;EICP&#148;) bonus for fiscal 2007 but will not be eligible for an EICP bonus
with respect to fiscal 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Under the Letter Agreement, Mr.&nbsp;LaRose&#146;s Key Employee Protection Agreement dated as of January&nbsp;30,
1998 and amended as of August&nbsp;7, 2002, will be terminated as of the close of business on May&nbsp;31,
2007. In addition, under the Letter Agreement, certain other arrangements relating to Mr.&nbsp;LaRose&#146;s
employment will be terminated or modified as of May&nbsp;31, 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Under the Letter Agreement, Mr.&nbsp;LaRose has agreed that until the later of the date on which his
service under the Letter Agreement ceases and December&nbsp;31, 2008, whichever period is longer, he
will work exclusively for the Company and will not enter into any employment, consulting or similar
arrangement of any kind with any competitor of the Company, without the prior written consent of
the President and Chief Executive Officer of the Company, which consent shall not be unreasonably
withheld.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This summary of the Letter Agreement is not intended to be complete and is qualified in its
entirety by the Letter Agreement, a copy of which is attached hereto as Exhibit&nbsp;99.1.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Item&nbsp;5.02&nbsp;
Departure of Directors or Certain Officers; Election of Directors; Appointment of
Certain Officers; Compensatory Arrangements of Certain Officers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Effective January&nbsp;2, 2007, the Board of Directors of the Company has appointed James B. Gattoni,
45, as the Company&#146;s Co-Chief Financial Officer and principal
accounting officer. Mr.&nbsp;Gattoni has served as the Company&#146;s Corporate Controller since 1995.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In
connection with this appointment, on January&nbsp;2, 2007,
Mr.&nbsp;Gattoni received a grant of options under the Company&#146;s 2002 Employee Stock Option Plan to
acquire up to 30,000 shares of the Company&#146;s Common Stock, par value $0.01 per share (the &#147;Common
Stock&#148;). The options vest in full on January&nbsp;2,
2012 and have a strike price equal to $38.18, i.e., the closing price of the Common Stock
on the last trading day before the grant date, and are otherwise subject to the applicable terms of
such Plan. Mr.&nbsp;Gattoni&#146;s annual salary is $225,000 and he is eligible to participate under the
Company&#146;s EICP bonus plan. Mr.&nbsp;Gattoni has a Key Employee
Protection Agreement, as amended, forms of which Agreement and amendment
were filed as Exhibits 10.12 and 10.18, respectively, to the Company&#146;s Annual Report on Form 10-K for the fiscal year ended
December&nbsp;31, 2005. Mr. Gattoni has an Indemnification Agreement
with the Company, a form of which was filed as Exhibit&nbsp;10.2 to
the Company&#146;s Annual Report on Form&nbsp;10-K for the fiscal
year ended December&nbsp;27, 2003.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Item&nbsp;9.01 Financial Statements and Exhibits
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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    <TD width="3%">&nbsp;</TD>
    <TD width="85%">&nbsp;</TD>
</TR>
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<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exhibit&nbsp;Number
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Description of Exhibit</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Letter Agreement, dated January&nbsp;2, 2007, between Landstar System, Inc. and Robert C. LaRose.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



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<DIV align="center" style="font-size: 10pt; margin-top: 18pt">SIGNATURES
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused
this report to be signed on its behalf by the undersigned, thereunto duly authorized.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
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    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">LANDSTAR SYSTEM, INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Date: January 3, 2007&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/ Henry H. Gerkens
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Henry H. Gerkens&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">President and Chief Executive Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

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</DIV>

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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>g04924exv99w1.htm
<DESCRIPTION>EX-99.1 LETTER AGREEMENT
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-99.1 Letter Agreement</TITLE>
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<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif">


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>

</TABLE>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;99.1
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&#091;Landstar System, Inc. letterhead&#093;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">January&nbsp;2, 2007
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Robert C. LaRose<BR>
c/o Landstar System, Inc.<BR>
13410 Sutton Park Drive South<BR>
Jacksonville, FL 32224

</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dear Bob:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On behalf of Landstar System, Inc. (the &#147;Company&#148;) and the Board of Directors (the &#147;Board&#148;),
we want to thank you for your leadership and outstanding efforts on behalf of the Company. We are
also pleased that you will continue as Special Advisor to the President and Chief Executive Officer
(the &#147;New Position&#148;). In this capacity, you will provide the Company services on the terms and
conditions set forth below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Your duties and responsibilities will be commensurate with your New Position, and will include
assignments consistent with your position as shall be requested of you from time to time by the
President and Chief Executive Officer of the Company (the &#147;President and Chief Executive Officer&#148;).
In the performance of these services, you will not be an executive officer of the Company and will
not have the power to bind the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It is agreed and understood that these services will not require of you the same commitment as
has been the case in the past on behalf of the Company, except as provided below. However, as
services that we will request of you will require that you perform these functions at specified
times and locations, and under the supervision of the President and Chief Executive Officer, you
will continue to be a common law employee of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This letter further confirms the terms of your continued employment with the Company, and
gives you certain information regarding your benefits.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>1.&nbsp;Employment as Executive Vice President and co-CFO. </I></B>You will remain on full time status handling
all of the current responsibilities of your position as the Company&#146;s Executive Vice President and
co-Chief Financial Officer until May&nbsp;31, 2007; provided, your title and responsibilities may change
by mutual agreement prior to such date. Your current salary and full-time benefits will remain in
effect through May&nbsp;31, 2007 whether or not any such change to your title or responsibilities takes
effect prior to May&nbsp;31, 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>2.&nbsp;Employment in your New Position. </I></B>As of June&nbsp;1, 2007, you shall continue your service as an
employee of the Company in your New Position. In your New Position, you may work from your home
office; provided you are available to come to the office as necessary, as determined by the
President and Chief Executive Officer. This work schedule will continue until, at a minimum,
December&nbsp;31, 2008. Your duties will be assigned from time to time by the President and Chief
Executive Officer.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>3.&nbsp;Office Support and Company Activities. </I></B>In your New Position, the Company will continue to
provide for your use of certain equipment, including cell phone, blackberry, computer and communications
equipment and hook-ups in your home. You will be entitled to be reimbursed for any expenses that
you incur on behalf of the Company in the performance of your duties and obligations in your New
Position in accordance with the Company&#146;s generally applicable policies and procedures, as in
effect from time to time; provided such expenses are approved in advance by the President and Chief
Executive Officer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>4.&nbsp;Salary in New Position. </I></B>Your salary will be reduced to $100,000 on an annualized basis (the
&#147;New Salary&#148;) effective June&nbsp;1, 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>5.&nbsp;EICP. </I></B>Your Executive Incentive Compensation Plan (&#147;EICP&#148;) percentage for fiscal year 2007 will
be 30%. Your EICP bonus for fiscal year 2007 will be calculated on an annual salary amount of
$174,000 (based on your current full year salary of $275,000 for the five months you will have
served in your current capacity and the New Salary for the seven (7)&nbsp;months in 2007 during which
you will have worked in your New Position pursuant to the terms hereof). You will not be eligible
for an EICP bonus in 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>6.&nbsp;4</I></B><B><I>01(k)</I></B><B><I> Savings Plan and SERP. </I></B>In your New Position, you will be eligible to continue to
contribute to the Landstar 401(k) Savings and Retirement Plan (the &#147;401(k) Plan&#148;). Your
eligibility for participation in the Supplemental Executive Retirement Plan (the &#147;SERP&#148;) will cease
effective May&nbsp;31, 2007. Your contributions to the SERP as of May&nbsp;31, 2007 (and all earnings
thereon) will remain in the SERP and will be paid to you in accordance with the terms of the SERP.
A special rule in the SERP will permit you to elect to receive your SERP funds in the form of a
single sum following the end of your employment under this letter agreement, provided you make an
election to receive this payment prior to December&nbsp;31, 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>7.&nbsp;Key Employee Protection Agreement. </I></B>You agree with the Company that your Key Employee
Protection Agreement, dated as of January&nbsp;30, 1998, and as amended as of August&nbsp;7, 2002, shall be
terminated and be of no further effect as of May&nbsp;31, 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>8.&nbsp;Stock Options. </I></B>Vesting of granted but unvested options will continue during the duration of
your employment under this letter agreement. As you will continue to be an employee of the Company
during the duration of your employment under this letter agreement, your vested options will
continue to be exercisable during this period of your employment. Thereafter, you may exercise
your vested options in accordance with the terms and conditions of your stock option agreement(s)
and the applicable stock option plan(s).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>9.&nbsp;Health and Welfare Benefits. </I></B>During the duration of your employment under this letter
agreement, you shall continue to participate in all of the Company&#146;s employee benefits plans,
programs and arrangements in accordance with the terms thereof, as the same may change from time to
time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>10.&nbsp;Individual Executive Life and Long-Term Disability Policies</I></B>. The Company currently provides
coverage for you through an individual executive life insurance policy and an individual executive
long-term disability policy. These are level term policies and are individually-owned by you.
Currently, Landstar pays the monthly premiums, and the taxable benefit on the life insurance
coverage is calculated at year-end and added to your W-2. Landstar will continue to pay the
premiums on these policies during the duration of your employment under this letter agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>11.&nbsp;Exclusive Service. </I></B>You agree that during the period from the date of this letter agreement
until the end of your services pursuant to this letter agreement or December&nbsp;31, 2008, whichever
period is longer, you shall work exclusively for the Company and you shall not seek, solicit or
enter into, directly or indirectly, any employment, consulting or other similar arrangement of any
kind with any competitor of the Company, including service as a member of the board of directors of
any such company, without the prior written consent of the President and Chief Executive Officer,
which consent shall not be unreasonably withheld.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>12.&nbsp;Confidentiality. </I></B>Without the prior written consent of the Company, except to the extent
required by an order of a court having competent jurisdiction, you agree not to disclose any trade secrets,
customer lists, marketing plans, sales plans, management organization information (including data
and other information relating to management), operating policies or manuals, business plans,
financial records or other financial, commercial, business or technical information relating to the
Company or any affiliate thereof or information designated as confidential or proprietary that the
Company or any affiliate thereof may receive belonging to agents, independent contractors,
suppliers, customers or others who do business with the Company or any affiliate thereof
(collectively, &#147;Confidential Information&#148;) to any third person unless such Confidential Information
has been previously disclosed to the public.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>13.&nbsp;Equitable Relief. </I></B>The obligations set forth in Sections&nbsp;11 and 12 relate to special, unique
and extraordinary matters and a violation of any of the terms of such obligations will cause the
Company irreparable injury for which adequate remedies at law are not available. Therefore, you
are advised that the Company may seek an injunction, restraining order or such other equitable
relief (without the requirement to post bond) restraining you from committing any violation of the
obligations contained in either Section&nbsp;11 or Section&nbsp;12 hereof. These injunctive remedies are
cumulative and are in addition to any other rights and remedies the Company or any affiliate
thereof may have at law or in equity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>14.&nbsp;Choice of Law. </I></B>This letter agreement will be governed by the laws of the State of Florida,
without regard to its conflicts of law principles.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Should you have any questions regarding anything contained herein, please let me know.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Please confirm your acceptance of the terms set forth in this letter agreement by signing where
indicated below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Sincerely,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">/s/ Ronald W. Drucker<BR>
Ronald W. Drucker, Chairman<BR>
Compensation Committee of the Board of Directors

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Agreed and Accepted:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">/s/ Robert
C. LaRose<br>
Robert C. LaRose
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
</DIV>


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