Thomas Equipment Settles Dispute with Former President

November 7, 2006 • Milwaukee, Wis.-based Thomas Equipment, Inc. has reached a settlement, release, and consulting agreement with Clifford Rhee, the company's former president. In conjunction with the agreement, both Rhee and Thomas Equipment agreed to a full mutual release of any and all matters outstanding.

 

On June 13, 2006, Rhee submitted his resignation to Thomas Equipment in order to attend to other business interests. Thomas Equipment declined to accept Rhee's voluntary resignation and made a decision to terminate his employment based upon “cause” provisions. Thomas Equipment said it fully regrets its actions, which may have caused irreparable harm to Rhee's reputation and detracted from his past accomplishments. The company extends its apologies to Rhee and his family, and as a result of this agreement, Rhee is in good standing with Thomas.

 

As of November 3, Rhee has been named a formal consultant to Thomas Equipment and is authorized to act on behalf of the company. Specifically, Rhee shall act as a senior advisor on all matters associated with its South Korean business, although some of Rhee's activities are likely to extend into other areas.

 

In recent weeks, Thomas Equipment has withdrawn its listing from the American Stock Exchange and announced it was considering a sale of all assets.