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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 

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FORM 8-K
 

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CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 27, 2018
  

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INVENTRUST PROPERTIES CORP.
(Exact Name of Registrant as Specified in its Charter)
 

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Maryland
 
000-51609
 
34-2019608
(State or Other Jurisdiction
of Incorporation)
 
(Commission
File Number)
 
(IRS Employer
Identification No.)

3025 Highland Parkway
Downers Grove, Illinois 60515
(Address of Principal Executive Offices)
(855) 377-0510
(Registrant’s Telephone Number, Including Area Code)
N/A
(Former Name or Former Address, if Changed Since Last Report)
 

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Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
 
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)

 
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)

 
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b))

 
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR 240.13e-4(c))

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Indicate by check mark whether the registrant is an emerging growth company as
defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or
Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company  ☐
If an emerging growth company, indicate by check mark if the registrant has
elected not to use the extended transition period for complying with any new or
revised financial accounting standards provided pursuant to Section 13(a) of the
Exchange Act.  ☐

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Item 5.02.
Departure of Directors or Certain Officers; Election of Directors; Appointment
of Certain Officers; Compensatory Arrangements of Certain Officers.

Resignation of Michael E. Podboy

Effective as of August 27, 2018, Michael E. Podboy resigned as Executive Vice
President, Chief Financial Officer, Chief Investment Officer and Treasurer and
as an employee of InvenTrust Properties Corp. (the “Company”), and from all
other officer, director or other positions he holds with any subsidiary,
division or affiliate of the Company. Mr. Podboy’s resignation was not related
to any issues involving the Company’s business, strategy, operations, financial
reporting, accounting practices or internal controls.

In connection with Mr. Podboy’s resignation, the Company and Mr. Podboy entered
into a Severance Agreement and General Release, dated as of August 27, 2018 (the
“Severance Agreement”). Subject to Mr. Podboy’s continued compliance with the
terms and conditions of the Severance Agreement and the general release of
claims set forth therein, Mr. Podboy will be entitled to the following
compensation and benefits: (i) $85,833.32 payable on the second regularly
scheduled payroll date following the effective date of Mr. Podboy’s resignation
(the “Separation Date”); and (ii) payment by the Company of continued health and
other insurance coverage for a period of 60 days following the Separation Date.

Additionally, subject to Mr. Podboy’s continued compliance with the terms and
conditions of the Severance Agreement and Mr. Podboy’s execution of a second
general release of claims in favor of the Company, which becomes effective
within 30 days following the Separation Date, Mr. Podboy will be entitled to the
following compensation and benefits: (iii) $1,467,750 payable over a period of
12 months commencing with the Company’s regular payroll date that coincides with
or next follows the 60th day following the Separation Date (the “Cash
Severance”); (iv) $378,216 (in respect of a pro-rated 2018 bonus) payable in a
lump-sum on the Company’s regular payroll date that coincides with or next
follows the 60th day following the Separation Date; (v) continued health
insurance coverage at the Company’s expense for the period beginning on the 60th
day following the Separation Date and ending up to 18 months following the
Separation Date; and (vi) 12 months of outplacement assistance at the Company’s
expense.

Effective as of the Separation Date, all unvested share unit awards and unvested
restricted stock unit awards held by Mr. Podboy will be forfeited.

The Severance Agreement further provides that Mr. Podboy will continue to be
bound by the confidentiality, non-competition, non-solicitation and other
restrictive covenants contained in Mr. Podboy’s Letter Agreement under the
Company’s Executive Severance and Change of Control Plan, provided that Mr.
Podboy’s non-competition covenant has been amended such that (i) it will apply
for a period of six months following the Separation Date, and (ii) the competing
businesses covered by the covenant will include certain companies enumerated in
the Severance Agreement. Additionally, in the event that Mr. Podboy becomes
employed or engaged by any person or entity that, during the two-year period
following the Separation Date, makes an offer to acquire all or substantially
all of the equity interests, business or assets of the Company, Mr. Podboy will
promptly repay to the Company the Cash Severance, and the Company will have no
further obligation to pay any additional Cash Severance to Mr. Podboy.

The foregoing description of the Severance Agreement is qualified in its
entirety by reference to the terms of the Severance Agreement, which is filed
herewith as Exhibit 10.1 and is incorporated herein by reference.

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Appointment of Adam M. Jaworski

On August 27, 2018, the Board of Directors of the Company appointed Adam M.
Jaworski as Senior Vice President, Interim Principal Financial Officer, Interim
Treasurer and Chief Accounting Officer of the Company, effective as of August
27, 2018. In his capacity as Senior Vice President, Interim Principal Financial
Officer, Interim Treasurer and Chief Accounting Officer, Mr. Jaworski will
succeed Mr. Podboy as the principal financial officer of the Company and will
continue serving as the principal accounting officer of the Company.

Mr. Jaworski, 45, currently serves as Senior Vice President and Chief Accounting
Officer of the Company, a position which he has held since December 2016.
Previously, Mr. Jaworski served as Chief Accounting Officer of the United States
platform of Global Logistic Properties, a global owner, manager and developer of
modern logistics facilities, from 2013 to November 2016. Prior to this role, Mr.
Jaworski served as a Senior Manager at Deloitte & Touche, LLP in the real estate
advisory group from 2011 to 2013. Mr. Jaworski served as Corporate Controller
for Waterton Associates LLC, a real estate investor and property management
company, and its hotel investment and management division, Ultima Hospitality,
LLC from 2007 to 2011. Mr. Jaworski has worked previously as an auditor in the
field of public accounting for both Arthur Andersen, LLP and Deloitte and
Touche, LLP. Mr. Jaworski graduated from Ball State University with a Bachelor
of Science in Accounting and a Master of Arts in Organizational Development. Mr.
Jaworski is a Certified Public Accountant.

There are no arrangements or understandings between Mr. Jaworski and any other
persons pursuant to which Mr. Jaworski was named Senior Vice President, Interim
Principal Financial Officer, Interim Treasurer and Chief Accounting Officer of
the Company. Mr. Jaworski does not have any family relationship with any of the
Company’s directors or executive officers or any persons nominated or chosen by
the Company to be a director or executive officer. Mr. Jaworski beneficially
owns 29,647 shares of the Company’s common stock. Mr. Jaworski does not have any
direct or indirect material interest in any transaction or proposed transaction
required to be reported under Item 404(a) of Regulation S-K.

The Company intends to conduct a search for a permanent chief financial officer.

A copy of the news release announcing the resignation of Mr. Podboy and
appointment of Mr. Jaworski is included as Exhibit 99.1 to this Current Report
on Form 8-K.

Item 9.01.
Financial Statements and Exhibits.

(d) Exhibits.
 
Exhibit
No.
 
Description
 
 
10.1
[http://www.sec.gov/Archives/edgar/data/1307748/000130774818000105/podboyexecutedseverance.htm]
 
Severance Agreement and General Release, dated as of August 27, 2018, by and
between Michael E. Podboy and InvenTrust Properties Corp.
[http://www.sec.gov/Archives/edgar/data/1307748/000130774818000105/podboyexecutedseverance.htm]
99.1
[http://www.sec.gov/Archives/edgar/data/1307748/000130774818000105/pressreleasefinal.htm]
 
Press Release of InvenTrust Properties Corp. dated August 27, 2018
[http://www.sec.gov/Archives/edgar/data/1307748/000130774818000105/pressreleasefinal.htm]

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SIGNATURE
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 hereunto duly authorized.
 
 
 
 
 
 
 
 
 
 
 
 
INVENTRUST PROPERTIES CORP.
 
 
 
 
Date: August 27, 2018
 
 
 
By:
 
/s/ Thomas P. McGuinness
 
 
 
 
Name:
 
Thomas P. McGuinness
 
 
 
 
Title:
 
President and Chief Executive Officer