# EDGAR Filing Document

**Accession Number:** 0000798359
**File Stem:** 0000798359-23-000025
**Filing Date:** 2023-3
**Character Count:** 129969
**Document Hash:** 3f2121f33b00068eb625514d1c17261d
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000798359-23-000025.hdr.sgml**: 20230323

**ACCESSION NUMBER**: 0000798359-23-000025

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 41

**CONFORMED PERIOD OF REPORT**: 20230323

**ITEM INFORMATION**: Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230323

**DATE AS OF CHANGE**: 20230323

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** CENTERSPACE
- **CENTRAL INDEX KEY:** 0000798359
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE INVESTMENT TRUSTS [6798]
- **IRS NUMBER:** 450311232
- **STATE OF INCORPORATION:** ND
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-35624
- **FILM NUMBER:** 23756948

**BUSINESS ADDRESS:**
- **STREET 1:** 3100 10TH ST SW
- **STREET 2:** PO BOX 1988
- **CITY:** MINOT
- **STATE:** ND
- **ZIP:** 58702-1988
- **BUSINESS PHONE:** 701-837-4738

**MAIL ADDRESS:**
- **STREET 1:** 3100 10TH ST SW
- **STREET 2:** PO BOX 1988
- **CITY:** MINOT
- **STATE:** ND
- **ZIP:** 58702-1988

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** INVESTORS REAL ESTATE TRUST
- **DATE OF NAME CHANGE:** 19920703

?xml version="1.0" ? iret-20230323

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K** 

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934** 

Date of Report (Date of earliest event reported): March 23, 2023

**CENTERSPACE** 

(Exact name of Registrant as specified in its charter)

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| | | |
|:---|:---|:---|
| **North Dakota** | **001-35624** | **45-0311232** |
| (State or Other Jurisdiction<br>of Incorporation or Organization) | (Commission File Number) | (I.R.S. Employer Identification No.) |

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**3100 10th Street SW, Post Office Box 1988, Minot, ND 58702-1988**

(Address of principal executive offices) (Zip code)

**(701) 837-4738** 

(Registrant's telephone number, including area code)

**Not Applicable**

(Former name or former address, if changed from last report)

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:

☐&nbsp;&nbsp;&nbsp;&nbsp;Written communications pursuant to Rule 425 under the Securities Act

☐&nbsp;&nbsp;&nbsp;&nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act

☐&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act

☐&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:

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| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| Common Shares of Beneficial Interest, no par value | CSR | New York Stock Exchange |
| Series C Cumulative Redeemable Preferred Shares | CSR - PRC | New York Stock Exchange |

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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 or Rule 12b-2 of the Securities Exchange Act of 1934.

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 Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.**

***Anne Olson Promotion***

On March 23, 2023, the Board of Trustees (the "Board") of Centerspace, a North Dakota real estate investment trust (the "Company"), approved the appointment of Anne Olson to serve as President and Chief Executive Officer of the Company, effective March 31, 2023. Prior to her appointment, Ms. Olson served as the Company's Executive Vice President, Chief Operating Officer, General Counsel and Secretary. Following her appointment, Ms. Olson will continue to serve as Secretary of the Company and will resign her positions as General Counsel and Chief Operating Officer. The Board also approved Ms. Olson's appointment to serve as a Trustee on the Company's Board, effective as of March 31, 2023.

Before her appointment, Ms. Olson, age 46, served as Executive Vice President, General Counsel and Secretary of the Company since April 30, 2017, and also as Chief Operating Officer since June 25, 2018. From 2011 to April, 2017, Ms. Olson was in the private practice of law, most recently as a partner with the law firm of Dorsey & Whitney LLP, in its Real Estate Practice Group, where she focused on real estate development and investments for REITs, private equity funds, and national developers and owners. Prior to 2011, she served as Director of Investment Operations and in-house counsel for Welsh Companies, LLC and its affiliates, providing leadership in the growth of its asset portfolio and development of a successful capital markets strategy. Ms. Olson began her legal career practicing real estate law at Dorsey & Whitney LLP. Ms. Olson is a member of the National Multi Housing Council Innovation Committee, and a Board Member for CareTrust REIT (NYSE: CTRE). She holds a Bachelor's degree in English from Drake University and earned her J.D. with highest honors from Drake University Law School.

There is no arrangement or understanding between Ms. Olson and any other person pursuant to which she was selected as an officer of the Company, and there are no related person transactions involving Ms. Olson that are reportable under Item 404(a) of Regulation S-K. There are no family relationships between any director or executive officer of the Company and Ms. Olson.

In connection with her appointment, the Board approved on March 23, 2023 and the Company entered into an executive employment agreement with Ms. Olson to be effective March 31, 2023 (the "Employment Agreement"). The Employment Agreement provides for at-will employment as President and Chief Executive Officer to begin on March 31, 2023. As part of her compensation package, Ms. Olson will receive or be eligible for (as applicable) (i) an annual base salary of $450,000, (ii) a Short-Term Incentive Plan target of 100% of base salary, (iii) a Long-Term Incentive Plan target of 200% of base salary, and (iv) a one-time stock award of $300,000, with a grant date of March 31, 2023, which will vest in full on the third anniversary of the grant date. The Board also approved the award to Ms. Olson of a cash retention bonus worth $100,000, which she is eligible to collect on March 31, 2023. Ms. Olson also will be eligible to participate in the Company's employee benefits, including health insurance.

The above description of the Employment Agreement is a summary only and is qualified in its entirety by reference to the full text of the Employment Agreement, substantially attached as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated herein by reference.

***Bhairav Patel***

In order to ensure a smooth transition within the executive management team, on March 23, the Board approved the award to Bhairav Patel, the Company's Executive Vice President and Chief Financial Officer, of a $150,000 stock award, with a grant date of March 31, 2023. One-third of the awarded shares vest on the second anniversary of the grant date, and the remaining two-thirds vest on the third anniversary of the grant date. The Board also approved the award to Mr. Patel of a cash retention bonus worth $100,000, which he is eligible to collect on March 31, 2023.

***Change in Control Agreements***

On March 23, the Company entered into Change in Control Severance Agreements to be effective March 31, 2023 (the "Change in Control Agreements") with each of Anne Olson and Bhairav Patel. The Change in Control Agreements replaced the prior change in control agreements applicable to Ms. Olson and Mr. Patel. Under each Change in Control Agreement, Ms. Olson and Mr. Patel will receive severance payments and benefits if a change in control occurs and her or his employment with the Company and its affiliates is terminated "without cause" by the Company or terminated by

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the officer for "good reason," as such terms are defined in the Change in Control Agreements. Such payments and receipt of benefits are also contingent on the officer: (i) signing a release and waiver of all claims against the Company; and (ii) complying with certain covenants during employment and after termination, including: a non-compete provision for six months; a non-recruitment, or non-solicitation, provision; and a confidentiality agreement.

Under the Change in Control Agreements, severance benefits include: (i) a lump-sum severance payment equal to 3x for Ms. Olson and 2x for Mr. Patel the sum of base salary and the target annual cash bonus; (ii) outstanding non-vested share awards that vest based on continued employment vest immediately; and (iii) outstanding non-vested, performance-based share awards that vest based on performance goals vest immediately as though the target performance was achieved as of the change in control date.

The officers are also entitled to a lump-sum payment in the amount that such officer and her or his "qualified beneficiaries" (as defined in Code Section 4980B) would pay for continued medical, dental and vision coverage under the Company's health plans and reimbursement of certain health insurance coverage for up to 18 months and benefits under other Company plans and programs per the terms of such plans and programs. Neither officer would receive any payment in the event of a termination without good reason by the officer or a termination for cause by the Company.

The above description of the Change in Control Agreements is a summary only and is qualified in its entirety by reference to the full text of the form of Change in Control Agreement, which is attached as Exhibit 10.2 to this Current Report on Form 8-K and is incorporated herein by reference.

***Mark O. Decker, Jr. Departure***

On March 23, 2023, the Company and Mark. O. Decker, Jr. reached a mutual agreement for Mr. Decker to separate from his position of President and Chief Executive Officer of the Company, effective March 31, 2023. Mr. Decker will not stand for re-election to the Board at the Company's next annual meeting of the shareholders, which is expected to be held on May 16, 2023.

In connection with Mr. Decker's separation, the Company entered into a Separation and General Release Agreement (the "Separation Agreement") with Mr. Decker. The Separation Agreement provides that Mr. Decker will receive, among other benefits, (i) a lump-sum total gross amount of $2,101,200, which represents the sum of two times Mr. Decker's current base salary, plus two times Mr. Decker's current target Short-Term Incentive Plan annual bonus, plus Mr. Decker's pro-rated 2023 target annual Short-Term Incentive Plan bonus through March 31, 2023; (ii) a gross lump-sum amount of $39,360, representing 24 months of Mr. Decker's monthly premium for the cost of benefit continuation for health benefits; and (iii) outplacement assistance of up to $10,000. In addition, Mr. Decker's unvested time-based and performance-based equity awards will vest according to the schedule set forth the Separation Agreement, and all unexercised stock options granted to Mr. Decker during his employment will become exercisable as of March 31, 2023 and will remain exercisable for a period of three months. Under the Separation Agreement, Mr. Decker agreed to a waiver and general release of all claims he has against the Company and certain related persons and entities. Mr. Decker also agreed to other customary covenants, including non-disclosure and non-interference covenants.

The above description of the Separation Agreement is a summary only and is qualified in its entirety by reference to the full text of the Separation Agreement, which is attached as Exhibit 10.3 to this Current Report on Form 8-K and is incorporated herein by reference.

**Item 7.01 Regulation FD Disclosure.**

On March 23, 2023, the Company issued a press release announcing Ms. Olson's appointment. Pursuant to Item 7.01 of Form 8-K, a copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The information in Item 7.01 and Item 9.01, including Exhibit 99.1, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of such section, nor shall it be deemed incorporated by reference in any filing of the Company under the Securities Act of 1933 or the Securities Exchange Act of 1934, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference in such filing.

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**ITEM 9.01&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits**

(d)Exhibits

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| | |
|:---|:---|
| Exhibit |  |
| Number | Description |
| <u>[10.1](olsonexecutiveemployment.htm)</u> | <u>[Employment Agreement, effective March 31, 2023, by and between the Company and Anne Olson](olsonexecutiveemployment.htm)</u> |
| <u>[10.2](exhibit102csrformofcicagre.htm)</u> | <u>[Form of Change in Control Severance Agreement](exhibit102csrformofcicagre.htm)</u> |
| <u>[10.3](deckerseparationagreemen.htm)</u> | <u>[Separation Agreement, effective as of March 31, 2023, by and between the Company and Mark Decker, Jr.](deckerseparationagreemen.htm)</u> |
| <u>[99.1](a3232023pressrelease.htm)</u> | <u>[Press Release dated March](a3232023pressrelease.htm)[23](a3232023pressrelease.htm)[, 2023](a3232023pressrelease.htm)</u> |
| 104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL Document. |

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&nbsp;&nbsp;&nbsp;&nbsp;

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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.

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| | | |
|:---|:---|:---|
| | **Centerspace** | **Centerspace** |
| | By | <u>/s/ Mark O. Decker Jr.</u> |
| | | Mark O. Decker Jr. |
| Date: March 23, 2023 | | President and Chief Executive Officer |

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## Exhibit 10.1

![](olsonexecutiveemployment001.jpg)

1 EXECUTIVE EMPLOYMENT AGREEMENT This EXECUTIVE EMPLOYMENT AGREEMENT (the "Agreement") is entered into between Centerspace, a North Dakota real estate investment trust, (the "Company") and Anne M. Olson ("Executive") on the latest date appearing on the signature block of this Agreement (the "Agreement Date"). The Company and Executive are, individually, each a "Party," and, collectively, the "Parties"). RECITALS WHEREAS, Executive has been employed with the Company since approximately April 30, 2017; WHEREAS, Executive has been employed as the Company's Chief Operating Officer since approximately April 1, 2018; and WHEREAS, the Company desires to continue to employ Executive in a new role as the Company's President and Chief Executive Officer ("CEO") commencing on or about March 31, 2023, and Executive desires to accept such position and continue to be so employed by the Company, subject to the terms, conditions and covenants set forth below. AGREEMENT NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth below, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and Executive agree as follows: 1. Employment Services. (a) Term of Employment. Executive's employment under this Agreement is at- will, to commence on March 31, 2023 or such other date as the Parties agree (the "Effective Date"), and will continue until terminated by either Party under Section 3 below (the "Employment Term"). (b) Title and Position. During the Employment Term, Executive will be the President and CEO of the Company. Executive's responsibilities will include all responsibilities as assigned, changed or directed by the Company, and as may be included in a job description. Executive will report to the Board of Trustees ("Board"). Executive represents and warrants that Executive is free to accept continuing employment with the Company and that Executive has no existing commitments or obligations of any kind (including any restrictive covenant(s) for the benefit of any prior employer) that would hinder or interfere with Executive's obligations under this Agreement. (c) Duties During Employment. During the Employment Term, Executive will devote Executive's full time, attention, skill and energy to the business and affairs of the Company and will use Executive's reasonable best efforts to perform Executive's

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![](olsonexecutiveemployment002.jpg)

2 responsibilities faithfully in a diligent, trustworthy, efficient and businesslike manner so as to advance the best interests of the Company. 2. Compensation and Benefits. (a) Base Salary. During the Employment Term, the Company will pay Executive a base salary at the annual rate of $450,000.00 ("Base Salary"), less applicable tax and other authorized withholdings, payable in accordance with the general payroll practices of the Company. The Base Salary will be subject to review annually and may be adjusted by the Company at its discretion, with the adjusted amount becoming the new Base Salary. (b) Short Term Incentive Plan. During the Term of Employment, Executive will be eligible to participate in the Company's Short Term Incentive Plan ("STIP") with an annual target value of up to 100% of Executive's Base Salary (with no salary pro-ration in year 2023). STIP is subject to the plan documents, as amended by the Board from time to time, with no guaranteed minimum. (c) Long Term Incentive Plan. During the Term of Employment, Executive will be eligible to participate in the Company's Long Term Incentive Plan ("LTIP"), with an annual target award equity mix value of up to 200% of Executive's Base Salary, to start with December 2023 grant for 2024. LTIP is subject to the plan documents, as amended by the Board from time to time. (d) Clawback. Executive's incentive compensation is subject to the Company's Executive Incentive Compensation Recoupment Policy, as amended from time to time, and incorporated as if fully restated herein. (e) Health Care and Benefit Plans. During the Employment Term, Executive will be eligible to participate in all health care and benefit programs normally available to other senior-level employees of the Company (subject to all applicable eligibility and contribution policies and rules), as may be in effect from time to time. (f) Expense Allowance. Executive may incur, or cause the Company to incur, reasonable, necessary business and travel expenses in connection with the performance of Executive's duties under this Agreement; provided that such expenses must be properly documented and incurred in a manner consistent with any expense reimbursement policies adopted by the Company from time to time. (g) Vacation. During the Employment Term, Executive will be entitled to paid time off ("PTO") equal to and consistent with Company policy for senior-level employees. The timing of Executive's vacation will be scheduled in a reasonable manner by Executive. (h) Additional Terms and Conditions of Employment. The terms and conditions of the Executive's employment will, to the extent not addressed or described in this Employment Agreement, be governed by the Company's handbook, policies, manuals and existing practices for other senior-level level employees of the Company, which may be modified, changed or rescinded at the discretion of the Company. If a conflict occurs between this Employment

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![](olsonexecutiveemployment003.jpg)

3 Agreement and the any handbook, policy, manual or existing practices, the terms of this Agreement will govern. 3. Termination of Employment. (a) Notice of Termination. Either Executive or the Company may terminate Executive's employment with the Company at any time (the effective date of separation being the "Termination Date"), subject to the following: (i) The Company may terminate Executive's employment at any time and for any reason, with "Cause" [as defined below in Section 5(a)(ii)] or without Cause, by giving written notice of such termination to Executive designating an immediate or future Termination Date. Upon termination of Executive's employment by Company without Cause, Executive will be entitled to the "Severance Benefits" as detailed below in Section 3(b). (ii) Executive may terminate Executive's employment without "Good Reason" [as defined below in Section 5(a)(v)] by giving the Company 60 calendar days' prior written notice of termination ("Termination Notice"). Upon receipt of the Termination Notice, the Company may, at its option: (A) make Executive's termination effective immediately; (B) require Executive to continue to perform Executive's duties under this Agreement during such 60 calendar day period, with or without restrictions on Executive's activities, and/or (C) accept Executive's notice of termination as Executive's resignation from the Company at any time during such 60 calendar day period on behalf of the Company. If the Company elects (A) above, the Company will have no obligation to provide Executive any compensation or benefits beyond the Termination Date except as otherwise required by law or this Agreement. If the Company elects either option (B) or (C) above, the Company will continue to pay Executive's Base Salary in accordance with Section 2(a) and the premium costs of all benefits as described in Section 2(e) above through the earlier of the 60th calendar day following Executive's notice of termination or the date on which Executive stops performing services for the Company. (iii) Executive may terminate Executive's employment for Good Reason. Executive must provide written notice to the Company within 30 calendar days of the occurrence of an event constituting Good Reason, specifying in reasonable detail the circumstances giving rise to Good Reason. The Company will have 30 calendar days after receiving such written notice from Executive to cure such Good Reason event (the "Company Cure Period"). If the Good Reason event is not cured, Executive must terminate Executive's employment within 30 calendar days of the end of the Company Cure Period, or the right to terminate employment upon Good Reason will be waived. Upon termination of Executive's employment for Good Reason, Executive will be entitled to the "Severance Benefits" as detailed below in Section 3(b). (b) Severance Benefits. (i) If at any time during the Employment Term the Company terminates

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![](olsonexecutiveemployment004.jpg)

4 Executive's employment without Cause (which shall include cases of Executive's Disability or death as may be applicable), or Executive terminates Executive's employment for Good Reason, and the termination is not related to a Change in Control, the Company will pay Executive a lump-sum total gross amount of two times Executive's then current Base Salary, plus two times Executive's current target annual bonus under STIP, plus Executive's pro-rated current year target annual bonus under STIP for the year Executive's employment terminates. Company will also pay Executive a gross payment equal to the premium cost of 18 months of Executive's monthly premium for the cost of benefit continuation for health benefits (i.e., medical, dental, and vision). These payments will be subject to taxes and withholding and reported on an IRS Form W-2. The Company will provide Executive up to $10,000.00 in outplacement assistance, to be supplied to Executive by a professional and commercially recognized outplacement assistance provider selected by Executive, with costs being directly billed to the Company. Executive's unvested time-based equity awards and performance-based equity awards will vest according to the Amended and Restated 2015 Incentive Plan ("Plan") (or other duly adopted equity plan, which is also referred to as the "Plan"), as amended from time to time. Options to purchase Company stock granted to the Executive under the Plan will become exercisable, in whole or in part, for the shares that remain subject to the option, as of the date the Executive's employment terminates and will remain exercisable until the expiration date of the option (three months from Executive's Termination Date). All such payments and benefits described in this paragraph shall be, collectively, the "Severance Benefits" and payable to Executive or Executive's estate as may be applicable. (ii) If the termination results from a Change in Control, it is governed by the Change in Control Severance Agreement between Executive and the Company, which agreement defines "Change in Control," may be amended from time to time by agreement of the Parties and is incorporated as if fully restated herein. (iii) Except as otherwise set forth in Section 3(b)(i) or (ii), the Company will not have to provide Executive with, and Executive will have no entitlement to, any compensation or benefits beyond Executive's Termination Date, other than as required by applicable law or this Agreement. Executive will not be eligible for severance under any other Company or Affiliate plan, policy or practice. (iv) To receive the Severance, Executive must execute and return to the Company (and not revoke), within the timeframe designated by Company, a Separation Agreement containing a general release and waiver of claims against the Company and its Affiliates, and each of their respective officers, directors, members, managers, partners and shareholders with respect to Executive's employment, and other customary terms, as well as Standstill and Clawback provisions, in form and substance reasonably acceptable to the Company. Any obligation of the Company to make the Severance Benefits will cease upon: (A) any determination by a court of competent jurisdiction that Executive has materially breached any of Executive's obligations in Section 4; or (B) any determination by a court of competent jurisdiction that Executive committed acts constituting Cause during the Employment Term. Notwithstanding anything to the

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![](olsonexecutiveemployment005.jpg)

5 contrary, any payments that would otherwise be payable to Executive before Executive's execution (and, if applicable, non-revocation) of the Separation Agreement and release will not be paid until the Separation Agreement and release become fully effective under its terms. Once the Separation Agreement and release become fully effective, any payments to Executive that were delayed under the preceding sentence will be promptly paid in a lump sum and any later payments will be paid to Executive under the schedule otherwise required by Section 3(b)(i). Further, to the extent that Executive's execution (and any applicable revocation period) of such Separation Agreement and release could include two calendar years, then except as would not violate Section 409A of the Code as applicable, contingent upon the separation agreement and release becoming effective, any payments made under this Agreement will be made in the later of two such calendar years. 4. Restrictive Covenants. (a) Executive Acknowledgment. Executive agrees and acknowledges that, to ensure that the Company retains its value and goodwill, Executive must not use any Confidential Information, special knowledge of the business of the Company (the "Business"), or the Company's relationships with its customers, vendors, and employees, all of which Executive will gain access to through Executive's employment with the Company, other than in furtherance of Executive's legitimate job duties. Executive also acknowledges that: (i) The Company currently is engaged in the Business; (ii) The Business is highly competitive; (iii) The services to be performed by Executive for the Company are unique in nature and national and international in scope; (iv) Executive will occupy a position of trust and confidence with the Company and will acquire an intimate knowledge of Confidential Information and the Company's relationships with its customers, vendors and employees; (v) The agreements and covenants contained in this Section 4 are essential to protect the Company (and the term the "Company", as used in this Section 4, will include any successors, assigns or Affiliates), the Confidential Information and the goodwill of the Business; (vi) The Company would be irreparably damaged if Executive were to disclose or use the Confidential Information, provide services to any person or otherwise take any action in violation of any of the provisions of this Agreement; (vii) The scope and duration of the covenants set forth in this Section 4 are reasonably designed to protect a protectable interest of the Company and are not excessive given the circumstances; and

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![](olsonexecutiveemployment006.jpg)

6 (viii) Executive has the means to support Executive and Executive's dependents other than by engaging in activities prohibited by this Section 4. (b) Confidential Information. Executive acknowledges that Executive will be entrusted with Confidential Information. (i) At all times both during Executive's employment and following the termination of Executive's employment for any reason, Executive: (A) will hold the Confidential Information in strictest confidence, take all reasonable precautions to prevent the inadvertent disclosure of the Confidential Information to any unauthorized person, and follow all the Company's policies protecting the Confidential Information; (B) will not use, copy, divulge or otherwise disseminate or disclose any Confidential Information, or any portion thereof, to any unauthorized person; (C) will not make, or permit or cause to be made, copies of the Confidential Information, unless necessary to carry out Executive's authorized duties as an employee of the Company; and (D) will promptly and fully advise the Company of all facts known to Executive concerning any actual or threatened unauthorized use or disclosure of which Executive becomes aware. (ii) If Executive receives any subpoena or becomes subject to any legal obligation that might require Executive to disclose Confidential Information, Executive will provide prompt written notice of that fact to the Company, enclosing a copy of the subpoena and any other documents describing the legal obligation. In the event that the Company objects to the disclosure of Confidential Information, by way of a motion to quash or otherwise, Executive agrees to not disclose any Confidential Information while any such objection is pending. (iii) Executive understands that the Company has and will receive from third parties confidential or proprietary information ("Third Party Information") under a duty to maintain the confidentiality of such Third Party Information and to use it only for limited purposes. During the term of Executive's association with the Company and at all times after the termination of such association for any reason, Executive will hold Third Party Information in strict confidence and will not disclose or use any Third Party Information unless expressly authorized by the Company in advance or as may be strictly necessary to perform Executive's obligations with the Company, subject to any agreements binding on the Company with respect to such Third Party Information. (iv) Executive will not improperly use or disclose any Confidential Information or trade secrets, if any, of any former employer or of any other person to whom Executive has an obligation of confidentiality, and Executive will not bring onto the Company's premises any unpublished documents or any property belonging to any former employer or of any other person to whom Executive has an obligation of confidentiality. (v) Executive acknowledges that Executive has received notice that the Defend Trade Secrets Act of 2016 provides immunity from civil and criminal liability under state and federal trade secret laws for any employee who discloses a trade secret:

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![](olsonexecutiveemployment007.jpg)

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![](olsonexecutiveemployment008.jpg)

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![](olsonexecutiveemployment009.jpg)

9 which together with the Company is treated as a single employer under Internal Revenue Code section 414(b) or is deemed to be under common control under Internal Revenue Code section 414(c). (ii) "Cause" means: (A) the Executive's willful conduct that is demonstrably and materially injurious to the Company or an Affiliate, monetarily or otherwise; (B) the Executive's material breach of a written agreement between the Executive and the Company or an Affiliate, including, but not limited to, breaches of Section 4, above; (C) the Executive's breach of the Executive's fiduciary duties to the Company or an Affiliate; (D) the Executive's admission to or conviction of any crime (or entering a plea of guilty or nolo contendere to any crime) constituting a felony or a crime of moral turpitude; (E) the Executive's entering into an agreement or consent decree or being the subject of any regulatory order that in any of such cases prohibits the Executive from serving as an officer or director of a company that has publicly traded securities; (F) any act or omission of Executive constituting (u) a conflict of interest, (v) dishonesty, (w) willful malfeasance, (x) gross negligence, (y) breach of fiduciary duty, or any statutorily imposed, duty related to employment, or (z) conduct deemed outside the scope of the authority granted to Executive by the Company; (G) the Executive's refusal to perform Executive's job duties or any specific reasonable directives from the Company that are reasonably consistent with the scope and nature of Executive's responsibilities (including any incapability arising from a disability, subject to reasonable accommodation); (H) that Executive used or is or had been under the influence of illegal drugs at the workplace or while performing Company business, or refused to submit for a drug test upon the Company's request; or (I) the Executive's Disability or death. A termination of the Executive shall not be for "Cause" unless the decision to terminate the Executive is set forth in a resolution of the Board to that effect and which specifies the particulars thereof and that is approved by a majority of the members of the Board (exclusive of the Executive if the Executive is a member of the Board) adopted at a meeting called and held for such purpose (after reasonable notice to the Executive and an opportunity for the Executive to be heard before the Board). No act or failure to act by the Executive will be deemed "willful" if it was done or omitted to be done by the Executive in good faith or with a reasonable belief on the part of the Executive that the action or omission was in the best interests of the Company or an Affiliate. Any act or failure to act by the Executive based on authority given pursuant to a resolution duly adopted by the Board or based on the advice of counsel to the Company shall be conclusively presumed to be done or omitted to be done by the Executive in good faith and in the best interest of the Company and its Affiliates. If there is any conflict between this definition of "Cause" and "Cause" defined in any other agreement between Executive and the Company, this definition will govern for the purposes of this Agreement. (iii) "Confidential Information" means any non-public proprietary information of the Company in whatever form or medium, concerning the operations or affairs of the Business or of the Company or any of its Affiliates, including, but not limited to: client information, client lists, prospective client and client records, compilations, analyses, studies, plans, financial data, technology, programs, processes, policies, techniques, flow charts, information regarding Company's products,

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10 techniques, methods, projects, strategies, trade practices, accounting methods, methods of operations, or other data considered by the Company to be Confidential Information; provided, however, that Confidential Information will not include: (1) knowledge, data and information that is generally known or becomes known in the trade or industry of the Company (other than as a result of a breach of this Agreement or other agreement or instrument to which Executive is bound), and (2) knowledge, data and information gained without a breach of this Agreement on a non-confidential basis from a person who is not legally prohibited from transmitting the information to Executive. (iv) "Disability" means either: (A) Executive is deemed disabled for purposes of any group or individual long-term disability policy paid for by the Company and at the time in effect, or (B) Executive's inability to perform Executive's essential duties for a period of 120 calendar days or more (consecutive or non-consecutive) during any 12 month period, due to mental or physical disability or incapacity, as determined by a board-certified, licensed physician mutually selected by the Board and the Executive or the Executive's legal representative, with such agreement as to acceptability not to be unreasonably withheld or delayed, and consistent with applicable law. (v) "Good Reason" means, without the consent of the Executive: (A) a change in the Executive's position with the Company or an Affiliate that results in a material diminution of the Executive's authority, duties, or responsibilities; (B) a material reduction by the Company or an Affiliate in the annual rate of the Executive's Base Salary; or (C) a change in the location of the Executive's principal office to a different place that is more than fifty miles from the Executive's principal office immediately prior to such change. A reduction in the Executive's annual Base Salary will be material if the adjusted rate is less than 90% of the Executive's highest rate of annual Base Salary as in effect on any date in the preceding 36 months; provided, however, that a reduction in the Executive's rate of annual Base Salary will be disregarded to the extent that the reduction is applied similarly to the Company's other officers or other employees. Notwithstanding the two preceding sentences, a change in the Executive's duties or responsibilities or a reduction in the annual rate of the Base Salary in connection with the Executive's termination of employment (for Cause or retirement) will not constitute Good Reason. (vi) "Restricted Period" means the period beginning on the Effective Date and continuing until the first anniversary of the Termination Date. (b) Notices. Any notices, consents or other communications required or permitted to be sent or given hereunder will be in writing and deemed properly served if: (i) delivered personally, in which case the date of such notice will be the date of delivery; (ii) delivered to a nationally recognized overnight courier service, in which case the date of delivery will be the next business day; or (iii) sent by email (with a copy sent by first-class mail), in which case the date of delivery will be the date of transmission, or if after 5:00 P.M., the next business day. If not personally delivered, notice to a Party will be sent addressed to the address listed for such Party on the signature page of this Agreement, or in either case at such other address for a Party as may later be provided.

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11 (c) Successors and Assigns. This Agreement will be binding upon, and inure to the benefit of, and be enforceable by, the Parties and the Company's successors and permitted assigns. This Agreement may be assigned by the Company to: (i) an Affiliate of the Company so long as the Affiliate assumes the Company's obligations under this Agreement; (ii) in connection with a sale of the Company's business, whether by sale of assets, sale of equity interests, merger, consolidation or otherwise, so long as the assignee assumes the Company's obligations hereunder; and (iii) to the Company's lenders as collateral for security purposes. This Agreement or any right or interest hereunder is one of personal service and may not be assigned by Executive under any circumstance. Nothing in this Agreement, whether expressed or implied, is intended or will be construed to confer upon any person other than the Parties and successors and assigns permitted by this Section 5(c) any right, remedy or claim under or by reason of this Agreement. (d) Entire Agreement; Amendments. This Agreement, including the Recitals, contains the entire understanding of the Parties with regard to the terms of Executive's employment, and supersedes all prior agreements, understandings or letters of intent with regard to the terms of the employment relationship addressed herein. Unless specifically included in this Agreement, it does not incorporate any other agreement between the Parties. This Agreement will not be amended, modified or supplemented except by a written instrument signed by each of the Company and Executive. (e) Interpretation. Article titles and section headings contained herein are inserted for convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement. (f) Waivers. No provision of this Agreement may be waived except in a writing executed and delivered by the Party against whom waiver is sought. Any such written waiver shall be effective only with respect to the event or circumstance described in it and not for any other event or circumstance unless such waiver expressly provides to the contrary. (g) Tax Matters. Executive acknowledges that no representative or agent of the Company has provided Executive with any tax advice of any nature, and Executive has had the opportunity to consult with Executive's own legal, tax and financial advisor(s) as to tax and related matters concerning the compensation to be received under this Agreement. The Company may withhold and deduct from amounts payable hereunder those amounts required to be withheld or deducted under applicable law. (h) Execution in Counterparts & Delivery by Email. This Agreement may be executed in one or more counterparts, each of which will be considered an original instrument, but all of which will be considered one and the same agreement. Email transmission of a scanned PDF of an executed Agreement will be considered an original. (i) Required Delay for Deferred Compensation Under 409A. Notwithstanding any other provision of this Agreement, if at the time of separation from service Executive is determined by the Company to be a "specified employee" (as defined in Section 409A of the Code (together, with any state law of similar effect, "Section 409A") and Section 1.409A-1(i)

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12 of the Treasury Regulations), and the Company determines that delayed commencement of any portion of the termination payments and benefits payable to Executive pursuant to this Agreement is required in order to avoid a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code, then such portion of Executive's termination payments and benefits will not be provided to Executive until the earliest of: (i) the date that is six months and one day after Executive's separation from service, (ii) the date of Executive's death or (iii) such earlier date as is permitted under Section 409A (any such delayed commencement, a "Payment Delay"). Upon the expiration of such Payment Delay, all payments deferred pursuant to a Payment Delay will be paid in a lump sum to Executive (without interest thereon) on the first day following the expiration of the Payment Delay, and any remaining payments due under the Agreement will be paid on the original schedule provided herein. This Agreement is intended to meet the requirements of Section 409A and will be interpreted and construed consistent with that intent. References to termination of employment, retirement, separation from service and similar or correlative terms in this Agreement will mean a "separation from service" (as defined at Section 1.409A-1(h) of the Treasury Regulations) from the Company and from all other corporations and trades or businesses, if any, that would be treated as a single "service recipient" with the Company under Section 1.409A-1(h)(3) of the Treasury Regulations. Each payment and benefit provided for in this Agreement will be treated as a separate "payment" for purposes of Code Section 409A. In no event may Executive, directly or indirectly, designate the calendar year of any payment to be made under this Agreement or otherwise which constitutes a "deferral of compensation" within the meaning of Section 409A of the Code. All reimbursements and in- kind benefits provided under this Agreement will be made or provided in accordance with the requirements of Section 409A of the Code. To the extent that any reimbursements pursuant to this Agreement or otherwise are taxable to Executive, any reimbursement payment due to Executive will be paid to Executive on or before the last day of Executive's taxable year following the taxable year in which the related expense was incurred; provided, that, Executive has provided the Company written documentation of such expenses in a timely fashion and such expenses otherwise satisfy the Company expense reimbursement policies. Reimbursements pursuant to this Agreement or otherwise are not subject to liquidation or exchange for another benefit and the amount of such reimbursements that Executive receives in any other taxable year. Notwithstanding any of the foregoing to the contrary, the Company and their respective officers, directors, partners, general partners, employees or agents make no guarantee that the terms of this Agreement comply with, or are exempt from, the provisions of Code Section 409A, and none of the foregoing will have any liability for the failure of the terms of this Agreement to comply with, or be exempt from, the provisions of Code Section 409A. (j) Governing Law; Consent to Jurisdiction & Venue; Waiver of Jury. The laws of the State of North Dakota will govern all matters arising out of or relating to this Agreement including, without limitation, its validity, interpretation, construction, and performance and without giving effect to the conflict of laws principles that may require the application of the laws of another jurisdiction. Any Party bringing a legal action or proceeding against any other Party arising out of or relating to this Agreement may bring the legal action or proceeding in the United States District Court for the District of North Dakota or in any court of the State of North

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13 Dakota sitting in Minot, North Dakota. Each Party waives, to the fullest extent permitted by law (i) any objection it may now or later have to the laying of venue of any legal action or proceeding arising out of or relating to this Agreement brought in a court described in the preceding sentence; (ii) any claim that any legal action or proceeding brought in any such court has been brought in an inconvenient forum; and, (3) the right to trial by jury. (k) Construction. The language used in this Agreement will be deemed to be the language chosen by Executive and the Company to express their mutual intent, and no rule of strict construction will be applied against Executive or the Company. (l) Severability. In the event that any provision or portion of this Agreement is found to be invalid or unenforceable for any reason, in whole or in part, the remaining provisions of this Agreement will be unaffected thereby and will remain in full force and effect to the fullest extent permitted by law to achieve the purposes of this Agreement. Accordingly, if any provision of this Agreement is adjudicated to be invalid, ineffective or unenforceable, the remaining provisions will not be affected by such adjudication. The invalid, ineffective or unenforceable provision will, without further action by the Parties, be automatically amended or limited, as appropriate, to effect the original and/or lawful purpose and intent of the invalid, ineffective or unenforceable provision; provided, however, that such amendment will apply only with respect to the operation of such provision in the particular jurisdiction where that adjudication is made. [SIGNATURE PAGE FOLLOWS]

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## Exhibit 10.2

**<u>CHANGE IN CONTROL SEVERANCE AGREEMENT</u>**

THIS CHANGE IN CONTROL SEVERANCE AGREEMENT (the "Agreement") is made and entered into effective as of _______________ ("Effective Date"), between Centerspace, a North Dakota real estate investment trust (the "Company"), and _________________ (the "Executive"). Certain capitalized terms used in this Agreement are defined in Section 4.

WHEREAS, the Company acknowledges that the Executive has made, and is expected to make, significant contributions to the growth and success of the Company and its Affiliates; and

WHEREAS, the Company recognizes that the possibility of a Change in Control may contribute to uncertainty on the part of the Executive with respect to the Executive's continued employment and may result in the distraction of the Executive from the Executive's operating responsibilities to the Company and its Affiliates; and

WHEREAS, the Company wishes to provide the Executive assurances regarding the benefits that will be payable to the Executive in the event the Executive's employment with the Company and its Affiliates is terminated without Cause or on account of the Executive's resignation with Good Reason within a specified period before or after a Change in Control, subject to the terms and conditions set forth in this Agreement; and

WHEREAS, the Company is willing to provide such assurances only in accordance with the terms and conditions of this Agreement and most especially in exchange for the Executive's covenants and promises set forth in Section 3 of this Agreement;

NOW, THEREFORE, in consideration of the mutual covenants and obligations set forth in this Agreement and the compensation and benefits the Company agrees herein to pay the Executive and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Executive agree as follows:

1. **Term of Agreement.** The Initial Term of this Agreement begins on the Effective Date and ends on the first anniversary of the Effective Date. Commencing on the first anniversary of the Effective Date, and on each anniversary thereafter, the term of this Agreement shall be automatically extended for one additional year unless the Company or the Executive, not later than 30 days prior to an anniversary of the Effective Date, shall have given written notice that the Company or the Executive does not wish to extend this Agreement. For purposes of this Agreement, the word "Term" means the Initial Term and the period of any extension pursuant to the preceding sentence or the following sentence. Notwithstanding the preceding sentences, if a Control Change Date occurs during the Term, the Term of this Agreement shall not end before the day before the second anniversary of the Control Change Date.

2. **Severance Benefits.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.01. <u>Eligibility for Benefits.</u> The Executive shall be entitled to receive the benefits described in this Section 2 (the "Severance Benefits") if a Control Change Date occurs during the Term and, during the period beginning 90 days before the Control Change Date and ending on the second anniversary of the Control Change Date (i) the Company terminates the Executive's employment with the Company and its Affiliates without Cause or (ii) the Executive resigns

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from the employment of the Company and its Affiliates and the Executive has Good Reason to resign.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.02. <u>Severance Pay.</u> If the requirements of Section 2.01 are satisfied, the Company shall pay the Executive the amount equal to [for CEO: three (3) times the sum of (i) the Executive's Base Salary plus (ii) the Executive's target annual cash bonus for the year in which the Change in Control Date occurs] [for non-CEO NEO: two (2)) times the sum of (i) the Executive's Base Salary plus (ii) the Executive's target annual cash bonus for the year in which the Change in Control Date occurs] (the "Severance Pay"). The Severance Pay shall be paid in a single cash payment, less deductions for applicable income and employment taxes. Subject to Section 6, the Severance Pay shall be paid within five business days after the later of (i) the date the Executive's employment with the Company and its Affiliates terminates and (ii) the date that the release required under Section 2.06 becomes effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.03. <u>Long-Term Incentives.</u> If the requirements of Section 2.01 are satisfied, outstanding equity or equity-based awards granted to the Executive under the Equity Plan that are not earned, vested or exercisable on or before the termination of the Executive's employment or on account of the Change in Control shall be earned, become vested or become exercisable as described in the following paragraphs (a) and (b), as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the case of awards that are earned, become vested or become exercisable solely on account of the Executive's continued employment with the Company and its Affiliates (i) outstanding options to purchase Company stock granted to the Executive under the Equity Plan shall become exercisable, in whole or in part, for the shares that remain subject to the option, as of the date the Executive's employment terminates and shall remain exercisable until the expiration date of the option (as if the Executive's employment did not terminate), (ii) outstanding stock awards, *i.e.*, shares of restricted stock granted to the Executive under the Equity Plan, shall become vested and transferable as of the date the Executive's employment terminates and (iii) outstanding stock unit awards granted to the Executive under the Equity Plan shall be earned (for the maximum number of units that may be earned under the award) and settled in cash, Company stock or a combination thereof in accordance with their terms as of the date the Executive's employment terminates or the date determined under Section 6.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the case of awards that are earned, become vested or become exercisable upon the achievement of performance goals, objectives or measures (i) outstanding options to purchase Company stock granted to the Executive under the Equity Plan shall vest as of the date the Executive's employment terminates and shall become exercisable, in whole or in part, as though Target performance goals, objectives or measures were achieved and shall remain exercisable until the expiration date of the option (as if the Executive's employment did not terminate), (ii) outstanding stock awards, *i.e.*, shares of restricted stock granted to the Executive under the Equity Plan, shall as of the date the Executive's employment terminates become vested and transferrable as though the Target performance goals, objectives or measures were achieved, (iii) dividends payable on stock awards described in the preceding clause (ii) after the date the Executive's employment terminates shall be retained by the Company and paid to the Executive to the extent the underlying stock award becomes vested and transferrable and (iv) outstanding stock unit awards and related dividend equivalent rights granted to the Executive under the Equity Plan shall be earned as of the date the Executive's employment terminates as thought the Target performance goals, objectives or measures were achieved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.04. <u>Health Benefits.</u> If the requirements of Section 2.01 are satisfied, the Company shall pay in a lump sum to the Executive the amount that the Executive would pay for continued medical, dental and vision coverage under the health plan of the Company or an Affiliate pursuant to Code section 4980B for the Executive and the Executive's "qualified

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beneficiaries" (as defined in Code section 4980B). The lump sum shall include the cost of such coverage until the earlier of (i) the date that the Executive or qualified beneficiary is no longer entitled to continued coverage under Code section 4980B or (ii) the end of the eighteenth month of such coverage. The payment shall be made on the date that is one months after the date the Executive's employment terminates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.05. <u>Other Benefits.</u> Except as specifically provided in this Section 2, the Executive's right to receive benefits under other plans, programs and arrangements maintained by the Company or an Affiliate shall be governed by the terms of such other plans, programs and arrangements that are applicable to terminated participants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.06. <u>Release.</u> Notwithstanding any other provision of this Section 2, no Severance Benefits will be paid or provided to, or on behalf of, the Executive under Section 2.02 or 2.04 unless the Executive has signed a release and waiver of claims and such release and waiver of claims has become binding and irrevocable no later than the sixtieth (60th) day after the date the Executive's employment with the Company and its Affiliates terminates. The release required by this Section 2.06 (i) shall be provided to the Executive by the Company within five (5) days after the Executive's employment with the Company and its Affiliates terminates and (ii) shall be in substantially the same form as set forth in Exhibit A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.07. <u>Forfeiture of Severance Benefits.</u> The Executive shall forfeit the right to receive the Severance Benefits (other than the benefits described in Section 2.05) if the Executive breaches any of the covenants set forth in Section 3. If the Executive breaches any of the covenants set forth in Section 3, the Executive shall be liable to the Company for the repayment of any Severance Benefits (other than the benefits described in Section 2.05) previously paid to the Executive.

3. **Executive's Covenants**. In consideration of the Company's agreement to pay the benefits in accordance with Section 2 and in recognition of the services that the Executive provides to the Company and its Affiliates that are conducting, or intend to conduct, business in the United States of America, the Executive agrees to the covenants set forth in this Section 3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.01. <u>Non-Competition Covenant.</u> During the Executive's employment with the Company or an Affiliate and for a period of twelve (12) months following the date of the Executive's Separation from Service (the "Restriction Period"), the Executive will not, either as a principal, agent, employee, employer, consultant, co-partner or otherwise, or in any other individual or representative capacity, directly or indirectly, render any services for a Competitor that are substantially similar to those the Executive rendered for the Company or an Affiliate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.02. <u>Confidential Information.</u> The Executive acknowledges that during the Executive's employment with the Company and its Affiliates that the Executive will be making use of, acquiring or adding to the Company's Confidential Information. In order to protect the Confidential Information, the Executive agrees that the Executive will not in any way utilize any of the Confidential Information except in connection with the Executive's employment for or on behalf of the Company and its Affiliates. The Executive agrees that the Executive will not at any time use any Confidential Information for the Executive's own benefit or the benefit of any person except the Company and its Affiliates and will not at any time disclose any Confidential Information to anyone except in the performance of the Executive's duties for the Company and its Affiliates. The Executive agrees to surrender and return to the Company any and all Confidential Information in the Executive's possession or control as of the date that the Executive's employment with the Company and its Affiliates terminates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.03. <u>Non-Recruitment Covenant.</u> During the Executive's employment with the Company or an Affiliate and for a period of one (1) year following the date of the Executive's Separation from Service, the Executive will not, either as a principal, agent, employee, employer,

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consultant, co-partner or otherwise, or in any other individual or representative capacity, directly or indirectly offer employment to or hire any employee of the Company or any Affiliate who was employed by the Company or any Affiliate at the time of Executive's Separation from Service or within six (6) months prior to such Separation from Service, or solicit, or cause to be solicited or recruited, any such employee of the Company or any Affiliate for the purpose of having such employee terminate his or her employment with the Company or any Affiliate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.04. <u>Executive's Acknowledgements.</u> The Company conducts and intends to continue to conduct its business and the business of its Affiliates in the United States. The Executive agrees that the employment restrictions set forth herein are fair and reasonable in time, function, and geography and are no greater than necessary to protect the legitimate business interests of the Company and its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.05. <u>Reporting Obligation.</u> The Executive agrees that during the Restriction Period the Executive will disclose to the Company any employment obtained by the Executive. Such disclosure shall be made within two weeks of the Executive obtaining such employment. The Company shall maintain the confidentiality of such disclosure until the date that the Executive's new employment is in the public domain; provided, however, that the Executive expressly consents to and authorizes the Company to disclose to any of the Executive's subsequent employers and prospective employers both the existence and terms of this Agreement, to take any steps the Company deems necessary to enforce this Agreement and to make such disclosures, if any, that are required by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.06. <u>Company Remedies.</u> In the event that the Executive fails to abide by the employment and other restrictions herein, the Company shall have the right to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) forego payment to the Executive of any unpaid and unearned discretionary compensation and revoke any form of compensation that has not been definitively granted or earned;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) seek legal remedies including, but not limited to, recovery from the Executive of damages, lost profits, amounts previously paid under Sections 2.02, 2.03 and 2.04 and reasonable attorneys' fees incurred in the enforcement of the Executive's promises herein; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) obtain a temporary restraining order without further notice to the Executive and/or a preliminary injunction or other equitable relief to prevent such breach or threatened breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.07. <u>No Waiver, etc.</u> The Company's remedies for breach of this Agreement shall be cumulative, and the pursuit of one remedy shall not be deemed to exclude other remedies. No delay or omission by the Company or the Executive in exercising any right, remedy or power hereunder existing in law or equity shall be construed as a waiver thereof, and any such right, remedy or power may be exercised by either of the parties from time to time and as often as may be deemed expedient or necessary by each party in that party's sole discretion. The Executive further agrees that no breach of this Agreement or any other agreement by the Company, shall constitute a defense to the Company's enforcement of Sections 3.01, 3.02 and 3.03 of this Agreement in accordance with the terms set forth therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.08. <u>Interpretation of Covenants.</u> It is the desire and intent of the parties hereto that the provisions of this Agreement shall be enforced to the fullest extent legally permissible. Accordingly, if any particular provision of this Agreement shall be adjudicated to be invalid or unenforceable, the court may modify or sever such provision and such modification or deletion shall apply only with respect to the operation of such provision in the particular jurisdiction in which such adjudication is made. In addition, if any one or more of the provisions contained in this Agreement shall for any reason be held to be excessively broad as to duration, geographical scope, activity or subject, it shall be constructed by limiting and reducing it, so as to be

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enforceable to the extent compatible with the applicable law as it shall then appear. The remaining provisions of this Agreement shall remain in full force and effect.

4. **Definitions.** As used in this Agreement, certain terms have the definitions set forth below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.01. <u>Affiliate.</u> "Affiliate" means any trade or business, whether or not incorporated, which together with the Company is treated as a single employer under Code section 414(b) or is deemed to be under common control under Code section 414(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.02. <u>Base Salary.</u> "Base Salary" means the Executive's annual rate of base salary as in effect on the date that the Executive's employment with the Company and its Affiliates terminates; provided, however, that if the Executive resigns from the employment of the Company and its Affiliates for Good Reason and the basis for the resignation is, or includes, a material reduction in the Executive's annual rate of base salary, then "Base Salary" means the Executive's annual rate of base salary as in effect prior to such reduction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.03. <u>Board.</u> "Board" means the Board of Trustees of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.04. <u>Cause.</u> "Cause" means (i) the Executive's willful conduct that is demonstrably and materially injurious to the Company or an Affiliate, monetarily or otherwise; (ii) the Executive's breach of a covenant set forth in Section 3; (iii) the Executive's breach of the Executive's fiduciary duties to the Company or an Affiliate; (iv) the Executive's conviction of any crime (or entering a plea of guilty or *nolo contendre* to any crime) constituting a felony; or (v) the Executive's entering into an agreement or consent decree or being the subject of any regulatory order that in any of such cases prohibits the Executive from serving as an officer or director of a company that has publicly traded securities. A termination of the Executive shall not be for "Cause" unless the decision to terminate the Executive is set forth in a resolution of the Board to that effect and which specifies the particulars thereof and that is approved by a majority of the members of the Board (exclusive of the Executive if the Executive is a member of the Board) adopted at a meeting called and held for such purpose (after reasonable notice to the Executive and an opportunity for the Executive to be heard before the Board). No act or failure to act by the Executive will be deemed "willful" if it was done or omitted to be done by the Executive in good faith or with a reasonable belief on the part of the Executive that the action or omission was in the best interest of the Company or an Affiliate. Any act or failure to act by the Executive based upon authority given pursuant to a resolution duly adopted by the Board or based on the advice of counsel to the Company shall be conclusively presumed to be done or omitted to be done by the Executive in good faith and in the best interest of the Company and its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.05. <u>Change in Control.</u> "Change in Control" has the same meaning as set forth in the Equity Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.06. <u>Code.</u> "Code" means the Internal Revenue Code of 1986, as amended. Any reference to a particular section of the Code includes any successor provision to that particular Code section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.07. <u>Competitor.</u> "Competitor" means any person, firm, business or other organization or entity that (a) owns and operates at least 500,000 square feet of commercial medical properties in States in which the Company and its Affiliates own commercial medical properties, or (b) owns and operates at least 5,000 market-rate multi-family units in States in which the Company and its Affiliates own market-rate multi-family properties.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.09. <u>Control Change Date.</u> "Control Change Date" means the date on which a Change in Control occurs. If a Change in Control occurs on account of a series of transactions or events, the Control Change Date is the date of the last of such transactions or events.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.10. <u>Equity Plan</u>. "Equity Plan" means the Company's Amended and Restated 2015 Incentive Plan, as amended, (or a predecessor or successor plan, as the same may be amended).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.11. <u>Good Reason.</u> "Good Reason" means, without the express written consent of the Executive (i) a change in the Executive's position with the Company or an Affiliate which results in a material diminution of the Executive's authority, duties or responsibilities; (ii) a material reduction by the Company or an Affiliate in the annual rate of the Executive's base salary; (iii) a change in the location of the Executive's principal office to a different place that is more than fifty miles from the Executive's principal office immediately prior to such change or (iv) the Company's material breach of this Agreement. A reduction in the Executive's rate of annual base pay shall be material if the rate of annual base salary on any date is less than ninety percent (90%) of the Executive's highest rate of annual base pay as in effect on any date in the preceding thirty-six (36) months; provided, however, that a reduction in the Executive's rate of annual base pay shall be disregarded to the extent that the reduction is applied similarly to the Company's other officers. Notwithstanding the two preceding sentences, a change in the Executive's duties or responsibilities or a reduction in the annual rate of the Executive's base salary in connection with the Executive's termination of employment (for Cause, disability or retirement), shall not constitute Good Reason. A resignation by the Executive shall not be with "Good Reason" unless the Executive gives the Company written notice specifying the event or condition that the Executive asserts constitutes Good Reason, the notice is given no more than ninety days after the occurrence of the event or initial existence of the condition that the Executive asserts constitutes Good Reason and the Company has failed to remedy or cure the event or condition during the thirty day period after such written notice is given to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.12. <u>Net After Tax Receipt.</u> "Net After Tax Receipt" means the Present Value of the total Parachute Payments or the Reduced Amount, as applicable, net of all taxes imposed on the Executive with respect thereto under Code sections 1 and 4999, determined by applying the highest marginal rate under Code section 1 which applied to the Executive's taxable income for the immediately preceding taxable year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.13. <u>Parachute Payment.</u> "Parachute Payment" means a payment (under this Agreement or any other plan, agreement or arrangement) that is described in Code section 280G(b)(2), determined in accordance with Code section 280G and the regulations thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.14. <u>Present Value.</u> "Present Value" means the value determined in accordance with Code section 280G(d)(4) and the regulations thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.15. <u>Reduced Amount.</u> "Reduced Amount" means the largest amount of Parachute Payments that is less than the total Parachute Payments and that may be paid to the Executive without subjecting the Executive to tax under Code section 4999.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.16. <u>Separation from Service.</u> "Separation from Service" means the termination of the Executive's employment with the Company and its Affiliates, determined in a manner consistent with the requirements of Treasury Regulation section 1.409A-1(b). In accordance with, and subject to, the requirements of Treasury Regulation section 1.409A-1(b), the Executive will experience a Separation from Service when the facts and circumstances indicate that the Executive and the Company reasonably anticipate that either (i) no further services will be performed by the Executive for the Company or an Affiliate after such date (whether as an employee or independent contractor) or (ii) the bona fide services to be performed by the Executive (whether as an employee or independent contractor) after such date would permanently decrease to no more than twenty percent of the average level of such services

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provided by the Executive over the thirty-six month period immediately preceding such date. If the Executive provides services to the Company or an Affiliate both as an employee and a member of the Board or a member of the board of directors of an Affiliate, the services that the Executive provides as a director shall not be taken into account in determining whether the Executive has experienced a Separation from Service to the extent provided in Treasury Regulation section 1.409A-1(h).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.17. <u>Specified Employee.</u> "Specified Employee" means a "specified employee" as defined in Treasury Regulation section 1.409A-1(i). Whether the Executive is a Specified Employee shall be determined using December 31 as the "specified employee identification date" under Treasury Regulation section 1.409A-1(i) and a "specified employee effective date" of the April 1 following the applicable "specified employee identification date."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.18. <u>Target</u>. "Target" means, with respect to performance goals, objectives or measures, the level of achievement required for applicable awards to vest; in the event an award has "threshold," "target," and "maximum" levels of achievement possible, "Target" means the "target" level of achievement.

5. **Code Section 280G.** Notwithstanding any other provision of this Agreement, if it is determined that benefits or payments payable under this Agreement, taking into account other benefits or payments provided under other plans, agreements or arrangements, constitute Parachute Payments that would subject the Executive to tax under Code section 4999, it must be determined whether the Executive will receive the total Parachute Payments or the Reduced Amount. The Executive will receive the Reduced Amount if the Reduced Amount results in equal or greater Net After Tax Receipts than the Net After Tax Receipts that would result from the Executive receiving the total Parachute Payments.

If it is determined that the total Parachute Payments should be reduced to the Reduced Amount, the Company must promptly notify the Executive of that determination, including a copy of the detailed calculations by an accounting firm or other professional organization qualified to make the calculation that was selected by the Company and acceptable to the Executive (the "Accounting Firm"). The Company shall pay the fees and expenses of the Accounting Firm. All determinations made by the Accounting Firm under this Section 5 are binding upon the Company and the Executive.

It is the intention of the Company and the Executive to reduce the Parachute Payments under this Agreement and any other plan, agreement or arrangement only if the aggregate Net After Tax Receipts to the Executive would thereby be increased. As a result of the uncertainty in the application of Code section 4999 at the time of the initial determination by the Accounting Firm, however, it is possible that amounts will have been paid or distributed to or for the benefit of the Executive which should not have been so paid or distributed ("Overpayment") or that additional amounts which will not have been paid or distributed to or for the benefit of the Executive should have been so paid or distributed ("Underpayment"), in each case, consistent with the calculation of the Reduced Amount. If the Accounting Firm, based either upon the assertion of a deficiency by the Internal Revenue Service against the Company or the Executive which the Accounting Firm believes has a high probability of success or controlling precedent or other substantial authority, determines that an Overpayment has been made, any such Overpayment must be treated (if permitted by applicable law) for all purposes as a loan *ab initio* for which the Executive must repay the Company together with interest at the applicable federal rate under Code section 7872(f)(2); *provided, however*, that no such loan may be deemed to have been made and no amount shall be payable by the Executive to the Company if and to the extent such deemed loan and payment would not either reduce the amount on which the Executive is subject

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to tax under Code section 4999 or generate a refund of such taxes. If the Accounting Firm, based upon controlling precedent or other substantial authority, determines that an Underpayment has occurred, the Accounting Firm must promptly notify the Company of the amount of the Underpayment and such amount, together with interest at the applicable federal rate under Code section 7872(f)(2) must be paid to the Executive.

If it is determined that the total Parachute Payments should be reduced to the Reduced Amount, then the reduction shall first apply to Parachute Payments that are not subject to Code section 409A (and by first reducing such payments that are not payable in cash and then by reducing cash payments) and thereafter, if necessary, by reducing Parachute Payments that are subject to Code section 409A (and by first reducing such payments that are not payable in cash and then by reducing cash payments).

6. **Code Section 409A.** This Agreement and the amounts payable and other benefits provided under this Agreement are intended to comply with, or otherwise be exempt from, Section 409A of the Code ("Section 409A"), after giving effect to the exemptions in Treasury Regulation section 1.409A-1(b)(3) through (b)(12). This Agreement shall be administered, interpreted and construed in a manner consistent with Section 409A. If any provision of this Agreement is found not to comply with, or otherwise not be exempt from, the provisions of Section 409A, it shall be modified and given effect, in the sole discretion of the Board and without requiring the Executive's consent, in such manner as the Board determines to be necessary or appropriate to comply with, or to effectuate an exemption from, Section 409A; provided, however, that in exercising its discretion under this Section 6, the Board shall modify this Agreement in the least restrictive manner necessary. Each payment under this Agreement shall be treated as a separate identified payment for purposes of Section 409A.

With respect to any reimbursement of expenses of, or any provision of in-kind benefits to, the Executive, as specified under this Agreement, such reimbursement of expenses or provision of in-kind benefits shall be subject to the following limitations: (i) the expenses eligible for reimbursement or the amount of in-kind benefits provided in one taxable year shall not affect the expenses eligible for reimbursement or the amount of in-kind benefits provided in any other taxable year, except for any medical reimbursement arrangement providing for the reimbursement of expenses referred to in Section 105(b) of the Code; (ii) the reimbursement of an eligible expense shall be made as specified in this Agreement and in no event later than the end of the year after the year in which such expense was incurred and (iii) the right to reimbursement or in-kind benefit shall not be subject to liquidation or exchange for another benefit.

If a payment obligation under this Agreement arises on account of the Executive's termination of employment and such payment obligation constitutes "deferred compensation" (as defined under Treasury Regulation section 1.409A-1(b)(1), after giving effect to the exemptions in Treasury Regulation section 1.409A-1(b)(3) through (b)(12)), it shall be payable only after the Executive's Separation from Service; provided, however, that if the Executive is a Specified Employee, any payment that is scheduled to be paid within six months after such Separation from Service shall accrue without interest and shall be paid on the first day of the seventh month beginning after the date of the Executive's Separation from Service or, if earlier, within fifteen days after the appointment of the personal representative or executor of the Executive's estate following the Executive's death.

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7. **No Employment Rights.** Nothing in this Agreement confers on the Executive any right to continuance of employment or service by the Company or an Affiliate. Nothing in this Agreement interferes with the right of the Company or an Affiliate to terminate the Executive's employment or service at any time for any reason, with or without Cause, subject to the requirements of this Agreement. Nothing in this Agreement restricts the right of the Executive to terminate the Executive's employment with the Company and its Affiliates at any time, for any reason, with or without Good Reason. If the Executive is elected or appointed to the Board, the Executive agrees that the Executive will promptly resign from membership on the Board if at any time the Board adopts a resolution that requests the Executive's resignation from the Board.

8. **Governing Law; Venue.** The laws of the State of North Dakota shall govern all matters arising out of or relating to this Agreement including, without limitation, its validity, interpretation, construction and performance but without giving effect to the conflict of laws principles that may require the application of the laws of another jurisdiction. Any party bringing a legal action or proceeding against any other party arising out of or relating to this Agreement may bring the legal action or proceeding in the United States District Court for the District of North Dakota or in any court of the State of North Dakota sitting in Minot, North Dakota. Each party waives, to the fullest extent permitted by law (i) any objection it may now or later have to the laying of venue of any legal action or proceeding arising out of or relating to this Agreement brought in a court described in the preceding sentence and (ii) any claim that any legal action or proceeding brought in any such court has been brought in an inconvenient forum.

9. **Binding Agreement.** This Agreement shall be binding on and inure to the benefit of, and be enforceable by or against the Company and its successors and the Executive (and the Executive's personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees). If the Executive dies while any amount remains payable to the Executive under this Agreement, all such amounts shall be paid in accordance with the terms of this Agreement to the Executive's devises, legatee or other designee, of if there is none, to the Executive's estate.

10. **No Assignment.** Except as required by applicable law, no right to receive payments under this Agreement shall be subject to anticipation, commutation, alienation, sale, assignment, encumbrance, charge, pledge or hypothecation or to execution, attachment, levy or similar process or assignment by operation of law and any attempt to effect any such action shall be null, void and no effect.

11. **Entire Agreement.** This Agreement expresses the whole and entire agreement between the parties with reference to the payment of the Severance Benefits and, except for the Secrecy Agreement, supersedes and replaces any prior agreement, understanding or arrangement (whether oral or written) by or between the Company or an Affiliate and the Executive with respect to the Severance Benefits and the Executive's covenants (other than the Secrecy Agreement).

12. **Counterparts.** This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together constitute on and the same instrument.

13. **Modification of Agreement.** No waiver or modification of this Agreement shall be valid unless in writing and duly executed by the party to be charged therewith. No evidence of any waiver or modification shall be offered or received in evidence at any proceeding, arbitration or litigation between the parties unless such waiver or modification is in writing, duly authorized and executed.

14. **No Attorneys' Fees.** Except as provided in Section 3.07(b), the Company and the Executive each shall bear their costs for any attorneys' fees and any other reasonable expenses incurred in enforcing or protecting the rights of the Company or the Executive under this Agreement.

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15. **Notices.** All notices, requests and other communications to any party under this Agreement shall be in writing and shall be given to such party at its address set forth below or such other address as such party may hereafter specify for the purpose of notice to the other party:

If to the Company: Centerspace

Attention: General Counsel

P. O. Box 1988

3100 10th Street SW

Minot, North Dakota 58702

With a copy to:

Chairman of the Board, Centerspace

c/o Corporate Secretary

P. O. Box 1988

3100 10th Street SW

Minot, North Dakota 58702

If to the Executive:

800 LaSalle Ave

Suite 1600

Minneapolis, MN 55402

Each notice, request or other communication shall be effective (i) if given by mail, five business days after such communication is deposited in the mails with first class postage prepaid and addressed as set forth above, or (ii) if given by other means, when delivered at the address prescribed by this Section 15.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date set forth above.

**Executive**

By: _________________________

Name:

Dated: <u>____________</u>

**Centerspace**

By: _________________________

Name:

Title: CEO

Dated: ____________

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**<u>Exhibit A</u>**

**Form of Waiver and Release Agreement**

**<u>WAIVER AND RELEASE AGREEMENT</u>**

This Waiver and Release Agreement (the "Agreement") is made by and between Centerspace, a North Dakota real estate investment trust (the "Company") and ______________ (the "Executive").

In exchange for the mutual commitments and other consideration contained in this Agreement, the parties agree as follows:

1. The Company and the Executive entered into the Change in Control Severance Agreement dated as of __________ (the "Severance Agreement"). Section 2 of the Severance Agreement provides that the Company will pay valuable severance benefits to the Executive if, as provided in the Severance Agreement, the Executive's employment with the Company and its Affiliates (which for purposes of this Agreement has the same definition as set forth in the Severance Agreement) is terminated without Cause (as defined in the Severance Agreement) or the Executive resigns with Good Reason (as defined in the Severance Agreement) during the ninety day period before, or the two year period after, a Change in Control (as defined in the Severance Agreement). The benefits more fully described in the Severance Agreement are referred to as the "Severance Benefits."

2. The Company will pay or provide the Severance Benefits to the Executive in accordance with the terms of the Severance Agreement if, and only if, this Agreement is executed by the parties and becomes binding and irrevocable by the Executive.

3. The Executive acknowledges that the Severance Benefits are in exchange for the Executive's promises in this Agreement and the Severance Agreement and exceed any amounts to which the Executive would be entitled under any law, regulation, contract or any policy or benefit plan of the Company or an Affiliate. The Executive agrees that except as specifically stated herein, in the Severance Agreement or an employee benefit plan of the Company or an Affiliate in which the Executive participates, the Executive is not entitled to any other compensation or benefits of any amount, form or nature from the Company or its Affiliates.

4. The Executive agrees that the Executive will in no way disparage any Released Party (as defined in Section 6 below) to any person or entity, and that at all times the Executive will act in a manner intended and reasonably designed to promote and preserve the goodwill and reputation of each Released Party. The Executive further agrees to reasonably cooperate with and assist the Company and each Affiliate in any legal dispute or regulatory matter in which the Company or an Affiliate may become involved, including providing information, documents, submitting to depositions, and providing testimony, if requested, related to events which predate this Agreement.

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5. The Executive reaffirms the Executive's commitments and obligations under Section 3 of the Severance Agreement. Executive agrees that the restrictions set forth in Section 3 of the Severance Agreement are fair and reasonable in time, function, customer base and geography and are no greater than necessary to protect the legitimate business interests of the Company and its Affiliates.

6. The Executive on behalf of the Executive and the Executive's heirs, personal representatives and assigns, forever releases the Released Parties from any and all obligations, claims, demands, causes of action, damages, or liabilities of any kind or nature whatsoever (collectively, "Claims") arising out of the Executive's employment with the Company and its Affiliates, including the termination of that employment, or arising out of any other event, act or communication occurring prior to the effective date of this Agreement, including all matters and things now known and all matters and things which may hereafter be discovered, if such there be. The Executive further covenants not to sue, or initiate any other proceeding, including arbitration, with respect to such Claims or causes of action and affirms that the Executive has filed no charges, claims or causes of action of any nature against any Released Party. This includes but is not limited to Claims under federal, state or local laws prohibiting employment discrimination, including Claims under the Age Discrimination in Employment Act, and any other statutory or regulatory claims of any nature, and any claims or causes of action based on contract, tort or common law. The Executive further agrees to waive any claim for employment with the Company or an Affiliate, and covenants not to seek employment with the Company or an Affiliate in the future. Notwithstanding the preceding sentences of this Section 6, this Agreement shall not prevent the Executive from enforcing any rights that the Executive may have with respect to the payment of the Severance Benefits or with respect to the payment of any benefits payable to the Executive as a terminated employee under, and in accordance with, the terms of any "employee benefit plan" (as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended). For purposes of this Agreement, the term "Released Parties" means the Company, its Affiliates, the successors and assigns of the Company or an Affiliate, the past, present and future directors, executive committee members, officers, managers, employees, agents and representatives of the Company or an Affiliate and the employee benefit plans (as defined above) of the Company or an Affiliate and the plan administrators, fiduciaries and agents of each such plan, in their individual and representative capacities. The term "Released Party" means each of the foregoing persons or entities.

7. This Agreement shall be governed by and interpreted in accordance with the laws of the State of North Dakota but without giving effect to the conflict of laws principles that may require the application of the laws of another jurisdiction. The exclusive venue for the resolution of any disputes relating to this Agreement shall be the United States District Court for the District of North Dakota or any court of the State of North Dakota sitting in the City of Minot, North Dakota.

8. It is understood that this Agreement is not to be construed as an admission of liability or the commission of any unlawful act or beach of contractual obligation by either any Released Party or the Executive. The Executive and the Company agree that they will not attempt to introduce this Agreement or any of its terms as evidence in any legal proceeding, other than a legal proceeding in which one of the parties to this Agreement asserts that the other party has breached the provisions of this Agreement or the Severance Agreement. If any other circumstance should arise in which one of the parties to this Agreement determines that any of the terms of this

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Agreement are relevant and necessary to a legal proceeding, the party seeking to use this Agreement or any of its terms shall promptly notify the other so that such other party may protect its interests.

9. The Executive acknowledges that the Executive has entered into this Agreement on a knowing and voluntary basis, that the Executive fully understands the terms of this Agreement, and agrees that the terms of this Agreement are binding upon the Executive and the Executive's heirs, personal representatives and assigns. The Executive further acknowledges that the Executive has been given the opportunity to take twenty-one days to consider the terms of this Agreement and has had the opportunity to seek and receive the advice of legal counsel regarding the terms of this Agreement.

10. The Executive acknowledges that the Executive has seven days to revoke the terms of this Agreement and by executing this Agreement confirms the Executive's acceptance of those terms.

11. If for any reason this Agreement and the release and waiver set forth herein shall not take effect, if this Agreement is revoked by the Executive during the seven day period following the Executive's execution of this Agreement, if at any time this Agreement is contested by the Executive, if the Executive should not abide by the restrictive covenants and commitments set forth in Section 3 of the Severance Agreement, or if this Agreement is otherwise breached by the Executive, the Executive shall be obligated to remit to the Company the full amount of the Severance Benefits received by him.

12. When either party desires or is required to give notice to the other party pursuant to any term of this Agreement, the notice shall be in writing and: (i) delivered personally or (ii) sent by a nationally recognized overnight delivery service (such as, but not limited to, FedEx), all charges prepaid; or (iii) sent by United States Postal Service certified mail, return receipt requested, postage prepaid. All notices shall be delivered or sent to the address for each party set forth below or such other address as either party notifies the other in accordance with the terms of this Agreement. Notices shall be deemed to have been given upon receipt or refusal to accept by the party to which the notice is delivered or sent.

If to the Company, to ___________________________________________.

If to the Executive, to ___________________________________________.

13. This Agreement may be executed in one or more counterparts, and each counterpart shall, for all purposes, be deemed to be an original, and all such counterparts shall together constitute one and the same instrument.

Witness the following signatures this ___ day of ________, 20__

**Executive** Witness:

____________________________ ____________________________

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Name: _____________________ Name: __________________

**Centerspace** Witness:

By: ________________________ ____________________________

Name: _____________________

Title: ______________________

## Exhibit 10.3

![](deckerseparationagreemen001.jpg)

76804487v3 1 CONFIDENTIAL SEPARATION AND GENERAL RELEASE AGREEMENT This Confidential Separation and General Release Agreement ("Agreement") is entered between Centerspace, a North Dakota real estate investment trust, ("Company") and Mark O. Decker, Jr. ("Executive") (the Company and Executive are, individually, "Party," and, collectively, "Parties"). RECITALS WHEREAS, Executive served the Company most recently as Chief Executive Officer; WHEREAS, Executive and the Company have mutually agreed to terminate Executive's employment with the Company and its Affiliates effective March 31, 2023; WHEREAS, the Company and Executive agree to enter into this Agreement amicably to sever the employment relationship between the Parties and to resolve all issues related to Executive's employment; and, WHEREAS, in consideration of the services rendered by Executive and the additional undertakings provided under this Agreement, the Company has agreed to provide the Severance Benefits described below. AGREEMENT NOW, THEREFORE, in consideration of the mutual agreements set forth below and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and Executive agree as follows: 1. Separation. Executive's employment with the Company and its Affiliates will end effective March 31, 2023 ("Separation Date"). Executive further will not seek reelection to the Board of Trustees, nor will he attend any meetings of the Board of Trustees from and after March 31, 2023 or the Annual Meeting of the Shareholders on May 16, 2023. 2. Severance Benefits. In exchange for the Waiver and General Release set forth in Section 3 and all other consideration provided under this Agreement, the Company will provide Executive the following "Severance Benefits": a. Severance. The Company will pay Executive a lump-sum total gross amount of $2,101,200.00, less applicable withholdings and deductions, which represents the sum of two times Executive's current base salary, plus two times Executive's current target Short Term Incentive Plan ("STIP") annual bonus, plus Executive's pro-rated 2023 target annual STIP bonus through March 31, 2023. This payment will be reported on an IRS Form W-2, payable within 30 days of the Effective Date. b. Benefits Continuation. The Company will pay Executive a gross lump-sum amount of $39,360.00, representing 24 months of Executive's monthly premium for the cost of benefit continuation for health benefits (i.e., medical, dental, and vision), payable

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![](deckerseparationagreemen002.jpg)

76804487v3 2 within 30 days of the Effective Date. Payment for such benefits, including the election of same under COBRA, are Executive's responsibility. c. Equity. Executive's unvested time-based and performance-based equity awards will vest according to the schedule and form reflected in Exhibit A to this Agreement. All outstanding options to purchase Company stock granted to the Executive during his employment with the Company will become exercisable, in whole or in part, for the shares that remain subject to any option, as of the Separation Date and will remain exercisable until the expiration date of the option (three months from the Separation Date). d. Outplacement Assistance. The Company will provide Executive up to $10,000.00 in outplacement assistance, to be supplied to the Executive by a professional and commercially recognized outplacement assistance provider selected by Executive, with costs being directly billed to the Company. f. Clawback. Executive's Severance Benefits are subject to the Company's Executive Incentive Compensation Recoupment Policy, as amended from time to time, and incorporated as if fully restated herein. g. Acknowledgment. Executive understands, acknowledges, and agrees that the consideration in this Agreement, in whole or in part, exceeds what Executive is otherwise entitled to receive upon separation from employment, and that such consideration is in exchange for executing and performing this Agreement. Executive further acknowledges he has no entitlement to any additional payment or consideration not specifically referenced in this Agreement, and that Executive was paid all compensation due in Executive's employment. 3. Waiver and General Release of All Claims by Executive. As consideration for the benefits being provided to Executive under this Agreement, Executive, for himself, his heirs, executors, administrators, personal representatives, successors, and assigns (collectively, "Releasors"), waives all claims, liens, liabilities, and demands for payment from or against the Company, its board, successors, predecessors, Affiliates, subsidiaries, related entities, current and former officers, directors, trustees, attorneys, members, successors, assigns, trustees, insurers, reinsurers, servants, and employees (collectively "Released Parties"), and hereby releases, acquits, exonerates, forever discharges, and covenants not to sue Released Parties for all claims, liabilities, demands, causes of action, obligations, defenses, suits, actions, debts, dues, sums of monies, expenses, accounts, covenants, contracts, controversies, agreements, promises, variances, damages, and judgments, whether known or unknown, whether fixed or contingent, in law or in equity, that Releasors had, have, or may claim to have against any of the Released Parties at any time before the execution of this Agreement. This waiver and release includes, but is not limited to, any claims, liens, demands, or liabilities arising out of, as a consequence of, by reason of, resulting from, or in any way connected with Executive's employment with the Company, including, without limitation, the Executive's termination, under any federal, state, or local laws regulating employment, such as, without limitation, claims of age, race, national origin, ancestry, handicap, disability, religion, sex, marital status, pregnancy, sexual orientation, gender identity, and veteran status discrimination, sexual harassment, retaliation, violation of public policy, and all claims under the Civil Rights Act of 1964, as amended, the Civil Rights Act of 1991, the Rehabilitation Act of 1973, the Reconstruction Era Civil Rights Act, as amended, the Americans

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76804487v3 3 With Disabilities Act of 1990 ("ADA") and the ADA Amendments Act of 2009, the Family and Medical Leave Act of 1993, Employee Retirement Income Security Act of 1974, as amended, the Age Discrimination in Employment Act ("ADEA"), the Older Workers' Benefit Protection Act ("OWBPA"), the Fair Credit Reporting Act, the North Dakota Human Rights Act, the North Dakota Equal Pay Act, as well as all other federal, state, and local laws, statutes, or ordinances that can be released. Further, this waiver and release includes, without limitation, claims of negligence, breach of contract, breach of any alleged covenant of good faith and fair dealing, inducement of breach, intentional or negligent infliction of emotional distress, intentional or negligent fraud or misrepresentation, and conspiracy. It is understood that this is a General Release. This Agreement will not affect any rights of Executive for: (a) benefits for which he properly qualifies under any social security, workers' compensation, or unemployment compensation laws; (b) any rights arising out of any breach of this Agreement; (c) indemnification from personal liability under any insurance policy maintained by the Company for future claims; or, (d) vested rights under the terms of ERISA plans sponsored by Company. Nothing in this Agreement will be construed to prevent Executive from filing or participating in any charge of discrimination or other protected claim filed with the Equal Employment Opportunity Commission (EEOC), North Dakota Department of Labor and Human Rights, North Dakota Workforce Safety and Insurance, or other government agencies; however, by signing this Agreement, Executive waives the right to recover any monetary damages or attorneys' fees from Released Parties in any claim or lawsuit brought by or through the EEOC or other agency(ies). 4. ADEA and OWBPA. By signing this Agreement, Executive hereby acknowledges and confirms that: (a) the Executive has read this Agreement in its entirety and understands all of its terms; (b) Company advises Executive to consult an attorney of Executive's choice prior to executing this Agreement; (c) Executive knowingly, freely, and voluntarily assents to all the terms and conditions set out in this Agreement including, without limitation, the waiver, release, and covenants contained in this Agreement; (d) Executive is executing this Agreement, including the waiver and release, in exchange for good and valuable consideration in addition to anything of value to which Executive is otherwise entitled; (e) Executive has up to 21 days to consider the terms of this Agreement before signing it, although Executive may sign it sooner if desired; (f) solely as it relates to claims under the Age Discrimination in Employment Act, Executive has seven days from the date Executive signs this Agreement to revoke the release in this paragraph by delivering notice of revocation to Julie Letner, Senior Vice President – Talent and Culture, 800 LaSalle Avenue, Suite 1600, Minneapolis, Minnesota 55402, before the end of such seven-day period, which revocation will revoke this entire Agreement unless the Company elects to limit it only to claims under the Age Discrimination in Employment Act within seven days of the revocation; and, (g) Executive understands that the release in this paragraph does not apply to rights and claims that may arise after the date on which Executive signs this Agreement. The eighth day after Executive executes this Agreement will be the "Effective Date" so long as Executive has not revoked the Agreement before that time, or if Executive has revoked it but Company elected to limit the revocation under Section 4(f). 5. Executive's Representations. Executive specifically represents, warrants, and confirms that: (a) he has no claims, complaints, or actions of any kind filed against the Company with any court of law, or local, state, or federal government or agency; (b) he has not engaged in, and is unaware of, any unlawful conduct in relation to the business of the Company; and, (c) he

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76804487v3 4 that, by executing this Agreement, he agrees to give up any right or entitlement he may have under federal, state, or local law against the Released Parties concerning his employment or separation from the Company, and it extinguishes any potential discrimination claims related to same. 6. Non-Disclosure of Trade Secrets and Other Confidential Information. Executive acknowledges that Executive has received certain of the Company's (which includes Affiliates, subsidiaries, partnerships, joint ventures, unincorporated associations, or other legal entities that, directly or indirectly through one of more intermediaries, controls or is under common control of the Company) confidential business information ("Confidential Information"). Executive will not divulge, disclose, reveal, or communicate to any business entity or other person Confidential Information or any trade secrets or other information that Executive may have obtained during Executive's employment with the Company. These include, but are not limited to, client information, client lists, prospective client and client records, compilations, analyses, studies, plans, financial data, technology, programs, processes, policies, techniques, flow charts, information regarding Company's products, techniques, methods, projects, strategies, trade practices, accounting methods, methods of operations, or other data considered by the Company to be Confidential Information. Nothing in this Agreement prohibits Executive from making disclosures to any self-regulatory body or governmental agency that are protected under the whistleblower provisions of federal law or regulation or disclosing trade secrets under the Defend Trade Secrets Act of 2016 where the disclosure is made (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney, and solely for the purpose of reporting or investigating a suspected violation of law; (ii) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal; or (iii) to an attorney for use in a court proceeding in connection with a lawsuit by the individual against the employer for retaliation for reporting a suspected violation of law if the information is filed under seal and not disclosed except under court order. 7. Return of Company Property. Executive will return to the Company, on or before his Separation Date, all Company property in a satisfactory condition, including, but not limited to, all keys, access cards, credit cards, laptop, equipment, documents, copies of documents, draft and final reports, materials, studies, disks, computers, cell phones, contact, sponsor, vendor, supplier, and customer lists, and all information stored in any form (electronic or otherwise). This obligation is required no matter if Executive executes this Agreement. 8. Cooperation. Executive will cooperate, if and as needed, with the Company to transition his responsibilities without the requirement of further compensation, with the consideration provided hereunder deemed sufficient. At the Company's reasonable request, and subject to reimbursement for reasonable costs and expenses Executive incurs, Executive will timely provide reasonable assistance to, and cooperate with, the Company, its Affiliates and their respective attorneys and advisors with respect to any internal or external claims, charges, audits, exams, investigations, contractual disputes and/or lawsuits involving the Company or any of its Affiliates, of which Executive may have knowledge, or in which Executive may be a witness. 9. Nondisclosure. Executive will not disclose, directly or indirectly, orally or in writing, the terms of this Agreement to any person or entity, other than his spouse, attorney, and tax advisor (all of whom must be advised of the obligation not to disclose) unless required by law or as necessary in a subsequent proceeding in which Executive alleges a breach of this Agreement.

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76804487v3 5 10. Public Statements. Executive agrees that, from and after the Effective Date, he will not, either by conversation or any other oral expression, by letter or any other written expression, or by any other deed or act of communication to the public or to any individual person or entity or groups of persons or entities, make any untrue, misleading, or defamatory statements about the Released Parties, or otherwise disparage, criticize, condemn, or impugn the business or personal reputation or character of any or all of the Released Parties. This Section 10 does not, in any way, restrict or impede the Executive from exercising protected rights to the extent that such rights cannot be waived by agreement or from complying with any applicable law or regulation or a valid order of a court of competent jurisdiction or an authorized government agency, provided that such compliance does not exceed that required by the law, regulation, or order. 11. Non-Interference Covenants. For a period of one year following the Separation Date, the Executive will not, either as a principal, agent, employee, employer, consultant, co- partner or otherwise, or in any other individual or representative capacity, directly or indirectly: (a) solicit for employment or hire, attempt to solicit for employment or hire, or employ or seek to influence any current Company employee to leave the Company's or its Affiliates' employment or engagement, when such employee was employed or engaged by the Company or its Affiliates at the time of, or at any time within the twelve months prior to, the solicitation; (b) solicit or encourage any client, or prospective client that Executive was aware or should have been aware Company is/was pursuing, of the Company or its Affiliates to (i) terminate or otherwise alter its relationship with the Company or its Affiliates or (ii) commence doing business with any entity that provides a product or service that could otherwise be provided by the Company or its Affiliates; or (c) interfere or attempt to interfere with any business relationship of the Company and its Affiliates. 12. Conditional Standstill. For a period of one year from the Separation Date, without the prior written consent of the Company's Board of Trustees, Executive will not, directly or indirectly, alone or in concert with others, (i) acquire, offer to acquire, or agree to acquire, by purchase, gift or otherwise, any securities (as defined below), or propose (or request permission to propose) or make any offer for any transaction involving the Company or its securities, other than the purchase of less than 1% of its equity securities in the ordinary course of business solely for investment purposes, (ii) make, or in any way participate in, any "solicitation" of "proxies" (as such terms are used in the proxy rules of the SEC), or advise or seek to influence any person or entity with respect to the voting of, or giving of consents with respect to, any securities, (iii) form, join or in any way participate in a "group" (as such term is used in Rule 13d-5 of the Securities Exchange Act of 1934, as amended) or otherwise act to seek to control or influence the management, Board of Trustees, policies, or affairs of the Company, (v) disclose any intention, plan or arrangement inconsistent with any of the foregoing or (vi) encourage any third party to do any of the foregoing; provided, however, the Company will waive this provision upon Executive's repayment in full to the Company of the Severance Benefits in Sections 2(a) and (b), with Executive acknowledging that even with such return he will have received sufficient consideration for his remaining promises under the Agreement. 13. Messaging/Reemployment. After this Agreement has been fully executed, the Company will issue a public statement in a form substantially similar or the same as the statement attached hereto as Exhibit B. Beyond this, the Company will respond to any inquiries for job references or confirmation of Executive's employment with the Company by confirming

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76804487v3 6 Executive's job title and dates of employment. Executive will disclose his separation from the Company was by mutual agreement, and he may also indicate that he resigned. Executive hereby waives any right to future employment with the Company and any of the Released Parties, and agrees he will not seek future employment with Company or any of the Released Parties. 14. No Admission. The Parties agree and acknowledge that this Agreement is not an admission of wrongdoing by either Party. 15. Breach. In the event of a breach of this Agreement by Executive, the Company, without waiving the right to any additional remedies, has the right immediately to, separately or together: (a) terminate all future payments of the Severance Benefits; (b) seek legal remedies including, but not limited to, recovery from the Executive of damages, lost profits, amounts previously paid under Section 3 and reasonable attorneys' fees incurred in the enforcement of the Executive's promises herein; or (c) obtain a temporary restraining order without further notice to the Executive and/or a preliminary injunction or other equitable relief to prevent such breach or threatened breach. 16. Tax Matters. This Agreement and the amounts payable and other benefits provided under this Agreement are intended to comply with, or otherwise be exempt from, Section 409A of the Internal Revenue Code ("Section 409A"), after giving effect to the exemptions in Treasury Regulation section 1.409A-1(b)(3) through (b)(12). This Agreement will be administered, interpreted and construed in a manner consistent with Section 409A. If any provision of this Agreement is found not to comply with, or otherwise not be exempt from, the provisions of Section 409A, it will be modified and given effect, in the sole discretion of the Board and without requiring the Executive's consent, in such manner as the Board determines to be necessary or appropriate to comply with, or to effectuate an exemption from, Section 409A; provided, however, that in exercising its discretion under this Section 15, the Board will modify this Agreement in the least restrictive manner necessary. Each payment under this Agreement will be treated as a separate identified payment for purposes of Section 409A. If a payment obligation under this Agreement arises on account of the Executive's termination of employment and such payment obligation constitutes "deferred compensation" (as defined under Treasury Regulation section 1.409A- 1(b)(1), after giving effect to the exemptions in Treasury Regulation section 1.409A-1(b)(3) through (b)(12)), it shall be payable only after the Executive's Separation from Service; provided, however, that if the Executive is a Specified Employee, any payment that is scheduled to be paid within six months after such Separation from Service will accrue without interest and will be paid on the first day of the seventh month beginning after the date of the Executive's Separation from Service or, if earlier, within fifteen days after the appointment of the personal representative or executor of the Executive's estate following the Executive's death. 17. Affiliate. "Affiliate" means any trade or business, whether or not incorporated, which together with the Company is treated as a single employer under Internal Revenue Code section 414(b) or is deemed to be under common control under Internal Revenue Code section 414(c).

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76804487v3 7 18. Entire Agreement; Modification; Severability. This Agreement, including the recitals, constitutes the entire agreement of the Parties and supersedes all other agreements, whether oral or written, on the terms hereof. That said, nothing in this Agreement will limit or supersede any confidentiality, nondisclosure, noncompete, or non-solicitation obligations, if applicable, on Executive by agreement or at law, and the provisions on same in this Agreement are intended to be in addition to, and not to replace, them. The terms of this Agreement may not be modified other than in a writing signed by both Parties. In the event that any provision or portion of this Agreement is found to be invalid or unenforceable for any reason, in whole or in part, the remaining provisions of this Agreement will be unaffected thereby and will remain in full force and effect to the fullest extent permitted by law to achieve the purposes of this Agreement. Accordingly, if any provision of this Agreement is adjudicated to be invalid, ineffective or unenforceable, the remaining provisions will not be affected by such adjudication. The invalid, ineffective or unenforceable provision will, without further action by the Parties, be automatically amended or limited, as appropriate, to effect the original and/or lawful purpose and intent of the invalid, ineffective or unenforceable provision; provided, however, that such amendment will apply only with respect to the operation of such provision in the particular jurisdiction where that adjudication is made. 19. Governing Law; Venue. The laws of the State of North Dakota will govern all matters arising out of or relating to this Agreement including, without limitation, its validity, interpretation, construction, and performance and without giving effect to the conflict of laws principles that may require the application of the laws of another jurisdiction. Any Party bringing a legal action or proceeding against any other Party arising out of or relating to this Agreement may bring the legal action or proceeding in the United States District Court for the District of North Dakota or in any court of the State of North Dakota sitting in Minot, North Dakota. Each Party waives, to the fullest extent permitted by law (i) any objection it may now or later have to the laying of venue of any legal action or proceeding arising out of or relating to this Agreement brought in a court described in the preceding sentence and (ii) any claim that any legal action or proceeding brought in any such court has been brought in an inconvenient forum. 20. Binding Agreement. This Agreement shall be binding on and inure to the benefit of, and be enforceable by or against the Company and its successors and the Executive (and the Executive's personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees). If the Executive dies while any amount remains payable to the Executive under this Agreement, all such amounts will be paid under this Agreement to the Executive's devises, legatee or other designee, of if there is none, to the Executive's estate. 21. No Assignment. Except as required by applicable law, no right to receive payments under this Agreement shall be subject to anticipation, commutation, alienation, sale, assignment, encumbrance, charge, pledge or hypothecation or to execution, attachment, levy or similar process or assignment by operation of law and any attempt to effect any such action shall be null, void and no effect. 22. Counterparts and Electronic Signatures. This Agreement may be executed in counterparts, and signatures transmitted electronically or by facsimile will be deemed originals. [SIGNATURE PAGE FOLLOWS]

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Exhibit for Mutual Separation Agreement1 Executive: Mark Decker Severance Multiple2 In-Progress Cash Bonus3 Options (Units)4 RSUs (Units)5 PSUs (Units)6 $1,977,600 $123,600 57,030 7,688 9,923 See comment Up to $10,000 1 As outlined in the 2019 severance guidelines 2 2023 Base Salary $494,400 2023 Target Bonus 494,400 2023 Base + STIP Target Bonus $988,800 Multiplier 2 Severance Multiple $1,977,600 3 2023 Target Bonus $494,400 2023 Prorated period 3/12 In-Progress Bonus $123,600 4 All unvested options will vest on separation date; options (incl. those previously vested) can be exercised up to 90 days post separation date Unvested Strike Price 2020 Grant 16,824 $66.36 2021 Grant 10,120 $70.64 2022 Grant 10,025 $110.90 2023 Grant 20,061 $58.67 Total 57,030 5 All unvested RSUs will vest on separation date Tranche Unvested RSUs 2021 Grant 991 2022 Grant 1,328 2023 Grant 5,369 Total 7,688 6 A pro-rated number of unvested PSUs, based on service through separation date, will vest at end of the performance period based on actual performance Granted Pro-rated 2021 Grant 8,918 6,689 2022 Grant 5,973 2,489 2023 Grant 8,948 746 Total 23,839 9,923 7 A lumpsum cash payout on the separation date equal to two years of health benefits Tranche Unvested PSUs Benefits7 Outplacement Cash Payout OptionsTranche Unvested Equity Awards EXHIBIT A

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## Exhibit 99.1

![cs-centered_blue.jpg](cs-centered_blue.jpg)

**FOR IMMEDIATE RELEASE** 

**<u>Contact Information</u>**

Joe McComish, Investor Relations

Phone: (701) 837-7104

E-mail: IR@centerspacehomes.com

**CENTERSPACE ANNOUNCES CEO TRANSITION OF MARK DECKER, JR.** 

**TO ANNE OLSON** 

Minneapolis, Minnesota — March 23, 2023 — Centerspace, Inc. (NYSE:CSR) announced today the transition of Mark Decker, Jr., the Company's President and CEO since 2017. As part of the succession plan, the Board of Directors has appointed Anne Olson, the Company's Executive Vice President, Chief Operating Officer, and General Counsel, to succeed Mr. Decker as President and CEO effective March 31, 2023, at which time she will also join the Centerspace Board. Mr. Decker will continue to serve on the Company's Board of Directors through the end of his current term in May and will remain an advisor to the Company during that time to ensure a smooth transition.

"Anne has been an integral part of overseeing the strategic transformation of the Company's portfolio during her time at Centerspace and has led the build-out of the Company's operational and technology platforms," said John Schissel, Chairman of the Company's Board of Directors. "She has a track record of success at Centerspace, deep leadership experience and extensive industry knowledge that make her the clear choice to lead the Company in its next chapter. Centerspace's focus on operations and portfolio repositioning will continue our ongoing efforts to improve portfolio quality and balance sheet strength as demonstrated by the recent closing of $144 million of non-core asset sales."

"On behalf of myself, the management team, the Board and the entire Company, I want to express our thanks and appreciation to Mark for his many contributions and dedication to Centerspace for more than six years," Schissel continued. "Mark expedited the transition of the Company from a diversified REIT to a focused owner operator of apartment homes. His leadership has been instrumental in the Company's transformational achievements. This includes the successful entry into the Denver, Colorado market and a higher-quality portfolio by acquiring approximately $1.5 billion of multifamily assets."

Ms. Olson joined Centerspace in April 2017 and has served in her current role since June of 2018. Prior to joining Centerspace, Ms. Olson was most recently a Partner in Dorsey & Whitney's Real Estate Practice Group, where she focused on development and investment real estate for publicly traded and publicly registered REITs, as well as private equity funds and national developers.

<u>About Centerspace</u> 

*Centerspace is an owner and operator of apartment communities committed to providing great homes by focusing on integrity and serving others. Founded in 1970, the company currently owns 75 apartment communities consisting of 13,498 homes located in Colorado, Minnesota, Montana, Nebraska, North Dakota, and South Dakota. Centerspace was named a Top Workplace for 2022 by the Minneapolis Star Tribune. For more information, please visit www.centerspacehomes.com.*

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