Document:

thrm-ex101_6.htm

EXHIBIT 10.1

RETIREMENT AGREEMENT

 

This RETIREMENT AGREEMENT (this “Agreement”), is entered into as of June 28, 2017 (the “Effective Date”) by and between Daniel R. Coker (“Coker”) and Gentherm Incorporated, a Michigan corporation (“Gentherm”).

Recitals

A.Coker has been an employee of Gentherm since 1996, holding the office of President and Chief Executive Officer (“CEO”) since 2007.

B.After negotiation, Coker and Gentherm have agreed that Coker’s tenure as President and CEO will end on the date (the “Transition Date”) that is the earlier of (1) the effective date of the appointment of a new President and CEO  of Gentherm by the Gentherm Board of Directors (the “Board”) and (2) January 31, 2018.  Upon the Board’s request, Coker has agreed to provide transition services to Gentherm after the Transition Date for a period of time not to exceed two months (such period is referred to herein as the “Extension Period”).    

C.In consideration of Coker’s service to Gentherm through the Transition Date and during the Extension Period, if any, Gentherm has agreed to make the payments and provide the benefits to Coker described in this Agreement, subject to the terms and conditions herein.  

NOW, THEREFORE, the parties agree as follows:

1.Separation of Employment.  

	
 
	
a.
	
Extension Period Determination.  On or before 10 business days prior to the Transition Date, Gentherm will provide written notice to Coker regarding the Board’s determination to have Coker retire as of the Transition Date or to continue the employment period of Coker in a transitional capacity for the Extension Period.  Such written notice must include the final date of employment for Coker and such time period cannot be further extended or, except as noted in Section 1b. below, shortened, thereafter without written approval of both Coker and Gentherm. 

	
 
	
b.
	
Retirement Date or Earlier Termination.  Coker’s employment with Gentherm will end on the later of the Transition Date or, if applicable, the last day of the Extension Period (such last date of employment is referred to as the “Retirement Date”).  Notwithstanding the foregoing, Coker’s employment with Gentherm may be terminated by the Board at any time prior to the Retirement Date for any reason; provided, however, that unless Coker’s employment with Gentherm is terminated by the Board for Cause (as defined in Section 8), then the date of termination of Coker’s employment by the Board shall be the Retirement Date for purposes of the rights and benefits accruing to him under Sections 2 and 3 herein.  If Coker’s employment with Gentherm is terminated by the Board prior to the Retirement Date for Cause, the provisions of Section 8 shall apply.

 

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2.Continuation of Salary, Bonus and Benefits.  From the Effective Date through and including the Retirement Date (the “Remaining Employment Period”), Coker will continue to receive his current salary payable in accordance with the Company’s normal payroll practices.  During the Remaining Employment Period, Coker also will be eligible to receive bonus payments pursuant to the Gentherm Incorporated Performance Bonus Plan (the “Bonus Plan”); provided, however, that regardless of whether the Retirement Date is before or after December 31, 2017, (a) Coker will be eligible to receive a full bonus in lieu of a pro rata bonus under the Bonus Plan for calendar year 2017, subject to the other terms and conditions of the Bonus Plan (which shall be payable at the time provided in the Bonus Plan), and (b) Coker will not be eligible to receive any bonus under the Bonus Plan for calendar year 2018.  During the Remaining Employment Period, Coker will continue to receive the employee health and welfare benefits he receives from Gentherm as of the Effective Date; provided, that, except as set forth in Section 3 hereof, Coker agrees that his right to participate in such employee health and welfare benefit plans will cease on the Retirement Date.

3.Retirement Benefits.  At the Retirement Date, Coker is entitled to receive any accrued but unpaid salary through the Retirement Date (“Accrued Wages”) and any accrued but unused vacation time through the Retirement Date (“Accrued Vacation”).  In recognition of Coker’s many years of service to Gentherm, and in consideration of and conditioned upon Coker’s continued service through the Retirement Date and his obligations under this Agreement, Gentherm has agreed to make the following additional retirement payments and provide the following additional retirement benefits to Coker (the “Retirement Benefits”), subject to the conditions set forth herein: 

	
 
	
a.
	
Cash Payment.  Gentherm shall pay Coker $850,000 in cash within 30 days of the Retirement Date, but in all cases no later than March 15, 2018;

	
 
	
b.
	
Executive Nonqualified Defined Benefit Plan.  Under the terms of the Executive Nonqualified Defined Benefit Plan Adoption Agreement, as amended (the “Nonqualified Plan”), Coker’s accrued retirement benefit shall be  $342,000, paid annually, if the Qualifying Distribution Event (as defined in the Nonqualified Plan) is reaching the in-service date of January 1, 2018 while still in service.  If the Retirement Date is prior to January 1, 2018, Gentherm will further amend the Nonqualified Plan so that the in-service date required for Coker to receive such accrued benefit is the Retirement Date.

	
 
	
c.
	
Incentive Equity.  As of the Retirement Date, all restricted stock of Gentherm issued under the Gentherm Incorporated 2013 Equity Incentive Plan (the “2013 Equity Plan”) and held by Coker shall vest immediately and no longer be subject to the restrictions set forth in the applicable underlying Restricted Stock Award Agreements and the 2013 Equity Plan.  Also, as of the Retirement Date, all options to purchase Gentherm common stock issued under the 2013 Equity Plan and held by Coker shall vest immediately and be immediately exercisable and shall continue to be exercisable until the stated expiration dates in the applicable underlying Stock Option Award Agreements and 2013 Equity Plan, notwithstanding the termination of Coker’s employment with Gentherm.

 

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d.
	
Eligibility for Special Bonus. At the sole discretion of the Compensation Committee of the Board, Coker will be eligible to receive an additional retirement cash payment of $500,000 (the “Special Bonus Payment”).  The Compensation Committee will evaluate whether Coker has completed the following tasks in determining whether Coker should receive the Special Bonus Payment: (i) fully and faithfully perform his duties as President and CEO through and including the Transition Date and (ii) if and as requested by the Board, fully and cooperatively participate in the transition of his duties to his successor during the Extension Period. If the Board exercises its sole discretion to make the Special Bonus Payment to Coker, such payment shall be made as soon as reasonably practicable after the Board exercises such discretion, but in no event later than March 15 of the calendar year next following the calendar year during which the Board exercises such discretion.

	
 
	
e.
	
Other Benefits.  As an additional retirement benefit, Coker will (on or before March 15, 2018) receive title to the Gentherm-owned automobile he uses as of the Effective Date and Gentherm will, if requested by Coker, provide continuation of health and welfare benefits to Coker through December 31, 2018 under the Consolidated Omnibus Budget Reconciliation Act (COBRA) and Gentherm will pay the premiums for such benefits.  The two country club memberships that are, as of the Effective Date, held in Coker’s name but paid for by Gentherm will be, to the extent permissible, transferred to Coker’s successor or to another executive officer of Gentherm as determined by the Board.  If either of such country club memberships cannot be so transferred, they will either be terminated or Coker may continue such memberships at his own expense.

All of the payments and benefits described above to be made to Coker (including accelerated vesting of restricted stock) will be subject to withholding of taxes and other lawful deduction, as well as reporting on a W-2 under applicable law.  Cash payments hereunder may be reduced by withholding tax owing on such payments and by withholding tax owing on any non-cash benefits hereunder (including accelerated vesting of restricted stock). Coker is responsible for the payment of all taxes on all of the Retirement Benefits and other compensation provided to him in this Agreement.

4.Other Retirement Date Matters.  On or before the Retirement Date, Coker will deliver to Gentherm all Gentherm-owned property in his possession or in his control, including but not limited to any documents, data, property and other materials, in whatever form, that he received, created or compiled during his employment with Gentherm (the “Gentherm Owned Property”) and he hereby confirms that he (or anyone on his behalf) has not and will not retain any copies thereof; provided, however, Coker may retain Gentherm Owned Property to the extent necessary and related to his continued service as a director on the Board, and he will return such remaining Gentherm Owned Property (and any other Gentherm-owned property accumulated during such director service) promptly following the end of his service as a director.  Coker will submit to Gentherm a request for reimbursement of all business expenses relating to his employment no later than 30 days after the Retirement Date; such expenses will subject to and paid in accordance with Gentherm’s business expense reimbursement policy.

 

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5.Release Condition.  It is a condition of Gentherm’s obligations to provide the Retirement Benefits not yet provided (and it is a condition of Coker’s right to retain Retirement Benefits previously provided) that Coker sign and deliver to Gentherm the Release attached to this Agreement as Exhibit A (the “Release”) and that Coker does not revoke such Release.  Coker understands and agrees that Gentherm has expressly informed him that Gentherm would not have agreed to provide any of the Retirement Benefits absent Coker’s execution of both this Agreement and the Release.  If Coker fails to sign and deliver the Release to Gentherm within 21 days of the Retirement Date, or delivers the Release but revokes it within the time period permitted for revocation in the Release, then none of the Retirement Benefits shall have been earned by Coker and, in the event any of the Retirement Benefits have already paid to him at such time, Coker shall be obligated to promptly refund or reimburse Gentherm for such Retirement Benefits (including the repayment of pre-tax gross proceeds from any sale of Gentherm common stock that vested or otherwise remained outstanding in accordance with Section 3(c) herein) and Gentherm shall be authorized to immediately terminate any outstanding equity awards under the 2013 Equity Plan and to take any reasonably related actions to effectuate its rights hereunder; provided, that “gross proceeds” for an option will be calculated less the exercise price of such option, on a pre-tax basis.  

6.Confidential Information.  Coker agrees to comply in all respects with all confidentiality agreements that he signed during his employment with Gentherm, or any policies and procedures of Gentherm relating to confidentiality by employees or officers in effect as of the Effective Date, and Coker acknowledges that his obligations under such confidentiality agreements, policies and procedures will continue after his employment with Gentherm ends.  Coker acknowledges and agrees that Gentherm has invested considerable amounts of time and money in attaining and developing all of the confidential or proprietary information, and any unauthorized disclosure or release of such information in any form would irreparably harm Gentherm.  

7.Restrictive Covenants.  Because Coker has extensive knowledge about Gentherm’s business, processes and operations, Coker and Gentherm recognize and agree that Gentherm is entitled to the protections set forth in this Section 7.  In consideration of the promises made to Coker by Gentherm in this Agreement, Coker agrees to the restrictive covenants set forth below.

	
 
	
a.
	
Definitions. For the purposes of this Agreement, “Competitor” is defined as any individual, corporation, or other business entity that engages in the same or similar Business as Gentherm, or any of its subsidiaries or affiliates,  engages, in whole or in part; “Business” is defined as any technology, product or service which Gentherm or any of its subsidiaries or affiliates manufactures, sells, researches or develops as of the Effective Date or in the future. 

	
 
	
b.
	
Non-Competition. For a period of twenty-four (24) months after the Retirement Date (the “Restrictive Period”), Coker shall not, either directly or indirectly (whether as an employee, officer, manager, director, shareholder, partner, consultant, independent contractor, lender, owner or representative, or in any other capacity), engage in any activity or otherwise provide services to any business that directly or indirectly competes with Gentherm in any material respect; provided, however, that Coker may own 1% or less of the common 

 

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stock of any publicly traded company.  Furthermore, during the Restrictive Period, Coker will not engage in any activities for the benefit of any Competitor, regardless of whether such activities directly or indirectly compete with Gentherm in any respect.

	
 
	
c.
	
Non-Solicitation of Employees. For the Restrictive Period, Coker shall not, either directly or indirectly, induce or solicit, or attempt to induce or solicit, any individual who is an officer, manager, employee, or independent contractor of Gentherm to terminate his or her employment or contractual relationship with Gentherm or to diminish their services or otherwise interfere with the relationship between such person and Gentherm.

	
 
	
d.
	
Non-Interference with Third Parties. For the Restrictive Period, Coker shall not, either directly or indirectly, solicit or attempt to solicit, or take any action that will disrupt, terminate or interfere with, a business relationship or prospective business relationship between Gentherm and any business entity who is a recent, current or prospective customer, vendor, strategic partner, financing source or similar person.

	
 
	
e.
	
Non-Disparagement.  For the Restrictive Period, Coker shall not engage in any defamatory, slandering or maliciously disparaging statements or other communications (whether in written or oral form) or conduct against Gentherm or any of its subsidiaries or affiliates or any of their respective employees, officers, directors, advisors or consultants, which includes, but is not limited to, disparaging text messages, e-mail communications and comments or postings on blogs, comment boards, and social media networking websites. 

	
 
	
f.
	
Injunctive Relief.  Coker acknowledges that: (a) the breach of Sections 6 or 7 herein will result in immediate and irreparable harm to Gentherm; (b) no adequate remedy at law exists with regard to any such breach; (c) public policy will be furthered by the enforcement of this Agreement by an injunction; (d) injunctive relief will not deprive Coker of an ability to earn a living because he is qualified for many positions which do not necessitate the breach of any provision of this Agreement; and (e) Gentherm will be entitled to enforce this Agreement by injunction or other equitable remedies in the event of such breach, in addition to any other remedies available to Gentherm (including, without limitation, monetary damages). 

8.Termination for Cause or Voluntarily.  If Coker’s employment with Gentherm is terminated by the Board prior to the Retirement Date for Cause, or if Coker voluntarily resigns from his employment with Gentherm prior to the Retirement Date, (a) he will not receive any compensation or benefits set forth in Sections 2 and 3 herein, except Gentherm shall make payment of the Accrued Wages and Accrued Vacation through the date of his termination and reimburse Coker for all business expenses relating to his employment that are submitted to Gentherm within 30 days after the date of his termination, subject to and paid in accordance with Gentherm’s business expense reimbursement policy, and (b) excluding Sections 2 and 3 herein, the provisions of this Agreement, including, without limitation, the restrictive covenants set forth in Section 7 

 

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above, will remain in full force and effect (with any reference to Retirement Date to refer to the date of termination).  As used in this Agreement, “Cause” means (i) gross negligence, (ii) gross or willful misconduct, whether or not during the performance of Coker’s duties (including, for example, commission of a felony), (iii) fraud of any kind, or (iv) gross insubordination with respect to directions from the Board or with respect to otherwise executing the duties and responsibilities as the President and CEO of Gentherm based on historical practice or as set forth in any policy or procedure as of the Effective Date or otherwise required by law.

9.Clawback Policy / Insider Trading Policy.  Coker acknowledges that some of the payments required to be made to him under this Agreement are subject to the Gentherm Incorporated Compensation Clawback Policy.  Coker has had an opportunity to review such policy and has previously signed an acknowledgement of the policy terms.  Coker also acknowledges that he is currently subject to the Restated Statement of Policy for Securities Trading by Company Personnel and that he will continue to be subject to such policy for so long as he meets the definition of “Persons Subject to This Policy Statement” therein.

10.Voluntary Agreement. Coker acknowledges that he has been advised in writing to consult with an attorney before he signs this Agreement. Coker understands that Coker has twenty-one (21) days within which to decide whether to sign this Agreement, although Coker may sign this Agreement at any time within the twenty-one (21) day period. If Coker does sign this Agreement, Coker also understands that he will have seven (7) days after he signs to change Coker’s mind and revoke the Agreement, in which case a written notice of revocation must be delivered to Vice-President and General Counsel, Gentherm Incorporated, 21680 Haggerty Rd., Northville, MI 48167, on or before the seventh (7th) day after Coker’s execution of the Agreement. Coker knowingly and voluntarily agrees to all of the terms set forth in this Agreement and intends to be bound legally by them. 

11.No Representation. Coker represents and acknowledges that, in executing this Agreement, Coker does not rely and has not relied on any representation or statement by Gentherm or any agents or representatives of Gentherm with regard to the subject matter, basis or effect of this Agreement.

12.Binding Agreement.  Coker represents and warrants that the execution, delivery and performance of this Agreement will not (and with the giving of notice or lapse of time, or both, would not) result in the breach of any agreement or other obligation to which he is a party or is otherwise bound.  This Agreement shall be binding upon Coker and Coker’s heirs, administrators, representatives, executors, successors and assigns, and shall inure to the benefit of Gentherm and its directors, officers, representatives, successors and assigns.

13.Governing Law and Interpretation.  This Agreement is made and entered into in the State of Michigan, and shall in all respects be interpreted, enforced and governed under the laws of the State of Michigan without regard to its choice of law or conflict of laws provision or rule (whether the State of Michigan or any other jurisdiction).  The language of all parts of this Agreement shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against any of the parties. In the event of a breach of any provision of this Agreement, either party may institute an action specifically to enforce any term or terms of this Agreement and/or to seek any damages for breach.  Should any term, condition, provision or covenant of this Agreement 

 

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be declared illegal or unenforceable by any court of competent jurisdiction and cannot be modified to be enforceable, excluding the general release language, such term, condition, provision or covenant shall immediately become null and void, leaving the remainder of this Agreement in full force and effect.  

14.Amendment.  This Agreement may not be modified, altered or changed except in writing and signed by both Coker and Gentherm (with express approval of the Gentherm Board) wherein specific reference is made to this Agreement.

15.Notices.  Any notice or other communication required or permitted to be given under this agreement will be sufficient if it is in writing, sent to the applicable address set forth below (or as otherwise specified by a party by notice to the other party in accordance with this Section 15) and delivered personally, by certified or registered mail or by recognized overnight courier, or delivered by e-mail coupled with confirmation of actual receipt:

If to Gentherm, to the address set forth below:

 

Gentherm Incorporated

Attention: Vice-President and General Counsel

21680 Haggerty Rd.

Northville, MI 48167

 

If to Coker, at the last known address in Gentherm’s payroll records.

16.Entire Agreement.  This Agreement, together with the Release, sets forth the entire agreement between the parties, and fully supersedes any and all prior agreements or understandings between the parties pertaining to the subject matter of the Agreement, except that any other agreements that Coker entered into with Gentherm that pertains to confidentiality, non-disclosure, non-solicitation, and/or non-competition remain in full force and effect.

17.Support.  Coker warrants and agrees that he will not, directly or indirectly, challenge and/or dispute the enforceability and/or validity of this Agreement, or any portion thereof. Coker further agrees and warrants that he will not, and has not, directly or indirectly, instigate(d), incite(d), encourage(d) and/or otherwise cause(d) or aid(ed) any person and/or entity to bring any claim and/or action which challenges and/or disputes the enforceability and/or validity of this Agreement, including any portion thereof.  Coker further agrees that in the event that any such claim, action and/or challenge is brought, he will support, advocate for and agree with the enforceability and validity of this Agreement, and will cooperate with Gentherm in defending against any such claim, action and/or challenge.

18.Cooperation.  Coker shall cooperate with Gentherm with respect to any claim or matter and shall make himself available to consult with counsel or serve as a witness in any action, investigation or other proceeding before any court, governmental agency, arbitrator or mediator, in which he may be called to appear by Gentherm, regarding any business, property or operations of Gentherm or any of its affiliates or subsidiaries, and he shall truthfully testify in any such action, proceeding or deposition in which he also appears.  Upon request by Coker and prior approval by Gentherm, Gentherm shall reimburse Coker for reasonable travel expenses incurred by Coker in connection with any such appearance in which Coker is so called to appear.   

 

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19.Waiver of Breach.  The waiver by a party of any breach of any provision of this Agreement by the other party shall not operate or be construed as a waiver of any subsequent breach of the same or any other provision hereof by that party.  

20.Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same agreement.  

21.Code Section 409A.  

	
 
	
a.
	
Gentherm and Coker intend that any amounts or benefits to be paid or provided under this Agreement be exempt from or comply with the provisions of Section 409A of the Internal Revenue Code and the Treasury Regulations and other guidance relating thereto (“Code Section 409A”) so that Coker is not subject to additional tax or other sanctions under Code Section 409A.  The provisions of this Agreement shall be interpreted in a manner consistent with such intent.  In furtherance thereof, to the extent that any provision hereof would otherwise result in Coker being subject to additional tax or other sanctions under Code Section 409A, if and to the extent permissible under Code Section 409A, Gentherm and Coker agree to amend this Agreement in a manner that brings this Agreement into compliance with Code Section 409A and preserves to the maximum extent possible the economic value of the relevant payment or benefit under this Agreement to Coker.  Notwithstanding the foregoing, no particular tax result for Coker with respect to any income recognized by him in connection with this Agreement is guaranteed, and Coker alone will be solely responsible for any additional taxes or other sanctions imposed on him under or as a result of Code Section 409A in connection with this Agreement.  

	
 
	
b.
	
With respect to any amount of expenses eligible for reimbursement under this Agreement, such expenses will be reimbursed by Gentherm no later than December 31st of the year following the year in which Coker incurs the related expenses.  In no event will the reimbursements to be provided by Gentherm in one calendar year affect the amount of reimbursements to be provided in any other calendar year, nor will Coker’s right to reimbursement be subject to liquidation or exchange for another benefit.

	
 
	
c.
	
If any amount payable under this Agreement is subject to Code Section 409A and is payable upon, on account of or as a result of termination of Coker’s employment with Gentherm, notwithstanding any other provision of this Agreement such amount shall not be paid until the earlier of (i) six months and one day after Coker’s “separation from service” (within the meaning of Code Section 409A), or (ii) the date of Coker’s death, but only to the extent such delay is necessary to prevent Coker from incurring additional tax on and/or other sanctions in respect of such payment under Code Section 409A.

[Signatures appear on the following page]

 

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Gentherm and Coker knowingly and voluntarily sign this Agreement as of the date(s) set forth below:

 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
DATED:
	
June 28, 2017
	
 
	
/s/ Daniel R. Coker

	
 
	
 
	
 
	
DANIEL R. COKER

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
Gentherm Incorporated

	
 
	
 
	
 
	
 
	
 

	
DATED:
	
June 28, 2017
	
 
	
By:
	
/s/ Francois Castaing

	
 
	
 
	
 
	
Name
	
Francois Castaing

	
 
	
 
	
 
	
Its:
	
Chairman of the Board

 

 

 

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EXHIBIT A

 

FORM OF RELEASE

 

Daniel R. Coker (“Employee”) hereby acknowledges and promises to Gentherm Incorporated (“Gentherm”) as follows:

	
 
	
1.
	
Separation of Employment.  Employee acknowledges that his employment with Gentherm has ended on ________________ (“Separation Date”).

	
 
	
2.
	
Payment of Moneys Owed.  Employee acknowledges that, excluding the amounts expressly set forth in the Retirement Agreement between Employee and Gentherm dated as of June 28, 2017 (the “Retirement Agreement”) which, by their terms, are to be paid after the date hereof, Gentherm has paid all remuneration owed to him as a result of his employment with Gentherm.  

	
 
	
3.
	
Consideration.  Employee is giving the promises set forth in this Release as consideration for Gentherm’s promises, amounts, payments, benefits and privileges in the Retirement Agreement which are contingent upon Employee’s promises in this Release, including the general release of claims.  Employee agrees that such amounts, payments, benefits and privileges specified in the Retirement Agreement are in excess of any amounts, payments, benefits and privileges to which he is entitled.  Employee also agrees that the amounts, payments, benefits and privileges described in the Retirement Agreement are independent and adequate consideration for his release of all claims and rights specified herein and any other obligations set forth in this Agreement or the Retirement Agreement.

	
 
	
4.
	
Complete Release of All Claims.  Employee, on behalf of himself and all of his heirs, assigns, proxies and/or attorneys in fact, hereby knowingly and voluntarily releases and forever discharges Gentherm and its current and former parents, subsidiaries and affiliates, predecessors, successors and assigns and each of its and their respective directors, officers, attorneys, agents, representatives and employees, individually and in their business capacities, and its and their employee benefit plans and programs and their administrators and fiduciaries (all of which shall be given its broadest interpretation, and collectively referred to as “Releasees”) from any and all claims and causes of action, whether now known or unknown, of whatever kind or nature, based on any act, omission, event, occurrence, or nonoccurrence from the beginning of time to the date of execution of this Release, including, but not limited to, claims that arise out of or in any way relate to Employee’s employment or separation from employment with Gentherm.  Employee acknowledges and agrees that this general release includes, but is not limited to, claims of breach of implied or express employment contracts or covenants, promissory estoppel, entitlement to any pay (other than the amounts promised in the Retirement Agreement), defamation, wrongful termination, public policy violations, emotional distress and related matters, claims of discrimination, harassment, or retaliation under federal, state or local laws, and claims based on any federal, state or other governmental statute, regulation or ordinance, including, 

 

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but not limited to, Title VII of the Civil Rights Act of 1964 (“Title VII”); Sections 1981 through 1988 of Title 42 of the United States Code; The Employee Retirement Income Security Act of 1974 (“ERISA”) (as modified below); The Immigration Reform and Control Act; the Americans with Disabilities Act (“ADA”); the Equal Pay Act (“EPA”); the Age Discrimination in Employment Act (“ADEA”); the Rehabilitation Act of 1973; the Older Workers Benefit Protection Act; The Worker Adjustment and Retraining Notification Act; the Family and Medical Leave Act (“FMLA”); The Fair Credit Reporting Act; The Genetic Information Nondiscrimination Act of 2008; Michigan’s Elliott-Larsen Civil Rights Act; the Michigan Persons with Disabilities Civil Rights Act; the Michigan Whistleblowers’ Protection Act; Michigan’s Bullard-Plawecki Right to Know Act; Michigan Statutory Provision Regarding Retaliation/Discrimination for Filing a Worker’s Compensation Claim; the Michigan Payment of Wages and Fringe Benefits Act; the Michigan Minimum Wage Law; the Michigan Equal Pay Law; and any other federal, state, or local laws, or regulations, or any common law actions, relating to Employee’s employment that Employee may have against Gentherm or any of the Releasees as of the date hereof, and/or any type of damages, wages, bonuses, commissions, benefits, attorney fees, costs or relief of any type (legal, equitable or otherwise).  If any claim is not subject to release, to the extent permitted by law, Employee waives any right or ability to be a class or collective action representative or to otherwise participate in any putative or certified class, collective or multi-party action or proceeding based on such a claim in which Gentherm or any other Releasee identified in this Release is a party.

	
 
	
5.
	
Claims Not Released. Employee is not waiving any rights Employee may have to: (a) Employee’s own vested accrued employee benefits under the applicable health, welfare, or retirement benefit plans as of the Separation Date; (b) benefits and the right to seek benefits under applicable workers’ compensation and unemployment compensation statutes; (c) pursue claims that by law cannot be waived by signing this Release, including but not limited to filing a charge with the Equal Employment Opportunity Commission (“EEOC”), the National Labor Relations Board (“NLRB”) or other governmental or administrative agency or from participating in any investigation, hearing or proceeding of the EEOC, the NLRB or other governmental or administrative agency; (d) any monetary award offered by the Securities and Exchange Commission (“SEC”) pursuant to Section 21F of the Securities Exchange Act of 1934, as amended; and (e) enforce the Retirement Agreement.

	
 
	
6.
	
Exclusions.  Excluded from this Release are any claims or rights which cannot be waived by law, including the right to file a charge of discrimination with an administrative agency.  Nothing in this Release prohibits or prevents Employee from filing a charge with or participating, testifying, or assisting in any investigation, hearing, or other proceeding before any federal, state, or local government agency. However, to the maximum extent permitted by law, Employee agrees that if such an administrative claim is made, Employee shall not be entitled to recover any individual monetary relief or other individual remedies, except as to possible whistleblower awards from the SEC.

 

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7.
	
No Representation.  Employee represents and acknowledges that in executing this Release, Employee does not rely and has not relied on any representation or statement by any of the Releasees or by any of the Releasees’ agents or representatives with regard to the subject matter, basis or effect of this Release.

	
 
	
8.
	
Acknowledgments.  

i.Employee affirms that Employee has not filed, caused to be filed, or presently is a party to any claim against Gentherm.

ii.Employee affirms that Employee has no known workplace injuries or occupational diseases arising out of Employee’s employment with Gentherm.

iii.Employee affirms that Employee has been granted any leave to which Employee was entitled under the Family and Medical Leave Act or related state or local leave or disability accommodation laws.

iv.Employee affirms that all of Gentherm’s decisions regarding Employee’s pay and benefits through the date of Employee’s execution of this Release were not discriminatory based on age, disability, race, color, sex, religion, national origin or any other classification protected by law.

v.Employee represents and warrants that prior to signing this Release, Employee has disclosed to the Board of Directors of Gentherm any belief or information Employee may have that Gentherm has engaged in any unlawful activity of any kind.

vi.Employee affirms that Employee has not been retaliated against for reporting any allegations of wrongdoing by Gentherm or its officers, directors or employees including any allegations of corporate fraud.

vii.Employee represents and warrants that he has the sole right, title and interest in the claims released in this Release, and that he has not assigned or transferred, to any person, any claim intended to be released under this Release.

	
 
	
9.
	
Non-Admission of Liability.  This Release does not constitute an admission that any Releasee has violated any law, rule, regulation, contractual right or any other duty or obligation.

	
 
	
10.
	
Voluntary Agreement.  Employee acknowledges that Employee has been advised in writing to consult with an attorney before Employee signs this Release. Employee understands that Employee has twenty-one (21) days within which to decide whether to sign this Release, although Employee may sign this Release at any time within the twenty-one (21) day period. If Employee does sign this Release, Employee also understands that he will have seven (7) days after he signs to change Employee’s mind and revoke the Release, in which case a written notice of 

 

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revocation must be delivered to Vice-President and General Counsel, Gentherm Incorporated, 21680 Haggerty Rd., Northville, MI 48167, on or before the seventh (7th) day after Employee’s execution of the Release. Employee knowingly and voluntarily agrees to all of the terms set forth in this Release and intends to be bound legally by them. 

	
 
	
11.
	
Binding.  This Release shall be binding upon Employee and his heirs, administrators, representatives, executors, successors and assigns, and shall inure to the benefit of Releasees and each of them, and to their heirs, administrators, representatives, executors, successors, and assigns.

	
 
	
12.
	
Governing Law.  This Release shall in all respects be interpreted, enforced and governed under the laws of the State of Michigan without regard to its choice of law or conflict of laws provision or rule (whether the State of Michigan or any other jurisdiction).  The language of all parts of this Release shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against any of the parties.

	
 
	
13.
	
Severability.  Should any term, condition, provision or covenant of this Release be declared or be determined by any court to be illegal or invalid, the validity of the remaining terms, conditions, provisions or covenants shall not be affected, and said illegal or invalid term, condition, provision or covenant shall be deemed not to be part of this Release.

	
 
	
14.
	
Entire Agreement.  This Release, together with the Retirement Agreement, sets forth the entire agreement between the parties, and fully supersedes any and all prior agreements or understandings between the parties pertaining to the subject matter of such documents.

 

PLEASE READ CAREFULLY.  THIS AGREEMENT INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.

EMPLOYEE FREELY AND KNOWINGLY, AND AFTER DUE CONSIDERATION, ENTERS INTO THIS RELEASE INTENDING TO WAIVE, SETTLE AND RELEASE ALL CLAIMS HE HAS OR MIGHT HAVE AGAINST RELEASEES.

 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
DATED:
	
 
	
 
	
 

	
 
	
 
	
 
	
DANIEL R. COKER

 

 

Page 13 of 13iret_Ex10_26

		
			Exhibit 10.26
		

		
			 
		

		
			CONFIDENTIAL re
		

		
			signation AGREEMENT AND GENERAL RELEASE
		

		
			This Confidential Resignation Agreement and General Release (“Agreement”), is made and entered into by and between the undersigned individual, Timothy P. Mihalick (“you”) and Investors Real Estate Trust, a North Dakota real estate investment trust (“IRET”) (the signatories to this Agreement will be referred to collectively as the “Parties”).
		

		
			WHEREAS, IRET employed you as Chief Executive Officer; and
		

		
			WHEREAS, the Parties desire to amicably sever the employment relationship that existed between them; and
		

		
			WHEREAS, you have agreed to voluntarily resign your employment with IRET effective April 27, 2017; and
		

		
			WHEREAS, in consideration of the services rendered by you and the additional undertakings provided for herein, IRET has agreed to compensate you by providing the severance compensation described in this Agreement; and
		

		
			WHEREAS, the Parties have agreed, without IRET admitting liability of any kind, to enter into this Agreement pursuant to which each and every claim and/or cause of action asserted or which could have been asserted by you against IRET will be forever and finally released; and
		

		
			WHEREAS, both Parties have read and understand the terms and provisions of this Agreement, and desire and intend to be bound by the terms and provisions of this Agreement.
		

		
			NOW, THEREFORE, in consideration of the covenants and mutual promises and agreements herein contained, and other valuable consideration, the sufficiency of which is hereby acknowledged, the Parties agree as follows:
		

			
	
			
				 1.
			Release and Waiver Agreement.  You acknowledge and understand that this Agreement is a release and waiver contract and that this document is legally binding.  You and IRET understand that by signing this Agreement, each party has read and understood each provision and is agreeing to all of the provisions set forth in the Agreement.

			
	
			
				 2.
			Claims Covered by Agreement.  You and IRET acknowledge and understand that this Agreement applies only to claims which accrue or have accrued prior to the date this Agreement is executed by you and IRET.

			
	
			
				 3.
			Resignation of Employment.  You have resigned your position with IRET and its affiliates and subsidiaries effective April 27, 2017 (“Resignation Date”).  

		
			

		 

		

			 

		

			

					

						 

					

					

						 

					

					

						 

				
	

					

						Confidential Resignation Agreement

					

					

						1

					

					

						Employee’s Initials: ________

				

		

			 

		

 

		

			
	
			
				 4.
			Resignation Benefits.  In exchange for the promises you make in this Agreement, IRET covenants and agrees to provide you with “Resignation Benefits” as follows:

			
	
			
				 a.
			IRET covenants and agrees to pay you compensation in the lump gross sum amount of $1,073,159.00 (the “Resignation Payment”). This Resignation Payment represents the sum of 1.5 times your current base salary plus 1.5 times your average annual earned cash bonus for the previous three years. 

			
	
			
				 b.
			IRET shall pay you a lump gross sum amount of $25,999.60, representing eighteen (18) months of your monthly premium for the cost of benefit continuation for health benefits (i.e., medical, dental and vision) (“COBRA Benefits”) in which you have enrolled for the 2017 plan year. The COBRA Benefits will be calculated based on your monthly premium amount as of the effective date of this Agreement. You will be solely responsible for the payment of monthly premiums and if you do not properly elect COBRA coverage in accordance with the applicable benefit plans, you will not receive the COBRA Benefits. For purposes of clarity, the COBRA Benefits provided pursuant to this paragraph will run concurrently with any period of COBRA coverage you may be entitled to receive under applicable law and the applicable benefit plans, determined without regard to this paragraph.  This provision is not intended in any manner to affect your rights to continuing COBRA coverage under the applicable benefit plans.  

			
	
			
				 c.
			IRET shall issue you 5,864 common shares of IRET originally scheduled to vest on June 22, 2017 (“Stock Benefit”) pursuant to the terms of a Stock Award Agreement between IRET and you dated June 22, 2016 (the “Stock Award Agreement”).  Pursuant to the terms of the Stock Award Agreement, a condition to the vesting of the shares and issuance of the shares to you was that you continued to be employed by IRET on each vesting date specified in the Stock Award Agreement. In consideration for the accelerated vesting of these 5,864 common shares as a Resignation Benefit under this Agreement, you agree that effective as of the date of this Agreement, the Stock Award Agreement and any and all other stock award agreements, performance stock award agreements or any other agreements between IRET and you with respect to awards of common shares, any equity securities of IRET, cash bonuses or any other compensation of any kind, except as specifically provided herein, are hereby terminated and shall be void and of no further force and effect, and you shall have no further rights, and IRET shall have no further obligations to you, thereunder.

			
	
			
				 d.
			You acknowledge that these Resignation Benefits are in addition to any benefits to which you were already entitled. IRET’s payment of these Resignation Benefits is subject to applicable federal, state, and local taxes and withholding.  The payments to you pursuant to this Agreement are intended to be exempt from Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”), as short-term deferrals pursuant to Treas. Reg. § 1.409A-1(b)(4) and shall be construed and administered in accordance with such exemption.

			
	
			
				 5.
			Release and Waiver.  In consideration for the Resignation Benefits described in this Agreement, you agree to the following:

			
	
			
				 a.
			You knowingly and voluntarily agree to waive and release IRET, its parents, affiliates, predecessors in interest and its subsidiaries, their respective officers, directors, employees, stockholders, representatives and agents, including their successors and assigns 

		 

		

			 

		

			

					

						 

					

					

						 

					

					

						 

				
	

					

						Confidential Resignation Agreement

					

					

						2

					

					

						Employee’s Initials: ________

				

		

			 

		

 

	(collectively with the “Released Parties”), with respect to any and all claims, losses, liabilities, obligations and causes of action, known and unknown, arising out of, connected with, or relating to: (i) your employment; (ii) the Released Parties’ refusal or failure to continue your employment; (iii) the termination of your employment; or (iv) any transaction, occurrence or omission which transpired prior to your execution of this Agreement, including, but not limited to, claims for compensation, commissions, bonuses, deferred compensation, stock grants, other wages and benefits, breach of contract, wrongful termination, impairment of economic opportunity, intentional infliction of emotional distress, claims based on personal injury, work-related accident, any breach of implied or express covenant of good faith and fair dealing, violation of public policy, or any other contract, tort or personal injury claim, or claim based on any municipal, state or federal statute, regulation or ordinance relating to employment, employment discrimination or retaliation, including Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000 et seq.; The Civil Rights Act of 1866, as amended, 42 U.S.C. § 1981; The Civil Rights Act of 1991, as amended, 42 U.S.C. § 1981a; The Age Discrimination in Employment Act of 1967, as amended, 29 U.S.C. § 621 et seq.; Americans With Disabilities Act, as amended, 42 U.S.C. § 12101 et seq.; Fair Labor Standards Act, as amended, 29 U.S.C. § 201 et seq.; Equal Pay Act, as amended, 29 U.S.C. §201 et seq.; National Labor Relations Act, as amended, 29 U.S.C. § 151 et seq.; Worker Adjustment and Retraining Notification Act, as amended, 29 U.S.C. § 2101 et seq., Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C. § 1000 et seq.; Family and Medical Leave Act, as amended, 29 U.S.C. § 2601, et seq.; the North Dakota Human Rights Act, as amended, N.D. Cent. Code §14-02.4 et seq.; the North Dakota Equal Pay Act, as amended, N.D. Cent. Code § 34-06.1 et seq.; or any other statute, rule, regulation, ordinance, or common civil or other law, or judicial or administrative interpretation whether promulgated by federal, state, local or other jurisdiction or political subdivision. 

			
	
			
				 b.
			Also in consideration for (i) the Resignation Benefits, (ii) the promises and covenants contained herein, to which you acknowledge you are not otherwise entitled, and (iii) other good and valuable consideration, the sufficiency of which is hereby acknowledged, you hereby fully, finally, and completely release the Released Parties of and from any and all claims under the Age Discrimination in Employment Act of 1967, as amended, 29 U.S.C. § 621 et seq. (“ADEA”) arising on or before the date of this Agreement, and hereby acknowledge and agree that: this Agreement was negotiated at arm’s length; this Agreement is worded in a manner that you fully understand; you specifically waive any rights or claims under the ADEA; you knowingly and voluntarily agree to all of the terms set forth in the Agreement; you acknowledge and understand that any claims under the ADEA that may arise after the date of this Agreement are not waived; the rights and claims waived in this Agreement are in exchange for consideration over and above anything to which you were already undisputedly entitled; you have been and hereby are advised in writing to consult with an attorney prior to executing the Agreement; you understand that you have been given a period of up to forty-five (45) days to consider the ADEA release prior to executing it; and you understand that you have been given a period of seven (7) days from the date of the execution of the ADEA release to revoke the ADEA release, and understand and acknowledge that the ADEA release will not become effective or enforceable until the revocation period has expired.  If you elect to revoke your release of ADEA claims, the revocation must be in writing and delivered within seven (7) days from the date of your execution of the Agreement to IRET as follows: c/o Kolette McDonald, Vice President – Human Resources Management, 

		 

		

			 

		

			

					

						 

					

					

						 

					

					

						 

				
	

					

						Confidential Resignation Agreement

					

					

						3

					

					

						Employee’s Initials: ________

				

		

			 

		

 

	IRET, 1400 31st Avenue SW, Suite 60, P.O. Box 1988, Minot, North Dakota 58702-1988, kmcdonald@iret.com.

			
	
			
				 c.
			You understand and agree that by signing this Agreement, you—on behalf of yourself, your family, assigns, representatives, agents, estate, heirs, beneficiaries, executors, administrators, successors, and/or attorneys, if any—agree to give up any right or entitlement you may have under federal, state or local law against the Released Parties, concerning any events related to your employment or termination, or IRET’s failure to continue your employment. This Agreement extinguishes any potential employment discrimination claims you may have relating to your employment with IRET and IRET’s termination of your employment existing on the date you sign this Agreement. 

			
	
			
				 d.
			You further represent and warrant that you have not assigned to any third party any claim involving the Released Parties or authorized any third party to assert on your behalf any claim against the Released Parties. If a third party asserts a claim against the Released Parties on your behalf or includes you as a class member in any class action involving any claim, you agree to not accept any benefits or damages relating or arising out of such claim.

			
	
			
				 e.
			You additionally represent, warrant and agree that you have received full and timely payment of all wages, salary, bonuses, and other compensation, and benefits that may have been due and payable to you by the Released Parties. You further represent, warrant and agree that you have received all leave or other benefits that may have been available to you under the Family and Medical Leave Act of 1993 (“FMLA”) or any comparable state law and that you have not been denied any rights or benefits available to you under the FMLA or any comparable state law. You expressly acknowledge and agree that the Released Parties are entering into this Agreement in reliance upon these representations by you.

			
	
			
				 f.
			You understand that this Agreement also precludes you from recovering any relief as a result of any lawsuit, grievance or claims brought on your behalf and arising out of your employment or termination of, or separation from, employment, including your right to recover money in connection with a charge or investigation filed by any other individual or by the Equal Employment Opportunity Commission or any other federal or state agency, provided that nothing in this Agreement will affect your entitlement, if any, to workers’ compensation or unemployment compensation.

			
	
			
				 g.
			You understand that this Agreement does not constitute a waiver of your right to file a charge or participate in an investigation by an administrative agency. Specifically, this Agreement does not waive your right to file a complaint with the North Dakota Department of Labor and Human Rights or to make a claim with the North Dakota Workforce Safety and Insurance agency. 

		
			 
		

			
	
			
				 6.
			Consultation with Attorney and Review Period.

			
	
			
				 a.
			You are advised, and acknowledge that you have been advised, to consult with an attorney prior to executing this Agreement concerning the meaning, import, and legal significance of this Agreement.  You acknowledge that you have read this Agreement, as 

		 

		

			 

		

			

					

						 

					

					

						 

					

					

						 

				
	

					

						Confidential Resignation Agreement

					

					

						4

					

					

						Employee’s Initials: ________

				

		

			 

		

 

	signified by your signature hereto, and are voluntarily executing the same for the purposes and consideration herein expressed.

			
	
			
				 b.
			You acknowledge that you have been provided with a period of at least forty-five (45) calendar days within which to consider, review, and reflect upon the terms of this Agreement. Any discussions about or changes to the Agreement, whether material or immaterial, do not restart the running of the 45-day period.

			
	
			
				 c.
			You have seven (7) calendar days in which you may revoke this Agreement after you sign it.  If you choose to revoke the Agreement, please notify Kolette McDonald, Vice President – Human Resources Management, IRET, 1400 31st Avenue SW, Suite 60, P.O. Box 1988, Minot, North Dakota 58702-1988, kmcdonald@iret.com in writing prior to the expiration of seven (7) calendar days after you have signed the Agreement.

			
	
			
				 d.
			This Agreement shall not be effective until the expiration of seven  (7) calendar days after you sign it without revoking it.  Any amounts payable under this Agreement shall be paid no sooner than the expiration of seven (7) calendar days after, and no later than thirty (30) calendar days after, you sign the Agreement.

			
	
			
				 7.
			Confidentiality of Agreement. You shall treat the terms of this Agreement as strictly confidential. You shall not disclose the terms of this Agreement to anyone other than your spouse, attorney, accountant or tax advisor, without IRET’s prior written approval, except as may be required by law, or court order. If you receive a request pursuant to applicable law to disclose the existence or terms of this Agreement, you shall promptly notify IRET to enable it to seek a protective order or other appropriate remedy. You agree to notify your spouse, attorney, accountant and tax advisor of the confidential nature of this Agreement. 

		
			You may use this Agreement as evidence in a subsequent proceeding in which you allege a breach of this Agreement. Other than the exceptions set forth herein, you agree you shall not voluntarily introduce this Agreement as evidence in any proceeding or in any lawsuit unless required by law or court order. You agree that your confidentiality obligation is contractual and its terms are material to this Agreement.
		

			
	
			
				 8.
			Public Statements. You will not make any untrue, misleading, or defamatory statements concerning the Released Parties. You shall not directly or indirectly make, repeat or publish any false, disparaging, negative, unflattering, accusatory, or derogatory remarks or references, whether oral or in writing, concerning the Released Parties, or otherwise take any action which might reasonably be expected to cause damage or harm to the Released Parties.  However, nothing in this Agreement prohibits you from communicating with or fully cooperating in the investigations of any governmental agency on matters within their jurisdictions.  However, this Agreement does prohibit you from recovering any relief, including without limitation monetary relief, as a result of such activities. In agreeing not to make disparaging statements regarding the Released Parties, you acknowledge that you are making a knowing, voluntary and intelligent waiver of any and all rights you may have to make disparaging comments about the Released Parties including rights under the First Amendment to the United States Constitution and any other applicable federal and state constitutional rights.  _____ [initial]

		
			

		 

		

			 

		

			

					

						 

					

					

						 

					

					

						 

				
	

					

						Confidential Resignation Agreement

					

					

						5

					

					

						Employee’s Initials: ________

				

		

			 

		

 

		

			
	
			
				 9.
			Confidential Information and Trade Secrets. You agree that you shall not, without IRET’s prior written consent, directly or indirectly, disclose, reveal or communicate, or cause or allow to be disclosed, revealed or communicated to any unauthorized person any of the Released Parties’ confidential matters, proprietary information or trade secrets, including, without limitation, lists, analyses, studies, plans, financial data, technology, programs, flow charts, information regarding products, techniques, methods, projects or strategies or any other business information or plans.  You further agree not to utilize any such confidential or proprietary information or trade secrets for your benefit or the benefit of others, including, without limitation, others in direct or indirect competition with IRET or its affiliates.  The obligations set forth in Paragraph 9 shall be in addition to any other confidentiality obligations that you may have to any of the Released Parties.

		
			You further acknowledge that the injury the Released Parties will suffer in the event of your breach of any covenant or agreement set forth in this paragraph cannot be compensated by monetary damages alone, and you therefore agree that the Released Parties, in addition to and without limiting any other remedies or otherwise, shall have the right to obtain an injunction against you.
		

			
	
			
				 10.
			IRET Property. You agree to return all IRET property, equipment, documents and other tangible things, including keys, building access card, cell phones, pagers, corporate credit cards, vehicles, and laptop or other computers, in accordance with IRET’s policies and rules, before your Resignation Benefits become payable.  You agree to not destroy, alter, erase, or otherwise change any software, data, or other information belonging to IRET.  You further agree IRET may withhold from your Resignation Benefits monies equal to the value of IRET property, equipment and tangible things you fail to return.  In addition, you agree that IRET may withhold from your Resignation Benefits any monies you owe IRET, including but not limited to, charges to the corporate credit card for which you did not submit a valid expense report, unused travel advances, salary draws, etc.

			
	
			
				 11.
			Consulting Services and Cooperation. From the date of this Agreement through September 30, 2017, and upon request from the chief executive officer, the chief financial officer or the general counsel of IRET, you agree to be available to provide consulting services to IRET, as described below.  You agree to be available approximately 25 hours each month (approximately 300 hours on an annualized basis), to respond promptly to inquiries from the above-named executive officers of IRET and to provide such information as they shall reasonably request.  In consideration for these consulting services, IRET will pay you $16,000.00 on the last day of each of May, June, July, August and September, 2017.  You agree that you shall cooperate with IRET in transitioning your responsibilities, providing information related to third parties with whom you worked, and promptly complying with other reasonable requests of IRET related to the conduct of IRET’s business and your former duties as an employee of IRET.  In addition, for a reasonable period after your resignation, you agree to make yourself available and to reasonably cooperate with IRET in any future claims or lawsuits involving the Released Parties where you have knowledge of the underlying facts. In addition, you agree not to voluntarily aid, assist or cooperate with any claimant or plaintiff or their attorneys or agents in any claim or lawsuit commenced against the Released Parties.  It is the intention of the parties that you will be deemed 

		 

		

			 

		

			

					

						 

					

					

						 

					

					

						 

				
	

					

						Confidential Resignation Agreement

					

					

						6

					

					

						Employee’s Initials: ________

				

		

			 

		

 

	to be an independent contractor and not an employee of IRET.  IRET agrees to issue to you a Form 1099 for all payments made to you for your consulting services as described above.

		
			Nothing in this Agreement should be construed to prevent you from initiating or participating in any state of federal agency administrative proceeding or from testifying at an administrative hearing, deposition, or in court in response to a lawful subpoena.
		

			
	
			
				 12.
			Non-Admission of Wrongdoing.  This Agreement shall not in any way be construed as an admission of liability or as an admission that any of the Released Parties have acted wrongfully with respect to you. Each of the Released Parties specifically denies and disclaims any such liability or wrongful acts.

			
	
			
				 13.
			Knowing and Voluntary Agreement. You acknowledge and agree that after you received a copy of this Agreement: (i) you have had an opportunity to review this Agreement and to consult an attorney before signing it; and (ii) you enter into the Agreement knowingly, voluntarily and after any consultations with your attorney or other advisor as you deemed appropriate.

			
	
			
				 14.
			Choice of Law and Venue.  You and IRET agree that the laws of the State of North Dakota shall govern the enforceability, interpretation and legal effect of this Agreement.  The Parties agree to submit to the jurisdiction of the federal and state courts sitting in Ward County, North Dakota, for all purposes relating to the validity, interpretation, or enforcement of this Agreement, including, without limitation, any application for injunctive relief.

			
	
			
				 15.
			Severability.  IRET and you agree that, if any term of this Agreement shall be determined by a court to be void or unenforceable, the remaining provisions will remain effective and legally binding, and the void or unenforceable term shall be deemed not to be a part of this Agreement.

			
	
			
				 16.
			Amendments.  Any modification of this Agreement or additional obligation assumed by any Party in connection with this Agreement shall be binding only if evidenced in writing signed by each Party or an authorized representative of each Party. Additionally, this Agreement cannot be changed or terminated orally, but may be changed only through written addendum executed by all Parties.

			
	
			
				 17.
			Remedies.  Any material breach by you of the terms and conditions contained in this Agreement shall give IRET the right to discontinue the performance of any unperformed duties and obligations under this Agreement to the extent permitted by applicable law.  If you breach any term of the Agreement, any delay by IRET to enforce the Agreement shall not be deemed a waiver, acceptance, or acquiescence. No waiver shall bind IRET unless supported by consideration, executed in writing, and delivered to you by an authorized officer of IRET.

			
	
			
				 18.
			Entire Agreement.  This Agreement constitutes our entire agreement and supersedes any prior agreements or understanding between you and the Released Parties, except any confidentiality obligations referred to in Paragraph 9. You acknowledge that you enter into this Agreement without reliance on any written or oral promise or representation, other than those contained in this Agreement.

		
			

		 

		

			 

		

			

					

						 

					

					

						 

					

					

						 

				
	

					

						Confidential Resignation Agreement

					

					

						7

					

					

						Employee’s Initials: ________

				

		

			 

		

 

		

		
			IN WITNESS WHEREOF, this Confidential Resignation Agreement and General Release has been executed by each of the listed parties as of the date below.
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Timothy P. Mihalick

					
					
						 

					
					
						Investors Real Estate Trust

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Signature:

					
					
						/s/ Timothy P. Mihalick

					
					
						 

					
					
						By:

					
					
						/s/ Mark O. Decker, Jr.

				
	
					
						 

					
					
						 

					
					
						 

					
					
						Name:

					
					
						Mark O. Decker, Jr.

				
	
					
						 

					
					
						 

					
					
						 

					
					
						Title:

					
					
						President

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Date:  April 27, 2017

					
					
						 

					
					
						Date:April 27, 2017

				

		
			 
		

		
			    
		

		 

		

			 

		

			

					

						 

					

					

						 

					

					

						 

				
	

					

						Confidential Resignation Agreement

					

					

						8

					

					

						Employee’s Initials: ________

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