Document:

Unassociated Document

    Exhibit
      10.110

    
 

    SEVERANCE
      AGREEMENT AND RELEASE OF ALL CLAIMS

    

    AGREEMENT
      dated as of July 1, 2005, between William G. Cornely (“Cornely”) and Glimcher
      Realty Trust, its affiliated and subsidiary entities, and its shareholders,
      directors, officers, agents, employees, successors and assigns (collectively,
      “Glimcher”). The Effective Date of this Agreement is the day on which it ceases
      to be revocable, as described in Paragraph 15, below. 

    

    WHEREAS,
      Cornely is terminating his employment with Glimcher;

    

    WHEREAS,
      Cornely and Glimcher previously entered into an Employment Agreement with
      Glimcher (the “Employment Agreement”), which, in part, governed the terms and
      conditions of Cornely’s compensation upon departure from Glimcher;

    

    WHEREAS,
      Cornely and Glimcher have disputed their respective rights and obligations
      toward one another concerning the terms and conditions of Cornely’s compensation
      upon departure from Glimcher and desire to mutually and finally resolve their
      dispute in order to avoid the inconvenience and expense of further controversy
      and for no other reason;

    

    WHEREAS,
      Cornely and Glimcher desire to set forth their mutual agreement concerning
      the
      terms and conditions of Cornely’s departure from his employment, including the
      exact nature and the amount of compensation to be provided to Cornely and any
      other rights of Glimcher and Cornely following Cornely’s separation from
      Glimcher;

    

    NOW,
      THEREFORE, in consideration of the respective agreements of the parties
      contained herein, and subject to the conditions set forth herein, the parties
      hereto acknowledge and agree as follows:

    

    
      	
              1.

            	
              Termination
                Date.
                Cornely’s employment with Glimcher shall terminate effective June 30,
                2005 (the “Termination Date”).

            

    

    

    
      	
              2.

            	
              Compensation
                Pursuant to Existing Employment Agreement.  Subject
                to Paragraph 4 below, Glimcher shall pay Cornely a lump sum of $481,852.80
                (excluding fringe benefits and other compensation), minus any income
                taxes
                or other amounts required by law to be withheld therefrom as calculated
                and withheld as of the Termination Date or, if later, on the date
                distributed from the Rabbi Trust described in Paragraph 4 below.
                There
                shall be no mitigation or offset against such payments to Mr. Cornely,
                regardless of whether Mr. Cornely obtains other employment or other
                sources of income prior to or after the Termination Date. Although
                Glimcher and Cornely have disputed the amount Cornely is entitled
                to under
                the Employment Agreement, the parties acknowledge that the payment
                described in this Paragraph satisfies any obligation Glimcher may
                have to
                Cornely as contained in the parties’ existing Employment
                Agreement.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              3.

            	
              Additional
                Consideration.  In
                addition to the payment described in Paragraph 2 above, and as additional
                consideration for the promises contained herein, subject to Paragraph
                4
                below, Glimcher shall pay to Cornely a lump sum of $818,147.20, minus
                any
                income taxes or other amounts required by law to be withheld therefrom
                as
                calculated and withheld as of the Termination Date or, if later,
                on the
                date distributed from the Rabbi Trust described in Paragraph 4
                below.

            

    

    

    
      	
              4.

            	
              Rabbi
                Trust.  Notwithstanding
                the provisions of Paragraph 2 and Paragraph 3 above, the parties
                acknowledge that Mr. Cornely has asserted that Section 409A of the
                Internal Revenue Code of 1986, as amended (the “Code”) may apply to the
                payment(s) set forth in Paragraph 2 and/or Paragraph 3 (the “Payment”),
                and that as a result, and at Mr. Cornely’s request, Glimcher will deposit
                the Payment into a grantor “rabbi” trust established within ten (10) days
                after this Agreement ceases to be revocable (as defined in paragraph
                15)
                (the “Rabbi Trust”). Said trust shall be between Glimcher and an
                institutional trustee mutually acceptable to Glimcher and Cornely.
                Cornely
                has requested, and Glimcher agrees, that either Charles Schwab & Co.,
                Inc., or Huntington National Bank may serve as the institutional
                trustee
                and that (i) upon information and belief, each of these identified
                trusteees will be willing to serve as trustee of the Rabbi Trust,
                and (ii)
                each of these trustees is acceptable to Cornely. Upon the establishment
                of
                the Rabbi Trust, Cornely will specify the investment of the Rabbi
                Trust’s
                assets. The amounts then credited to the Rabbi Trust shall be paid
                by the
                trustee of the Rabbi Trust to Cornely on January 17, 2006 (the “Payment
                Date”). However, in the event that Mr. Cornely (or, in the event of his
                death, Mr. Cornely’s estate) concludes that an earlier distribution is
                permitted under the provisions of Section 409A, and notifies Glimcher
                of a
                desire for an earlier Payment Date pursuant to that conclusion, the
                trustee shall distribute such payment to Mr. Cornely (or his estate)
                within ten (10) days of Glimcher’s receipt of such notification. On the
                Payment Date, the amount then credited to the Rabbi Trust (which
                may be
                more or less than the Payment deposited by Glimcher based upon the
                investment performance of the Rabbi Trust) will be distributed from
                the
                Rabbi Trust (minus any income taxes or other amounts required by
                law to be
                withheld therefrom) to Cornely.

            

    

    

    
      	
              5.

            	
              Medical
                Benefit Plans.  Cornely
                may remain a participant in Glimcher’s medical, dental and vision plans in
                which Cornely is eligible to participate until the Termination Date.
                Until
                the Termination Date, the cost for Cornely’s remaining a participant will
                be shared by Glimcher and Cornely in the same manner and extent as
                the
                cost is currently shared between the
                parties.

            

    

    

    
      	
              6.
                

            	
              COBRA.  As
                of the Termination Date, Cornely will be entitled to elect continued
                health care benefits coverage under the Consolidated Omnibus Budget
                Reconciliation Act (“COBRA”), for up to eighteen (18) months beginning on
                the Termination Date, by completing and returning the required
                application. If Cornely elects to continue his benefits pursuant
                to COBRA,
                he shall do so at his own expense.

            

    

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
      	
              7.

            	
              Options.  Cornely
                and Glimcher acknowledge that the payments made in accordance with
                the
                foregoing sections of this Agreement satisfy any obligation Glimcher
                may
                have to compensate Cornely for any stock options which will lapse
                as of
                the Termination Date in accordance with any stock option agreement
                to
                which Cornely was a party and any stock option plan in which Cornely
                was
                eligible to participate.

            

    

    

    
      	
              8.

            	
              Bonuses.  Cornely
                and Glimcher acknowledge that the payments made in accordance with
                the
                foregoing sections of this Agreement satisfy any obligation Glimcher
                may
                have to compensate Cornely for any bonuses to which Cornely may have
                been
                entitled in accordance with any incentive compensation plan in which
                he
                was eligible to participate.

            

    

    

    
      	
              9.

            	
              Employee
                Conduct.  Except
                as required by law, pursuant to a subpoena or court order, or pursuant
                to
                any governmental or law enforcement inquiry or investigation, Cornely
                will
                not make public statements or publish or make (under circumstances
                reasonably likely to result in such statement being published) any
                statement about Glimcher, or any affiliate of Glimcher or any of
                its
                directors, officers, or employees that maligns or disparages the
                business
                or reputation of Glimcher or any affiliate thereof. Similarly, except
                as
                required by law, pursuant to a subpoena or court order, or pursuant
                to any
                governmental or law enforcement inquiry or investigation, Glimcher
                agrees
                that neither Glimcher nor any of its officers, directors, or employees
                will make any public statements or publish or make (under circumstances
                reasonably likely to result in such statement being published) any
                statement about Cornely that maligns or disparages the business interests
                or reputation of Cornely. However, the restrictions imposed under
                this
                paragraph will not, in any way, preclude Cornely from enforcing his
                rights
                under this Agreement.

            

    

    

    
      	
              10.

            	
              Confidential,
                Proprietary Information.  Cornely
                acknowledges that Cornely has received and had access to Glimcher’s
                confidential business information, that Glimcher has made substantial
                investments in the development of such information and that Glimcher
                would
                be irreparably harmed by the disclosure to third persons of that
                information. Accordingly, Cornely will not (other than as required
                by law,
                pursuant to a subpoena or court order, or pursuant to any governmental
                or
                law enforcement inquiry or investigation) divulge, disclose, reveal,
                sell
                or otherwise communicate to any business entity or other person such
                information or any trade secrets or other confidential or proprietary
                information Cornely may have obtained during the term of Cornely’s
                employment with Glimcher concerning any matters affecting or relating
                to
                the business of Glimcher, including without limitation any confidential
                information relating to any of Glimcher’s existing or prospective tenants
                or real estate purchasers or sellers, lease and other transaction
                terms,
                costs, plans, technology, formulas, processes, policies, techniques,
                trade
                practices, finances, accounting methods, methods of operations, trade
                secrets or other data. Cornely acknowledges that he has surrendered
                and
                delivered to Glimcher all property of Glimcher, including any and
                all
                personal property, computer equipment, electronically stored data,
                information relating in any way to existing or prospective tenants
                or real
                estate purchasers or sellers, manuals, policies, blueprints, operating
                plans, books, and similar items (including all copies thereof in
                his
                possession, but excepting those then in the custody of his legal
                counsel)
                that contain information regarding the business of Glimcher. By returning
                this signed Agreement to Glimcher, Cornely warrants and represents
                that
                Cornely has fulfilled his obligations under this
                Paragraph.

            

    

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
      	
              11.

            	
              Acknowledgments
                and Agreements.  Cornely
                acknowledges and agrees that (a) Cornely freely and voluntarily entered
                into this Agreement, (b) before entering into this Agreement, Cornely
                was
                encouraged to consult an attorney of Cornely’s choice, (c) Cornely had an
                opportunity and sufficient time to review this Agreement with Cornely’s
                attorney, (d) Cornely fully understands the terms of this Agreement,
                and
                (e) Cornely is receiving consideration in amounts exceeding amounts
                to
                which he is already entitled.

            

    

    

    
      	
              12.

            	
              Release
                of All Claims by Cornely.  To
                induce Glimcher to enter into this Agreement and to perform its
                obligations hereunder, Cornely hereby promises to not sue and forever
                releases and discharges Glimcher from any and all charges, claims,
                demands, actions, causes of action, or suits at law or in equity,
                of
                whatsoever kind or nature, whether presently known or unknown, suspected
                or unsuspected, arising on or before the Termination Date of this
                Agreement including but not limited to, any and all claims relating
                to
                Cornely’s employment with Glimcher or the cessation of Cornely’s
                employment with Glimcher, whether now known or unknown, including
                but not
                limited to claims for discrimination or unequal pay or retaliation
                under
                state or federal law, in particular Title VII of the Civil Rights
                Act, the
                Equal Pay Act, the Age Discrimination in Employment Act, the Americans
                with Disabilities Act, the Family and Medical Leave Act, the Fair
                Labor
                Standards Act, the Corporate and Criminal Fraud Accountability Act
                of
                2002, Title VIII of the Sarbanes-Oxley Act of 2002, Title VII of
                the Civil
                Rights Act of 1964, Ohio Revised Code Chapters 4111, 4112 and 4113,
                claims
                under the Employee Retirement Income Security Act and the Consolidated
                Omnibus Budget Reconciliation Act, claims for emotional distress
                or other
                damages, claims in tort or contract, claims under any applicable
                federal,
                state, or local whistleblower law and any similar federal, state
                or local
                statute, and claims for libel, slander, defamation, promissory estoppel
                and wrongful discharge in violation of public policy. Cornely waives
                all
                rights to assert a claim for relief available under any and all such
                laws,
                including but not limited to, claims for attorneys’ fees, damages,
                reinstatement, back pay, or injunctive or other equitable relief.
                However,
                the release described in this paragraph will not apply to any claim
                arising under this Agreement.

            

    

    

    Nothing
      in this Agreement shall be construed as a waiver or release by Cornely of any
      protection from liability otherwise provided to him by operation of state or
      federal law or by applicable by-laws, resolutions, or insurance applicable
      to
      former officers or executives of Glimcher.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    
      	
              13.

            	
              Release
                of All Claims by Glimcher and Indemnification.  Glimcher
                hereby promises to not sue and forever releases and discharges Cornely
                from any and all charges, claims, demands, actions, causes of action,
                or
                suits at law or in equity, of whatsoever kind or nature, whether
                presently
                known or unknown, suspected or unsuspected, arising on or before
                the
                Effective Date of this Agreement including, but not limited to, any
                and
                all claims relating to any omissions, acts, or events that have occurred
                until and including the Effective Date, whether now known or unknown.
                Glimcher waives all rights to assert a claim for relief available
                under
                any law, including but not limited to, claims for attorneys’ fees,
                damages, or injunctive or other equitable relief. However, the release
                described in this paragraph will not apply to any claim arising under
                this
                Agreement.

            

    

    

    
      	
              14.

            	
              Review
                of Agreement.  Cornely
                acknowledges that, before entering into this Agreement, Cornely had
                a
                twenty-one (21) day period to review and consider it. Cornely further
                acknowledges that Cornely used as much of the twenty-one (21) day
                period
                as Cornely desired before entering into this
                Agreement.

            

    

    

    
      	
              15.

            	
              Revocation.  Cornely
                may revoke this Agreement within seven (7) days of the date of his
                execution hereof, in which case this Agreement shall be null and
                void.
                Revocation can be made by providing notice to Glimcher no later than
                the
                close of business on the seventh (7th) day after the date of Cornely’s
                execution hereof.

            

    

    

    
      	
              16.

            	
              Invalidity
                of Provision.  The
                invalidity or unenforceability of any provision of this Agreement
                in any
                jurisdiction shall not affect the validity or enforceability of the
                remainder of this Agreement in that jurisdiction or the validity
                or
                enforceability of this Agreement, including that provision, in any
                other
                jurisdiction. If any provision of this Agreement is held unreasonable,
                unlawful, or unenforceable in any respect, such provision shall be
                interpreted, revised, or applied in a manner that renders it lawful
                and
                enforceable to the fullest extent
                possible.

            

    

    

    
      	
              17.

            	
              Governing
                Law and Forum Selection.  This
                Agreement shall be governed by and construed and enforced in accordance
                with the laws of the state of Ohio without giving effect to the conflicts
                of law principles thereof. Any action to enforce this Agreement or
                in any
                way relating to this Agreement shall be commenced and maintained
                in either
                the state or federal court located in Franklin County,
                Ohio.

            

    

    

    
      	
              18.

            	
              Notice.  Notices
                and all other communications provided for in this Agreement shall
                be in
                writing and shall be deemed to have been duly given when personally
                delivered or sent by certified mail, return receipt requested, postage
                prepaid:

            

    

    

    
      	 	
              (a)

            	
              if
                to Cornely, addressed to Cornely at Cornely’s most recent address as
                provided to Glimcher in writing;

            

    

    

    
      	 	
              (b)

            	
              if
                to Glimcher, addressed to Glimcher at its principal office;
                or

            

    

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
      	 	
              (c)

            	
              to
                such other address as any party may have furnished to any other in
                accordance herewith.

            

    

    

    
      	
              19.

            	
              Miscellaneous.  No
                provision of this Agreement may be modified or discharged unless
                such
                modification or discharge is agreed to in writing and signed by Cornely
                and Glimcher. No provision of this Agreement may be waived unless
                such
                waiver is in writing and signed by the party to be charged therewith.
                No
                waiver by either party hereto at any time of any breach by the other
                party
                hereto of any provision of this Agreement to be performed by such
                other
                party shall be deemed a waiver of any other provisions at the same
                or at
                any prior or subsequent time.

            

    

    

    
      	
              20.

            	
              Entire
                Agreement; Agreement Supersedes Prior Agreements.  No
                agreements or representations, oral or otherwise, express or implied,
                with
                respect to the subject matter hereof have been made by any party
                not
                expressly set forth in this Agreement. This Agreement supersedes
                and
                renders null and void any and all previous agreements executed between
                Glimcher and Cornely, including but not limited to any previously
                executed
                employment agreements. Notwithstanding any provision in this Agreement
                to
                the contrary, this Agreement shall not supersede or render null and
                void
                the Indemnification Agreement entered into between Glimcher and Cornely
                on
                November 11, 2003, and such Indemnification Agreement shall
                remain in
                full force and effect.
                Glimcher also agrees to continue to provide Mr. Cornely with coverage
                under its existing policy of officers' and directors' liability insurance,
                and further agrees that he shall continue to have the same coverage
                as is
                available to former directors, officers and executives of Glimcher.
                

            

    

    

    
      	
              21.

            	
              Non-Admission.  The
                parties understand and agree that neither the payment of monies to
                Cornely
                nor the agreement to, and carrying out, of any of the terms of this
                Agreement shall constitute an admission of any violation of any law
                or
                breach of any duty by either Cornely or Glimcher, nor does it constitute
                an admission of any allegation of wrongdoing or illegal conduct on
                the
                part of either Cornely or Glimcher. The parties recognize that Cornely
                and
                Glimcher are entering into this Agreement order to avoid the expense
                and
                inconvenience of further controversy and for no other
                reason.

            

    

    

    
      	
              22.

            	
              Successors.  This
                Agreement shall be binding upon any successor of
                Glimcher.

            

    

    

    
      	
              23.

            	
              Board
                Approval.  This
                Agreement shall not be effective unless and until it is approved
                by the
                Board of Trustees of Glimcher Realty Trust in accordance with the
                bylaws
                and policies governing the operation of the Board of Trustees of
                Glimcher
                Realty Trust. Glimcher agrees to present this Agreement to its Board
                for
                approval no later than six (6) days after its execution by Mr. Cornely,
                and further agrees to deliver to Mr. Cornely’s counsel, Jacklyn J. Ford,
                written notice of the outcome of the Board’s vote on the Agreement by no
                later than the close of business on the day of that vote by the Board.
                

            

    

    

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, this Agreement has been executed and entered into by the
      parties hereto as of the date first written above.

     

    
      	
               

               

               

              /s/
                William G. Cornely

              William
                G. Cornely

            	
              Glimcher
                Realty Trust

               

               

              /s/
                Michael P. Glimcher

              Michael
                P. Glimcher, President

              &
                Chief Executive Officer

            
	
               

               

               

              July
                1, 2005

              Date

            	
               

               

               

              July
                5, 2005

              Date

            

    

     

     

     

     

    7EXHIBIT 10.1

July 7, 2005

Mr. Mack Traynor, President
Tim Clayton, CFO
HEI, Inc.
1495 Steiger Lake Lane
Victoria, MN  55386

Dear Mack:

We have enjoyed working with you and your staff during the last couple of years,
and congratulate you and your colleagues on the progress made toward HEI's
rebuilding. Thank you for giving us the opportunity to continue to provide HEI
with a revolving credit facility. Pursuant to our discussions, we are proposing
to amend the terms of the credit facility as detailed below. The terms and
conditions are intended as a proposal only and not as a commitment to provide
the proposed credit facilities.

        MAXIMUM CLIENT ACCOUNT LIMIT:   $5,000,000

        DISCOUNT:                       Prime plus 2.75% on net funds employed
                                        and an immediate discount of .85% for
                                        processing.

        MONTHLY MINIMUM:                $1,500.00.

        PART PAYMENT:                   90% of invoice amount, subject to the
                                        completion of appropriate verification
                                        due diligence.

        FACILITY FEE:                   $3,000

        TERMS OF CONTRACT:              HEI, Inc. will commit to Partner Plus to
                                        extend its Accounts Receivable Agreement
                                        renewal period to September 1, 2006.

<PAGE>

        ACCOUNT RELATIONSHIP:           That the primary deposit relationship
                                        for HEI, Inc. be maintained with Beacon
                                        Bank while this credit facility is in
                                        place

        COLLATERAL:                     Security interest in all accounts,
                                        inventory, and general intangibles

        GUARANTY:                       Validity guaranty from key officers

The services will also include the management of outstanding accounts receivable
balances, assistance in the development of underwriting policies, credit
approval procedures, and a full complement of accounts receivable and cash
receipts reporting.

All other terms and conditions will be covered in the Accounts Receivable
Agreement. We appreciate your continued interest in Beacon Bank and Partner
Plus, and look forward to continuing our finance relationship.

Sincerely,

/S/ Dave L. Peterka                                          /S/ Karen Turnquist
------------------------                                     -------------------
Dave L. Peterka                                              Karen Turnquist
Executive Vice President                                     Partner Plus

Agreed and Accepted on July 7, 2005
HEI, Inc.

By:     Mack V. Traynor
        -------------------------------------
Title:  President and Chief Executive Officer

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