Document:

exv10w5

EXHIBIT 10.5

[WSI INDUSTRIES LETTERHEAD]

Severance Letter Agreement

October 7, 2009

PAUL D. SHEELY

Dear Paul:

The purpose of this Letter Agreement is to set forth our agreement in regard to your severance
arrangement. Although your employment is “at will” and may be terminated by you or WSI Industries,
Inc. (“WSI”) at any time for any reason, WSI has agreed to provide you with a particular severance
pay benefit in the event WSI terminates your employment without Cause (as defined below). Terms
not otherwise defined in this letter (the “Letter Agreement”) shall have the meaning given such
terms on Schedule 1, which is incorporated herein by reference. WSI’s obligation to you under this
Letter Agreement is, among the other requirements set forth below, subject to the condition that
you execute a Restricted Covenant Agreement in the form attached as Exhibit A, which is
incorporated herein by reference.

Specifically, we have agreed as follows:

1. Severance.

	 	(a)	 	If your employment is terminated by WSI without Cause, subject to the condition
stated in Section 1(c), WSI will:

	 	(i)	 	continue to pay your base salary in accordance with WSI’s
regular payroll practices for a period of twelve (12) months thereafter, or
until you have secured other employment, whichever occurs first, subject to
applicable tax withholding; and
	 
	 	(ii)	 	if you are eligible for and elect COBRA or state continuation
of the WSI health, dental and group life insurance benefits, WSI shall pay the
portion of such COBRA premium that it pays for active employees until the
earlier of: (A) twelve (12) months from the date COBRA coverage begins; or (B)
the date COBRA coverage otherwise terminates. You shall pay the remaining
portion of the premiums for such benefits during such period and, if
applicable, the full premium thereafter.

	 	(b)	 	If you resign for any reason, if WSI terminates your employment for Cause or if
your employment terminates as a result of your death or disability, you shall be
entitled to receive your base salary accrued but unpaid as of the date of

 

 

	 	 	 	termination, but shall not be entitled to receive any salary continuation benefit
thereafter.

	 	(c)	 	In case of termination without Cause, you shall be entitled to receive the
amounts due you under Section 1(a) only upon your execution and delivery to WSI of a
general release (and following termination of all rescission periods) with respect to
any and all claims against WSI and its officers, directors, employees, agents and
shareholders, acceptable in form and substance to WSI in all respects, and provided you
continue to comply with the terms of the Restricted Covenant Agreement with WSI.
	 
	 	(d)	 	For purposes of this Agreement, “termination of employment” shall be
interpreted consistent with the term “separation from service” within the meaning of
Treas. Reg. §1.409A-1(h), and for purposes of Code §409A, each payment shall be
considered a separate payment.

	2.	 	Arbitration. All disputes or claims arising out of or in any way related to this
Letter Agreement, including the making of this Letter Agreement, shall be submitted to and
determined by final and binding arbitration under the American Arbitration Association Rules
for Resolution of Employment Disputes. Arbitration proceedings may be initiated by either of
us upon notice to the other and to the American Arbitration Association, and shall be
conducted by one arbitrator in Minneapolis, Minnesota who has experience in employment
matters. Unless we agree to have the person to serve as arbitrator within thirty (30) days of
delivery of the list of proposed arbitrators by the American Arbitration Association, then, at
the request of either of us, the single arbitrator shall be selected at the discretion of the
American Arbitration Association. The arbitrator shall provide a reasoned decision and may
award any remedy available at law or equity, including reasonable attorneys’ fees to the
prevailing party. WSI shall pay the costs of the arbitrator. The decision of the arbitrator
shall be enforceable in any court of competent jurisdiction.
	 
	3.	 	Entire Agreement. This Letter Agreement constitutes our entire agreement and
supersedes all prior discussions, understandings and agreements with respect to the severance
benefits which WSI has agreed to provide to you, except the Employment (Change in Control)
Agreement dated January 11, 2001, as amended (the “Change in Control Agreement”), which shall
remain in effect according to its terms and which, in the event of conflict with this Letter
Agreement shall control. There shall be no duplication of benefits on your behalf in this
Agreement and the Change in Control Agreement in the event of the termination of your
employment following a Change in Control, as defined in the Change in Control Agreement. This
Letter Agreement shall be governed and construed by the laws of the State of Minnesota and may
be amended only in writing signed by both of us.
	 
	4.	 	Successors. This Letter Agreement shall not be assignable, in whole or in part, by
you. This Letter Agreement shall be binding upon and inure to the benefit of WSI and its
successors and assigns and upon any person acquiring, by merger, consolidation,

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	 	 	purchase of assets or otherwise, all or substantially all of the assets and business of WSI,
and the successor shall be substituted for WSI under this Letter Agreement.

	5.	 	Amendment and Termination. WSI reserves the authority, without your consent, to
terminate or amend this Letter Agreement at any time upon at least 12 months’ written notice
specifying the date of termination or amendment. Notwithstanding the foregoing, it is the
intention of the parties that this Agreement be exempt from Code §409A as separation pay to
the greatest extent possible. Accordingly, all provisions herein shall be construed and
interpreted consistent with that intent, but that, to the extent any payment constitutes
nonqualified deferred compensation, WSI shall amend any such provision pertaining to such
payment to comply with Code §409A and the regulations thereunder, in the least restrictive
manner necessary without any diminution in the value of the payments to you.
	 
	6.	 	Delay for Specified Employees. Notwithstanding the foregoing, if on the date of your
“separation from service” (within the meaning of Treas. Reg. §1.409A-1(h)), you are a
“specified employee” within the meaning of Treas. Reg. §1.409-1(i), then payment of any amount
under this Agreement that constitutes nonqualified deferred compensation shall be delayed
until the earlier of (i) the first day of the seventh month following your separation from
service, (ii) the first date on which such payment would not be non-deductible as a result of
Section 162(m) of the Code, or (iii) your death and in the event any such payment is so
delayed, the amount of the first payment shall be increased for interest earned on the delayed
payment based upon interest for the period of delay, compounded annually, equal to the prime
rate (as published in the Wall Street Journal) in effect as of the date the payment should
otherwise have been provided.

If this Letter Agreement accurately sets forth our agreement and understanding in regard to these
matters, will you please sign this Letter Agreement where indicated below and return the executed
letter to me for our files. A separate copy is enclosed for your records.

	 	 	 	 	 
	WSI INDUSTRIES, INC.

 	 
	By:  	/s/  Michael J. Pudil
 	 
	 	Its:  Chief Executive Officer 	 
	 	 	 
	 

	 	 	 
	READ AND AGREED:
	 	 
	 
	 	 
	/s/ Paul D. Sheely
	 	 
	 

(Name)

	 	 

Dated as of October 7, 2009

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SCHEDULE 1

Definition of “Cause”:

	1.	 	The failure by you to use your best efforts to perform the material duties and
responsibilities of your position or to comply with any material policy or directive WSI has
in effect from time to time, provided you shall have received notice of such failure and have
failed to cure the same within fourteen days of such notice.
	 
	2.	 	Any act on your part which is harmful to the reputation, financial condition, business or
business relationships of WSI, including, but not limited to, conduct which is inconsistent
with federal or state law respecting harassment of, or discrimination against, any WSI
employee or harmful to your reputation or business relationships.
	 
	3.	 	A material breach of your fiduciary responsibilities to WSI, such as embezzlement or
misappropriation of WSI funds, business opportunities or properties, or to any customer,
vendor, agent or employee of WSI.
	 
	4.	 	Your conviction of, or guilty plea or nolo contendere plea to a felony or any crime involving
moral turpitude, fraud or misrepresentation.
	 
	5.	 	A material breach of your Restricted Covenant Agreement with WSI.

4exv10w1

Exhibit 10.1

AGREEMENT OF JOINT FILING

     The
parties listed below agree that the Amendment No. 36 to Schedule 13D to which this
agreement is attached as an exhibit, and all further amendments thereto, shall be filed on behalf
of each of them. This Agreement is intended to satisfy Rule 13d-1(k) under the Securities Exchange
Act of 1934, as amended. This Agreement may be executed in any number of counterparts, each of
them shall be deemed an original, but all of which together shall constitute one and the same
instrument.

Dated: October 13, 2009

	 	 	 	 	 	 	 
	 	 	AIMCO PROPERTIES, L.P.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	AIMCO-GP, INC.	 	 
	 

	 	 	 	(General Partner)	 	 
	 
	 	 	 	 	 	 
	 	 	AIMCO-GP, INC.
	 
	 	 	 	 	 	 
	 	 	APARTMENT INVESTMENT AND 

MANAGEMENT COMPANY
	 
	 	 	 	 	 	 
	 	 	AIMCO IPLP, L.P.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	AIMCO/IPT, INC.	 	 
	 

	 	 	 	(General Partner)	 	 
	 
	 	 	 	 	 	 
	 	 	AIMCO/IPT, INC.
	 
	 	 	 	 	 	 
	 	 	COOPER RIVER PROPERTIES, L.L.C.
	 
	 	 	 	 	 	 
	 	 	MADISON RIVER PROPERTIES, L.L.C.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Steven D. Cordes	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Senior Vice President 

of each of the foregoing entities

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