Document:

EXHIBIT 10.1

 

SEPARATION
AGREEMENT AND GENERAL RELEASE (“Agreement”)

 

I, Stephen M. Abelman,
CRIIMI MAE Inc., a Maryland corporation (“CRIIMI MAE”), and each of its
subsidiaries and affiliates, including without limitation CRIIMI MAE Management, Inc.
(“CM Management”), a Maryland corporation, and CRIIMI MAE Services Limited
Partnership, a Maryland limited partnership (“CMSLP”, and with CRIIMI MAE and
CM Management, the “Company”), agree to resolve all issues between us as
follows:

 

Section 1
—  Recitals

 

I acknowledge and agree
that my employment with the Company and all positions and offices therewith
will terminate effective September 9, 2005 (the “Termination Date”).

 

Section 2
—  Payments and Benefits

 

In General: In
consideration for my promises herein, and provided that I do not revoke this
Agreement in accordance with Section 6(b), the Company will provide the
following payments and benefits to me:

 

(a)           Salary Continuation: The Company
shall continue to pay me in accordance with its regular payroll practices my
current base salary through and including the Termination Date, less
withholding for federal, state and local income and employment taxes and any
other deductions the Company is required by law to make from wage payments to
employees.

 

(b)           Benefits Continuation: I shall
continue to be eligible to participate in the Company’s regular employee
benefit plans and programs through and including the Termination Date and shall
be eligible to elect COBRA health care continuation coverage under the Company’s
group medical plan, in each case subject to the terms and conditions of such
plan or program as in effect from time to time. If I timely elect COBRA health
care continuation coverage, the Company agrees to pay my portion of the cost of
such coverage through and including June 30, 2006.

 

(c)           Separation Bonus: On the later of the
Termination Date or the Effective Date (as defined in Section 6(b)), the
Company shall pay me a separation bonus of $500,000.00, less withholding for
federal, state and local income and employment taxes and any other deductions
the Company is required by law to make from wage payments to employees.

 

(d)           Vacation Pay: On the later of the
Termination Date or the Effective Date, the Company shall pay me in accordance
with its regular payroll practices any accrued but unpaid vacation pay, less
withholding for federal, state and local income and employment taxes and any
other deductions the Company is required by law to make from wage payments to
employees.

 

(e)           Retirement Plans: I will retain my
vested benefits in the Company’s qualified retirement plan and all rights
associated with such plan, subject to the terms and conditions of such plan and
applicable law.

 

(f)            Consulting Agreement: The Company
will enter into a Consulting Agreement with me in the form annexed as Exhibit A
(the “Consulting Agreement”).

 

(g)           Change in Control Agreement: The
Company acknowledges and agrees that my separation from the Company is a
termination without Cause as that term is defined in the Change in Control
Agreement between me and the Company dated as of February 1, 2005 (the “Change
in Control Agreement”).  The parties
acknowledge and agree that it is the intent of this paragraph that in the event
of a 

 

 

Change in Control of the Company (as that term is defined in the Change
in Control Agreement and as it may be modified hereunder), I will receive the
payment provided for under paragraph 2(a) of the Change in Control
Agreement, provided that I have complied with my obligations under the Change
in Control Agreement, including without limitation paragraph 3 of the Change in
Control Agreement.  If the Change in
Control agreement currently in effect for other CRIIMI MAE employees is
modified by the Board of Directors in any respect (other than an increase in the
amount payable) that makes it more favorable to those employees, or any of
them, then my Change in Control Agreement will automatically be amended to
include the same provision or one as nearly identical as possible, provided,
however, that in no event shall the amount payable to me under my Change in
Control Agreement be changed by any such modification.

 

(h)           Restricted Stock: The Company agrees
that all restricted shares of stock of CRIIMI MAE previously granted to me by
the Company shall become vested and nonforfeitable upon the later of the
Termination Date or the Effective Date.

 

(i)            Attorney’s Fees: The Company agrees
to pay my reasonable attorney’s fees incurred in connection herewith.

 

Section 3
—  Complete Release

 

(a)           In General: In consideration for the
promises made herein by the Company, I irrevocably and unconditionally release
to the greatest extent permitted by law all the Claims described in 3(b) that
I may now have against the Released Parties listed in Section 3(c).  However, I am not releasing: (1) my
rights to receive the payments and benefits under this Agreement and to enforce
the other terms of this Agreement, any surviving terms in my employment
agreement of October 29, 2003, the Change in Control Agreement or the
Consulting Agreement; (2) any rights or claims that arise after I sign
this Agreement under the Age Discrimination in Employment Act or other laws; (3) my
right, if any, to government-provided unemployment benefits; and (4) my
rights under the Company’s qualified retirement plan, subject to the terms and
conditions of such plan.

 

(b)           Claims Released: Except as otherwise
set forth in this Agreement, I am releasing all known and unknown claims,
promises, causes of action, or similar rights of any type (“Claims”) that I may
have, in any and all capacities, with respect to any Released Parties listed in
Section 3(c). These include, but are not limited to, Claims that in any
way relate to: (1) my employment with the Company, or the termination of
that employment, such as Claims for compensation, deferred compensation,
bonuses, commissions, lost wages, or unused accrued vacation or sick pay; (2) the
design or administration of any employee benefit program; (3) any rights I
may have to severance or similar benefits or to post-employment health or group
insurance benefits; (4) any Claims related to the performance, management,
or operation of the Company; or (5) any Claims to attorney’s fees; and I
promise never to file or initiate, nor to encourage, assist or cooperate
(except as required by law) with others to file, initiate, or prosecute any
such Claims. I understand that the Claims I am releasing might arise under many
different laws, including, but not limited to, anti-discrimination statutes
(such as the Age Discrimination in Employment Act, the Civil Rights Act of
1964, the Civil Rights Act of 1866, the Equal Pay Act, the Americans With
Disabilities Act and other federal, state, or local laws prohibiting employment
discrimination), federal employment statutes (such as the WARN Act, the Fair
Labor Standards Act of 1938, and other federal laws relating to employment,
such as veterans reemployment rights laws). I also release any Claims that I
have or ever had from the beginning of time to the Effective Date of this
Agreement arising from other federal, state or local laws restricting an
employer’s right to terminate employees, or otherwise regulating employment,
any federal, state or local law enforcing express or implied employment
contracts or requiring an employer to deal with employees fairly or in good
faith, and any other federal, state, or local laws providing recourse for
alleged wrongful discharge, physical or personal injury, emotional distress,
fraud, breach of contract or fiduciary duty, negligent misrepresentations, defamation,
and similar or related claims, including without limitation the Sarbanes Oxley
Act, and any other federal, state or local statute, regulation or rule regarding
whistle-blower claims. The law referred to in this subsection include
statutes, regulations, other administrative guidance, and common law doctrines.

 

 

(c)           Released Parties: The Released
Parties are CRIIMI MAE, CM Management, CMSLP and all related entities,
subsidiaries, affiliates, branches, partnerships, or joint ventures, and, with
respect to each of them, their predecessors, and successors; and, with respect
to each such entity, all of its past and present employees, officers, partners,
directors, members, representatives, assigns, attorneys, agents, insurers,
employee benefit programs (and the trustees, administrators, fiduciaries, and
insurers of such programs), and any affiliates of the foregoing, and any other
persons acting by, through, under or in concert with any of the persons or
entities listed in this subsection.

 

(d)           Release by the Company: In
consideration for the complete release of claims by me described above, the
Company, on its own behalf and on behalf of its attorneys or representatives,
successors and assigns, hereby waives and releases all claims against me that
it ever had, now has, or hereafter can, shall or may have, from the beginning
of time to the date of this Agreement, including but not limited to all claims
relating to, arising out of, by reason of, or with respect to my employment
with the Company and the termination of that employment. This release and
waiver is intended to include all possible legal theories, including, but not
limited to: any tort; the violation of any express or implied contract; and any
claim arising under the statutory and common laws or rules of the United
States or any State or political subdivision thereof.  The Company further agrees that it will not
encourage others to file or initiate claims against me.

 

Section 4
—  Promises

 

(a)           Diligent Performance: I shall
diligently, faithfully and in a timely manner fulfill the duties and
responsibilities of my employment with the Company from the date hereof through
and including the Termination Date, including without limitation performing all
of the duties and responsibilities of my office as Executive Vice President of
Asset Management.

 

(b)           Pursuit of Released Claims: I have
not filed or caused to be filed any lawsuit, complaint, or charge with respect
to any Claim I am releasing in this Agreement. I promise never to file or
prosecute a lawsuit, and agree not to seek personal recovery in any forum,
based on the claims released by this Agreement.

 

(c)           Company Property: By the Termination
Date, I shall have returned to the Company all files, memoranda, documents,
records, diaries, copies of the foregoing, computers and computer-related
equipment and materials, telephones, pagers, credit cards, keys, and any other
property of the Company or its affiliates in my possession, and I shall not
have taken or destroyed any Company property, including financial data, records
or Confidential Information, as defined in this Agreement.  However, I shall be entitled to retain any
materials needed to fulfill my obligations under the Consulting Agreement, as
well as my personal copies of my own personnel, employment and payment records
and documents relating to Company benefits in which I participate, provided
that by the Termination Date, I have provided the Company with, or shown the
Company complete copies of, all such documents I propose to retain and the Company
has agreed to such retention for the term of the Consulting Agreement as to the
property designated for use in fulfilling my obligations under the Consulting
Agreement.  I am entitled to keep all
other documents indefinitely.  Upon
termination of the Consulting Agreement, I will return all materials retained
for the performance of Consulting Agreement duties in accordance with
paragraphs 5 and 7 of the Consulting Agreement.

 

(d)           Taxes: I understand that I am
responsible for the payment of certain income taxes and the employee’s share of
certain employment taxes on payments I receive because I signed this Agreement,
even though the Company will withhold appropriate amounts from such payments
and timely deposit such withheld amounts with the appropriate tax authorities.

 

(e)           Ownership of Claims: I have not
assigned or transferred any Claim I am releasing, nor have I purported to do
so. The Company likewise has not assigned or transferred any Claim it is
releasing.

 

 

(f)            Non-admission of Liability: I agree
not to assert that this Agreement is an admission of guilt or wrongdoing by the
Released Parties. The Company agrees that it will not assert that the
termination of my employment or the signing of this Agreement is an admission
of guilt or wrongdoing or is any reflection on my performance or character.

 

(g)           No Disparagement or Harm: The parties
mutually agree that they will not directly or indirectly, make, publish, write,
or otherwise disseminate any critical or derogatory remarks, comments or
statements that intentionally disparage each other or any of the Released
Parties, including but not limited to the Company’s or my business, policies,
practices, decisions, and the Company’s officers, directors, shareholders,
members and affiliates. This Agreement does not prohibit me or the Company from
giving any statement or testimony as required by applicable law.

 

(h)           Non-solicitation; Non-disruption:
During the period beginning on the date hereof and ending 18 months after the
Termination Date (the “Restricted Period”), I will not at any time, without the
prior written consent of the Company, directly or indirectly, whether for my
own account or as a shareholder, partner, member, joint venturer, employee,
officer, director or agent of, or consultant to, any person or entity, (i) knowingly
solicit or recruit any person or entity that is an employee, officer, or
director of the Company or any of its affiliates at any time during the
Restricted Period (a “Company Service Provider”), or (ii) encourage or
advise any Company Service Provider to terminate his or her service
relationship with the Company or any of its affiliates, or (iii) knowingly
interfere with or disrupt any contractual relationship between any Company
Service Provider, customer, lender or investor and the Company or any of its
affiliates.  The Company agrees that
during the Restricted Period it will not interfere with any business ventures
that I may establish, or of which I may be the principal owner or proprietor,
in any manner described in this paragraph.

 

(i)            Assistance with Defense of Claims: I
agree to provide reasonable assistance to the Company in connection with any
pending claim against the Company or claims or disputes that relate to the
period of my employment with the Company, including offering testimony on
behalf of the Company if I am requested to do so upon reasonable notice,
meeting with its attorneys or other representatives or otherwise cooperate in
the investigation, defense or prosecution of such matters.  In addition, the Company will pay any travel,
lodging, food or similar out-of-pocket expenses I reasonably and necessarily
incur in rendering the requested assistance. 
During the Term of the Consulting Agreement as that term is defined
therein, time expended in fulfilling this obligation (other than time directly
related to my appearance as a fact witness) will be deemed “services” within
the meaning of ¶2 of the Consulting Agreement; thereafter, any further
assistance except for fact witness testimony shall be compensated at the rate
of $375 per hour.  If the Company and I
agree that I require independent counsel in order to fulfill this obligation,
the Company will provide that counsel for me at its expense.

 

(j)            Confidential Information: I shall
use my best efforts and the utmost diligence to guard and protect all the
Company Confidential Information. I shall not use for my own benefit or in
competition with the Company, or disclose or otherwise make available, either
directly or indirectly, to any third party, including but not limited to any
competitor or potential competitor of the Company, any Confidential Information
unless authorized to do so by the Company in writing. I shall leave with the
Company, and retain no copies thereof, any and all records and papers and all
materials of whatever nature which contain or otherwise disclose Confidential
Information.  For the purpose of this
Agreement, the term “Confidential Information” shall have the same meaning as
in paragraph 3 of the Change in Control Agreement and shall be construed for
purposes of this Agreement as including any such information relating to the
Company.

 

(k)           Reasonableness of Restrictive
Promises: The Company and I each acknowledge and agree that the restrictions
contained in the preceding Sections 4(g)-(j) are reasonable and justified in
light of the nature of the Company’s business and customers, as well as my own,
and further in light of the Confidential Information to which I have had
exposure and access during the course of my employment by the Company.

 

 

(1)           Severability of Requirements: I
acknowledge further that the provisions pertaining to the scope of the
restrictions contained in Sections 4(g)-(j) are severable by their terms. If
any provision of those restrictions or of this Agreement is found to be invalid
or void under applicable law, rule or regulation, the remaining provisions
of this Agreement shall not be affected and shall continue in full force and
effect. By executing this Agreement, I agree that in the event a court of
competent jurisdiction determines that any provision of this Agreement is
unreasonable or unenforceable, such court shall have the right and is
authorized by me to modify such provision so as to render that provision
reasonable and enforceable.

 

(m)          Injunctive Relief: The Company and I
each acknowledge that any breach of Sections 4(g)-(j) of this Agreement shall
result in irreparable harm to the Company or to me, respectively, that no
remedy at law will be adequate for such breach and that the Company or I, as
appropriate, shall be entitled to temporary, preliminary and permanent
injunctive relief and specific enforcement, in addition to all other remedies
at law or in equity, in the event a material breach of this Agreement is
proven.

 

Section 5
— Consequences of Violating Promises

 

(a)           General Consequences: If any
representation either the Company or I made in this Agreement was false when
made, or if either is found to have breached any of the material provisions of
this Agreement, the party who made the false representation or who committed
the breach shall pay the other’s reasonable attorneys’ fees, expenses and costs
and any damages the other may incur on account of the false representation or
breach.

 

(b)           Essential Terms: I acknowledge and
agree that this Agreement, the release of Claims and the covenants set forth in
Sections 4(a), 4(b) and 4(f)-(j) are essential and material terms to this
Agreement and that without this Agreement and covenants, no agreement would
have been reached by the parties and no benefits under this Agreement would
have been paid. The Company acknowledges that the payments and benefits set
forth in Section 2 and the promises contained in Sections 4(f), 4(g) and
4(h) are essential and material terms to this Agreement and that without
these provisions no agreement would have been reached by the parties.

 

Section 6
— Consideration of Release

 

(a)           Opportunity for Review: I acknowledge
that I have a period of at least 21 days in which to consider this Agreement,
although I may execute this Agreement at any time during such 21-day period. I
waive any right I might have to additional time beyond this consideration
period within which to consider this Agreement. I further acknowledge that: (1) I
took advantage of this period to consider this Agreement before signing it; (2) I
carefully read this Agreement; (3) I fully understand it; and (4) I
am entering into it voluntarily. I further acknowledge that the Company
strongly encouraged me, and again advises me, to discuss this Agreement with an
attorney before signing it and that I did so to the extent I deemed
appropriate.

 

(b)           Right of Revocation: I have been
advised that I may revoke this Agreement within seven days of signing it.
Revocation can be made by delivering a written notice of revocation to the
General Counsel of the Company. For such revocation to be effective, written
notice must be received by the General Counsel of the Company no later than
5:00 p.m. (EDT) on the seventh day after the date I sign this Agreement.
If I revoke this Agreement, it shall not be effective or enforceable and I will
not receive the payments and benefits described in Section 2 of this
Agreement, nor will the Consulting Agreement be effective. This Agreement shall
not become effective or enforceable until the Revocation Period has expired (“Effective
Date”).

 

Section 7
—  Miscellaneous

 

(a)           Entire Agreement: This is the entire
agreement between me and the Company regarding the subject matter hereof. This
Agreement may not be modified or cancelled in any manner 

 

 

except by a
writing signed by both me and an authorized Company official. I acknowledge
that the Company has made no representations or promises to me (such as that my
former position will remain vacant), other than those in this Agreement. If any
provision in this Agreement is found to be unenforceable, all other provisions
will remain fully enforceable.

 

(b)           Successors: This Agreement inures to
the benefit of and binds my heirs, administrators, representatives, executors,
successors, and assigns, and will inure to the benefit of all Released Parties
and their respective heirs, administrators, representatives, executors,
successors, and assigns. This Agreement also binds the Company and its related
entities, subsidiaries, affiliates and successors and will inure to the benefit
of my heirs, administrators, representatives, executors, successors, and
assigns.

 

(c)           Interpretation: This Agreement shall
be construed as a whole according to its fair meaning. It shall not be
construed strictly for or against me or any Released Party. Unless the context
indicates otherwise, the term “or” shall be deemed to include the term “and”
and the singular or plural number shall be deemed to include the other.
Captions are intended solely for convenience of reference and shall not be used
in the interpretation of this Agreement. This Agreement shall be governed by
the statutes and common law of the State of Maryland, excluding its choice of
laws statutes or common law.

 

(d)           Agreements Superseded: This Agreement
supersedes any employment, severance, retention or other agreement(s) I may
have had during my employment with the Company, except that (i) any
agreement regarding confidentiality or non-disclosure shall be deemed to
survive the conclusion of the employment and is hereby acknowledged, restated
and incorporated herein; (ii) the indemnification and insurance coverage
provisions contained in ¶11 of my October 29, 2003 employment agreement
shall survive with respect to any claims made against me arising from my
employment with the Company; and (iii) the Change in Control Agreement
survives, except to the extent specifically modified herein.

 

(e)           Any action brought with respect to
this Agreement shall be brought only in a court of competent jurisdiction in
the State of Maryland.

 

(f)            The Company represents that the
person signing this Agreement on its behalf is legally authorized to do so.

 

 

(g)           This Agreement may be executed in two
or more counterparts, each of which shall be deemed to be an original, but all
of which shall constitute one and the same agreement.

 

TAKE THIS AGREEMENT HOME,
READ IT, AND CAREFULLY CONSIDER ALL OF ITS PROVISIONS BEFORE SIGNING IT: IT
INCLUDES A RELEASE OF KNOWN AND UNKNOWN CLAIMS. IF YOU WISH, YOU SHOULD TAKE
ADVANTAGE OF THE FULL CONSIDERATION PERIOD AFFORDED BY SECTION 6 AND YOU
SHOULD CONSULT YOUR ATTORNEY.

 

Executed at Rockville,
Maryland this 2nd day of September, 2005.

 

	
   

  	
  /s/ Stephen M. Abelman

  	
   

  
	
   

  	
  Stephen M. Abelman

  

 

Executed at New York, New
York, this 2nd day of September, 2005.

 

	
   

  	
  CRIIMI MAE Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BY:

  	
  /s/ Mark R. Jarrell

  	
   

  
	
   

  	
  Name:

  	
  Mark R. Jarrell

  
	
   

  	
   

  	
  President and Chief Operating OfficerEXHIBIT 10.2

 

CONSULTING AGREEMENT

 

THIS
AGREEMENT is made as of September 2, 2005, by and between CRIIMI MAE Inc.
(“CRIIMI MAE”) and Stephen M. Abelman (“Consultant”).

 

WHEREAS,
CONSULTANT desires to contract with CRIIMI MAE to perform the services specified
hereinafter, and CRIIMI MAE desires to contract with Consultant concerning such
services;

 

NOW,
THEREFORE, in consideration of the mutual covenants hereinafter recited, the
parties agree as follows:

 

1.             Term
of Agreement. This Agreement shall commence as of September 10, 2005,
and shall continue until June 30, 2006, or until terminated in accordance
with the provisions of paragraph 7 hereof (the “Term”). Termination of this
Agreement for any reason shall not affect the parties’ respective obligations
under paragraphs 5 and 6, which will be considered ongoing.

 

2.             Services.
CRIIMI MAE desires that Consultant shall perform, and Consultant agrees to
perform such services as the Company shall reasonably direct, including but not
limited to providing all services required to provide oversight of and
generally manage any workout of the Shilo Inns loan portfolio; all services
required to complete subleasing of the Company’s remaining excess office space
in its Rockville, Maryland facilities; and all services required to participate
in the Company’s review of its strategic alternatives.  Consultant agrees to provide such services
when requested to do so by CRIIMI MAE, up to 20 hours per week (the “Services”).
Consultant shall provide such Services at such locations as the Company in its
reasonable discretion may direct. The terms and conditions of this Agreement
shall govern with respect to the Services. CRIIMI MAE agrees to reasonably
accommodate Consultant’s vacation plans, personal needs and other business
ventures with respect to the schedule upon which the services will be
performed and the locations of performance, provided that Consultant gives
reasonable advance notice of any periods of unavailability and that such
unavailability does not unreasonably interfere with the scheduling of meetings,
appearances or testimony in connection with Company legal matters.

 

3.             Compensation.
CRIIMI MAE agrees to pay Consultant equal semi-monthly installments of Fifteen
Thousand ($15,000), commencing on September 16, 2005 and ending on June 30,
2006, unless terminated earlier pursuant to Paragraph 7 hereof.  Consultant will submit monthly statements of
his hours worked in a form acceptable to CRIIMI MAE, and if, at the conclusion
of every other month of the Term beginning with October 31, 2005, the
total hours worked by Consultant over the preceding two months exceed the
product of the number of weeks in that two-month period multiplied by 20, then
Consultant’s additional time will be compensated at the rate of $375 per hour.

 

CRIIMI
MAE will separately reimburse Consultant for travel and other out-of-pocket
expenses reasonably and necessarily incurred in performing the requested
services, subject to prior approval by CRIIMI MAE and the submission by
Consultant of documentation in accordance with CRIIMI MAE’s expense
reimbursement policies within thirty (30) days after the expenses are
incurred.  Payment will be due no later
than the 10th day following submission of Consultant’s documented expense
statement.

 

CRIIMI
MAE agrees to indemnify and hold Consultant harmless for claims made against
him on account of his performance of the services to be rendered hereunder,
except in cases of his gross negligence or intentional malfeasance.

 

4.             Independent
Contractor. Consultant acknowledges that he is acting as an independent
contractor, that Consultant is solely responsible for his actions or inaction,
and that nothing in this Agreement shall be construed to create an employment
relationship between the parties. Consultant is not authorized to enter into
contracts or agreements on behalf of CRIIMI MAE or to otherwise create 

 

 

obligations of CRIIMI MAE to third parties. Consultant shall be solely
responsible for and shall file, on a timely basis, tax returns and payments
required to be filed with or made to any federal, state, local or other tax
authority with respect to his performance of Services hereunder. Neither
federal, nor state, nor local, nor other income tax of any kind shall be
withheld or paid by CRIIMI MAE on behalf of Consultant. Consultant shall not be
entitled to the provision of any CRIIMI MAE’S employee benefits nor shall
CRIIMI MAE be responsible for the payment of worker’s compensation, disability
benefits or unemployment insurance. Consultant’s personnel, if any, shall not
be treated as employees of CRIIMI MAE with respect to the Services performed
hereunder for federal, state, local or other tax purposes.  Consultant may not assign or subcontract any
work to be performed hereunder, nor any interest herein, without the express
written consent of CRIIMI MAE.  CRIIMI
MAE acknowledges that certain tasks related to the Services may be performed by
employees of CRIIMI MAE.

 

5.             Confidential
Information.  For purposes of this
Agreement, the term “Confidential Information” shall have the same meaning as
in Section 4(j) of the Separation Agreement and General Release between
Consultant and CRIIMI MAE, CRIIMI MAE Management, Inc., and CRIIMI MAE
Services Limited Partnership dated as of September 2, 2005 (the “Separation
Agreement”).

 

Consultant
covenants and agrees that Consultant will use Confidential Information only for
the purposes of Consultant’s work for CRIIMI MAE and shall not disclose any
Confidential Information to any person or persons outside of CRIIMI MAE, except
as required by subpoena, order of a court or regulatory authority, or other
compulsory process.  If Consultant is
required by subpoena, court order or other compulsory process to reveal any
Confidential Information, he shall immediately notify by facsimile or overnight
mail CRIIMI MAE’s General Counsel, and will cooperate with CRIIMI MAE if CRIIMI
MAE contests or seeks to quash such subpoena, order or other compulsory
process.

 

Consultant
further agrees to store and maintain all Confidential Information in a secure
place. On the termination of this Agreement, Consultant shall deliver all
records, data, information, and any other documents produced or acquired during
the performance of this Agreement and all copies thereof to CRIIMI MAE. Such
material shall at all times remain in the exclusive property of CRIIMI MAE,
unless otherwise agreed in writing. Upon termination, Consultant agrees to make
no further use or utilization of any Confidential Information.

 

6.             Intellectual
Property.

 

(a)           Work
Made for Hire. In relation to the performance of this Agreement Consultant
may create certain works for CRIIMI MAE that may be copyrighted or
copyrightable under the laws of the United States. To the extent that any such
works are created, Consultant will be considered to have created a Work Made
for Hire as defined in 17 U.S.C. $101, and CRIIMI MAE shall have the sole right
to the copyright. In the event that any such work created by Consultant does
not qualify as a Work Made For Hire, Consultant hereby assigns his copyright and
all rights, throughout the world, in and to the work to CRIIMI MAE, as provided
for in subparagraph (b) below.

 

(b)           Title
to Works, Trade-Marks and Inventions Produced. It is understood and agreed
that the entire right, title and interest throughout the world to all works,
trademarks, and/or inventions that are conceived of, prepared, procured,
generated or produced, whether or not reduced to practice, by Consultant,
either solely or jointly with others, in connection with and related to the
performance of this Agreement, shall be and hereby are vested and assigned by
Consultant to CRIIMI MAE.

 

(c)           Consultant
agrees to execute any and all documents prepared by CRIIMI MAE, and to do all
other lawful acts as may be necessary for CRIIMI MAE to establish, document,
and protect such rights.

 

7.             Termination.
CRIIMI MAE may discontinue the use of Consultant’s services and cease paying
Consultant in the event of Consultant’s material breach of this Agreement, or
Consultant’s material breach of the Separation Agreement. In the event of any
termination pursuant to this paragraph 7, 

 

 

Consultant shall immediately return or provide to CRIIMI MAE, without
limitation, all Confidential Information, and all documents and other materials
of any nature supplied to Consultant by CRIIMI MAE or developed by CONSULTANT
in accordance with this Agreement.

 

8.             Laws
and Regulations. Consultant shall comply with all applicable laws, rules and
regulations, and shall also comply with all applicable policies, regulations
and procedures that CRIIMI MAE may from time to time establish and communicate
to Consultant.

 

9.             Effective
Date. This Agreement shall not become effective, and shall not constitute a
binding obligation on either party hereto until the Effective Date of the
Separation Agreement, as that term is defined therein.

 

10.           Notices.
All notices, consents and demands hereunder shall be in writing and shall be
personally delivered or sent by certified or registered mail, return receipt
requested, addressed to the other party at its address set forth below:

 

To
CRIIMI MAE:

 

CRIIMI
MAE, Inc.

11200
Rockville Pike, Suite 400

Rockville,
Maryland 20852

 

To
Consultant:

 

Stephen
M. Abelman

11708
Ibsen Drive

Rockville,
Maryland 20852

 

11.           Complete
Agreement. It is mutually understood and agreed that this Agreement
together with the Separation Agreement constitutes the entire understanding
between Consultant and CRIIMI MAE relating to the subject matter of this
Agreement and that no one at CRIIMI MAE has made any oral or written promises to
him that are not fully and accurately set forth in this Agreement. It is
further mutually understood that this Agreement supersedes any previous written
or oral agreements or understandings between the Parties that governed or
purported to govern the Parties’ relationship. This Agreement will be
interpreted in accordance with the laws of the State of Maryland (without
regard for the conflicts of laws principles thereof). This Agreement will be
binding on the parties’ successors, assigns, heirs and/or executors. No
provision of this Agreement may be waived, amended, or modified except by a
writing signed by both parties.

 

12.           Enforceability.
If any provision of this Agreement is determined by a court of competent
jurisdiction not to be enforceable in the manner set forth in this Agreement,
the parties agree that it is the intention of the parties to this Agreement
that such provision should be enforceable to the maximum extent possible under
applicable law and that such provision shall be reformed to make it enforceable
in accordance with the intent of the parties. If any provisions of this
Agreement are held to be invalid or unenforceable, such invalidation or
unenforceability shall not affect the validity or enforceability of the other
portions hereof.

 

13.           No
Waiver. The failure by either party to insist upon strict performance of
any of the provisions contained in this Agreement on any occasions shall not be
deemed a waiver of its rights under that or any other provisions hereof.

 

14.           Governing
Law. This Agreement shall be governed by, and construed in accordance with,
the laws of the State of Maryland, without regard to choice of law rules.

 

15.           Counterparts.
This Agreement may be executed in two or more counterparts, each of 

 

 

which shall be deemed to be an original, but all of which shall
constitute one and the same agreement.

 

16.           Enforcement.
Any action brought pursuant or relating to this Agreement may be brought only
in a court of competent jurisdiction in the State of Maryland. In any action
brought pursuant or relating to this Agreement, the prevailing party shall be
entitled to reimbursement of its costs of litigation, including reasonable
attorney’s fees, by the other party.

 

17.           Authority
to sign. CRIIMI MAE represents that the person signing this Agreement on
its behalf is legally authorized to do so.

 

18.           Change
in Control Agreement. This Agreement shall survive any Change in Control of
CRIIMI MAE, as that term is defined in the February 1, 2005 Change in
Control Agreement between Consultant and CRIIMI MAE.  In the event of a Change in Control, all
payments for services rendered or to be rendered under this Agreement shall be
immediately due and payable to the extent not already paid to Consultant, such
payment to be made within 10 days following completion of the Change in
Control, unless Consultant and the party or parties then in control of CRIIMI
MAE agree otherwise.

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
as of the date first written above.

 

	
  CONSULTANT

  	
  CRIIMI MAE INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Stephen M.
  Abelman

  	
   

  	
  By:

  	
  s/ Mark R. Jarrell

  	
   

  
	
   

  	
  Stephen M. Abelman

  	
   

  	
  Mark R. Jarrell

  
	
   

  	
   

  	
   

  	
  President and COO

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