Criimi Mae Reports 3Q Charge

Criimi Mae, Rockville, Md., has reported that it will take a charge of approximately $2.9 million to its third-quarter earnings in connection with the termination of the employment contracts of three senior executives.The commercial mortgage investor said the employment contracts for David Iannarone, Cynthia Azzara, and Brian Hanson expired in August and were not renewed. The contracts, which were put in place in 2001 to ensure management continuity after Criimi Mae emerged from bankruptcy restructuring, provide for payments of approximately $1 million to each of the three executives with the termination of the contracts. Mr. Iannarone and Ms. Azzara will continue to work with the real estate investment trust on an "at-will" basis, Criimi Mae said. Mr. Iannarone has taken on the position of executive vice president for legal and deal management, and Ms. Azzara has been promoted to EVP, chief financial officer, and treasurer. Mr. Hanson is no longer employed by Criimi Mae, but the REIT said he is likely to enter into a "short-term consulting arrangement" with the company while a search is conducted for an executive to oversee asset management. Criimi Mae can be found online at http://www.criimimaeinc.com.