Document:

ex102guaranty62414

Execution copy      AMENDED AND RESTATED GUARANTY       THIS AMENDED AND RESTATED GUARANTY dated as of June 24, 2014 (the “Guaranty”)   executed and delivered by each of the undersigned and the other Persons from time to time party hereto   pursuant to the execution and delivery of an Accession Agreement in the form of Annex I hereto (all of   the undersigned, together with such other Persons each a “Guarantor” and collectively, the “Guarantors”)   in favor of WELLS FARGO BANK, NATIONAL ASSOCIATION, in its capacity as Administrative   Agent (the “Administrative Agent”) for the Lenders under that certain Amended and Restated Credit   Agreement dated as of June 24, 2014 (as amended, restated, supplemented or otherwise modified from   time to time, the “Credit Agreement”), by and among Saul Holdings Limited Partnership (the   “Borrower”), the Lenders from time to time parties thereto (the “Lenders”), the Issuing Banks from time   to time parties thereto (the “Issuing Banks”), the Administrative Agent, and the other parties thereto, for   its benefit and the benefit of the Lenders, the Issuing Banks and the Specified Derivatives Providers (the   Administrative Agent, the Lenders, the Issuing Banks and the Specified Derivatives Providers, each   individually a “Guarantied Party” and collectively, the “Guarantied Parties”).       WHEREAS, the Guarantors are currently party to that certain Guaranty dated as of May 21, 2012   (as amended or otherwise modified immediately prior to the effectiveness of this Agreement, the   “Existing Guaranty”)  and have agreed to enter into this Guaranty in order to amend and restate the   Existing Guaranty in its entirety;      WHEREAS, pursuant to the Credit Agreement, the Administrative Agent and the Lenders have   agreed to make available to the Borrower certain financial accommodations on the terms and conditions   set forth in the Credit Agreement;       WHEREAS, each Guarantor is owned or controlled by the Borrower, or is otherwise an Affiliate   of the Borrower;       WHEREAS, the Borrower, each Guarantor and the other Subsidiaries of the Borrower, though   separate legal entities, are mutually dependent on each other in the conduct of their respective businesses   as an integrated operation and have determined it to be in their mutual best interests to obtain financing   from the Administrative Agent, the Lenders and the Issuing Banks, and to enter into Specified   Derivatives Contracts,  through their collective efforts;       WHEREAS, each Guarantor acknowledges that it will receive direct and indirect benefits from   the Administrative Agent, the Lenders and the Issuing Banks making such financial accommodations   available to the Borrower under the Credit Agreement and from the Specified Derivatives Providers   entering into Specified Derivatives Contracts and, accordingly, each Guarantor is willing to guarantee the   Borrower’s obligations to the Administrative Agent, the Lenders and the Issuing Banks and the   Borrower’s and/or any Subsidiary’s obligations to the Specified Derivatives Providers on the terms and   conditions contained herein; and       WHEREAS, each Guarantor’s execution and delivery of this Guaranty is a condition to the   Administrative Agent and the other Guarantied Parties’ making, and continuing to make, such financial   accommodations to the Borrower.       NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which   are hereby acknowledged by each Guarantor, each Guarantor agrees as follows:        

 

2    Section 1.  Guaranty.  Each Guarantor hereby absolutely, irrevocably and unconditionally   guaranties the due and punctual payment and performance when due, whether at stated maturity, by   acceleration or otherwise, of all of the following (collectively referred to as the “Guarantied Obligations”   (provided, however, that the definition of “Guarantied Obligations” shall not create any guarantee by any   Guarantor of (or grant of security interest by any Guarantor to support, as applicable) any Excluded Swap   Obligations of such Guarantor for purposes of determining any obligations of any Guarantor)): (a) all   indebtedness and obligations owing by the Borrower or any other Loan Party to any Lender or the   Administrative Agent under or in connection with the Credit Agreement and any other Loan Document to   which the Borrower or such other Loan Party is a party, including without limitation, the repayment of all   principal of the Revolving Loans and Swingline Loans, all Letter of Credit Liabilities, and the payment   of all interest, fees, charges, reasonable attorneys’ fees and other amounts payable to any Lender, the   Issuing Banks or the Administrative Agent thereunder or in connection therewith; (b) all Specified   Derivatives Obligations; (c) any and all extensions, renewals, modifications, amendments or substitutions   of the foregoing; (d) all expenses, including, without limitation, reasonable attorneys’ fees and   disbursements, that are incurred by the Administrative Agent or any other Guarantied Party in the   enforcement of any of the foregoing or any obligation of such Guarantor hereunder; and (e) all other   Obligations.       Section 2.  Guaranty of Payment and Not of Collection.  This Guaranty is a guaranty of payment,   and not of collection, and a debt of each Guarantor for its own account.  Accordingly, the Guarantied   Parties shall not be obligated or required before enforcing this Guaranty against any Guarantor: (a) to   pursue any right or remedy the Guarantied Parties may have against the Borrower, any other Loan Party   or any other Person or commence any suit or other proceeding against the Borrower, any other Loan   Party or any other Person in any court or other tribunal; (b) to make any claim in a liquidation or   bankruptcy of the Borrower, any other Loan Party or any other Person; (c) to make demand of the   Borrower, any other Loan Party or any other Person; or (d) to enforce or seek to enforce or realize upon   any collateral security held by the Guarantied Parties which may secure any of the Guarantied   Obligations.         Section 3.  Guaranty Absolute.  Each Guarantor guarantees that the Guarantied Obligations will   be paid strictly in accordance with the terms of the documents evidencing the same, regardless of any   Applicable Law now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of   the Guarantied Parties with respect thereto.  The liability of each Guarantor under this Guaranty shall be   absolute, irrevocable and unconditional in accordance with its terms and shall remain in full force and   effect without regard to, and shall not be released, suspended, discharged, terminated or otherwise   affected by, any circumstance or occurrence whatsoever, including without limitation, the following   (whether or not such Guarantor consents thereto or has notice thereof):       (a) (i) any change in the amount, interest rate or due date or other term of any of the   Guarantied Obligations, (ii) any change in the time, place or manner of payment of all or any portion of   the Guarantied Obligations, (iii) any amendment or waiver of, or consent to the departure from or other   indulgence with respect to, the Credit Agreement, any other Loan Document or any other document or   instrument evidencing or relating to any Guarantied Obligations, or (iv) any waiver, renewal, extension,   addition, or supplement to, or deletion from, or any other action or inaction under or in respect of, the   Credit Agreement, any of the other Loan Documents, or any other documents, instruments or agreements   relating to the Guarantied Obligations or any other instrument or agreement referred to therein or   evidencing any Guarantied Obligations or any assignment or transfer of any of the foregoing;       (b) any lack of validity or enforceability of the Credit Agreement, any of the other Loan   Documents, or Specified Derivatives Contracts (the “Credit Documents”) or any other document,     

 

3   instrument or agreement referred to therein or evidencing any Guarantied Obligations or any assignment   or transfer of any of the foregoing;       (c) any furnishing to the Guarantied Parties of any security for the Guarantied Obligations,   or any sale, exchange, release or surrender of, or realization on, any collateral securing any of the   Guarantied Obligations;       (d) any settlement or compromise by the Borrower or any other Loan Party of any of the   Guarantied Obligations, any security therefor, or any liability of any other party with respect to the   Guarantied Obligations, or any subordination of the payment of the Guarantied Obligations to the   payment of any other liability of the Borrower or any other Loan Party;       (e) any bankruptcy, insolvency, reorganization, composition, adjustment, dissolution,   liquidation or other like proceeding relating to such Guarantor, the Borrower, any other Loan Party or   any other Person, or any action taken with respect to this Guaranty by any trustee or receiver, or by any   court, in any such proceeding;       (f) any act or failure to act by the Borrower, any other Loan Party or any other Person which   may adversely affect such Guarantor’s subrogation rights, if any, against the Borrower or any other Loan   Party to recover payments made under this Guaranty;       (g) any nonperfection or impairment of any security interest or other Lien on any collateral,   if any, securing in any way any of the Guarantied Obligations;       (h) any application of sums paid by the Borrower, any Guarantor or any other Person with   respect to the liabilities of the Borrower to the Guarantied Parties, regardless of what liabilities of the   Borrower remain unpaid;       (i) any defect, limitation or insufficiency in the borrowing powers of the Borrower or in the   exercise thereof; or       (j) any other circumstance which might otherwise constitute a defense available to, or a   discharge of, a Guarantor hereunder (other than indefeasible payment in full in cash or release or   termination of the obligations of any Guarantor hereunder by the Guarantied Parties pursuant to the terms   of the Credit Agreement).         Section 4.  Action with Respect to Guarantied Obligations.  The Guarantied Parties may, at any   time and from time to time, without the consent of, or notice to, any Guarantor, and without discharging   any Guarantor from its obligations hereunder, take any and all actions described in Section 3. and may   otherwise: (a) amend, modify, alter or supplement the terms of any of the Guarantied Obligations,   including, but not limited to, extending or shortening the time of payment of any of the Guarantied   Obligations or changing the interest rate that may accrue on any of the Guarantied Obligations;   (b) amend, modify, alter or supplement the Credit Agreement or any other Credit Document; (c) sell,   exchange, release or otherwise deal with all, or any part, of any collateral securing any of the Guarantied   Obligations; (d) release any Loan Party or other Person liable in any manner for the payment or   collection of the Guarantied Obligations; (e) exercise, or refrain from exercising, any rights against the   Borrower, any other Loan Party or any other Person; and (f) apply any sum, by whomsoever paid or   however realized, to the Guarantied Obligations in such order as the Guarantied Parties shall elect, in the   case of each of the foregoing clauses (a) through (e) above, pursuant to the terms of the Credit   Agreement and the other Loan Documents.     

 

4       Section 5.  Representations and Warranties.  Each Guarantor hereby makes to the Administrative   Agent and the other Guarantied Parties all of the representations and warranties made by the Borrower   with respect to such Guarantor in the Credit Agreement and the other Loan Documents, as if the same   were set forth herein in full mutatis mutandis.       Section 6.  Covenants.  Each Guarantor will comply with all covenants with which the Borrower   is to cause such Guarantor to comply under the terms of the Credit Agreement or any of the other Loan   Documents.       Section 7.  Waiver.  Each Guarantor, to the fullest extent permitted by Applicable Law, hereby   waives notice of acceptance hereof or any presentment, demand, protest or notice of any kind, other than   demand for payment hereunder, and any other act or thing, or omission or delay to do any other act or   thing, which in any manner or to any extent might vary the risk of such Guarantor or which otherwise   might operate to discharge such Guarantor from its obligations hereunder.       Section 8.  Inability to Accelerate Loan.  If the Guarantied Parties or any of them are prevented   under Applicable Law or otherwise from demanding or accelerating payment of any of the Guarantied   Obligations by reason of any automatic stay or otherwise, the Administrative Agent and/or the other   Guarantied Parties shall be entitled to receive from each Guarantor, upon demand therefor, the sums   which otherwise would have been due had such demand or acceleration occurred.       Section 9.  Reinstatement of Guarantied Obligations.  If claim is ever made on the Administrative   Agent or any other Guarantied Party for repayment or recovery of any amount or amounts received in   payment or on account of any of the Guarantied Obligations, and the Administrative Agent or such other   Guarantied Party repays all or part of said amount by reason of (a) any judgment, decree or order of any   court or administrative body of competent jurisdiction, or (b) any settlement or compromise of any such   claim effected by the Administrative Agent or such other Guarantied Party with any such claimant   (including the Borrower or a trustee in bankruptcy for the Borrower), then and in such event each   Guarantor agrees that any such judgment, decree, order, settlement or compromise shall be binding on it,   notwithstanding any revocation hereof or the cancellation of the Credit Agreement, any of the other Loan   Documents, or any other instrument evidencing any liability of the Borrower, and such Guarantor shall   be and remain liable to the Administrative Agent or such other Guarantied Party for the amounts so   repaid or recovered to the same extent as if such amount had never originally been paid to the   Administrative Agent or such other Guarantied Party, except to the extent such amount is determined, in   a final, non-appealable judgment by a court of competent jurisdiction, to have been collected by the   Administrative Agent or such other Guarantied Party in violation of the Credit Agreement or other Loan   Document.       Section 10.  Subrogation.  Upon the making by any Guarantor of any payment hereunder for the   account of the Borrower, such Guarantor shall be subrogated to the rights of the payee against the   Borrower; provided, however, that such Guarantor shall not enforce any right or receive any payment by   way of subrogation or otherwise take any action in respect of any other claim or cause of action such   Guarantor may have against the Borrower arising by reason of any payment or performance by such   Guarantor pursuant to this Guaranty, unless and until all of the Guarantied Obligations have been   indefeasibly paid and performed in full.  If any amount shall be paid to such Guarantor on account of or   in respect of such subrogation rights or other claims or causes of action, such Guarantor shall hold such   amount in trust for the benefit of the Guarantied Parties and shall forthwith pay such amount to the   Administrative Agent to be credited and applied against the Guarantied Obligations, whether matured or     

 

5   unmatured, in accordance with the terms of the Credit Agreement or to be held by the Administrative   Agent as collateral security for any Guarantied Obligations existing.       Section 11. Payments Free and Clear.  All sums payable by each Guarantor hereunder, whether   of principal, interest, fees, expenses, premiums or otherwise, shall be paid in full, without set-off or   counterclaim or any deduction or withholding whatsoever (including any Taxes, subject to Section 3.10.   of the Credit Agreement), and if such Guarantor is required by Applicable Law or by any Governmental   Authority to make any such deduction or withholding such Guarantor shall pay to the Administrative   Agent and the Lenders such additional amount as will result in the receipt by the Administrative Agent   and the Lenders of the full amount payable hereunder had such deduction or withholding not occurred or   been required.      Section 12.  Set-off.  In addition to any rights now or hereafter granted under any of the other   Loan Documents or Applicable Law and not by way of limitation of any such rights, each Guarantor   hereby authorizes each Guarantied Party, at any time while an Event of Default exists, without any prior   notice to such Guarantor or to any other Person, any such notice being hereby expressly waived, but in   the case of a Lender, a Specified Derivatives Provider, or an Issuing Bank subject to receipt of the prior   written consent of the Administrative Agent and Requisite Lenders, exercised in their sole discretion, to   set-off and to appropriate and to apply any and all deposits (general or special, including, but not limited   to, indebtedness evidenced by certificates of deposit, whether matured or unmatured) and any other   indebtedness at any time held or owing by the Administrative Agent, such Issuing Bank, such Lender or   such Specified Derivatives Provider, any affiliate of the Administrative Agent, such Issuing Bank, or   such Lender to or for the credit or the account of the Borrower against and on account of any of the   Guarantied Obligations, although such obligations shall be contingent or unmatured.        Section 13.  Subordination.  Each Guarantor hereby expressly covenants and agrees for the   benefit of the Guarantied Parties that all obligations and liabilities of the Borrower to such Guarantor of   whatever description, including without limitation, all intercompany receivables of such Guarantor from   the Borrower (collectively, the “Junior Claims”) shall be subordinate and junior in right of payment to all   Guarantied Obligations.  If an Event of Default shall exist, then no Guarantor shall accept any direct or   indirect payment (in cash, property or securities, by setoff or otherwise) from the Borrower on account of   or in any manner in respect of any Junior Claim until all of the Guarantied Obligations have been   indefeasibly paid in full.       Section 14.  Avoidance Provisions.  It is the intent of each Guarantor, the Administrative Agent   and the other Guarantied Parties that in any Proceeding, such Guarantor’s maximum obligation hereunder   shall equal, but not exceed, the maximum amount which would not otherwise cause the obligations of   such Guarantor hereunder (or any other obligations of such Guarantor to the Guarantied Parties) to be   avoidable or unenforceable against such Guarantor in such Proceeding as a result of Applicable Law,   including without limitation, (a) Section 548 of the Bankruptcy Code of 1978, as amended (the   “Bankruptcy Code”) and (b) any state fraudulent transfer or fraudulent conveyance act or statute applied   in such Proceeding, whether by virtue of Section 544 of the Bankruptcy Code or otherwise.  The   Applicable Laws under which the possible avoidance or unenforceability of the obligations of such   Guarantor hereunder (or any other obligations of such Guarantor to the Guarantied Parties) shall be   determined in any such Proceeding are referred to as the “Avoidance Provisions”.  Accordingly, to the   extent that the obligations of any Guarantor hereunder would otherwise be subject to avoidance under the   Avoidance Provisions, the maximum Guarantied Obligations for which such Guarantor shall be liable   hereunder shall be reduced to that amount which, as of the time any of the Guarantied Obligations are   deemed to have been incurred under the Avoidance Provisions, would not cause the obligations of any   Guarantor hereunder (or any other obligations of such Guarantor to the Guarantied Parties), to be subject     

 

6   to avoidance under the Avoidance Provisions.  This Section is intended solely to preserve the rights of   the Administrative Agent and the other Guarantied Parties hereunder to the maximum extent that would   not cause the obligations of any Guarantor hereunder to be subject to avoidance under the Avoidance   Provisions, and no Guarantor or any other Person shall have any right or claim under this Section as   against the Guarantied Parties that would not otherwise be available to such Person under the Avoidance   Provisions.       Section 15.  Information.  Each Guarantor assumes all responsibility for being and keeping itself   informed of the financial condition of the Borrower and the other Loan Parties, and of all other   circumstances bearing upon the risk of nonpayment of any of the Guarantied Obligations and the nature,   scope and extent of the risks that such Guarantor assumes and incurs hereunder, and agrees that neither   of the Administrative Agent nor any other Guarantied Party shall have any duty whatsoever to advise any   Guarantor of information regarding such circumstances or risks.       Section 16.  Governing Law.  THIS GUARANTY SHALL BE GOVERNED BY, AND   CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK   APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH   STATE.       SECTION 17.  WAIVER OF JURY TRIAL.        (a) EACH GUARANTOR, AND EACH OF THE ADMINISTRATIVE AGENT AND THE   OTHER GUARANTIED PARTIES BY ACCEPTING THE BENEFITS HEREOF, ACKNOWLEDGES   THAT ANY DISPUTE OR CONTROVERSY BETWEEN SUCH GUARANTOR, THE   ADMINISTRATIVE AGENT OR ANY OF THE OTHER GUARANTIED PARTES WOULD BE   BASED ON DIFFICULT AND COMPLEX ISSUES OF LAW AND FACT AND WOULD RESULT IN   DELAY AND EXPENSE TO THE PARTIES.  ACCORDINGLY, TO THE EXTENT PERMITTED BY   APPLICABLE LAW, EACH OF THE GUARANTORS, THE ADMINISTRATIVE AGENT AND THE   OTHER GUARANTIED PARTIES HEREBY WAIVES ITS RIGHT TO A TRIAL BY JURY IN ANY   ACTION OR PROCEEDING OF ANY KIND OR NATURE IN ANY COURT OR TRIBUNAL IN   WHICH AN ACTION MAY BE COMMENCED BY OR AGAINST ANY PARTY HERETO ARISING   OUT OF THIS GUARANTY.       (b) EACH GUARANTOR IRREVOCABLY AND UNCONDITIONALLY AGREES THAT   IT WILL NOT COMMENCE ANY ACTION, LITIGATION OR PROCEEDING OF ANY KIND OR   DESCRIPTION, WHETHER IN LAW OR EQUITY, WHETHER IN CONTRACT OR IN TORT OR   OTHERWISE, AGAINST THE ADMINISTRATIVE AGENT, ANY LENDER, ANY ISSUING BANK,   OR ANY RELATED PARTY OF THE FOREGOING IN ANY WAY RELATING TO THIS   GUARANTY OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS RELATING   HERETO OR THERETO, IN ANY FORUM OTHER THAN THE COURTS OF THE STATE OF NEW   YORK SITTING IN NEW YORK COUNTY, AND OF THE UNITED STATES DISTRICT COURT OF   THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY   THEREOF, AND EACH OF THE PARTIES HERETO, AND EACH OF THE ADMINISTRATIVE   AGENT AND THE OTHER GUARANTIED PARTIES BY ACCEPTING THE BENEFITS HEREOF,   IRREVOCABLY AND UNCONDITIONALLY SUBMITS TO THE JURISDICTION OF SUCH   COURTS AND AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION, LITIGATION   OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT   OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL   COURT.  EACH PARTY FURTHER WAIVES ANY OBJECTION THAT IT MAY NOW OR   HEREAFTER HAVE TO THE VENUE OF ANY SUCH ACTION OR PROCEEDING IN ANY SUCH     

 

7   COURT OR THAT SUCH ACTION OR PROCEEDING WAS BROUGHT IN AN INCONVENIENT   FORUM AND EACH AGREES NOT TO PLEAD OR CLAIM THE SAME.  THE CHOICE OF   FORUM SET FORTH IN THIS SECTION SHALL NOT BE DEEMED TO PRECLUDE THE   BRINGING OF ANY ACTION BY THE ADMINISTRATIVE AGENT OR ANY OTHER   GUARANTIED PARTY OR THE ENFORCEMENT BY THE ADMINISTRATIVE AGENT OR ANY   OTHER GUARANTIED PARTY OF ANY JUDGMENT OBTAINED IN SUCH FORUM IN ANY   OTHER APPROPRIATE JURISDICTION.       (c) THE PROVISIONS OF THIS SECTION HAVE BEEN CONSIDERED BY EACH   PARTY WITH THE ADVICE OF COUNSEL AND WITH A FULL UNDERSTANDING OF THE   LEGAL CONSEQUENCES THEREOF, AND SHALL SURVIVE THE PAYMENT OF THE LOANS   AND ALL OTHER AMOUNTS PAYABLE HEREUNDER OR UNDER THE OTHER LOAN   DOCUMENTS, THE TERMINATION OR EXPIRATION OF ALL LETTERS OF CREDIT AND THE   TERMINATION OF THIS GUARANTY.       Section 18.  Loan Accounts.  The Administrative Agent and each Lender may maintain books   and accounts setting forth the amounts of principal, interest and other sums paid and payable with respect   to the Guarantied Obligations arising under or in connection with the Credit Agreement, and in the case   of any dispute relating to any of the outstanding amount, payment or receipt of any of the Guarantied   Obligations or otherwise, the entries in such books and accounts shall constitute prima facie evidence of   amounts and other matters set forth therein.  The failure of the Administrative Agent or any Lender to   maintain such books and accounts shall not in any way relieve or discharge any Guarantor of any of its   obligations hereunder.       Section 19.  Waiver of Remedies.  No delay or failure on the part of the Administrative Agent or   any other Guarantied Party in the exercise of any right or remedy it may have against any Guarantor   hereunder or otherwise shall operate as a waiver thereof, and no single or partial exercise by the   Administrative Agent or any other Guarantied Party of any such right or remedy shall preclude any other   or further exercise thereof or the exercise of any other such right or remedy.       Section 20.  Termination.  This Guaranty shall remain in full force and effect with respect to   each Guarantor until payment in full in cash of the Guarantied Obligations and the other Obligations and   the termination or cancellation of the Credit Agreement and all Specified Derivatives Contracts in   accordance with their respective terms.       Section 21.  Successors and Assigns.  Each reference herein to the Administrative Agent or any   other Guarantied Party shall be deemed to include such Person’s respective successors and assigns   (including, but not limited to, any holder of the Guarantied Obligations) in whose favor the provisions of   this Guaranty also shall inure, and each reference herein to each Guarantor shall be deemed to include   such Guarantor’s successors and assigns, upon whom this Guaranty also shall be binding.  The   Guarantied Parties may, in accordance with the applicable provisions of the Credit Agreement and   Specified Derivatives Contracts, assign, transfer or sell any Guarantied Obligation, or grant or sell   participations in any Guarantied Obligations, to any Person without the consent of, or notice to, any   Guarantor and without releasing, discharging or modifying any Guarantor’s obligations hereunder.    Subject to Section 13.9. of the Credit Agreement, each Guarantor hereby consents to the delivery by the   Administrative Agent and any other Guarantied Party to any Eligible Assignee or Participant (or any   prospective Eligible Assignee or Participant) of any financial or other information regarding the   Borrower or any Guarantor.  No Guarantor may assign or transfer its obligations hereunder to any Person   without the prior written consent of all Lenders and any such assignment or other transfer to which all of   the Lenders have not so consented shall be null and void.     

 

8       Section 22.  JOINT AND SEVERAL OBLIGATIONS.  THE OBLIGATIONS OF THE   GUARANTORS HEREUNDER SHALL BE JOINT AND SEVERAL, AND ACCORDINGLY, EACH   GUARANTOR CONFIRMS THAT IT IS LIABLE FOR THE FULL AMOUNT OF THE   “GUARANTIED OBLIGATIONS” AND ALL OF THE OBLIGATIONS AND LIABILITIES OF EACH   OF THE OTHER GUARANTORS HEREUNDER.       Section 23.  Amendments.  This Guaranty may not be amended except in writing signed by the   Administrative Agent and each Guarantor, subject to Section 13.7 of the Credit Agreement.       Section 24.  Payments.  All payments to be made by any Guarantor pursuant to this Guaranty   shall be made in Dollars, in immediately available funds to the Administrative Agent at its Principal   Office, not later than 1:00 p.m. Central time, on the date one Business Day after demand therefor.       Section 25.  Notices.  All notices, requests and other communications hereunder shall be in   writing (including facsimile transmission or similar writing) and shall be given (a) to each Guarantor at   its address set forth below its signature hereto, (b) to the Administrative Agent or any other Guarantied   Party at its address for notices provided for in the Credit Agreement or Specified Derivatives Contracts,   as applicable, or (c) as to each such party at such other address as such party shall designate in a written   notice to the other parties.  Each such notice, request or other communication shall be effective (i) if   mailed, when received; (ii) if telecopied, when transmitted (with confirmation); or (iii) if hand delivered,   when delivered; provided, however, that any notice of a change of address for notices shall not be   effective until received.       Section 26.  Severability.  In case any provision of this Guaranty shall be invalid, illegal or   unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions   shall not in any way be affected or impaired thereby.       Section 27.  Headings.  Section headings used in this Guaranty are for convenience only and   shall not affect the construction of this Guaranty.       Section 28.  Limitation of Liability. Neither the Administrative Agent nor any other   Guarantied Party, nor any affiliate, officer, director, employee, attorney, or agent of the Administrative   Agent or any other Guarantied Party, shall have any liability with respect to, and each Guarantor hereby   waives, releases, and agrees not to sue any of them upon, any claim for any special, indirect, incidental,   or consequential damages suffered or incurred by a Guarantor in connection with, arising out of, or in   any way related to, this Guaranty or any of the other Credit Documents, or any of the transactions   contemplated by this Guaranty, the Credit Agreement or any of the other Loan Documents.  Each   Guarantor hereby waives, releases, and agrees not to sue the Administrative Agent or any other   Guarantied Party or any of the Administrative Agent’s or any other Guarantied Party’s affiliates, officers,   directors, employees, attorneys, or agents for punitive damages in respect of any claim in connection   with, arising out of, or in any way related to, this Guaranty, the Credit Agreement or any of the other   Credit Documents, or any of the transactions contemplated by thereby.       Section 29. Electronic Delivery of Certain Information.  Each Guarantor acknowledges and   agrees that information regarding the Guarantor may be delivered electronically pursuant to Section 9.5   of the Credit Agreement.        Section 30.  Definitions. (a) For the purposes of this Guaranty:        

 

9    “Proceeding” means any of the following: (x) any Guarantor shall:  (i) commence a voluntary   case under the Bankruptcy Code or other federal bankruptcy laws (as now or hereafter in effect); (ii) file   a petition seeking to take advantage of any other Applicable Laws, domestic or foreign, relating to   bankruptcy, insolvency, reorganization, winding-up, or composition or adjustment of debts; (iii) consent   to, or fail to contest in a timely and appropriate manner, any petition filed against it in an involuntary   case under such bankruptcy laws or other Applicable Laws or consent to any proceeding or action   described in the immediately following subsection (z); (iv) apply for or consent to, or fail to contest in a   timely and appropriate manner, the appointment of, or the taking of possession by, a receiver, custodian,   trustee, or liquidator of itself or of a substantial part of its property, domestic or foreign; (v) admit in   writing its inability to pay its debts as they become due; or (vi) make a general assignment for the benefit   of creditors; (y) the board of directors (or similar  governing body) of any Guarantor or any committee   thereof shall adopt any resolution or otherwise authorize any action to approve any of the actions referred   to in this definition of “Proceeding”; or (z) a case or other proceeding shall be commenced against any   Guarantor in any court of competent jurisdiction seeking:  (i) relief under the Bankruptcy Code or other   federal bankruptcy laws (as now or hereafter in effect) or under any other Applicable Laws, domestic or   foreign, relating to bankruptcy, insolvency, reorganization, winding-up, or composition or adjustment of   debts; or (ii) the appointment of a trustee, receiver, custodian, liquidator or the like of such Person, or of   all or any substantial part of the assets, domestic or foreign, of such Person, and in the case of either   clause (i) or (ii) such case or proceeding shall continue undismissed or unstayed for a period of 60   consecutive days, or an order granting the remedy or other relief requested in such case or proceeding   (including, but not limited to, an order for relief under such Bankruptcy Code or such other federal   bankruptcy laws) shall be entered.       (b) Terms not otherwise defined herein are used herein with the respective meanings given   them in the Credit Agreement.      Section 31.  Keepwell. Each Qualified ECP Guarantor hereby jointly and severally absolutely,   unconditionally and irrevocably undertakes to provide such funds or other support as may be needed   from time to time by each other Guarantor to honor all of its obligations under this Guaranty in respect of   Specified Derivatives Contracts (provided, however, that each Qualified ECP Guarantor shall only be   liable under this Section for the maximum amount of such liability that can be hereby incurred without   rendering its obligations under this Section or otherwise under this Guaranty voidable under applicable   law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount).  The   obligations of each Qualified ECP Guarantor under this Section shall remain in full force and effect until   a discharge of such Qualified ECP Guarantor’s Guarantied Obligations in accordance with the terms   hereof and the other Loan Documents.  Each Qualified ECP Guarantor intends that this Section   constitute, and this Section shall be deemed to constitute, a “keepwell, support, or other agreement” for   the benefit of each other Guarantor for all purposes of Section 1a(18)(A)(v)(II) of the Commodity   Exchange Act.  As used herein, “Qualified ECP Guarantor” means, in respect of any Specified   Derivatives Contract, each Guarantor that has total assets exceeding $10,000,000 at the time the relevant   Guarantee or grant of the relevant security interest becomes or would become effective with respect to   such Specified Derivatives Contract or such other Person as constitutes an ECP and can cause another   Person to qualify as an ECP at such time by entering into a keepwell under Section 1a(18)(A)(v)(II) of   the Commodity Exchange Act.      [Signatures on Following Page]        

 

Signature Page to Amended and Restated Guaranty   IN WITNESS WHEREOF, each Guarantor has duly executed and delivered this Guaranty as of   the date and year first written above.            SAUL CENTERS, INC.   as a Guarantor         By: /s/ B. Francis Saul II   Name: B. Francis Saul II   Title: Chairman and CEO      Address for Notices for all Guarantors:      c/o SAUL CENTERS, INC.   7501 Wisconsin Ave., Suite 1500 E   Bethesda, MD 20814   Attention: Scott V. Schneider    Facsimile: (301) 986-6023   Telephone: (301) 986-6022         SAUL SUBSIDIARY I LIMITED PARTNERSHIP   as a Guarantor      By: Saul Centers, Inc., General Partner         By:  /s/ Scott V. Schneider   Name: Scott V. Schneider    Title: Chief Financial Officer, Treasurer and Secretary      SAUL SUBSIDIARY II LIMITED PARTNERSHIP   as a Guarantor      By: Saul Centers, Inc., General Partner         By:  /s/ Scott V. Schneider   Name: Scott V. Schneider    Title: Chief Financial Officer, Treasurer and Secretary                             

 

Signature Page to Amended and Restated Guaranty   11503 ROCKVILLE PIKE LLC   as a Guarantor      By: Saul Centers, Inc., Manager         By:  /s/ Scott V. Schneider   Name: Scott V. Schneider    Title: Chief Financial Officer, Treasurer and Secretary         1500 ROCKVILLE PIKE LLC   as a Guarantor      By: Saul Centers, Inc., Manager         By:  /s/ Scott V. Schneider   Name: Scott V. Schneider    Title: Chief Financial Officer, Treasurer and Secretary         AVENEL VI, INC.   as a Guarantor         By: /s/ Scott V. Schneider   Name: Scott V. Schneider    Title: Vice President, Treasurer and Secretary         BRIGGS CHANEY PLAZA, LLC   as a Guarantor      By: Saul Centers, Inc., Manager         By: /s/ Scott V. Schneider   Name: Scott V. Schneider    Title: Chief Financial Officer, Treasurer and Secretary           

 

Signature Page to Amended and Restated Guaranty   KENTLANDS LOT 1, LLC   as a Guarantor      By: Saul Centers, Inc., Manager         By: /s/ Scott V. Schneider   Name: Scott V. Schneider    Title: Chief Financial Officer, Treasurer and Secretary         ROCKVILLE PIKE HOLDINGS LLC   as a Guarantor      By: Saul Centers, Inc., Manager         By: /s/ Scott V. Schneider   Name: Scott V. Schneider    Title: Chief Financial Officer, Treasurer and Secretary         SMALLWOOD VILLAGE CENTER LLC   as a Guarantor      By: Saul Centers, Inc., Manager         By: /s/ Scott V. Schneider   Name: Scott V. Schneider    Title: Chief Financial Officer, Treasurer and Secretary         WESTVIEW VILLAGE CENTER LLC   as a Guarantor      By: Saul Centers, Inc., Manager         By: /s/ Scott V. Schneider   Name: Scott V. Schneider    Title: Chief Financial Officer, Treasurer and Secretary           

 

   ANNEX I      FORM OF ACCESSION AGREEMENT       THIS ACCESSION AGREEMENT dated as of ____________, ____, executed and delivered by   ______________________, a _____________ (the “New Guarantor”) in favor of WELLS FARGO   BANK, NATIONAL ASSOCIATION, in its capacity as Administrative Agent (the “Administrative   Agent”) for the Lenders under that certain Amended and Restated Credit Agreement dated as of June   [__], 2014 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit   Agreement”), by and among Saul Holdings Limited Partnership (the “Borrower”), the Lenders from time   to time parties thereto (the “Lenders”), the Issuing Banks from time to time parties thereto (the “Issuing   Banks”), Wells Fargo Bank, National Association, as Administrative Agent (the “Administrative   Agent”), and the other parties thereto, for its benefit and the benefit of the Lenders, the Issuing Banks   and the Specified Derivatives Providers (the Administrative Agent, the Lenders, the Issuing Banks and   the Specified Derivatives Providers, each individually a “Guarantied Party” and collectively, the   “Guarantied Parties”).       WHEREAS, pursuant to the Credit Agreement, the Administrative Agent and the Lenders have   agreed to make available to the Borrower certain financial accommodations on the terms and conditions   set forth in the Credit Agreement;       WHEREAS, the Specified Derivatives Providers may from time to time enter into Specified   Derivatives Contracts with the Borrower and/or its Subsidiaries;      WHEREAS, New Guarantor is owned or controlled by the Borrower, or is otherwise an Affiliate   of the Borrower;       WHEREAS, the Borrower, the New Guarantor and the other Subsidiaries of the Borrower,   though separate legal entities, are mutually dependent on each other in the conduct of their respective   businesses as an integrated operation and have determined it to be in their mutual best interests to obtain   financing from the Administrative Agent, the Lenders and the Issuing Banks, and to enter into Specified   Derivatives Contracts, through their collective efforts;      WHEREAS, New Guarantor acknowledges that it will receive direct and indirect benefits from   the Administrative Agent, the Lenders and the Issuing Banks making such financial accommodations   available to the Borrower under the Credit Agreement and from the Specified Derivatives Providers   entering into Specified Derivatives Contracts and, accordingly, New Guarantor is willing to guarantee the   Borrower’s obligations to the Administrative Agent, the Lenders and the Issuing Banks and the   Borrower’s and/or any Subsidiary’s obligations to the Specified Derivatives Providers on the terms and   conditions contained herein; and       WHEREAS, the New Guarantor’s execution and delivery of this Agreement is a condition to the   Administrative Agent and the Lenders continuing to make such financial accommodations to the   Borrower.       NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which   are hereby acknowledged by the New Guarantor, the New Guarantor agrees as follows:       Section 1.  Accession to Guaranty.  The New Guarantor hereby agrees that it is a “Guarantor”   under that certain Amended and Restated Guaranty dated as of June [__], 2014 (as amended, restated,     

 

   supplemented or otherwise modified from time to time, the “Guaranty”) made by each of the Guarantors   party thereto in favor of the Administrative Agent and the other Guarantied Parties and assumes all   obligations of a “Guarantor” thereunder, all as if the New Guarantor had been an original signatory to the   Guaranty.  Without limiting the generality of the foregoing, the New Guarantor hereby:       (a) irrevocably and unconditionally guarantees the due and punctual payment and   performance when due, whether at stated maturity, by acceleration or otherwise, of all Guarantied   Obligations (as defined in the Guaranty);       (b) makes to the Administrative Agent and the other Guarantied Parties as of the date hereof   each of the representations and warranties contained in Section 5 of the Guaranty as to itself as a   Guarantor and agrees to be bound by each of the covenants contained in Section 6 of the Guaranty; and       (c) consents and agrees to each provision set forth in the Guaranty.       SECTION 2.  GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY, AND   CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK   APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH   STATE.       Section 3.  Definitions.  Capitalized terms used herein and not otherwise defined herein shall   have their respective defined meanings given them in the Credit Agreement.         [Signatures on Next Page]        

 

    IN WITNESS WHEREOF, the New Guarantor has caused this Accession Agreement to be duly   executed and delivered under seal by its duly authorized officers as of the date first written above.      [NEW GUARANTOR]         By: ________________________________         Name: ___________________________         Title: ____________________________        (CORPORATE SEAL)      Address for Notices:      c/o SAUL CENTERS, INC.   7501 Wisconsin Ave., Suite 1500 E   Bethesda, MD 20814   Attention: Scott V. Schneider    Facsimile: (301) 986-6023   Telephone: (301) 986-6022         Accepted:      WELLS FARGO BANK, NATIONAL       ASSOCIATION,  as Administrative Agent         By:             Name:            Title:vv_8k0622ex101.htm

Exhibit 10.1

 

 

SEPARATION AGREEMENT

THIS SEPARATION AGREEMENT (the “Agreement”) is entered into on June 22, 2014 (the “Agreement Date”), by and between ValueVision Media, Inc., a Minnesota corporation (the “Company”), and Keith R. Stewart (“Executive”).  The Company and Executive may be referred to individually, as a “Party” and collectively, as the “Parties”.

 

WHEREAS, the Company is a multichannel electronic retailer which currently operates under the ShopHQ brand; and

 

WHEREAS, Executive serves as Chief Executive Officer for the Company pursuant to the terms and conditions of the Second Amended and Restated Employment Agreement dated April 1, 2014 (the “Employment Agreement”), by and between Executive and the Company; and

 

WHEREAS, at the Company’s request, Executive has, subject to the terms of this Agreement, tendered his resignation from the Company and from the Board of Directors of the Company (the “Board”), and the Company and the Board have accepted Executive’s resignation, effective immediately; and

 

WHEREAS, the Company and Executive agree that Executive’s separation from the Company is as a result of an “Event,” as defined in Section 1(k)(ii) of the Employment Agreement, and for reasons other than “Cause,” as defined in Section 1(g) of the Employment Agreement; and

 

WHEREAS, the Parties desire to amicably resolve any dispute arising out of Executive’s employment and resignation thereof, with the understanding that such resolution shall not constitute evidence of or be an admission of wrongful conduct, liability, or fault on the part of Executive or the Company.

 

NOW, THEREFORE, in consideration of the foregoing premises and the respective agreements of the Company and Executive set forth below, the Company and Executive, intending to be legally bound, agree as follows:

 

1.           Resignation of Employment.

 

Executive hereby resigns effective immediately from his position as Chief Executive Officer, as an employee, as a member of the Board, and all other titles, positions and appointments Executive may hold with the Company or any of its subsidiaries or affiliates (the “Resignation Date”).  The Company shall promptly pay to Executive all accrued, but unpaid Base Salary, vacation and other accrued amounts, as well as all outstanding expense reimbursements in accordance with the Employment Agreement and consistent with the Company’s normal expense reimbursement policies.

 

2.           Severance Pay and Benefits.  In return for the execution of this Agreement and Executive honoring all of the terms and conditions of this Agreement, the Company shall provide to Executive the following Severance Pay and Benefits:

 

  

  

  

(a)           Severance Pay of $1,427,108.00, which is two (2) times Executive’s annual Base Salary of $713,554.00 (the “Severance Pay”).  The Company shall issue this Severance Pay in a lump sum, less applicable withholdings, on the first business day following expiration of all applicable rescission periods provided Executive has complied with the requirements of Section 2(e).

 

(b)           Severance Bonus Pay of $1,070,331.00, which is two (2) times Executive’s target annual incentive bonus actual payment of 75% of Executive’s annual Base Salary (the “Severance Bonus Pay”).  The Company shall issue this Severance Bonus Pay to Executive in a lump sum payment, less applicable withholdings, on the first business day following expiration of all applicable rescission periods provided Executive has complied with the requirements of Section 2(e).

 

(c)           Provided Executive elects continuation coverage pursuant to COBRA or similar state laws and timely completes and returns to the Company the documents and payments required for such election, the Company shall continue to provide to Executive and his dependents (as applicable) for a period of twenty-four (24) consecutive months after the Resignation Date, group health, dental and life insurance benefits (the “Severance Benefits”) to the extent that such benefits were in effect for Executive and his family as of the Resignation Date, subject to Executive’s timely payment of his share of the applicable premiums at the same rate (if any) he was paying prior to the Resignation Date.

 

(d)           Notwithstanding any provision to the contrary set forth in the ValueVision Media, Inc. 2011 Omnibus Incentive Plan, as amended (the “Plan”), the Company agrees that:

 

	
  

	
(i)

	
In November 2013, Executive was granted 59,500 shares of Restricted Stock and, pursuant to Section 13(d)(x) of the Employment Agreement, these restrictions shall lapse immediately provided Executive has complied with the requirements of Section 2(e); and

 

	
  

	
(ii)

	
In November 2013, Executive was awarded 119,000 stock options and, pursuant to Section 13(d)(y) of the Employment Agreement, these stock options shall vest and immediately become exercisable in full provided Executive has complied with the requirements of Section 2(e).

 

The acceleration and vesting under this Section 2(d) shall be collectively referred to as the “Acceleration Benefits”.

 

(e)           Notwithstanding the foregoing provisions of this Section 2, the Company shall not be obligated to provide to Executive any Severance Pay, Severance Bonus Pay, Severance Benefits or Acceleration Benefits under this Section 2 unless (i) Executive signs and delivers the Release of Claims in favor of the Company as set forth in Exhibit A attached hereto; (ii) Executive has not revoked the Release of Claims; (iii) the rescission periods provided by law have expired; and (iv) Executive is in substantial compliance with the material terms of this Agreement and the Employment Agreement as of the dates of the payments.  The Parties agree

 

  

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that Executive, through his counsel, received this Agreement and Release of Claims on June 21, 2014, and any requested changes or modifications by Executive shall not extend the 21 day consideration period referenced in Section 5(b) of the Release of Claims attached as Exhibit A.

 

(f)           If Executive is in material breach of any covenant in Sections 6, 7, 8, or 9 of the Employment Agreement, then, in addition to other available remedies provided in the Employment Agreement or under applicable law, Executive shall cease to be eligible for the Severance Pay, Severance Bonus Pay, Severance Benefits and Acceleration Benefits under this Section 2 and, upon the Company’s written request, must promptly repay to the Company any Severance Pay, Severance Bonus Pay, Severance Benefits and/or Acceleration Benefits previously received under this Section 2.  Notwithstanding and without limiting the foregoing, Executive shall retain $5,000.00 of the Severance Pay previously paid to Executive as good and valuable consideration for Executive’s execution of the  Release of Claims in favor of the Company as set forth in Exhibit A attached hereto.

 

(g)           Executive acknowledges and agrees that Executive is considered a “specified employee” within the meaning of Section 409A as of the Resignation Date.  As a result, notwithstanding the foregoing, the payment of any amounts under this Section 2 that is considered deferred compensation subject to 409A and is to be paid on account of Executive’s separation from service shall be deferred, as required by Section 409A(a)(2)(B)(i) of the Code, for six (6) months after the Resignation Date or, if earlier, Executive’s death (the “409A Deferral Period”).  To the fullest extent permissible under 409A, the Company shall make any payments to Executive under this Section 2 prior to expiration of  the 409A Deferral Period.  Any payments that otherwise would have been made during the 409A Deferral Period shall be paid in a lump sum on the date after the 409A Deferral Period expires, and the balance of any payments shall be made as described herein.

3.           Limitation on Parachute Payments.

 

(a)           Notwithstanding any provision to the contrary set forth in this Agreement, or any other plan, arrangement or agreement to the contrary, if any of the payments or benefits provided or to be provided by the Company or its affiliates to Executive or for Executive’s benefit pursuant to the terms of this Agreement or otherwise (“Covered Payments”) constitute parachute payments (“Parachute Payments”) within the meaning of Section 280G of the Code and would, but for this Section 3, be subject to the excise tax imposed under Section 4999 of the Code (or any successor provision thereto) or any similar tax imposed by state or local law or any interest or penalties with respect to such taxes (collectively, the “Excise Tax”), then the Covered Payments shall be payable either (i) in full or (ii) reduced to the minimum extent necessary to ensure that no portion of the Covered Payments is subject to the Excise Tax, whichever of the foregoing (i) or (ii) results in Executive’s receipt on an after-tax basis of the greatest amount of benefits after taking into account the applicable federal, state, local and foreign income, employment and excise taxes (including the Excise Tax).

 

(b)           The Covered Payments shall be reduced in a manner that maximizes Executive’s economic position. In applying this principle, the reduction shall be made in a manner consistent with the requirements of Section 409A of the Code, and where two economically equivalent amounts are subject to reduction but payable at different times, such

 

  

3

  

amounts shall be reduced on a pro rata basis but not below zero.

 

(c)           Any determination required under this Section 3(c) shall be made in writing in good faith by an accounting firm selected by the Company, which is reasonably acceptable to Executive and whose consent shall not be unreasonably withheld (the “Accountants”), which shall provide detailed supporting calculations to the Company and the Executive as required by the Company or Executive.  The Company and Executive shall provide the Accountants with such information and documents as the Accountants may reasonably request in order to make a determination under this Section 3(c).  The Company shall be responsible for all fees and expenses of the Accountants.

 

(d)           It is possible that after the determinations and selections made pursuant to this Section 3 Executive will receive Covered Payments that are in the aggregate more than the amount provided under this Section 3 (“Overpayment”) or less than the amount provided under this Section 3 (“Underpayment”).

 

	
  

	
(i)

	
In the event that: (A) the Accountants determine, based upon the assertion of a deficiency by the Internal Revenue Service against either the Company or Executive which the Accountants believe has a high probability of success, that an Overpayment has been made or (B) it is established pursuant to a final determination of a court or an Internal Revenue Service proceeding that has been finally and conclusively resolved that an Overpayment has been made, then Executive shall pay any such Overpayment to the Company.

 

	
  

	
(ii)

	
In the event that: (A) the Accountants, based upon controlling precedent or substantial authority, determine that an Underpayment has occurred or (B) a court of competent jurisdiction determines that an Underpayment has occurred, any such Underpayment will be paid promptly by the Company to or for the benefit of Executive.

 

4.           Non-Disparagement.

 

(a)           Executive’s Obligations.  Executive will not malign, defame or disparage the reputation, character, image, products or services of the Company, or the reputation or character of the Company’s directors, officers, employees or agents, provided that nothing in this Section 4(a) shall be construed to limit or restrict Executive from taking any action that Executive in good faith reasonably believes is necessary to fulfill Executive’s fiduciary obligations to the Company or from providing truthful information in connection with any legal proceeding, government investigation or other legal matter.

 

(b)           Company Obligations.  The Company has instructed the following individuals to refrain from making any statements, written or oral, on behalf of the Company, which would malign, defame or disparage the reputation or character of Executive:  Named Executive Officers, as listed in the Company’s most recent proxy statement and as of the Agreement Date, and members of the Company’s Board of Directors as of the Agreement Date.  None of the provisions set forth in this Section 4(b) shall be construed to limit or restrict the

 

  

4

  

Company from taking any action that the Company in good faith reasonably believes is necessary to fulfill the Company’s obligations owed to its shareholders, or from providing truthful information in connection with any legal proceeding, government investigation or other legal matter.

 

5.           Continued Obligations.

 

Following the Resignation Date, Executive shall continue to adhere to the terms and conditions set forth in Section 8 (Restrictive Covenants), Section 9 (Patents, Copyrights and Related Materials), and Section 15 (Other Post-Termination Obligations) of the Employment Agreement.  Executive agrees that such terms and conditions are reasonable and necessary to protect the legitimate interests of the Company and that any violation of these sections of the Employment Agreement by Executive may cause substantial and irreparable harm to the Company.  Executive agrees that the Company may seek any Remedies set forth in Section 10 of the Employment Agreement should Executive violate Section 8, Section 9 or Section 15 of the Employment Agreement and/or Section 4.  The Parties specifically agree that Section 8, Section 9, Section 10 and Section 15 of the Employment Agreement are incorporated hereto by reference and integrated herein.

 

6.           Miscellaneous.

 

(a)           Defined Terms.  Capitalized terms not otherwise defined herein shall have the meanings ascribed to them in this Agreement and the sections of the Employment Agreement integrated into this Agreement.  For the sake of clarity, references to “Section(s)” herein without more shall refer to the Sections of this Agreement; references to sections of the Employment Agreement, including those integrated into this agreement, include a reference to the Employment Agreement.

 

(b)           Tax Matters. Executive acknowledges that the Company shall deduct from any compensation payable to Executive or payable on his behalf under this Agreement all applicable federal, state, and local income and employment taxes and other taxes and withholdings required by law.

 

(c)           Public Announcement. The Company shall give Executive a reasonable opportunity to review and comment on any public announcement relating to this Agreement.

 

(d)           Company Approvals.  The Company represents and warrants to Executive that it (and to the extent required, the Board) has taken all corporate action necessary to authorize this Agreement.

 

(e)           No Mitigation. In no event shall Executive be obligated to seek other employment or take any other action to mitigate the amounts payable to Executive under any of the provisions of this Agreement, nor shall the amount of any payment hereunder be reduced by any compensation earned as a result of Executive’s employment by another employer.

 

(f)           Enforcement.  If the Company fails to pay any amount provided under this Agreement when due, the Company shall pay interest on such amount at a rate equal to the rate of interest charged from time to time by the Company’s principal revolving credit lender, or if

 

  

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there is no principal revolving credit lender, the prime commercial lending rate announced by Wells Fargo Bank (or its successor) as in effect from time to time; but in no event more than the highest legally permissible interest rate permitted for this Agreement by applicable law. In the event of any proceeding, arbitration or litigation for breach of this Agreement, the prevailing party shall be entitled to recover his or its reasonable costs and attorney’s fees.

 

(g)           Beneficiary.  If Executive dies before receiving all of the amounts payable to him in accordance with the terms and conditions of this Agreement, such amounts shall be paid to the beneficiary (“Beneficiary”) designated by Executive in writing to the Company during his lifetime, or if no such Beneficiary is designated, to Executive’s estate. Executive may change his designation of Beneficiary or Beneficiaries at any time or from time to time without the consent of any prior Beneficiary, by submitting to the Company in writing a new designation of Beneficiary.

 

(h)           Governing Law.  All matters relating to the interpretation, construction, application, validity and enforcement of this Agreement shall be governed by the laws of the State of Minnesota without giving effect to any choice or conflict of law provision or rule, whether of the State of Minnesota or any other jurisdiction, that would cause the application of laws of any jurisdiction other than the State of Minnesota.

 

(i)           Jurisdiction; Venue.  Because (i) the Company is a Minnesota corporation based in Hennepin County, Minnesota, (ii) its significant contracts are governed by Minnesota law, and (iii) it is mutually agreed that it is in the best interests of Company customers, vendors, suppliers and employees that a uniform body of law consistently interpreted be applied to the relationships that the Company has with other such persons and entities, this Agreement is deemed entered into in the State of Minnesota between the Company and Executive.  The Hennepin County District Court or the United States District Court for the District of Minnesota will have exclusive jurisdiction and venue over any disputes between the Company and Executive in any action arising out of or related to either Executive’s or the Company’s obligations under this Agreement.  Executive and the Company consent to jurisdiction of those courts and hereby waive any defense of lack of personal jurisdiction or forum non conveniens.

 

(j)           Entire Agreement.  Except as otherwise provided herein, this Agreement contains the entire agreement of the parties relating to the subject matter hereof and supersedes all prior agreements and understandings with respect to such subject matter, including the Employment Agreement, with the exception of those sections of the Employment Agreement that have been integrated pursuant to Section 5, and the Parties hereto have made no agreements, representations or warranties relating to the subject matter of this Agreement that are not set forth herein.

 

(k)           Amendments.  No amendment or modification of this Agreement shall be deemed effective unless made in writing and signed by the parties hereto.

 

(l)           No Waiver.  No term or condition of this Agreement shall be deemed to have been waived, except by a statement in writing signed by the party against whom enforcement of the waiver is sought.  Any written waiver shall not be deemed a continuing waiver unless specifically stated, shall operate only as to the specific term or condition waived

 

  

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and shall not constitute a waiver of such term or condition for the future or as to any act other than that specifically waived.

 

(m)           Assignment.  This Agreement shall not be assignable, in whole or in part, by either party without the written consent of the other party, except that the Company may, without the written consent of Executive, assign its rights and obligations under this Agreement to any corporation or other business entity (i) with which the Company may merge or consolidate, or (ii) to which the Company may sell or transfer all or substantially all of its assets or capital stock. No such assignment without the written consent of Executive shall discharge the Company from liability hereunder, and such assignee jointly and severally with the Company shall thereafter be deemed to be the “Company” for purposes of all terms and conditions of this Agreement, including this Section 6(m).

 

(n)           Separate Representation.  Executive hereby acknowledges that he has sought and received independent advice from counsel of Executive’s own selection in connection with this Agreement and has not relied to any extent on any director, officer, or stockholder of, or counsel to, the Company in deciding to enter into this Agreement. The Company shall promptly reimburse Executive for reasonable attorneys’ fees and costs incurred by Executive in obtaining legal advice in connection with the negotiation and execution of this Agreement, upon receipt by the Company of appropriate documentation of such fees and costs.

 

(o)           Notices.  Any notice hereunder shall be in writing and shall be deemed to have been duly given if delivered by hand, sent by reliable next-day courier, or sent by registered or certified mail, return receipt requested, postage prepaid, to the party to receive such notice addressed as follows:

 

If to the Company:

 

ValueVision Media, Inc.

6740 Shady Oak Road

Eden Prairie, MN  55344-3433

Attention:  General Counsel

and to:

ValueVision Media, Inc.

6740 Shady Oak Road

Eden Prairie, MN  55344-3433

Attention:  Board of Directors

If to Executive:

 

Keith R. Stewart

20305 Lakeview Avenue

Deephaven, MN  55331

  

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or addressed to such other address as may have been furnished to the sender by notice hereunder. All notices shall be deemed given on the date on which delivered if delivered by hand or on the date sent if sent by overnight courier or certified mail, except that notice of change of address will be effective only upon receipt by the other party.

 

(p)           Counterparts.  This Agreement may be executed in any number of counterparts, and such counterparts executed and delivered, each as an original, shall constitute but one and the same instrument.

 

(q)           Severability.  Subject to Section 5, to the extent that any portion of any provision of this Agreement shall be invalid or unenforceable, it shall be considered deleted herefrom and the remainder of such provision and of this Agreement shall be unaffected and shall continue in full force and effect.

 

(r)           Captions and Headings.  The captions and paragraph headings used in this Agreement are for convenience of reference only and shall not affect the construction or interpretation of this Agreement or any of the provisions hereof.

 

[Signature page immediately following]

 

  

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IN WITNESS WHEREOF, Executive and the Company have executed this Transition and Separation Agreement as of the Agreement Date.

 

	 	VALUEVISION MEDIA, INC.
	 	 	 
	  	
By

	
/s/ Teresa Dery

	  	  	
Teresa Dery

	  	  	
Senior Vice President and General Counsel

	  	  	  
	  	  	  
	  	  	  
	  	
/s/ Keith R. Stewart

	  	
KEITH R. STEWART

 

 

 

 

  

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EXHIBIT A

 

RELEASE OF CLAIMS

 

This Release of Claims (“Agreement”) is made and entered into by and between ValueVision Media, Inc. (the “Company”) and Keith R. Stewart (the “Executive”).

 

 

BACKGROUND

 

A.           The Company and Executive are parties to a Separation Agreement, dated June 22, 2014, that, among its terms, provides that the Company will pay Executive certain individually tailored severance benefits (the “Severance”) upon the termination of Executive’s employment under certain circumstances (the “Separation Agreement”).

 

 

B.            Under the Separation Agreement, the Company is not obligated to pay the Severance unless Executive has signed a release of claims in favor of the Company.  The parties intend this Agreement to be that release of claims.

 

NOW, THEREFORE, based on the foregoing and the terms and conditions below, the Company and Executive, desiring to amicably resolve any and all existing and potential disputes between them as of the date each executes this Agreement, and in consideration of the obligations and undertakings set forth below and intending to be legally bound, agree as follows.

 

1.           Company’s Obligations.  In return for “Executive’s Obligations” (as defined in Section 2 below), and provided that Executive signs this Agreement and does not exercise Executive’s rights to revoke or rescind Executive’s waivers of certain discrimination claims (as described in Section 5 below), the Company will pay to Executive the Severance.

 

2.           Executive’s Obligations.  In return for the Company’s Obligations in Section 1 above, Executive knowingly and voluntarily agrees to the following:

 

(a)           Executive hereby fully, finally and forever releases, waives, and discharges, to the maximum extent that the law permits, any and all legal and equitable claims against the Company that Executive has through the date on which Executive signs this Agreement.  This full and final release, waiver, and discharge extends to all and each of every legal and equitable claim(s) of any kind or nature whatsoever including, without limitation, the following:

 

(i)            All claims that Executive has now, whether Executive now knows about or suspects such claims;

 

(ii)           All claims for attorney’s fees;

 

(iii)           All rights and claims of age discrimination and retaliation under the Age Discrimination in Employment Act (“ADEA”) as amended by the Older Workers Benefit Protection Act of 1990 (“OWBPA”); and discrimination and retaliation claims of any kind or nature whatsoever under federal, state, or local law, including, for example, claims of discrimination and retaliation under Title VII of the Civil Rights Act of 1964,

 

  

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the Americans With Disabilities Act (“ADA”), and the Minnesota Human Rights Act (“MHRA”);

 

(iv)           All claims arising out of Executive’s employment and Executive’s separation from employment with the Company including, for example, any alleged breach of contract, breach of implied contract, wrongful or illegal termination, defamation, invasion of privacy, fraud, promissory estoppel, and infliction of emotional distress;

 

(v)           All claims for any other compensation, including vacation pay, other paid time off, severance pay, other severance benefits, incentive opportunity pay, other grants of incentive compensation, grants of stock, and stock options;

 

(vi)           All claims under the Employee Retirement Security Act of 1974, as amended (“ERISA”); and

 

(vii)           All claims for any other alleged unlawful employment practices arising out of or relating to Executive’s employment or separation from employment with the Company.

 

(b)           Executive will not commence any civil actions against the Company except as necessary to enforce its obligations under this Agreement.  The Severance that Executive is receiving in this Agreement has a value that is greater than anything to which Executive is entitled.  Other than what Executive is receiving in this Agreement, the Company owes Executive nothing else in return for Executive’s Obligations.

 

(c)           The Parties agree that this Section 2 does not prohibit Executive from enforcing the terms and obligations imposed upon the Company under the Separation Agreement should the Company be in breach of said Separation Agreement.

 

3.           Certain Definitions.  For purposes of Section 2, “Executive” means Keith R. Stewart and any person or entity that has or obtains any legal rights or claims through Keith R. Stewart.  Further, the “Company” means ValueVision Media, Inc.; and any parent, subsidiary, and affiliated organization or entity in the present or past related to ValueVision Media, Inc.; and past and present officers, directors, members, governors, attorneys, employees, agents, insurers, successors, and assigns of, and any person who acted on behalf of or instruction of ValueVision Media, Inc.

 

4.           Other Provisions.

 

(a)           The Company has paid or will pay Executive in full for all reimbursable business expenses, earned annualized salary, bonus pay, and any other earnings through the last day of Executive’s employment.

 

(b)           This Agreement does not prohibit Executive from filing an administrative charge of discrimination with, or cooperating or participating in an investigation or proceeding conducted by, the Equal Employment Opportunity Commission or other federal or state regulatory or law enforcement agency.

 

  

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(c)           Nothing in this Agreement affects Executive’s rights in any benefit plan or program in which Executive was a participant while employed by the Company.  The terms of such plans and programs control Executive’s rights.

 

(d)           The Company will indemnify Executive as permitted by and pursuant to any agreement or policy that the Company has adopted relating to indemnification of directors, officers, and employees; and as permitted by and pursuant to any provision of the Company’s articles or by-laws relating to such indemnification.

 

(e)           Executive will continue to be covered as permitted by and pursuant to any policy of directors and/or officers liability insurance policy on the terms and conditions of the applicable policy documents.

 

(f)           The Company agrees to maintain directors and/or officers liability insurance covering Executive in amount, form and substance comparable to the policy in effect on the date hereof for a period of three (3) years following the date hereof.

 

5.           Executive’s Rights to Counsel, Consider, Revoke and Rescind.

 

(a)           The Company hereby advises Executive to consult with an attorney prior to signing this Agreement.

 

(b)           Executive further understands that Executive has 21 days to consider Executive’s release of rights and claims of age discrimination under the ADEA and OWBPA, beginning the date on which Executive receives this Agreement.  Executive agrees that he was provided this Agreement on June 21, 2014 for consideration.  If Executive signs this Agreement, Executive understands that Executive is entitled to revoke Executive’s release of any rights or claims under the ADEA and OWBPA within seven days after Executive has executed it, and Executive’s release of any rights or claims under the ADEA and OWBPA will not become effective or enforceable until the seven-day period has expired.

 

(c)           Executive understands that Executive may rescind Executive’s waiver of discrimination claims under the MHRA within 15 calendar days after the date on which Executive signs this Agreement.  To rescind this waiver, Executive must put the rescission in writing and deliver it to the Company by hand or mail within the 15-day period.  If Executive delivers the rescission by mail it must be:  (i) Postmarked within 15 calendar days after the date on which Executive signs this Agreement; (ii) addressed to the Company, c/o Teresa Dery, 6740 Shady Oak Road, Eden Prairie, MN  Minneapolis, MN 55344-3433; and (iii) sent by certified mail return receipt requested.

 

If Executive revokes or rescinds Executive’s waivers of discrimination claims as provided above, this Agreement will be null and void.

 

6.  Non-Admission.  The Company and Executive enter into this Agreement expressly disavowing fault, liability and wrongdoing, liability at all times having been denied.  Neither this Agreement, nor anything contained in it, will be construed as an admission by either of them of any liability, wrongdoing or unlawful conduct whatsoever.  If this Agreement is not executed, no term of this Agreement will be deemed an admission by either party of any right that he/it may have with or against the other.

 

7.  No Oral Modification or Waiver.  This Agreement may not be changed orally.  No breach of any provision hereof can be waived by either party unless in writing.  Waiver of

 

  

12

  

 

any one breach by a party will not be deemed to be a waiver of any other breach of the same or any other provision hereof.

 

8.  Governing Law.  This Agreement will be governed by the substantive laws of the State of Minnesota without regard to conflicts of law principles.

 

9.  Forum Selection-Jurisdiction and Venue.  Any disputes arising out of or related to this Agreement or any breach or alleged breach hereof shall be exclusively decided by the Hennepin County District Court in Minnesota.  Executive hereby irrevocably consents to the personal jurisdiction of this court in connection with any dispute related to this Agreement, and he expressly waives any defense of inconvenient forum.  He further waives any bond, surety, or other security that might be required of the Company with respect to any such dispute.

 

10.  Counterparts.  This Agreement may be executed in any number of counterparts, and each such counterpart will be deemed to be an original instrument, and all such counterparts together will constitute but one agreement.

 

11.  Blue Pencil Doctrine.  In the event that any provision of this Agreement is unenforceable under applicable law, the validity or enforceability of the remaining provisions will not be affected.  To the extent any provision of this Agreement is judicially determined to be unenforceable, a court of competent jurisdiction may reform any such provision to make it enforceable.  The provisions of this Agreement will, where possible, be interpreted so as to sustain its legality and enforceability.

 

12.  Agreement Freely Entered Into.  Executive and the Company have voluntarily and free from coercion entered into this Agreement.  Each has read this Agreement carefully and understands all of its terms, and has had the opportunity to discuss this Agreement with his/its own attorney prior to its execution.  In agreeing to sign this Agreement, neither party has relied on any statements or explanations made by the other party, their respective agents or attorneys except as set forth in this Agreement.  Both parties agree to abide by this Agreement.

 

 

	
Dated

	  	  	  	  
	  	  	  	
Keith R. Stewart

	  	  	  	  	  
	
Dated

	  	  	
ValueVision Media, Inc.

	  	  	  	  
	  	  	  	
By

	  
	  	  	  	
Its

	  

 

 

13

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