Document:

Exhibit 10.2

      

      

      

      SEVERANCE AGREEMENT

      

      

      This SEVERANCE AGREEMENT (this “Agreement”) is effective as of October 5, 2020, or such earlier date as Employee commences employment with the CyrusOne Group
        (as defined below) on or after the date of execution of this Agreement by the parties hereto (the “Effective Date”), by and between John Hatem (“Employee”) and CyrusOne
        Management Services LLC, a Delaware Limited Liability Company (“Employer”).

      

      

      WHEREAS, it is in the best interests of Employer, its parent CyrusOne Inc. (“CyrusOne”) and the shareholders of
        CyrusOne to assure that Employer and CyrusOne will have Employee’s full attention and dedication to Employer and CyrusOne;

      

      

      NOW, THEREFORE, in consideration of the above and the promises and mutual obligations of the parties contained herein, and for other valuable consideration,
        the receipt and sufficiency of which are hereby acknowledged, Employer and Employee agree as follows:

      

      

      1.          Term of Agreement.  The term of this Agreement shall be the period commencing on the Effective Date and ending on the date of Employee’s termination of employment with the CyrusOne Group for any
        reason, other than a termination entitling Employee to payments and benefits under Section 2 or 3.  Notwithstanding anything in this Agreement to the contrary, the provisions of this Agreement shall survive Employee’s termination of employment
        hereunder to the extent necessary to enable the parties to enforce their respective rights hereunder.  As of the Effective Date, the “CyrusOne Group” means Employer, CyrusOne LP, CyrusOne, and their
        respective subsidiaries.  Notwithstanding the foregoing, this Agreement shall be null and void ab initio in the event Employee does not commence employment with the CyrusOne Group on or prior to October 5, 2020.

      

      

      

      2.          Termination by Employer Other than for Cause, Death or Disability or by Employee for Good Reason.  In the event that Employee’s employment with Employer is actually terminated (x) by Employer for
        any reason other than Employee’s Terminating Disability or death, for Cause or under circumstances described in Section 3, or (y) by Employee for Good Reason, other than under circumstances described in Section 3, then, in addition to Employee’s
        right to receive the Accrued Obligations:

      

      

      (a)          on the date which is sixty (60) days after Employee’s termination of employment with Employer, subject to Employer’s receipt of Employee’s executed and irrevocable release as provided
        in Section 5, Employer shall pay Employee in a lump sum cash payment an amount equal to a full year of Employee’s annual Base Salary at the rate in effect at the time of such termination; and

      

      

      (b)          Employer will (i) pay or reimburse Employee’s premium payments for continued health, dental and vision coverage under Employer’s group health plan under COBRA that exceed the active
        employee rate, if Employee timely elects and remains eligible for COBRA coverage, until the earlier of the end of the Severance Period and the date that Employee becomes eligible for other group health plan coverage, and (ii) pay Employee as
        additional severance as set forth in Section 2(a) a single lump sum determined by Employer as adequate to convert and continue Employer’s group life coverage as an individual policy for the Severance Period.  Employer will include the COBRA
        payments and life insurance payment in Employee’s taxable income.

      

      

      
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      3.          Terminations in Connection with a Change in Control.  In the event that there is both a Change in Control and either (A) Employee terminates his employment with Employer for Good Reason within one
        (1) year after the Change in Control or (B) Employee’s employment with Employer is actually terminated by Employer within one (1) year after the Change in Control for any reason other than Employee’s Terminating Disability or death or for Cause,
        then, in addition to Employee’s right to receive the Accrued Obligations:

      

      

      (a)          on the date which is sixty (60) days after Employee’s termination of employment with Employer, subject to Employer’s receipt of Employee’s executed and irrevocable release as provided
        in Section 5, Employer shall pay Employee in a lump sum cash payment an amount equal to two (2) times the sum of (i) a full year of Employee’s annual Base Salary at the rate in effect at the time of such termination and (ii) Employee’s annual Bonus
        target in effect at the time of such termination (in both cases without regard to any decrease in Base Salary or Bonus target that constituted Good Reason);

      

      

      (b)          (i) all outstanding stock options and other outstanding long-term incentive awards (other than restricted stock or restricted stock units) issued by the CyrusOne Group to Employee with
        vesting based only on continued service for a period of time shall become vested and exercisable (to the extent not already so vested) as of immediately before such termination (and Employee shall be afforded the opportunity to exercise them until
        the earlier of (A) the expiration date of the award and (B) the end of the Severance Period), (ii) any restricted stock or restricted stock units issued by the CyrusOne Group to Employee with vesting based only on continued service for a period of
        time shall become vested as of immediately before such termination, and (iii) any outstanding equity incentive awards pursuant to which earning any portion of the award or vesting in the award depends on performance shall be treated in accordance
        with the applicable provisions of the applicable incentive plan or related award agreements; and

      

      

      (c)          Employer will (i) pay or reimburse Employee’s premium payments for continued health, dental and vision coverage under Employer’s group health plan under COBRA that exceed the active
        employee rate, if Employee timely elects and remains eligible for COBRA coverage, until the earlier of the end of the Severance Period and the date that Employee becomes eligible for other group health plan coverage, and (ii) pay Employee as
        additional severance as set forth in Section 3(a) a single lump sum determined by Employer as adequate to convert and continue Employer’s group life coverage as an individual policy for the Severance Period.  Employer will include the COBRA
        payments and life insurance payment in Employee’s taxable income.

      

      

      4.          Section 280G.  Notwithstanding any other provision in this Agreement, in the event that it is determined (by the reasonable computation of an independent nationally recognized certified public
        accounting firm that shall be selected by Employer prior to the applicable Change in Control (the “Accountant”)) that the aggregate amount of the payments, distributions, benefits and entitlements of any type
        payable by Employer or any affiliate to or for the benefit of Employee (including any payment, distribution, benefit or entitlement made by any person or entity effecting a Change in Control), in each case, that could be considered “parachute
        payments” within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”) (such payments, the “Parachute Payments”) that, but for this
        Section 4 would be payable to Employee, exceeds the greatest amount of Parachute Payments that could be paid to Employee without giving rise to any liability for any excise tax imposed by Section 4999 of the Code (or any successor 

      

      

      
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      provision thereto) or any similar tax imposed by state or local law, or any interest or penalties with respect to such tax (such tax or taxes, together with any such interest or penalties, collectively referred to as the “Excise Tax”), then the aggregate amount of Parachute Payments payable to Employee shall not exceed the amount which produces the greatest after-tax benefit to Employee after taking into account any Excise Tax to
        be payable by Employee.  For the avoidance of doubt, this provision shall reduce the amount of Parachute Payments otherwise payable to Employee, if doing so would place Employee in a more favorable net after-tax economic position as compared with
        not reducing the amount of Parachute Payments (taking into account the Excise Tax payable in respect of such Parachute Payments).  Parachute Payments will be reduced by first reducing amounts considered to be nonqualified deferred compensation
        subject to Section 409A of the Code (“Section 409A”); provided that, in no event may the Parachute Payments be reduced in a manner that would subject Employee to additional taxation under Section
        409A. 

      

      

      5.          Severance Payments and Release.  Upon termination of Employee’s employment with the CyrusOne Group as a result of an event of termination described in Section 2 or Section 3 and except for
        Employer’s payment of the Accrued Obligations and other amounts described in Section 2 or Section 3, as applicable, all further compensation under this Agreement shall terminate.  Employee further agrees that as a condition precedent to Employee’s
        receipt of payments and benefits under Section 2 or Section 3, as applicable (other than the Accrued Obligations), upon the request of Employer and by a reasonable deadline set by Employer (to ensure that payments can be made by the dates specified
        in Section 2 or Section 3, as applicable, following the expiration of the time for revocation of such release as permitted by law), Employee shall execute and not revoke a release of claims against all members of the CyrusOne Group and their
        respective officers, directors, and employees, which release shall contain customary and appropriate terms and conditions as determined in good faith by Employer, but which terms and conditions shall not require Employee to waive any right to
        indemnification and continued directors and officers insurance coverage, and shall not, except to the extent reasonably necessary to provide Employer with comparable protections that Employer reasonably determines comply with intervening changes in
        applicable law, impose any additional restrictive covenants upon Employee’s activities following termination other than those already imposed by this Agreement and the Non-Competition

        Agreement.

      

      

      6.          Additional Severance Terms.

      

      

      (a)          When an amount (referred to in this Section 6(a) as the “principal sum”) that is payable under Section 2(a) or Section 3(a) on the date which is
        sixty (60) days after Employee’s termination of employment with Employer is paid, such payment shall also include an amount that is equal to the amount of interest that would have been earned by such principal sum for the period from the date of
        Employee’s termination of employment with Employer to the date which is sixty (60) days after Employee’s termination of employment had such principal sum earned interest for such period at an annual rate of interest of three and one-half percent
        (3.5%).

      

      

      (b)          To the extent that any of the benefits applicable to medical, dental, and vision coverage provided to Employee under Section 2(b) or Section 3(c) (referred to in this Section 6(b) as “healthcare plan benefits”) are subject to Federal income taxation and are not exempt from Section 409A of the Code, the following conditions shall apply:

      

      

      
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      (i)          the amount of healthcare plan benefits provided or paid during any tax year of Employee under Section 2(b) or Section 3(c) shall not affect the amount of healthcare plan benefits that
        are provided or eligible for payment in any other tax years of Employee (disregarding any limit on the amount of medical expenses, as defined in Section 213(d) of the Code, that may be paid or reimbursed over some or all of the period in which such
        coverage is in effect because of a lifetime, annual or similar limit on any covered person’s expenses that can be paid or reimbursed under Employer’s health care plans under which the terms of such coverage is determined);

      

      

      (ii)          the payment or reimbursement of an expense for healthcare plan benefits that is eligible for payment or reimbursement shall not be made prior to the date immediately following the
        date which is sixty (60) days after Employee’s termination of employment with Employer and shall in any event be made no later than the last day of the tax year of Employee next following the tax year of Employee in which the expense is incurred;
        and

      

      

      (iii)          Employee’s right to healthcare plan benefits shall not be subject to liquidation or exchange for any other benefit.

      

      

      (c)         Employee shall not be required to seek or accept other employment, or otherwise to mitigate damages, as a condition to the receipt of any payments or benefits under this Agreement, and
        the payments and benefits under this Agreement shall not be offset by any compensation or other amounts received from any other source.

      

      

      (d)         This Agreement and the amounts payable and other benefits hereunder are intended to comply with, or otherwise be exempt from, Section 409A.  This Agreement shall be administered,
        interpreted and construed in a manner consistent with Section 409A.  If any provision of this Agreement is found not to comply with, or otherwise not to be exempt from, the provisions of Section 409A, it shall be modified and given effect, in the
        sole discretion of the Board or Compensation Committee and without requiring Employee’s consent, in such manner as the Board or Compensation Committee determines to be necessary or appropriate to comply with, or to effectuate an exemption from,
        Section 409A.  Each payment under this Agreement shall be treated as a separate identified payment for purposes of Section 409A.  The preceding provisions shall not be construed as a guarantee by Employer of any particular tax effect to Employee of
        the payments and other benefits under this Agreement.

      

      

      (i)          With respect to any reimbursement of expenses of, or any provision of in-kind benefits to, Employee, as specified under this Agreement, such reimbursement of expenses or provision of
        in-kind benefits shall be subject to the following conditions:  (A) the expenses eligible for reimbursement or the amount of in-kind benefits provided in one taxable year shall not affect the expenses eligible for reimbursement or the amount of
        in-kind benefits provided in any other taxable year, except for any medical reimbursement arrangement providing for the reimbursement of expenses referred to in Section 105(b) of the Code; (B) the reimbursement of an eligible expense shall be made
        no later than the end of the year after the year in which such expense was incurred; and (C) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit.

      

      

      
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      (ii)          If a payment obligation under this Agreement arises on account of Employee’s termination of employment and if such payment is “deferred compensation” (as defined under Treasury
        Regulation Section 1.409A-1(b)(1)) subject to Section 409A, the payment shall be paid only in connection with Employee’s “separation from service” (as defined in Treas. Reg. Section 1.409A-1(h)).  If a payment obligation under this Agreement arises
        on account of Employee’s “separation from service” (as defined under Treas. Reg. Section 1.409A-1(h)) while Employee is a “specified employee” (as defined under Treas. Reg. Section 1.409A-1(h) and using the identification methodology selected by
        Employer from time to time), any payment of “deferred compensation” (as defined under Treasury Regulation Section 1.409A-1(b)(1), after giving effect to the exemptions in Treasury Regulation Sections 1.409A-1(b)(3) through (b)(12)) that is
        scheduled to be paid within six months after such separation from service shall accrue without interest and shall be paid on the first day of the seventh month beginning after the date of Employee’s separation from service or, if earlier, within
        fifteen (15) days following Employee’s death.

      

      

      7.          Other Terminations.  In the event Employee’s employment with Employer is actually terminated for any reason other than those giving rise to payments under Section 2 or Section 3, including
        Employee’s resignation other than for Good Reason, termination by Employer for Cause or due to Employee’s death or Terminating Disability, then Employee shall be entitled only to the Accrued Obligations.

      

      

      8.          Certain Defined Terms.  To the extent provided below, the following provisions apply under this Agreement.

      

      

      (a)          “Accrued Obligations” shall mean (i) any Base Salary accrued through the date of termination, (ii) any Bonus earned but not yet paid for the
        year preceding the year in which the termination occurs, subject to certification by the Compensation Committee of any performance goals applicable to such bonus, (iii) reimbursement for any business expenses properly incurred prior to the date of
        termination and (iv) any nonforfeitable amounts or benefits, including continuation and conversion rights, provided under any employee plan, not including any severance, separation pay or supplemental unemployment benefit plan, in accordance with
        the terms of such plan.

      

      

      (b)          “Base Salary” shall mean Employee’s annual base salary.

      

      

      (c)          “Board” shall mean the Board of Directors of CyrusOne.

      

      

      (d)          “Bonus” shall mean Employee’s annual bonus.

      

      

      (e)          “Cause” shall mean the Board determines that there has been fraud, misappropriation, embezzlement or misconduct constituting serious criminal
        activity on the part of Employee.

      

      

      (f)          “Change in Control” has the meaning set forth in the CyrusOne Restated 2012 Long Term Incentive Plan, as amended through the date hereof.

      

      

      
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      (g)          “COBRA” shall mean the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended.

      

      

      (h)          “Compensation Committee” shall mean the Compensation Committee of the Board.

      

      

      (i)          “Good Reason” shall be deemed to have occurred if, without Employee’s consent, (i) there is a material adverse change in Employee’s reporting
        responsibilities or there is otherwise a material reduction by the CyrusOne Group in Employee’s authority, reporting relationship or responsibilities, including without limitation a requirement that he report to anyone other than the Chief
        Executive Officer or the Board, (ii) there is a material reduction by the CyrusOne Group in Employee’s Base Salary or Bonus target or (iii) Employee’s principal place of employment is changed to a location more than fifty (50) miles outside the
        Dallas, Texas metro area.  Notwithstanding the foregoing, no such event shall constitute Good Reason unless Employee notifies Employer of the occurrence of such event within ninety (90) days after Employee first has actual knowledge of such
        occurrence, Employer fails to cure such event to Employee’s reasonable satisfaction within thirty (30) days after receipt of such notice, and Employee resigns within thirty (30) days after the end of such cure period.

      

      

      (j)          “Non-Competition Agreement” shall mean the Non-Disclosure and Non-Competition Agreement entered into between Employee and Employer.

      

      

      (k)          “Severance Period” shall mean the one (1) year period beginning at the time of the termination of Employee’s employment with the CyrusOne Group.

      

      

      (l)         “Terminating Disability” shall mean any physical or mental infirmity for which Employee receives disability benefits under any disability plans
        made available to Employee by the CyrusOne Group (“Disability Plans”), over a period of one hundred twenty (120) consecutive working days during any twelve (12) consecutive month period, or if longer, a
        period equal to the elimination period under any Disability Plan applicable to Employee.

      

      

      9.          Withholdings.  All amounts payable under this Agreement will be subject to withholdings as required by law.

      

      

      10.         Remedies.

      

      

      (a)          Except for claims by the CyrusOne Group arising under or relating to the Non-Competition Agreement, the parties hereto agree to submit to
        final and binding arbitration any dispute, claim or controversy, relating to Employee’s employment with or termination from the CyrusOne Group, whether for breach of this Agreement or violation of any of Employee’s statutory or common law rights
        (herein, a “claim”).  The parties further agree that the arbitrability of any dispute between them, including whether or to what extent the provisions of this Section 10 are unconscionable or otherwise
        unenforceable, is a decision that will be submitted exclusively to the arbitrator, and will not be decided by any Federal or state court.

      

      

      (b)          This agreement to arbitrate and any resulting arbitration award are enforceable under and subject to the Federal Arbitration Act, 9 U.S.C. § 1 et seq. (the “FAA”).  If the FAA is 

      

      

      

      
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      held not to apply for any reason, then the laws of the State of Texas concerning the enforceability of arbitration agreements and awards (without regard to its conflicts of laws principles) shall govern this
        agreement to arbitrate and the arbitration award. 

      

      

      (c)          All of a party’s claims must be presented at a single arbitration hearing.  Any claim not raised at the arbitration hearing is waived and released.  The arbitration hearing shall take
        place in Dallas, Texas.

      

      

      (d)         The arbitration process shall be governed by the Employment Arbitration Rules and Mediation Procedures of the American Arbitration Association (“AAA”)

        except to the extent they are modified by this Agreement.  In the event that any provisions of this Section 10 are determined by AAA to be unenforceable or impermissibly contrary to AAA rules, then this Section 10 shall be modified as necessary to
        comply with AAA requirements.

      

      

      (e)         Employee has had an opportunity to review the AAA rules and the requirements that Employee must pay a filing fee, which Employer has agreed to split on an equal basis.

      

      

      (f)         The arbitrator shall be selected from a panel of arbitrators chosen by AAA, all of whom shall be currently licensed to practice law in Texas.  After the filing of a Request for
        Arbitration, AAA shall send simultaneously to Employer and Employee an identical list of names of persons chosen from the panel.  Each party shall have ten (10) days from the transmittal date in which to strike up to two (2) names, number the
        remaining names in order of preference, and return the list to AAA.

      

      

      (g)          Any pre-hearing disputes shall be presented to the arbitrator for expeditious, final, and binding resolution.

      

      

      (h)          The award of the arbitrator shall be in writing and shall set forth each issue considered and the arbitrator’s finding of fact and conclusions of law as to each such issue.

      

      

      (i)         The remedy and relief that may be granted by the arbitrator to Employee are limited to lost severance, benefits, cease and desist and affirmative relief, compensatory, liquidated, and
        punitive damages and reasonable attorney’s fees, and shall not include reinstatement or promotion.  If the arbitrator would have awarded reinstatement or promotion, but for the prohibition in this Agreement, the arbitrator may award reasonable
        front pay.  The arbitrator may assess to either party, or split, the arbitrator’s fee and expenses and the cost of the transcript, if any, in accordance with the arbitrator’s determination of the merits of each party’s position, but each party
        shall bear any cost for its witnesses and proof.

      

      

      (j)          Nothing herein shall prevent either party from taking the deposition of any witness where the sole purpose for taking the deposition is to use the deposition in lieu of the witness
        testifying at the hearing and the witness is, in good faith, unavailable to testify in person at the hearing due to poor health, residency, and employment more than fifty (50) miles from the hearing site, conflicting travel plans or other
        comparable reason.

      

      

      (k)          Employer and Employee consent that judgment upon the arbitration award may be entered in any Federal or state court that has jurisdiction.

      

      

      
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      (l)          Except for claims excluded from arbitration under Section 10(a), neither party shall commence or pursue any litigation on any claim that is or was subject to arbitration under this
        Agreement.

      

      

      (m)        All aspects of any arbitration procedure under this Agreement, including the hearing and the record of the proceedings, are confidential and shall not be open to the public, except to
        the extent the parties agree otherwise in writing, or as may be appropriate in any subsequent proceedings between the parties, or as may otherwise be appropriate in response to a governmental agency or legal process or as may be required to be
        disclosed by the CyrusOne Group pursuant to applicable law, rule, or regulation to which the CyrusOne Group is subject, including requirements of the Securities and Exchange Commission (the “SEC”) and any
        stock exchanges on which CyrusOne’s securities are listed.

      

      

      11.          Assignment.  This Agreement is personal to Employee and all rights and duties of Employee arising under this Agreement, and this Agreement itself, are non-assignable by Employee.  Employee
        acknowledges that Employer may elect to assign this Agreement to an affiliate, provided that such assignment, other than to a successor to Employer’s business that expressly adopts and agrees to be bound by this Agreement, shall not relieve
        Employer of its obligations under this Agreement, and Employer shall guarantee payment and performance of all such obligations by the assignee.

      

      

      12.          Notices.  Any notice required or permitted to be given under this Agreement shall be sufficient if in writing and if delivered personally or by certified mail to Employee at Employee’s place of
        residence as then recorded on the books of Employer or to Employer at its principal office.

      

      

      13.          Waiver.  No waiver or modification of this Agreement or the terms contained herein shall be valid unless in writing and duly executed by the party to be charged therewith.  The waiver by any party
        hereto of a breach of any provision of this Agreement by the other party shall not operate or be construed as a waiver of any subsequent breach by such party.

      

      

      14.          Governing Law; Venue.  This Agreement shall be governed by the laws of the State of Texas and, to the extent applicable, Federal law, and the parties agree to submit to the jurisdiction of the
        state and Federal courts sitting in Dallas, Texas counties for all disputes not covered by Section 10.

      

      

      15.          Entire Agreement.  This Agreement, together with the Non-Competition Agreement and Employee’s offer letter from CyrusOne, contains the entire agreement of the parties with respect to Employee’s
        employment by Employer, and supersedes any and all prior agreements between or among the parties.  There are no other contracts, agreements, or understandings, whether oral or written, existing between them except as contained or referred to in
        this Agreement.

      

      

      16.          Severability.  In case one or more of the provisions of this Agreement is held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality or other enforceability shall
        not affect any other provisions hereof, and this Agreement shall be construed as if such invalid, illegal or unenforceable provisions have never been contained herein.

      

      

      
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      17.          Successors and Assigns.  Subject to the requirements of Section 11 above, this Agreement shall be binding upon Employee, Employer and Employer’s successors and assigns.

      

      

      18.          Protected Rights.

      

      

      (a)          Notwithstanding any other provision of this Agreement, nothing contained in this Agreement limits Employee’s ability to file a charge or complaint with the Equal Employment Opportunity
        Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, the SEC or any other federal, state or local governmental agency or commission (collectively, “Government Agencies”),

        or from providing truthful testimony in response to a lawfully issued subpoena or court order.  Employee understands that this Agreement does not limit his ability to communicate with any Government Agencies or otherwise participate in any
        investigation or proceeding that may be conducted by any Government Agency, including providing documents or other information, without notice to Employer.  In addition, Employee shall not be prohibited from providing any confidential information
        to the SEC, cooperating with or assisting in an SEC investigation or proceeding or receiving any monetary award as set forth in Section 21F of the Securities Exchange Act of 1934 or otherwise for information provided to the SEC.

      

      

      (b)          The federal Defend Trade Secrets Act of 2016 (the “Act”) provides immunity from liability in certain circumstances to Employer’s employees,
        contractors, and consultants for limited disclosures of Employer “trade secrets,” as defined by the Act. Specifically, Employer’s employees, contractors, and consultants may disclose trade secrets:  (i) in confidence, either directly or indirectly,
        to a Federal, state, or local government official, or to an attorney, “solely for the purpose of reporting or investigating a suspected violation of law,”; or (ii) “in a complaint or other document filed in a lawsuit or other proceeding, if such
        filing is made under seal.” Additionally, employees, contractors, and consultants who file lawsuits for retaliation by an employer for reporting a suspected violation of law may use and disclose related trade secrets in the following manner:  (A)
        the individual may disclose the trade secret to his/her attorney; and (B) the individual may use the information in the court proceeding, as long as the individual files any document containing the trade secret under seal and does not otherwise
        disclose the trade secret “except pursuant to court order.”

      

      

      19.          Counterparts.  This Agreement may be executed in several counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument.  Signatures
        delivered by facsimile or electronic means (including by “pdf”) shall be deemed effective for all purposes.

      

      

      [Signature page follows]

      

      

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

      

      

      

      

      
        	 	CYRUSONE MANAGEMENT SERVICES LLC,	 
	 	 	 	 
	
                

                

              	
                by: 

              	/s/ Robert M. Jackson 	 
	 	 	Name:	Robert M. Jackson 

              	 
	 	 	Title:	Executive Vice President, General Counsel and Secretary 

              	 
	 	 	 	 
	 	Date: 

              	September 1, 2020 

              	 

      

      

      

      
        	 	EMPLOYEE,	 
	 	 	 	 
	
                

                

              	
                by: 

              	/s/ John Hatem 	 
	 	 	Name:	John Hatem 

              	 
	 	 	

              	 	 
	 	Date:	September 1, 2020 

              	 

      

      

      

      

      

    

    

    

    

    

  

  -9-Exhibit
10.1

 

Execution
Version

 

First
Amendment to Credit Agreement

 

This
First Amendment to Credit Agreement (herein, the “Amendment”) is entered into as of August 31, 2020, by
and among Lawson Products, Inc., a Delaware corporation (the “Company”), Lawson Products, Inc.,
an Illinois corporation (“Lawson Illinois”), Baron Divestiture Company, an Illinois corporation (“Baron”
and together with the Company and Lawson Illinois, individually, each a “U.S. Borrower” and, collectively, the “U.S.
Borrowers”), Lawson Products Canada Inc., a British Columbia corporation (“Lawson Products Canada”)
and The Bolt Supply House Ltd., an Alberta corporation (“Bolt Supply” and together with Lawson Products Canada,
individually, each a “Canadian Borrower” and, collectively, the “Canadian Borrowers”; the
Canadian Borrowers and the U.S. Borrowers, individually, each a “Borrower” and, collectively, the “Borrowers”),
the other Loan Parties identified on the signature page hereto, the Lenders identified on the signature pages hereto,
and JPMorgan Chase Bank, N.A., individually as a Lender, as an Issuing Bank and
as Administrative Agent.

 

Preliminary
Statements

 

A.           The
Borrowers, the other Loan Parties, the Lenders and the Administrative Agent are parties to that certain Credit Agreement dated
as of October 11, 2019 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit
Agreement”). All capitalized terms used herein without definition shall have the same meanings herein as such terms
have in the Credit Agreement (as amended hereby).

 

B.            The
Borrowers have requested that the Administrative Agent and Lenders make certain amendments to the Credit Agreement, as more fully
described herein, and the Lenders party hereto are willing to do so under the terms and conditions set forth in this Amendment.

 

Now,
Therefore, for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

Section 1.Amendments.

 

Upon
the satisfaction of the conditions precedent set forth in Section 2 below, the Credit Agreement shall be and hereby is amended
as follows:

 

1.1.          Section 1.01
of the Credit Agreement shall be amended by amending and restating the following defined terms to read in their entirety as follows:

 

“Issuing
Bank Sublimit” means, as of the First Amendment Date, (i) in the case of Chase, (x) $40,000,000 at all times
prior to the one-year anniversary of the First Amendment Date and (y) $15,000,000 at all times from and after the one-year
anniversary of the First Amendment Date, and (ii) such amount as shall be designated to the Administrative Agent and the
Borrower Representative in writing by an Issuing Bank; provided that any Issuing Bank shall be permitted at any time to increase
or reduce its Issuing Bank Sublimit upon providing five (5) days’ prior written notice thereof to the Administrative
Agent and the Borrowers.

 

     

     

    

 

1.2.          Section 1.01
of the Credit Agreement shall be amended by adding the following defined term in the appropriate alphabetical position therein,
which shall read as follows:

 

“First
Amendment Date” means August 31, 2020.

 

1.3.          Clause
(i) of Section 2.06(b) of the Credit Agreement shall be amended and restated to read as follows: “(i) the
Dollar Equivalent of the aggregate LC Exposure shall not exceed (x) $40,000,000 at any time prior to the one-year anniversary
of the First Amendment Date and (y) $15,000,000 at any time from and after the one-year anniversary of the First Amendment
Date.”

 

1.4.          Section 6.01
of the Credit Agreement shall be amended by (i) deleting “and” at the end of clause (e), (ii) replacing
the “.” at the end of clause (f) with “; and”, and (iii) adding a new clause (g) to
read in its entirety as follows:

 

(g)            Indebtedness
in respect of the deferred portion, in an amount up to $36,000,000, of the purchase price payable to NCH Corporation and NCH Canada, Inc.
(together, “NCH”) in connection with the Permitted Acquisition of the Partsmaster division of NCH; provided
that such Indebtedness may be supported by a Letter of Credit but shall otherwise be unsecured.

 

Section 2.Conditions
Precedent.

 

The
effectiveness of this Amendment is subject to the satisfaction of the following condition precedent: the Borrowers, the other
Loan Parties, the Required Lenders and the Administrative Agent shall have executed and delivered this Amendment.

 

Section 3.Representations.

 

In
order to induce the Administrative Agent and the Lenders to execute and deliver this Amendment, each Loan Party hereby represents
to the Administrative Agent and the Lenders that as of the date hereof (a)  the representations and warranties set forth
in Article 3 of the Credit Agreement are true and correct in all material respects (except to the extent already qualified
as to materiality, in which case they are true and correct in all respects), except to the extent the same expressly relate to
an earlier date in which case they are true and correct in all material respects as of such earlier date (except to the extent
already qualified as to materiality, in which case they are true and correct in all respects), (b)  no Default or Event of
Default has occurred and is continuing under the Credit Agreement or shall result after giving effect to this Amendment and (c) each
Loan Party has taken all necessary action to authorize it to execute, deliver and perform its obligations under this Amendment
in accordance with the terms hereof and to consummate the transactions contemplated hereby, and (d) this Amendment has been
duly executed and delivered by the Loan Parties and is the legal, valid and binding obligation of each Loan Party, enforceable
in accordance with its terms except to the extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general principles
of equity.

 

    -2- 

     

    

 

Section 4.Miscellaneous.

 

4.1.          The
Loan Parties heretofore executed and delivered to the Administrative Agent the Security Agreements and certain other Collateral
Documents. Each of the Loan Parties hereby acknowledges and agrees that the Liens created and provided for by the Collateral Documents
continue to secure, among other things, the Secured Obligations; and the Collateral Documents and the rights and remedies of the
Administrative Agent and the Lenders thereunder, the obligations of the Loan Parties, as applicable, thereunder, and the Liens
created and provided for thereunder remain in full force and effect and shall not be affected, impaired or discharged hereby (except
as specifically contemplated hereby). Nothing herein contained shall in any manner affect or impair the priority of the Liens
created and provided for by the Collateral Documents as to the indebtedness which would be secured thereby prior to giving effect
to this Amendment.

 

4.2.          Except
as specifically amended herein, the Credit Agreement shall continue in full force and effect in accordance with its original terms.
Reference to this specific Amendment need not be made in the Credit Agreement, the Notes, or any other instrument or document
executed in connection therewith, or in any certificate, letter or communication issued or made pursuant to or with respect to
the Credit Agreement, any reference in any of such items to the Credit Agreement being sufficient to refer to the Credit Agreement
as amended hereby.

 

4.3.          In
accordance with, and subject to, Section 9.03 of the Credit Agreement, the Borrowers agree to pay on demand all reasonable
and documented costs and expenses of or incurred by the Administrative Agent in connection with the negotiation, preparation,
execution and delivery of this Amendment, including the reasonable and documented fees and expenses of counsel for the Administrative
Agent.

 

4.4.          This
Amendment may be executed in any number of counterparts, and by the different parties on different counterpart signature pages,
all of which taken together shall constitute one and the same agreement. Any of the parties hereto may execute this Amendment
by signing any such counterpart and each of such counterparts shall for all purposes be deemed to be an original. Delivery of
a counterpart hereof by facsimile transmission or by e-mail transmission of an Adobe portable document format file (also known
as a “PDF” file) shall be effective as delivery of a manually executed counterpart hereof. This
Amendment, and the rights and duties of the parties hereto, shall be construed and determined in accordance with the laws of the
State of Illinois without regard to conflicts of law principles that would require application of the laws of another jurisdiction.

 

[Signature
Pages to Follow]

 

    -3- 

     

    

 

This
First Amendment to Credit Agreement is entered into as of the date and year first above written.

 

	 	“Borrowers”
	 	 
	 	Lawson
    Products, Inc., a Delaware corporation
	 	 
	 	By	/s/
    Ronald Knutson
	 	Name 	Ronald
    Knutson
	 	Title 	EVP,
    CFO, Treasurer and Controller
	 	 
	 	Lawson
    Products, Inc., an Illinois corporation
	 	 
	 	By 	/s/
    Ronald Knutson
	 	Name 	Ronald
    Knutson
	 	Title 	EVP,
    CFO, Treasurer
	 	 
	 	Baron
    Divestiture Company, an Illinois corporation
	 	 
	 	By 	/s/
    Ronald Knutson
	 	Name 	Ronald
    Knutson
	 	Title 	Vice
    President, Treasurer
	 	 
	 	Lawson
    Products Canada Inc., a British Columbia corporation
	 	 
	 	By 	/s/
    Ronald Knutson
	 	Name 	Ronald
    Knutson
	 	Title 	Vice
    President, Treasurer
	 	 
	 	The
    Bolt Supply House Ltd., an Alberta corporation
	 	 
	 	By	/s/
    Ronald Knutson
	 	Name 	Ronald
    Knutson
	 	Title 	Senior
    Vice President, Treasurer

 

[Signature
Page to First Amendment to Credit Agreement (Lawson)]

 

     

     

    

 

	 	“Other Loan Parties”
	 	 	 
	 	 	 
	 	Sandalwood Divestiture Company, Inc., an Alabama corporation
	 	 	 
	 	By	/s/
    Ronald Knutson
	 	Name	Ronald
    Knutson
	 	Title	Vice
    President, Treasurer

 

[Signature
Page to First Amendment to Credit Agreement (Lawson)]

 

     

     

    

 

	 	JPMorgan Chase Bank, N.A., individually, and as Administrative Agent, Lender and Issuing Bank
	 	 
	 	By	/s/ Jared Zuniga
	 	 	Name	
    Jared Zuniga
	 	 	Title 	Officer

 

[Signature
Page to First Amendment to Credit Agreement (Lawson)]

 

     

     

    

 

		“Lenders”	
	 	 	 
	 	Bank
                                         of America, N.A.,
                                         as a Lender

 

		By	/s/
                    A. Quinn Richardson
	 	 	Name	A.
                              Quinn Richardson
	 	 	Title	Senior
                              Vice President

 

[Signature
Page to First Amendment to Credit Agreement (Lawson)]

 

     

     

    

 

	 	Bank
    of America, national association, acting
    through its Canada branch, as a Lender
	 	 
	 	By 	/s/
    Medina Sales de Andrade
	 	 	Name 	Medina
    Sales de Andrade
	 	 	Title	Vice
    President

 

     

     

    

 

	 	“Lenders”
	 	 
	 	CIBC
    BANK USA, as a Lender
	 	 
	 	By 	/s/
    Ross Kohn
	 	 	Name 	Ross
    Kohn
	 	 	Title 	Managing
    Director

 

[Signature
Page to First Amendment to Credit Agreement (Lawson)]

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