Document:

EX-4.2

 Exhibit 4.2 

EXECUTION VERSION 
 This
FIRST AMENDMENT TO THE AMENDED AND RESTATED SEASPAN INVESTMENT PLEDGE AND COLLATERAL AGENT AGREEMENT (this “Amendment”), dated as of August 8, 2018 (amending and restating that certain Amended and Restated Seaspan Investment
Pledge and Collateral Agent Agreement dated as of June 8, 2018 (the “Amended and Restated Pledge Agreement”)), is made among SEASPAN INVESTMENT I LTD. (“Seaspan Investment”), as grantor, pledger, assignor and
debtor (together with any successor, the “Grantor”), and THE BANK OF NEW YORK MELLON, in its capacity as collateral agent (together with any successor in such capacity, the “Collateral Agent”). 

RECITALS 
 WHEREAS,
pursuant to the Amended and Restated Pledge Agreement, the Grantor previously granted a lien on and security interest in the Collateral in favor of the Trustee for the ratable benefit of the Existing Secured Parties to secure the Existing Secured
Obligations and agreed to grant a lien on and security interest in the Collateral in favor of any Additional Representative for the ratable benefit of any Additional Secured Parties to secure any Additional Secured Obligation; and 

WHEREAS, the Grantor has requested to expand the form of Additional Secured Obligations and modify the terms regarding the ability of
Affiliates to vote on instructing the Collateral Agent to act or omit to act in relation to the Collateral, and the Existing Holders have consented to such changes in accordance with the terms hereof. 

NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration, the sufficiency and adequacy of which are
hereby acknowledged, the parties hereto hereby agree as follows: 
 ARTICLE I 

DEFINITIONS 

Section 1.01. Definitions. 

(a) All capitalized terms used herein and not otherwise defined below shall have the meanings ascribed thereto in the Amended and Restated
Pledge Agreement or the Indenture. 
 ARTICLE II 

AMENDMENTS TO AMENDED AND RESTATE PLEDGE AND COLLATERAL AGENT AGREEMENT 

Section 2.01. Additional Definition. Section 1.01 of the Amended and Restated Pledge Agreement is hereby amended by adding
the following definition: 
 ‘“Collateral Affiliate’ means an Affiliate who owns or controls more than 50% of the total
voting power of shares of capital stock of the Issuer; provided that such Affiliate shall not constitute a Collateral Affiliate if at the relevant time it is the Holder of all outstanding Secured Obligations.” 

 Section 2.02. Collateral Voting. Section 1.15(c) of the Amended and
Restated Pledge Agreement is hereby amended and restated in its entirety as follows: 
 “(c) The Collateral Agent shall act or omit to
act in relation to the Collateral in accordance with the instructions of the Holders of a majority in aggregate principal amount of the then outstanding Existing Notes and the Additional Secured Debt, if any, voting together as a single class (the
“Instructing Group”), and prior to taking any action or omitting to take any action hereunder (both before and after an Event of Default) the Collateral Agent shall be entitled to request and rely upon the written direction of the
Instructing Group. If the Collateral Agent shall not have received instructions in accordance with this Agreement from the Instructing Group, it shall be under no duty to take or refrain from taking such action and it shall incur no liability
therefor. For purposes of determining whether the Holders of a majority in aggregate principal amount of the then outstanding Existing Notes and the Additional Secured Debt have provided an instruction, each Representative shall provide to the
Collateral Agent the following information with respect to the Secured Debt for which it represents: (i) the aggregate principal amount of such outstanding Secured Debt, and (ii) the aggregate principal amount of such Secured Debt held by
the Holders that provided such instruction. The Collateral Agent may conclusively rely on the information provided by each Representative pursuant to this Section 1.15(c) and shall incur no liability for acting in reliance thereon. In the event
that a Representative does not provide any of the information required to be provided by it pursuant to this Section 1.15(c), then the Collateral Agent shall be entitled to refrain from taking any action with respect to such instruction and
shall incur no liability for so refraining. For purposes of each Representative providing the information in (i) and (ii) in this Section 1.15(c), any Existing Notes or Additional Secured Debt held by the Issuer, the Grantor or any other
Collateral Affiliate of the Issuer shall be deemed not to be outstanding; provided, however, that in providing such information, each Representative shall be entitled to assume that no Existing Notes and Additional Secured Debt are held by
the Issuer, the Grantor or any other Collateral Affiliate of the Issuer unless it shall have received written notice from the Issuer or the Grantor thereof; provided further that in no event shall the Collateral Agent be responsible or liable
for determining whether any Existing Notes or Additional Secured Debt is held by the Issuer, the Grantor or any other Collateral Affiliate of the Issuer.” 

Section 2.03. Additional Secured Debt. Section 1.15(e) of the Amended and Restated Pledge Agreement is hereby amended and
restated in its entirety as follows: 
 “(e) Notwithstanding anything to the contrary herein, (i) the only Indebtedness that may
constitute Additional Secured Debt shall be (x) $250.0 million aggregate principal amount of 5.50% Senior Notes due 2026 to be issued by the Issuer pursuant to the Subscription Agreement, dated as of March 13, 2018, between the Issuer and
the other parties thereto, (y) up to $400.0 million aggregate principal amount of term loans, bonds or debentures and (z) up to $150.0 million aggregate principal amount of revolving loans and letters of credit, in each case, and
any Refinancing thereof and (ii) no Secured Debt may be increased, extended, renewed, replaced, restated, supplemented, restructured, refunded, refinanced or otherwise amended from time to time (each, a “Refinancing”) if after
giving effect to any such Refinancing, such Indebtedness would have an aggregate principal amount greater than the sum of (x) the aggregate principal amount of the Secured Debt that is the subject of such Refinancing (or, if such Secured Debt
is issued with original issue discount, the aggregate accreted value) as of the date of such proposed Refinancing, (y) the amount of accrued but unpaid interest thereon and any premium (including any tender premium) required to be paid thereon
(as reasonably determined by the issuer thereof) in connection with such Refinancing and (z) the amount of reasonable fees, expenses and defeasance costs relating to the Refinancing of such Secured Debt. Notwithstanding anything herein to the
contrary, in no event shall the Collateral Agent have any duty or obligation to confirm, or incur any liability with respect to, whether any (1) debt qualifies as Additional Secured Debt pursuant to this section, or (2) whether any
increase, extension, renewal, replacement, restatement, supplement, restructuring, refunding or refinancing of any Secured Debt is permitted by this section.” 

ARTICLE III 

MISCELANEOUS 

Section 3.01 Modification in Writing. None of the terms or provisions of this Agreement may be amended, modified, supplemented,
terminated or waived, and no consent to any departure by the Grantor therefrom shall be effective, except by a written instrument signed by the Collateral Agent (acting at the written direction of each Representative (acting at the direction of the
requisite Holders on whose behalf such Representative acts in such capacity)) and the Grantor in accordance with the terms of the Secured Debt Documents. 

  
 2 

 Section 3.02 Governing Law. This Agreement and any claim, controversy, dispute
or cause of action (whether in contract or tort or otherwise) based upon, arising out of or relating to this Agreement and the transactions contemplated hereby shall be governed by, and construed in accordance with, the laws of the State of New
York. 
 Section 3.03 Counterparts. This Agreement and any amendments, waivers, consents or supplements hereto may be executed
in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all taken together shall constitute a single contract. Delivery of an executed counterpart of a signature page to this
Agreement by facsimile or in electronic (i.e., “pdf” or “tif”) format shall be effective as delivery of a manually executed counterpart of this Agreement. 

Section 3.04 Termination. This Agreement shall terminate if the lien and security interest granted in the Amended and Restated
Pledge Agreement shall have been terminated and released in whole (and not in part) with respect to all Secured Obligations as provided therein. 

Section 3.05 Successors and Assigns. All of the terms and provisions contained in this Agreement shall be binding upon and inure
to the benefit of the parties hereto and their respective successors and assigns. Any entity into which the Collateral Agent may be merged, or with which it may be consolidated, or any entity resulting from any merger or consolidation to which the
Collateral Agent shall be a party, shall become the Collateral Agent under this Agreement without the execution or filing of any paper or any further act on the part of the parties hereto. 

Section 3.06 Notices. Any notice or request hereunder may be given to the Grantor or the Collateral Agent as follows: 

(a) in the case of the Collateral Agent, if made, given, furnished or filed in writing to or with the Collateral Agent at the
principal corporate trust office of the Collateral Agent at which at any particular time its corporate trust business shall be administered, which office at the date of original execution of this Agreement is located at 101 Barclay Street, Floor 7E,
New York, New York 10286; and 
 (b) in the case of the Grantor, if in writing and mailed, first-class postage prepaid, to
the Grantor addressed to the attention of its Chief Financial Officer, Chief Accounting Officer or Secretary, at Seaspan Investment I Ltd., Unit 2, 2nd Floor, Bupa Centre, 141 Connaught Road West, Hong Kong, China or at any other address previously
furnished in writing to the Collateral Agent by the Grantor. 
 [SIGNATURE PAGES TO FOLLOW] 

  
 3 

 IN WITNESS WHEREOF, the parties have caused this Amendment to the Amended and Restated
Pledge and Collateral Agent Agreement to be duly executed as of the date first written above. 
  

			
	GRANTOR:
	
	SEASPAN INVESTMENT I LTD.
		
	By:	 	 /s/ Mark Chu

		 	Name: Mark Chu
		 	Title: Secretary

 Signature Page for Amendment to Amended and Restated Pledge Agreement 

 
			
	COLLATERAL AGENT:
	
	THE BANK OF NEW YORK MELLON, as Collateral Agent
		
	By:	 	 /s/ Teresa Wyszomierski

		 	Name: Teresa Wyszomierski
		 	Title:   Vice President

 Signature Page for Amendment to Amended and Restated Pledge Agreementbsqr-ex101_328.htm

 

Exhibit 10.1

 

SEPARATION AND RELEASE AGREEMENT

THIS SEPARATION AND RELEASE AGREEMENT (“Agreement”) is made between Jerry D. Chase (“Employee”) and BSQUARE CORPORATION (“Employer” or “BSQUARE”), and is in consideration of their mutual undertakings as set forth in this Agreement.

Employer no longer has a need for Employee’s services effective May 9, 2018 (“Termination Date”). In Employee’s employment letter agreement dated February 24, 2014, Employee is entitled to certain post-termination benefits provided that Employee enter into a seperatation and release agreement that is satisfactory to Employer. Therefore, the parties agree as follows:

1.  Nonadmission of Liability: This Agreement shall not be construed as an admission by Employer that it acted wrongfully with respect to Employee. Additionally, this Agreement shall not be construed as an admission by Employee of any misconduct.

2.  Severance Pay and Benefits through Termination Date:

2.1Severance: Employee will be paid Employee’s regular salary, including payment for all company holidays (excluding floating holidays), for twelve (12) months following the Termination Date per Employer’s normal bi-weekly payroll cycle, less applicable taxes and withholdings. For clarity, Employee will be paid Employee’s regular salary through May 9, 2019.

2.2PTO Pay: Any accrued Employee Paid Time Off (“PTO”) remaining as of the Termination Date will be paid on the June 1, 2018 payroll, less applicable taxes and withholdings.

2.3Bonus: Employee will not be entitled to receive a bonus for 2018 under Employer’s Annual Bonus Program.

2.4Benefits. Employee will continue to accrue PTO through the Termination Date. Employee will be paid the balance of Employee’s accrued PTO per Section 2.2 above. Employee will continue to be entitled to other fringe benefits that he is currently entitled to through the Termination Date. Employee’s company-paid medical benefits, if any, will continue in full through the end of the month of the Termination Date. Employee’s stock options and other stock awards will vest through the Termination Date, after which Employee will have three (3) months to exercise any vested stock awards. For clarity, Employee will have through August 9, 2018 to exercise any vested stock awards.

3.  Post-Termination Benefits Continuation: Effective May 10, 2018, Employee and/or Employee’s covered spouse and dependents may elect a temporary extension of medical, dental and vision plan coverage at group rates (called “COBRA continuation coverage”). Employee and/or Employee’s covered spouse must pay all applicable premiums for that COBRA continuation coverage. Employer will provide Employee and Employee’s covered spouse with a separate notice summarizing their COBRA continuation coverage rights and obligations, as well as an election form. So long as Employee continues to elect COBRA, Employer will subsidize Employee’s monthly COBRA cost to the same extent Employer subsidizes other employees of Employer with similar benefit elections provided that: a) Employer’s subsidization shall cease effective May 10, 2019; and b) Employer’s subsidization may change effective January 1, 2019 in conjunction with the annual benefits renewal cycle.

4.  No Other Compensation: Employee acknowledges that he has been paid all other compensation or benefits which he might have been owed by Employer, and that Employer is not obligated in any event to pay or provide Employee with any further compensation or benefits of any nature.

5.  Unemployment Compensation: If Employee files for unemployment compensation benefits, Employer will not contest Employee’s eligibility for unemployment compensation.

6.  Confidentiality: Employee agrees not to disclose the terms of this Agreement to anyone or to acknowledge its existence to anyone; provided, that Employee may disclose the terms of this Agreement to Employee’s immediate family, Employee’s attorney (if any), and Employee’s accountant or other similar advisor, and Employee shall direct each such person to maintain the confidentiality of the Agreement; and provided further, that this Section 6 shall not apply to information that is already in the public domain through no fault of Employee.

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6.1In recognition of the significant value that BSQUARE places on its Confidential Information, Employee signed an Employee Proprietary Rights Agreement dated February 26, 2014 (“PRA”) when Employee began employment with BSQUARE. In the PRA, Employee made some important commitments which remain in effect even after Employee’s departure from BSQUARE, including, without limitation:

	
 
	
•
	
Employee agreed to preserve the confidentiality of BSQUARE’s “Confidential Information” and to use it only for BSQUARE’s benefit. Confidential Information includes information related to any aspect of BSQUARE’s business (business, technical or otherwise) that is either proprietary (meaning that BSQUARE developed it and owns it) or that is not known by actual or potential competitors. (see Paragraph 1 and sub-parts of the PRA, “Confidentiality Obligations”) .

	
 
	
•
	
Employee agreed not to disclose BSQUARE’s Confidential Information, without permission, and to protect it even from “inadvertent disclosure” (see Paragraph 1.1 of the PRA, “Safeguard of Confidential Information”).

	
 
	
•
	
Employee agreed that, during Employee’s employment and for a period of one year from the separation of Employee’s employment, Employee would not directly or indirectly attempt to induce customers or employees of BSQUARE to cease their relationship with BSQUARE (see Paragraph 5.1 of the PRA, “Nonsolicitation”), or compete with BSQUARE or develop, sell or distribute products with similar functionality as BSQUARE products (which Employee hereby acknowledges and agrees includes, without limitation, BSQUARE’s DataV products and services (see Paragraph 5.2 of the PRA, “Noncompetition”).

6.2If it comes to BSQUARE’s attention that Employee discloses Confidential Information, violates Employee’s non-solicitation obligation, etc., there are legal claims that BSQUARE could assert against Employee. The scope of relief could include a temporary restraining order/permanent injunction preventing Employee from disclosing information, money damages, and reimbursement for our attorneys’ fees and costs. Those claims include:

	
 
	
•
	
Breach of the PRA.

	
 
	
•
	
Tortious interference with a business expectancy.

	
 
	
•
	
Violation of the Uniform Trade Secrets Act.

BSQUARE fully reserves its rights under the contractual arrangements between Employee and BSQUARE as well as any and all common law protections that may be available to BSQUARE.

7.  Release of Claims: In exchange for the consideration and other benefits contained in this Agreement, which Employee is not otherwise entitled to receive, Employee and Employee’s successors and assigns forever release and discharge Employer, any of Employer’s parent, subsidiary or related companies, any Employer­ sponsored employee benefit plans in which Employee participates, and all of their respective officers, directors, trustees, shareholders, agents, employees, employees’ spouses, and all of their successors and assigns (collectively “Releasees”) from any and all claims, actions, causes of action, rights, or damages related in any way to Employee’s employment by Employer or the termination of such employment, including costs and attorneys’ fees (collectively “Claims”) whether known, unknown, or later discovered, arising from any acts or omissions that occurred prior to the date Employee signs this Agreement.

This release includes but is not limited to: (i) any Claims under any local, state, or federal laws regulating employment, including without limitation, the Age Discrimination in Employment Act, the Civil Rights Acts, the Americans with Disabilities Act, and the Washington Law Against Discrimination (RCW 49.60 et seq.); (ii) Claims under the Employee Retirement Income Security Act; (iii) Claims under any local, state, or federal wage and hour laws; (iv) Claims alleging any legal restriction on Employer’s right to terminate its employees; (v) Claims under express or implied contracts; or (vi) Claims alleging personal injury, including without limitation defamation, tortious interference with business expectancy, black listing, or infliction of emotional distress.

8.  No Claims: Employee represents that he has not filed any Claim with any court or agency against Employer or Releasees concerning Claims released in this Agreement; provided, however, that this will not limit Employee from filing an action to enforce the terms of this Agreement. Employee further represents that he has not transferred or assigned, or purported to assign, to any person or entity any claim, or any portion thereof or interest therein, related in any way to Employer, its officers, employees, or agents Employee waives any right he may have to recover any damages or any other relief in any claim or suit brought by the Equal Employment Opportunity Commission or anyone else.

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9.  No Representations: Employee warrants that, except as expressly set forth herein, no representations of any kind or character have been made to Employee by Employer or by any of their agents, representatives, or attorneys to induce the execution of this Agreement.

10.Voluntary Agreement: Employee understands and acknowledges the significance and consequences of this Agreement, that it is voluntary, that it has not been given as a result of any coercion or duress, and expressly confirms that it is to be given full force and effect according to all of its terms, including those relating to unknown Claims. Employee acknowledges that Employer advised Employee to consult with legal counsel regarding any and all aspects of this Agreement, and that he has availed himself of that opportunity to the extent desired. Employee acknowledges that Employee has carefully read and fully understands all of the provisions of this Agreement and has signed this Agreement only after full reflection and analysis.

11.Employer Property Utilized or Held by Employee: At Employee’s option, Employee may retain any personal work equipment owned by Employee (“Personal Equipment”). Notwithstanding the foregoing, Employee acknowledges that, on or before Employee’s Termination Date, and except as otherwise agreed in writing between Employer and Employee with respect to any future services to be provided by Employee to Employer, Employee will return to Employer (to Peter Biere at BSQUARE’s Bellevue office) all company and customer owned property in Employee’s possession, specifically including all keys and keycard badges, all company and customer­owned equipment (including any laptops, desktop computers and related hardware, customer devices etc.), and all company and customer documents, including computer-stored or transmitted information, specifically including all trade secrets, and/or confidential company and customer information other than the Personal Equipment.

12.Non-Disparagement: Employee agrees to refrain from any disparagement, defamation, libel, or slander of any of the Releasees, and agrees to refrain from any tortious interference with the contracts and relationships of any of the Releasees. Employer agrees that all management-level employees shall refrain from any disparagement, defamation, libel or slander of Employee, and agrees to refrain from any tortious interference with the contracts and relationships of Employee. This paragraph shall not in any way prohibit either party from making truthful statements in a legal or administrative proceeding, or as otherwise required by law or legal process.

13.Section 409A: The parties acknowledge and agree that the termination of Employee’s employment contemplated hereunder constitutes a “separation from service” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”). If Employer determines that any cash severance benefits, health continuation coverage, or additional benefits provided under this Agreement shall fail to satisfy the distribution requirement of Section 409A(a)(2)(A) of the Code as a result of Section 409A(a)(2)(B)(i) of the Code, the payment of such benefit shall be accelerated to the minimum extent necessary so that the benefit is not subject to the provisions of Section 409(a)(1) of the Code. It is the intention of the preceding sentence to apply the short-term deferral provisions of Section 409A of the Code, and the regulations and other guidance thereunder, to such payments, and the payment schedule as revised after the application of the preceding sentence shall be referred to as the “Revised Payment Schedule.” However, if there is no Revised Payment Schedule that would avoid the application of Section 409A(a)(1) of the Code, the payment of such benefits shall not be paid pursuant to a Revised Payment Schedule and instead shall be delayed to the minimum extent necessary so that such benefits are not subject to the provisions of section 409A(a)(1) of the Code. Employer may attach conditions to or adjust the amounts paid pursuant to this paragraph to preserve, as closely as possible, the economic consequences that would have applied in the absence of this paragraph; provided, however, that no such condition or adjustment shall result in the payments being subject to Section 409A(a)(1) of the Code.

14.Consideration Period: Employee acknowledges that he was advised that he has the right to have an attorney review this agreement before signing it and that he has been given 21 calendar days in which to consider this Agreement and was given the option to sign the Agreement in fewer than 21 calendar days if he desired.

15.Revocation Period: Employee understands that this Agreement will not be effective for 7 calendar days after it is signed by Employer and Employee, and that he can revoke this Agreement at any time during that 7 calendar-day period. Employer shall make no payments under this Agreement prior to expiration of this 7 calendar­day period.

16.Entire Agreement: This Agreement contains the entire understanding between the Employer and Employee regarding Employee’s separation of employment. This Agreement may not be modified except through another written agreement signed by Employee and Employer.

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17.Miscellaneous: If any of the provisions of this Agreement are held to be invalid or unenforceable, the remaining provisions will nevertheless continue to be valid and enforceable.

17.1This Agreement sets forth the entire understanding between the parties in connection with its subject matter and supersedes all prior written or oral agreements or understandings concerning the subject matter of this Agreement. This Agreement shall not supercede or limit the PRA previously executed by Employee, the terms of which shall remain in full force and effect. Employee acknowledges that in signing this Agreement, he as not relied upon any representation or statement not set forth in this Agreement made by Employer or any of its representatives.

17.2This Agreement is made and shall be construed and performed under the laws of the State of Washington. Language of this Agreement shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against either party.

17.3This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

PLEASE READ CAREFULLY. THIS AGREEMENT INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.

 

	
BSQUARE Corporation
	
 
	
Jerry D. Chase

	
 
	
 
	
 

	
By:
	
 
	
/s/ Peter Biere
	
 
	
/s/ Jerry D. Chase

	
 
	
 
	
Peter Biere
	
 
	
 

	
 
	
 
	
Chief Financial Officer
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
Dated: May 9, 2018
	
 
	
Dated: May 9, 2018

 

 

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