Document:

ex10-13.htm

Exhibit 10.13

 

GUARANTY

 

This GUARANTY, dated as of ________________ (this “Guaranty”), is made by each of the undersigned (each a “Guarantor”, and collectively, the “Guarantors”), in favor of Hudson Bay Master Fund Ltd, in its capacity as collateral agent (in such capacity, the “Collateral Agent” as hereinafter further defined) for the “Buyers” party to the Securities Purchase Agreement (each as defined below).

 

W I T N E S S E T H :

 

WHEREAS, Helios and Matheson Analytics Inc., a Delaware corporation (the “Company”), and each party listed as a “Buyer” on the Schedule of Buyers attached thereto (collectively, the “Buyers”) are parties to the Securities Purchase Agreement, dated as of August __, 2017 (as amended, restated, extended, replaced or otherwise modified from time to time, the “Securities Purchase Agreement”), pursuant to which the Company shall be required to sell, and the Buyers shall purchase or have the right to purchase, (i) the “Notes” issued pursuant thereto (as such Notes may be amended, modified, supplemented, extended, renewed, restated, replaced or otherwise modified from time to time in accordance with the terms thereof, collectively, the “Notes”) and (ii) the Warrants (as defined in the Securities Purchase Agreement);

 

WHEREAS, the Securities Purchase Agreement requires that the Guarantors execute and deliver to the Collateral Agent, (i) a guaranty guaranteeing all of the obligations of the Company under the Securities Purchase Agreement, the Notes and the other Transaction Documents (as defined below); and (ii) a Security and Pledge Agreement, dated as of August __, 2017, granting the Collateral Agent a lien on and security interest in all of their assets and properties (the “Security Agreement”); and

 

WHEREAS, each Guarantor has determined that the execution, delivery and performance of this Guaranty directly benefits, and is in the best interest of, such Guarantor.

 

NOW, THEREFORE, in consideration of the premises and the agreements herein and in order to induce the Buyers to perform under the Securities Purchase Agreement, each Guarantor hereby agrees with each Buyer as follows:

 

SECTION 1.     Definitions. Reference is hereby made to the Securities Purchase Agreement and the Notes for a statement of the terms thereof. All terms used in this Guaranty and the recitals hereto which are defined in the Securities Purchase Agreement or the Notes, and which are not otherwise defined herein shall have the same meanings herein as set forth therein. In addition, the following terms when used in the Guaranty shall have the meanings set forth below:

 

“Bankruptcy Code” means Chapter 11 of Title 11 of the United States Code, 11 U.S.C §§ 101 et seq. (or other applicable bankruptcy, insolvency or similar laws).

 

“Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in New York City are authorized or required by law to remain closed.

 

“Buyer” or “Buyers” shall have the meaning set forth in the recitals hereto.

 

 

 

 

 

“Capital Stock” means (i) with respect to any Person that is a corporation, any and all shares, interests, participations or other equivalents (however designated and whether or not voting) of corporate stock (including, without limitation, any warrants, options, rights or other securities exercisable or convertible into equity interests or securities of such Person), and (ii) with respect to any Person that is not a corporation, any and all partnership, membership or other equity interests of such Person.

 

“Collateral” means all assets and properties of the Company and each Guarantor, wherever located and whether now or hereafter existing and whether now owned or hereafter acquired, of every kind and description, tangible or intangible, including, without limitation, the collateral described in Section 2 of the Security Agreement.

 

“Collateral Agent” shall have the meaning set forth in the preamble hereto.

 

“Company” shall have the meaning set forth in the recitals hereto.

 

“Governmental Authority” means any nation or government, any Federal, state, city, town, municipality, county, local, foreign or other political subdivision thereof or thereto and any department, commission, board, bureau, instrumentality, agency or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government.

 

“Guaranteed Obligations” shall have the meaning set forth in Section 2 of this Guaranty.

 

“Guarantor” or “Guarantors” shall have the meaning set forth in the preamble hereto.

 

“Indemnified Party” shall have the meaning set forth in Section 13(a) of this Guaranty

 

“Insolvency Proceeding” means any proceeding commenced by or against any Person under any provision of the Bankruptcy Code or under any other bankruptcy or insolvency law, assignments for the benefit of creditors, formal or informal moratoria, compositions, or extensions generally with creditors, or proceedings seeking reorganization, arrangement, or other similar relief.

 

“Notes” shall have the meaning set forth in the recitals hereto.

 

“Obligations” shall have the meaning set forth in Section 3 of the Security Agreement.

 

“Other Taxes” shall have the meaning set forth in Section 12(a)(iv) of this Guaranty.

 

“Paid in Full” or “Payment in Full” means the indefeasible payment in full in cash of all of the Guaranteed Obligations. 

 

“Person” means an individual, corporation, limited liability company, partnership, association, joint-stock company, trust, unincorporated organization, joint venture or other enterprise or entity or Governmental Authority.

 

“Securities Purchase Agreement” shall have the meaning set forth in the recitals hereto.

 

 

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“Security Agreement” shall have the meaning set forth in the recitals hereto.

 

“Subsidiary” means any Person in which a Guarantor directly or indirectly, (i) owns any of the outstanding Capital Stock or holds any equity or similar interest of such Person or (ii) controls or operates all or any part of the business, operations or administration of such Person, and all of the foregoing, collectively, “Subsidiaries”.

 

“Taxes” shall have the meaning set forth in Section 12(a) of this Guaranty.

 

“Transaction Documents” shall have the meaning set forth in Section 1 of the Security Agreement. 

 

“Transaction Party” means the Company and each Guarantor, collectively, “Transaction Parties”.

 

SECTION 2.     Guaranty. 

 

(a)     The Guarantors, jointly and severally, hereby unconditionally and irrevocably, guaranty to the Collateral Agent, for the benefit of the Collateral Agent and the Buyers, the punctual payment, as and when due and payable, by stated maturity or otherwise, of all Obligations, including, without limitation, all interest, make-whole and other amounts that accrue after the commencement of any Insolvency Proceeding of the Company or any Guarantor, whether or not the payment of such interest, make-whole and/or other amounts are enforceable or are allowable in such Insolvency Proceeding, and all fees, interest, premiums, penalties, causes of actions, costs, commissions, expense reimbursements, indemnifications and all other amounts due or to become due under any of the Transaction Documents (all of the foregoing collectively being the “Guaranteed Obligations”), and agrees to pay any and all costs and expenses (including counsel fees and expenses) incurred by the Collateral Agent in enforcing any rights under this Guaranty or any other Transaction Document. Without limiting the generality of the foregoing, each Guarantor’s liability hereunder shall extend to all amounts that constitute part of the Guaranteed Obligations and would be owed by the Company to the Collateral Agent or any Buyer under the Securities Purchase Agreement and the Notes but for the fact that they are unenforceable or not allowable due to the existence of an Insolvency Proceeding involving any Transaction Party.

 

(b)     Each Guarantor, and by its acceptance of this Guaranty, the Collateral Agent and each Buyer, hereby confirms that it is the intention of all such Persons that this Guaranty and the Guaranteed Obligations of each Guarantor hereunder not constitute a fraudulent transfer or conveyance for purposes of the Bankruptcy Code, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar foreign, federal, provincial, state, or other applicable law to the extent applicable to this Guaranty and the Guaranteed Obligations of each Guarantor hereunder. To effectuate the foregoing intention, the Collateral Agent, the Buyers and the Guarantors hereby irrevocably agree that the Guaranteed Obligations of each Guarantor under this Guaranty at any time shall be limited to the maximum amount as will result in the Guaranteed Obligations of such Guarantor under this Guaranty not constituting a fraudulent transfer or conveyance. 

 

 

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SECTION 3.       Guaranty Absolute; Continuing Guaranty; Assignments. 

 

(a)         The Guarantors, jointly and severally, guaranty that the Guaranteed Obligations will be paid strictly in accordance with the terms of the Transaction Documents, regardless of any law, regulation or order now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of the Collateral Agent or any Buyer with respect thereto. The obligations of each Guarantor under this Guaranty are independent of the Guaranteed Obligations, and a separate action or actions may be brought and prosecuted against any Guarantor to enforce such obligations, irrespective of whether any action is brought against any Transaction Party or whether any Transaction Party is joined in any such action or actions. The liability of any Guarantor under this Guaranty shall be as a primary obligor (and not merely as a surety) and shall be irrevocable, absolute and unconditional irrespective of, and each Guarantor hereby irrevocably waives, to the extent permitted by law, any defenses it may now or hereafter have in any way relating to, any or all of the following:

 

(i)      any lack of validity or enforceability of any Transaction Document;

 

(ii)     any change in the time, manner or place of payment of, or in any other term of, all or any of the Guaranteed Obligations, or any other amendment or waiver of or any consent to departure from any Transaction Document, including, without limitation, any increase in the Guaranteed Obligations resulting from the extension of additional credit to any Transaction Party or extension of the maturity of any Guaranteed Obligations or otherwise;

 

(iii)    any taking, exchange, release or non-perfection of any Collateral;

 

(iv)    any taking, release or amendment or waiver of or consent to departure from any other guaranty, for all or any of the Guaranteed Obligations;

 

(v)     any change, restructuring or termination of the corporate, limited liability company or partnership structure or existence of any Transaction Party; 

 

(vi)    any manner of application of Collateral or any other collateral, or proceeds thereof, to all or any of the Guaranteed Obligations, or any manner of sale or other disposition of any Collateral or any other collateral for all or any of the Guaranteed Obligations or any other Obligations of any Transaction Party under the Transaction Documents or any other assets of any Transaction Party or any of its Subsidiaries;

 

(vii)   any failure of the Collateral Agent or any Buyer to disclose to any Transaction Party any information relating to the business, condition (financial or otherwise), operations, performance, properties or prospects of any other Transaction Party now or hereafter known to the Collateral Agent or any Buyer (each Guarantor waiving any duty on the part of the Collateral Agent or any Buyer to disclose such information); 

 

(viii)  taking any action in furtherance of the release of any Guarantor or any other Person that is liable for the Obligations from all or any part of any liability arising under or in connection with any Transaction Document without the prior written consent of the Collateral Agent; or 

 

(ix)     any other circumstance (including, without limitation, any statute of limitations) or any existence of or reliance on any representation by the Collateral Agent or any Buyer that might otherwise constitute a defense available to, or a discharge of, any Transaction Party or any other guarantor or surety.

 

 

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(b)     This Guaranty shall continue to be effective or be reinstated, as the case may be, if at any time any payment of any of the Guaranteed Obligations is rescinded or must otherwise be returned by the Collateral Agent, any Buyer, or any other Person upon the insolvency, bankruptcy or reorganization of any Transaction Party or otherwise, all as though such payment had not been made.

 

(c)     This Guaranty is a continuing guaranty and shall (i) remain in full force and effect until Payment in Full of the Guaranteed Obligations (other than inchoate indemnity obligations) and shall not terminate for any reason prior to the respective Maturity Date (as defined in each Note) of each Note (other than Payment in Full of the Guaranteed Obligations) and (ii) be binding upon each Guarantor and its respective successors and assigns. This Guaranty shall inure to the benefit of and be enforceable by the Collateral Agent, the Buyers, and their respective successors, and permitted pledgees, transferees and assigns. Without limiting the generality of the foregoing sentence, the Collateral Agent or any Buyer may pledge, assign or otherwise transfer all or any portion of its rights and obligations under and subject to the terms of any Transaction Document to any other Person, and such other Person shall thereupon become vested with all the benefits in respect thereof granted to the Collateral Agent or such Buyer (as applicable) herein or otherwise, in each case as provided in the Securities Purchase Agreement or such Transaction Document.

 

SECTION 4.     Waivers. To the extent permitted by applicable law, each Guarantor hereby waives promptness, diligence, protest, notice of acceptance and any other notice or formality of any kind with respect to any of the Guaranteed Obligations and this Guaranty and any requirement that the Collateral Agent exhaust any right or take any action against any Transaction Party or any other Person or any Collateral. Each Guarantor acknowledges that it will receive direct and indirect benefits from the financing arrangements contemplated herein and that the waiver set forth in this Section 4 is knowingly made in contemplation of such benefits. The Guarantors hereby waive any right to revoke this Guaranty, and acknowledge that this Guaranty is continuing in nature and applies to all Guaranteed Obligations, whether existing now or in the future. Without limiting the foregoing, to the extent permitted by applicable law, each Guarantor hereby unconditionally and irrevocably waives (a) any defense arising by reason of any claim or defense based upon an election of remedies by the Collateral Agent or any Buyer that in any manner impairs, reduces, releases or otherwise adversely affects the subrogation, reimbursement, exoneration, contribution or indemnification rights of such Guarantor or other rights of such Guarantor to proceed against any of the other Transaction Parties, any other guarantor or any other Person or any Collateral, and (b) any defense based on any right of set-off or counterclaim against or in respect of the Guaranteed Obligations of such Guarantor hereunder. Each Guarantor hereby unconditionally and irrevocably waives any duty on the part of the Collateral Agent or any Buyer to disclose to such Guarantor any matter, fact or thing relating to the business, condition (financial or otherwise), operations, performance, properties or prospects of any other Transaction Party or any of its Subsidiaries now or hereafter known by the Collateral Agent or a Buyer.

 

 

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SECTION 5.     Subrogation. No Guarantor may exercise any rights that it may now or hereafter acquire against any Transaction Party or any other guarantor that arise from the existence, payment, performance or enforcement of any Guarantor’s obligations under this Guaranty, including, without limitation, any right of subrogation, reimbursement, exoneration, contribution or indemnification and any right to participate in any claim or remedy of the Collateral Agent or any Buyer against any Transaction Party or any other guarantor or any Collateral, whether or not such claim, remedy or right arises in equity or under contract, statute or common law, including, without limitation, the right to take or receive from any Transaction Party or any other guarantor, directly or indirectly, in cash or other property or by set-off or in any other manner, payment or security solely on account of such claim, remedy or right, unless and until there has been Payment in Full of the Guaranteed Obligations. If any amount shall be paid to a Guarantor in violation of the immediately preceding sentence at any time prior to Payment in Full of the Guaranteed Obligations and all other amounts payable under this Guaranty, such amount shall be held in trust for the benefit of the Collateral Agent and shall forthwith be paid to the Collateral Agent to be credited and applied to the Guaranteed Obligations and all other amounts payable under this Guaranty, whether matured or unmatured, in accordance with the terms of the Transaction Document, or to be held as Collateral for any Guaranteed Obligations or other amounts payable under this Guaranty thereafter arising. If (a) any Guarantor shall make payment to the Collateral Agent of all or any part of the Guaranteed Obligations, and (b) there has been Payment in Full of the Guaranteed Obligations, the Collateral Agent will, at such Guarantor’s request and expense, execute and deliver to such Guarantor appropriate documents, without recourse and without representation or warranty, necessary to evidence the transfer by subrogation to such Guarantor of an interest in the Guaranteed Obligations resulting from such payment by such Guarantor.

 

SECTION 6.     Representations, Warranties and Covenants. 

 

(a)           Each Guarantor hereby represents and warrants as of the date first written above as follows:

 

(i)      such Guarantor (A) is a corporation, limited liability company or limited partnership duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization as set forth on the signature pages hereto, (B) has all requisite corporate, limited liability company or limited partnership power and authority to conduct its business as now conducted and as presently contemplated and to execute, deliver and perform its obligations under this Guaranty and each other Transaction Document to which such Guarantor is a party, and to consummate the transactions contemplated hereby and thereby and (C) is duly qualified to do business and is in good standing in each jurisdiction in which the character of the properties owned or leased by it or in which the transaction of its business makes such qualification necessary except where the failure to be so qualified (individually or in the aggregate) would not result in a Material Adverse Effect (as defined in the Securities Purchase Agreement).

 

(ii)     The execution, delivery and performance by such Guarantor of this Guaranty and each other Transaction Document to which such Guarantor is a party (A) have been duly authorized by all necessary corporate, limited liability company or limited partnership action, (B) do not and will not contravene its charter, articles, certificate of formation or by-laws, its limited liability company or operating agreement or its certificate of partnership or partnership agreement, as applicable, or any applicable law or any contractual restriction binding on such Guarantor or its properties do not and will not result in or require the creation of any lien, security interest or encumbrance (other than pursuant to any Transaction Document) upon or with respect to any of its properties, and (C) do not and will not result in any default, noncompliance, suspension, revocation, impairment, forfeiture or nonrenewal of any material permit, license, authorization or approval applicable to it or its operations or any of its properties.

 

 

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(iii)     No authorization or approval or other action by, and no notice to or filing with, any Governmental Authority or other Person is required in connection with the due execution, delivery and performance by such Guarantor of this Guaranty or any of the other Transaction Documents to which such Guarantor is a party (other than expressly provided for in any of the Transaction Documents).

 

(iv)    This Guaranty has been duly executed and delivered by each Guarantor and is, and each of the other Transaction Documents to which such Guarantor is or will be a party, when executed and delivered, will be, a legal, valid and binding obligation of such Guarantor, enforceable against such Guarantor in accordance with its terms, except as may be limited by the Bankruptcy Code or other applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, suretyship or similar laws and equitable principles (regardless of whether enforcement is sought in equity or at law). 

 

(v)     There is no pending or, to the best knowledge of such Guarantor, threatened action, suit or proceeding against such Guarantor or to which any of the properties of such Guarantor is subject, before any court or other Governmental Authority or any arbitrator that (A) if adversely determined, could reasonably be expected to have a Material Adverse Effect or (B) relates to this Guaranty or any of the other Transaction Documents to which such Guarantor is a party or any transaction contemplated hereby or thereby. 

 

(vi)     Such Guarantor (A) has read and understands the terms and conditions of the Securities Purchase Agreement and the other Transaction Documents, and (B) now has and will continue to have independent means of obtaining information concerning the affairs, financial condition and business of the Company and the other Transaction Parties, and has no need of, or right to obtain from the Collateral Agent or any Buyer, any credit or other information concerning the affairs, financial condition or business of the Company or the other Transaction Parties.

 

(vii)   There are no conditions precedent to the effectiveness of this Guaranty that have not been satisfied or waived.

 

(b)     Each Guarantor covenants and agrees that until Payment in Full of the Guaranteed Obligations, it will comply with each of the covenants (except to the extent applicable only to a public company) which are set forth in Section 4 of the Securities Purchase Agreement as if such Guarantor were a party thereto.

 

SECTION 7.     Right of Set-off. Upon the occurrence and during the continuance of any Event of Default (as defined in each Note), the Collateral Agent and any Buyer may, and is hereby authorized to, at any time and from time to time, without notice to the Guarantors (any such notice being expressly waived by each Guarantor) and to the fullest extent permitted by law, set-off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other indebtedness at any time owing by the Collateral Agent or any Buyer to or for the credit or the account of any Guarantor against any and all obligations of the Guarantors now or hereafter existing under this Guaranty or any other Transaction Document, irrespective of whether or not the Collateral Agent or any Buyer shall have made any demand under this Guaranty or any other Transaction Document and although such obligations may be contingent or unmatured. The Collateral Agent and each Buyer agrees to notify the relevant Guarantor promptly after any such set-off and application made by the Collateral Agent or such Buyer, provided that the failure to give such notice shall not affect the validity of such set-off and application. The rights of the Collateral Agent or any Buyer under this Section 7 are in addition to other rights and remedies (including, without limitation, other rights of set-off) which the Collateral Agent or such Buyer may have under this Guaranty or any other Transaction Document in law or otherwise.

 

 

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SECTION 8.     Limitation on Guaranteed Obligations. 

 

(a)            Notwithstanding any provision herein contained to the contrary, each Guarantor’s liability hereunder shall be limited to an amount not to exceed as of any date of determination the greater of: 

 

(i)      the amount of all Guaranteed Obligations, plus interest thereon at the applicable Interest Rate (as defined in each Note) as specified in the Note; and 

 

(ii)     the amount which could be claimed by the Collateral Agent from any Guarantor under this Guaranty without rendering such claim voidable or avoidable under the Bankruptcy Code or under any applicable state Uniform Fraudulent Transfer Act, Uniform Fraudulent Conveyance Act or similar statute or common law after taking into account, among other things, Guarantor’s right of contribution and indemnification.

 

(b)           Each Guarantor agrees that the Guaranteed Obligations may at any time and from time to time exceed the amount of the liability of such Guarantor hereunder without impairing the guaranty hereunder or affecting the rights and remedies of the Collateral Agent or any Buyer hereunder or under applicable law.

 

(c)           No payment made by the Company, any Guarantor, any other guarantor or any other Person or received or collected by the Collateral Agent or any other Buyer from the Company, any of the Guarantors, any other guarantor or any other Person by virtue of any action or proceeding or any set-off or appropriation or application at any time or from time to time in reduction of or in payment of the Guaranteed Obligations shall be deemed to modify, reduce, release or otherwise affect the liability of any Guarantor hereunder which shall, notwithstanding any such payment (other than any payment made by such Guarantor in respect of the Guaranteed Obligations or any payment received or collected from such Guarantor in respect of the Guaranteed Obligations), remain liable for the Guaranteed Obligations up to the maximum liability of such Guarantor hereunder until after all of the Guaranteed Obligations and all other amounts payable under this Guaranty shall have been Paid in Full. 

 

SECTION 9.     Notices, Etc. Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Guaranty must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); or (iii) one (1) Business Day after deposit with an nationally recognized overnight courier service with next day delivery specified, in each case, properly addressed to the party to receive the same. All notices and other communications provided for hereunder shall be sent, if to any Guarantor, to the Company’s address and/or facsimile number, or if to the Collateral Agent or any Buyer, to it at its respective address and/or facsimile number, each as set forth in Section 9(f) of the Securities Purchase Agreement

 

 

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SECTION 10.      Governing Law; Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of this Guaranty shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdiction other than the State of New York. Each Guarantor hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or under any of the other Transaction Documents or with any transaction contemplated hereby or thereby, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim, obligation or defense that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under Section 9(f) of the Securities Purchase Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Nothing contained herein shall be deemed or operate to preclude the Collateral Agent or the Buyers from bringing suit or taking other legal action against any Guarantor in any other jurisdiction to collect on a Guarantor’s obligations or to enforce a judgment or other court ruling in favor of the Collateral Agent or a Buyer.

 

SECTION 11.     WAIVER OF JURY TRIAL, ETC. EACH GUARANTOR HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR UNDER ANY OTHER TRANSACTION DOCUMENT OR IN CONNECTION WITH OR ARISING OUT OF THIS GUARANTY, ANY OTHER TRANSACTION DOCUMENT OR ANY TRANSACTION CONTEMPLATED HEREBY OR THEREBY.

 

SECTION 12.     Taxes. 

 

(a)        All payments made by any Guarantor hereunder or under any other Transaction Document shall be made in accordance with the terms of the respective Transaction Document and shall be made without set-off, counterclaim, withholding, deduction or other defense. Without limiting the foregoing, all such payments shall be made free and clear of and without deduction or withholding for any present or future taxes, levies, imposts, deductions, charges or withholdings, and all liabilities with respect thereto, excluding taxes imposed on the net income of the Collateral Agent or any Buyer by the jurisdiction in which the Collateral Agent or such Buyer is organized or where it has its principal lending office (all such nonexcluded taxes, levies, imposts, deductions, charges, withholdings and liabilities, collectively or individually, “Taxes”). If any Guarantor shall be required to deduct or to withhold any Taxes from or in respect of any amount payable hereunder or under any other Transaction Document:

 

 

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(i)      the amount so payable shall be increased to the extent necessary so that after making all required deductions and withholdings (including Taxes on amounts payable to the Collateral Agent or any Buyer pursuant to this sentence) the Collateral Agent or each Buyer receives an amount equal to the sum it would have received had no such deduction or withholding been made, 

 

(ii)     such Guarantor shall make such deduction or withholding,

 

(iii)     such Guarantor shall pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable law, and 

 

(iv)    as promptly as possible thereafter, such Guarantor shall send the Collateral Agent or each Buyer an official receipt (or, if an official receipt is not available, such other documentation as shall be satisfactory to the Collateral Agent, as the case may be) showing payment.  In addition, each Guarantor agrees to pay any present or future stamp or documentary taxes or any other excise or property taxes, charges or similar levies that arise from any payment made hereunder or from the execution, delivery, registration or enforcement of, or otherwise with respect to, this Guaranty or any other Transaction Document (collectively, “Other Taxes”).

 

(b)          Each Guarantor hereby indemnifies and agrees to hold each Indemnified Party harmless from and against Taxes or Other Taxes (including, without limitation, any Taxes or Other Taxes imposed by any jurisdiction on amounts payable under this Section 12) paid by any Indemnified Party  as a result of any payment made hereunder or from the execution, delivery, registration or enforcement of, or otherwise with respect to, this Guaranty or any other Transaction Document, and any liability (including penalties, interest and expenses for nonpayment, late payment or otherwise) arising therefrom or with respect thereto, whether or not such Taxes or Other Taxes were correctly or legally asserted.  This indemnification shall be paid within thirty (30) days from the date on which the Collateral Agent or such Buyer makes written demand therefor, which demand shall identify the nature and amount of such Taxes or Other Taxes.

 

(c)         If any Guarantor fails to perform any of its obligations under this Section 12, such Guarantor shall indemnify the Collateral Agent and each Buyer for any taxes, interest or penalties that may become payable as a result of any such failure. The obligations of the Guarantors under this Section 12 shall survive the termination of this Guaranty and the payment of the Obligations and all other amounts payable hereunder.

 

SECTION 13.      Indemnification.

 

(a)        Without limitation of any other obligations of any Guarantor or remedies of the Collateral Agent or the Buyers under this Guaranty or applicable law, except to the extent resulting from such Indemnified Party’s gross negligence or willful misconduct, as determined by a final judgment of a court of competent jurisdiction no longer subject to appeal, each Guarantor shall, to the fullest extent permitted by law, indemnify, defend and save and hold harmless the Collateral Agent and each Buyer and each of their affiliates and their respective officers, directors, employees, agents and advisors (each, an “Indemnified Party”) from and against, and shall pay on demand, any and all claims, damages, losses, liabilities and expenses (including, without limitation, reasonable fees and expenses of counsel) that may be incurred by or asserted or awarded against any Indemnified Party in connection with or as a result of any failure of any Guaranteed Obligations to be the legal, valid and binding obligations of any Transaction Party enforceable against such Transaction Party in accordance with their terms.

 

 

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(b)     Each Guarantor hereby also agrees that none of the Indemnified Parties shall have any liability (whether direct or indirect, in contract, tort or otherwise) or any fiduciary duty or obligation to any of the Guarantors or any of their respective affiliates or any of their respective officers, directors, employees, agents and advisors, and each Guarantor hereby agrees not to assert any claim against any Indemnified Party on any theory of liability, for special, indirect, consequential, incidental or punitive damages arising out of or otherwise relating to the facilities, the actual or proposed use of the proceeds of the advances, the Transaction Documents or any of the transactions contemplated by the Transaction Documents.

 

SECTION 14.     Miscellaneous. 

 

(a)     Each Guarantor will make each payment hereunder in lawful money of the United States of America and in immediately available funds to the Collateral Agent or each Buyer, at such address specified by the Collateral Agent or such Buyer from time to time by notice to the Guarantors.

 

(b)     No amendment or waiver of any provision of this Guaranty and no consent to any departure by any Guarantor therefrom shall in any event be effective unless the same shall be in writing and signed by each Guarantor, the Collateral Agent and each Buyer, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.

 

(c)     No failure on the part of the Collateral Agent or any Buyer to exercise, and no delay in exercising, any right or remedy hereunder or under any other Transaction Document shall operate as a waiver thereof, nor shall any single or partial exercise of any right hereunder or under any Transaction Document preclude any other or further exercise thereof or the exercise of any other right or remedy. The rights and remedies of the Collateral Agent and the Buyers provided herein and in the other Transaction Documents are cumulative and are in addition to, and not exclusive of, any rights or remedies provided by law. The rights and remedies of the Collateral Agent and the Buyers under any Transaction Document against any party thereto are not conditional or contingent on any attempt by the Collateral Agent or any Buyer to exercise any of their respective rights or remedies under any other Transaction Document against such party or against any other Person.

 

(d)     Any provision of this Guaranty that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining portions hereof or affecting the validity or enforceability of such provision in any other jurisdiction.

 

 

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(e)     This Guaranty is a continuing guaranty and shall (i) remain in full force and effect until Payment in Full of the Guaranteed Obligations (other than inchoate indemnity obligations) and shall not terminate for any reason prior to the respective Maturity Date of each Note (other than Payment in Full of the Guaranteed Obligations) and (ii) be binding upon each Guarantor and its respective successors and assigns. This Guaranty shall inure, together with all rights and remedies of the Collateral Agent hereunder, to the benefit of and be enforceable by the Collateral Agent, the Buyers, and their respective successors, and permitted pledgees, transferees and assigns. Without limiting the generality of the foregoing sentence, the Collateral Agent or any Buyer may pledge, assign or otherwise transfer all or any portion of its rights and obligations under and subject to the terms of the Securities Purchase Agreement or any other Transaction Document to any other Person in accordance with the terms thereof, and such other Person shall thereupon become vested with all the benefits in respect thereof granted to the Collateral Agent or such Buyer (as applicable) herein or otherwise, in each case as provided in the Securities Purchase Agreement or such Transaction Document. None of the rights or obligations of any Guarantor hereunder may be assigned or otherwise transferred without the prior written consent of each Buyer.

 

(f)     This Guaranty and the other Transaction Documents reflect the entire understanding of the transaction contemplated hereby and shall not be contradicted or qualified by any other agreement, oral or written, entered into before the date hereof.

 

(g)     Section headings herein are included for convenience of reference only and shall not constitute a part of this Guaranty for any other purpose.

 

SECTION 15.     Currency Indemnity.

 

If, for the purpose of obtaining or enforcing judgment against Guarantor in any court in any jurisdiction, it becomes necessary to convert into any other currency (such other currency being hereinafter in this Section 15 referred to as the “Judgment Currency”) an amount due under this Guaranty in any currency (the “Obligation Currency”) other than the Judgment Currency, the conversion shall be made at the rate of exchange prevailing on the Business Day immediately preceding (a) the date of actual payment of the amount due, in the case of any proceeding in the courts of courts of the jurisdiction that will give effect to such conversion being made on such date, or (b) the date on which the judgment is given, in the case of any proceeding in the courts of any other jurisdiction (the applicable date as of which such conversion is made pursuant to this Section 15 being hereinafter in this Section 15 referred to as the “Judgment Conversion Date”).

 

If, in the case of any proceeding in the court of any jurisdiction referred to in the preceding paragraph, there is a change in the rate of exchange prevailing between the Judgment Conversion Date and the date of actual receipt of the amount due in immediately available funds, the Guarantors shall pay such additional amount (if any, but in any event not a lesser amount) as may be necessary to ensure that the amount actually received in the Judgment Currency, when converted at the rate of exchange prevailing on the date of payment, will produce the amount of the Obligation Currency which could have been purchased with the amount of’ the Judgment Currency stipulated in the judgment or judicial order at the rate of exchange prevailing on the Judgment Conversion Date. Any amount due from the Guarantors under this Section 15 shall be due as a separate debt and shall not be affected by judgment being obtained for any other amounts due under or in respect of this Guaranty.

 

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

 

12

 

 

IN WITNESS WHEREOF, each Guarantor has caused this Guaranty to be executed by its respective duly authorized officer, as of the date first above written.

 

	
 
	
GUARANTORS:
	
 

	 	 	 
	 	
[___________]
	 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
 
	
 

	
 
	
 
	
Name:
	
 

	
 
	
 
	
Title:
	
 

 

 

 

[Signatures continue on following page]

 

 

13

 

 

	
ACCEPTED BY:
	  
	 	 
	HUDSON BAY MASTER FUND LTD., 
as Collateral Agent	 
	 	 	 
	By:	 	 
	 	
Name: 
Title:EX-10.1

 Exhibit 10.1 

SEPARATION AGREEMENT AND GENERAL RELEASE 

1. Parties. The parties to this Employment Agreement and General Release (“Agreement”) are: 

 

	 	A.	Edward A. Stokx (“Employee”). 

  

	 	B.	PS Business Parks, Inc., PS Business Parks, L.P. 

 and their past and present shareholders, officers, directors,
employees, subsidiaries, partners, affiliated companies, attorneys, agents, and their successors, heirs, executors and administrators and representatives (herein “Employer”). 

This Agreement shall become effective on the day that both parties sign below (the “Effective Date.”). 

2. Recitals. 
 A.
Employee is currently employed by Employer as Executive Vice President, Chief Financial Officer and Secretary. 
 B. Whereas, Employee and
Employer have agreed to end their employment relationship in a mutually satisfactory manner, and to resolve all known and unknown disputes between them. 

C. Therefore, Employee and Employer have agreed to the following covenants and agreements: 

3. Consideration. 

Employee and Employer agree that Employee’s last day of employment shall be August 31, 2017 (“Separation Date”). If
Employee executes and delivers to Employer (a) an executed original of this Agreement and General Release as provided herein; (b) an executed original of Addendum A attached hereto on August 31, 2017 and (c) does not revoke the
Agreement as provided herein and does not revoke Addendum A within seven days after execution thereof, the Parties agree as follows: 
 (A)
Employer shall pay Employee One Million Five Hundred Thousand Dollars and Zero Cents ($1,500,000.00) as consideration for the Agreement and Addendum A by issuing a payroll check made out to Edward A. Stokx, less all applicable and customary taxes,
withholdings, and all other normal payroll deductions (“Separation Amount”). Employer will also issue Employee an Internal Revenue Service (“IRS”) Form W-2 in connection with the payment of this Separation Amount. Separation
Amount shall be payable when the Agreement and Addendum A have been fully executed by Employee and 

  
 1 

 
no later than twenty one days after the execution of Addendum A. The parties agree that the payments provided for in this paragraph will constitute the sole, entire, and only financial obligation
of the Company to Employee. 
 (B) Employee’s failure to fully execute the Agreement herein and Addendum A as set forth therein will
terminate the Agreement and Addendum A and Employee will take nothing. 
 4. Cooperation.  

The parties further agree that at all times following the Separation Date, Employee will cooperate fully with the Employer in providing
truthful testimony as a witness or a declarant in connection with any present or future court, administrative, governmental agency or arbitration proceeding involving the Employer with respect to which the Employee has relevant information arising
out of his employment with the Employer. Employee also will assist Employer during the discovery phase (or prior thereto) of any judicial, administrative, arbitration, or governmental agency proceeding involving Employer and with respect to which
the Employee has relevant information arising out of his employment with Employer including, without limitation, meeting with counsel, assisting and cooperating in the preparation and review of documents, and meeting with other representatives of
the Employer. The parties agree that such cooperation and assistance shall, to the extent practicable (giving due regard to the needs of the Employer and the requirements of Employee’s then current work obligations), be at times and places that
are mutually convenient to both the Employee and the Employer. The Employer agrees that it will pay, upon production of appropriate receipts, the reasonable business expenses (including air transportation, hotel, and similar expenses) incurred by
Employee in connection with such assistance. Employee represents that he is not presently aware of any conflict of interest between himself and Employer in connection with any pending litigation or investigations that may give rise to a question
regarding the possible need for independent counsel with respect to the defense of such matters and will immediately notify Employer if any conflict of interest shall arise in the future. 

5. Non-Admission of Liability. The parties understand and agree that their execution of this Agreement shall not in any way
constitute or be construed as an admission of liability whatsoever by party, their successors or any related parties. 
 6.
Termination of Employment Relationship. Unless the employment relationship is otherwise terminated in connection with this section, the parties agree that Employee’s employment with Employer shall terminate as of 11:59 P.M.
Pacific Time on the Separation Date. Prior to the Separation Date, the employment relationship may only be terminated by the Employer for “cause.” Termination for “cause” may be based upon any of the following, as determined by
Employer in its reasonable discretion: 
 (i) Any act of fraud, dishonestly, embezzlement, or theft. 

(ii) Conviction of, or a plea of nolo contendere to, any felony or any misdemeanor involving moral turpitude; 

  
 2 

 (iii) Any act of gross negligence in the performance of Employee’s responsibilities; 

(iv) Any inexcusable repeated or prolonged absence from work other than as a result of illness or a disability; 

(v) Employee’s voluntary resignation from employment with Employer after having committed any act that would constitute “cause”
for termination of the employment relationship as defined in this Section 6; 
 (vi) Failure to fulfill the responsibilities of the
Employee’s position. 
 In the event Employee’s employment is terminated for cause, Employee will receive his base salary and unused vested
vacation benefits through the date of termination, plus reimbursement for those properly documented, reasonable travel or similar expenditures incurred by Employee prior to termination and consistent with prior practice that are reasonably necessary
for the proper discharge of Employee’s duties under this Agreement and Employer will not owe to Employee any other compensation or financial obligations, including but not limited to the compensation and consideration set forth in paragraph 3
above. 
 7. Property. By the Separation Date, Employee will execute and deliver to Employer a truthful written acknowledgment
that Employee has returned to Employer all documents, reports, files, memoranda, records, Company credit cards, key passes, door and file keys, laptop, computer access codes, information and other physical and personal property of Employer which
Employee received or helped prepare in connection with Employee’s employment and which Employee has in Employee’s possession. The term “information” as used in this Agreement means (a) confidential information including,
without limitation, information received from Employer’s clients, employees or its agents, under confidential conditions; and (b) other business or financial information received because of Employee’s employment with Employer. 

Employee further represents that he will remove all personal possessions from Employer’s premises by the Separation Date. 

8. Trade Secrets and Confidential Information. Employer’s competitive success depends on the proper safeguarding of
Employer’s trade secrets and confidential information. Certain such information of Employer pertains to the privacy interests of individuals and must be safeguarded for that reason as well. Employee promises to continue to preserve the
confidentiality of Employer’s trade secrets and commercially useful confidential information learned through Employee’s employment and to use this information only as necessary and appropriate for Employer’s legitimate business
purposes. Employee promises to safeguard against disclosure without the consent of affected persons all information touching on the privacy interests of Employer’s employees 

  
 3 

 
and tenants. Employer’s trade secrets and commercially useful confidential information include without limitation Employer’s non-public financial information and the contents of
Employer’s business plans. 
 9. Non Solicitation. Employee agrees that for a period of one year following the
termination or expiration of this agreement, Employee will not directly or indirectly, or by action in concert with others, induce or influence (or seek to induce or influence), any person who is engaged as an employee, agent, independent contractor
or otherwise by Employer to terminate such person’s employment or engagement with Employer. 
 10. General Release by
Employee. In exchange for the promises contained herein, Employee, for good and valuable consideration, the adequacy and receipt of which is hereby acknowledged, for Employee, Employee’s attorneys, successors and assigns (collectively
“Releasors”), hereby releases and forever discharges Employer, and its subsidiaries, affiliates, officers, directors, shareholders, successors, predecessors, agents, attorneys, present employees and past employees, and each of their
respective subsidiaries, affiliates, officers, directors, shareholders, successors, predecessors, agents, attorneys, present employees and past employees (collectively “Releasees”), and each of them from any and all past, present and
future claims, demands, causes of action, and liabilities of every kind and nature whatsoever, known and unknown, suspected or unsuspected, which the Releasees ever had, now have, hereinafter can, shall or may have, from the beginning of time to the
effective date hereof, including but not limited to any claims, demands, causes of action or liabilities which Employee could assert at common law, by any statute, rule, regulation, ordinance or law, whether federal, state or local, or on any other
grounds whatsoever, that pertain to or arise out of the Employee’s employment with Employer, including but not limited to claims under the California Labor Code, California Government Code, the Employment Retirement Income Security Act of 1974
(“ERISA”), 29 U.S.C. § 1001, et seq., Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000E et seq., the Age Discrimination In Employment Act, the Equal Pay Act, the Rehabilitation Act of 1973,
Section 1981 of Title 42 of United States Code, claims for wrongful discharge, breach of contract, negligence, implied contract, quasi-contract, promissory estoppel, implied covenant of good faith and fair dealing, bad faith and denial of
existence of contract, defamation, interference with contractual relationships, invasion of privacy, infliction of emotional distress, employment discrimination, retaliation, failure to prevent discrimination from occurring, fraud, and all other
federal, state and local laws, ordinances, regulations or orders which relate in any way to employment, termination of employment or the continuing effects thereof. 

11. Notice Re Waiver of Rights. If Employee signs this Agreement, Employee will forever give up all rights and claims arising
out of his employment with Employer, including the waiver and release of all discrimination claims. The Federal Age Discrimination In Employment Act (“ADEA”) requires that employers give certain notices to employees (including
ex-employees) involved in claims that may include age discrimination. Pursuant to the Federal Age Discrimination In Employment Act, Employer hereby notifies Employee of the following employee rights: 

  
 4 

 A. Employee may not waive or release any right or claim under the Age Discrimination In
Employment Act unless Employee’s waiver and release is knowing and voluntary, and employee fully understands all of the terms of the release. 

B. Employee’s waiver and release must be part of an agreement between Employee and Employer and must be written in a manner calculated to
be understood by Employee. 
 C. Employee’s waiver or release must specifically refer to the rights or claims arising under the Federal
Age Discrimination In Employment Act. 
 D. Employee may not waive or release any of Employee’s rights or claims that arise after the
date Employee signs this Agreement. 
 E. Employee may only waive or release rights or claims in exchange for consideration in addition to
anything of value to which Employee is already entitled. 
 F. Employee is advised in writing to consult with an attorney before signing
this Agreement. 
 G. Employee has a period of at least 21 days in which to consider whether to sign this Agreement and this Agreement
provides that for seven days after Employee signs this Agreement, Employee may revoke the Agreement and this Agreement will not become effective or enforceable until this seven day revocation period expires. 

Revocation shall be made solely by delivering a written notice of revocation to: 

Maria R. Hawthorne 

President and CEO 
 PS
Business Parks 
 701 Western Avenue, 

Glendale, CA 91201 
 Employee agrees to
keep written documentation proving that Employee revoked this Agreement as provided in this paragraph, either by keeping the documents attesting to the delivery of the revocation, or verification that the fax was, in fact, received. If Employee
revokes Agreement in accordance with this section, the entire Agreement is null and void and Employee will take nothing under this Agreement. If Employee signs this Agreement before the 21-day period has expired, Employee does so knowingly and
voluntarily. 
 12. Power to Release. Employee represents and warrants that Employee is the sole owner of the claims, demands,
causes of action and liabilities which Employee is releasing, and Employee has full power to give the release provided for herein. Employee further represents and warrants that Employee has not assigned or transferred any of the claims, demands,
causes of action or liabilities released herein and agrees to indemnify and hold Employer harmless from and against any claims, demands, causes of action and liabilities, including attorney fees incurred, arising out of any such transfer or
assignment. 

  
 5 

 13. Waiver of Unknown Claims. Employee expressly waives the provisions, rights and
benefits of Section 1542 of the California Civil Code and any similar laws of any other jurisdiction, which provide: 
 “Section
1542. General Release — Claims Extinguished. A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must
have materially affected his or her settlement with the debtor.” 
 Notwithstanding the provisions of Section 1542, and for the
purpose of implementing a full and complete release and discharge of all Releasees with respect to claims in California as well as all other jurisdictions, the Employee expressly acknowledges that the General Release contained in Paragraph 10 is
intended to include not only claims that are known, anticipated or disclosed, but also claims that are unknown, unanticipated and undisclosed. 

This Paragraph 13 shall not serve as a release of rights under or preclude the parties from filing suit to enforce the provisions of the
Agreement or with respect to any right to indemnification provided under Employee’s director and officers’ liability insurance policy or Employer’s bylaws. 

14. Integration. This Agreement (including the Addendum) and the parties’ existing arbitration agreement (the
“Arbitration Agreement”) contain a single integrated contract expressing the entire agreement of the parties on the issues stated herein. With the exception of the Arbitration Agreement (which the parties intend to remain effective), there
are no other agreements, written or oral, express or implied, prior or collateral, between the parties, except the Agreement set forth herein. No representative of any party hereto has or had any authority to make any representations or promises not
contained in this Agreement, and each of the parties acknowledges that they have not executed this Agreement in reliance upon any such representation or promise. This Agreement cannot be modified or changed except by a written instrument signed by
each of the parties. 
 15. Severability. The provisions of this Agreement are severable, and if any part is found to be
unenforceable, the other provisions shall remain fully valid and enforceable. 
 16. Effective Date. Employee shall have a
period of at least 21 days within which to consider this Agreement, and, if thereafter executed by Employee, this Agreement may be revoked during the period of seven days following the execution of this Agreement. This Agreement shall not become
effective or enforceable until such revocation period has expired. If Employee revokes this Agreement in accordance with Section 11 herein, the entire Agreement is null and void and Employee will take nothing under this Agreement. 

  
 6 

 17. Section 409A. 

A. Notwithstanding anything herein to the contrary, to the maximum extent permitted by applicable law, amounts payable to Employee pursuant
this Agreement shall be made in reliance upon Treas. Reg. Section 1.409A-1(b)(9) (Separation Pay Plans) or Treas. Reg. Section 1.409A-1(b)(4) (Short-Term Deferrals), as applicable. For this purpose, each payment (including each monthly
installment, if any) shall be considered a separate and distinct payment, and each payment made in reliance on Treas. Reg. Section 1.409A-1(b)(9) shall only be payable if the Employee’s termination of employment constitutes a
“separation from service” within the meaning of Treas. Reg. Section 1.409A-1(h). 
 B. Notwithstanding anything contained in
this Agreement to the contrary, no amount payable on account of Employee’s termination of employment which constitutes a “deferral of compensation” (“Section 409A Deferred Compensation”) within the meaning of the Treasury
Regulations issued pursuant to Section 409A of the Code (the “Section 409A Regulations”) shall be paid unless and until Employee has incurred a “separation from service”, and any payment period set forth under this Agreement
commences in one taxable year and ends in another, then payment under such section shall not be made until the second taxable year. Furthermore, if Employee is a “specified employee” within the meaning of the Section 409A Regulations
as of the date of Employee’s separation from service, no amount that constitutes Section 409A Deferred Compensation which is payable on account of Employee’s separation from service shall be paid to Employee before the date (the
“Delayed Payment Date”) which is first business day of the seventh (7th) month after the date of Employee’s separation from service or, if earlier, the date of Employee’s death following such separation from service. All
such amounts that would, but for this Section, become payable prior to the Delayed Payment Date will be accumulated and paid on the Delayed Payment Date. 

C. The Company intends that income provided to Employee pursuant to this Agreement will not be subject to taxation under Section 409A of
the Code. The provisions of this Agreement shall be interpreted and construed in favor of satisfying any applicable requirements of Section 409A and the Section 409A Regulations. However, the Company does not guarantee any particular tax
effect for income provided to Employee pursuant to this Agreement. In any event, except for the Company’s responsibility to withhold applicable income and employment taxes from payments made to Employee, the Company shall not be responsible for
the payment of any applicable taxes incurred by Employee on payments made to Employee pursuant to this Agreement. 
 18.
Miscellaneous. This Agreement shall be governed by and construed in accordance with the laws of the State of California. This Agreement may be executed in counterparts, each of which may be deemed to be an original and all of which shall
constitute the Agreement; provided, however, that the Agreement shall not become effective until completely conforming counterparts have been signed and delivered by each of the parties hereto. 

  
 7 

 19. Captions and Interpretations. Paragraphs, titles, captions contained herein are
inserted for convenience and reference, and are not intended to define, limit or describe the scope of the Agreement or any provisions thereof. No provision of the Agreement is to be interpreted for or against any party on the basis that a
particular party or Employee’s attorney drafted such provisions. 
 20. Conditions of Execution. Each party acknowledges
and warrants that their execution of the Agreement is free and voluntary. 
 21. Attorney Fees and Costs. If any party hereto
commences any action or other proceeding to enforce or interpret this Agreement, including any actions to reform or rescind or any manner effect the provisions of this Agreement, the prevailing party shall be entitled to all reasonable costs
incurred therewith, including but not limited to actual attorney fees. Otherwise, the parties shall each bear their own attorney fees and costs incurred. 
  

							
			
	Dated: August 14, 2017	 		 	 /s/ Edward Stokx

		 		 	Employee name
			
	Dated: August 14, 2017	 		 	Employer
				
		 		 	By:	 	 /s/ Maria R. Hawthorne

		 		 		 	Maria Hawthorne
		 		 	Its:	 	President and Chief Executive Officer

  
 8 

 ADDENDUM A 

General Release by Employee. For good and valuable consideration, the adequacy and receipt of which is hereby acknowledged, for
Employee, Employee’s attorneys, successors and assigns (collectively “Releasors”), hereby releases and forever discharges Employer, and its subsidiaries, affiliates, officers, directors, shareholders, successors, predecessors, agents,
attorneys, present employees and past employees, and each of their respective subsidiaries, affiliates, officers, directors, shareholders, successors, predecessors, agents, attorneys, present employees and past employees, heirs, executors, and
personal representatives (collectively “Releasees”), and each of them from any and all past, present and future claims, demands, causes of action, and liabilities of every kind and nature whatsoever, known and unknown, suspected or
unsuspected, which the Releasees ever had, now have, hereinafter can, shall or may have, from the beginning of time to the effective date hereof, including but not limited to any claims, demands, causes of action or liabilities which Employee could
assert at common law, by any statute, rule, regulation, ordinance or law, whether federal, state or local, or on any other grounds whatsoever, that pertain to or arise out of the Employee’s employment with Public Storage, including but not
limited to claims under the California Labor Code, California Government Code, the Employment Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. § 1001, et seq., Title VII of the Civil Rights Act of 1964,
42 U.S.C. § 2000E et seq., the Age Discrimination In Employment Act, the Equal Pay Act, the Rehabilitation Act of 1973, Section 1981 of Title 42 of United States Code, claims for wrongful discharge, breach of contract,
negligence, implied contract, quasi-contract, promissory estoppel, implied covenant of good faith and fair dealing, bad faith and denial of existence of contract, defamation, interference with contractual relationships, invasion of privacy,
infliction of emotional distress, employment discrimination, retaliation, failure to prevent discrimination from occurring, fraud, and all other federal, state and local laws, ordinances, regulations or orders which relate in any way to employment,
termination of employment or the continuing effects thereof. 
 If Employee signs this Addendum, Employee will forever give up all rights
and claims that may have arisen out of his Employment, including the waiver and release of all discrimination claims. The Federal Age Discrimination In Employment Act requires that employers give certain notices to employees (including ex-employees)
involved in claims that may include age discrimination. Pursuant to the Federal Age Discrimination In Employment Act, Employer hereby notifies Employee of the following employee rights: 

A. Employee may not waive or release any right or claim under the Age Discrimination In Employment Act unless Employee’s waiver and
release is knowing and voluntary, and employee fully understands all of the terms of the release. 
 B. Employee’s waiver and release
must be part of an agreement between Employee and Employer and must be written in a manner calculated to be understood by Employee. 

  
 9 

 C. Employee’s waiver or release must specifically refer to the rights or claims arising
under the Federal Age Discrimination In Employment Act. 
 D. Employee may not waive or release any of Employee’s rights or claims that
arise after the date Employee signs this Addendum. 
 E. Employee may only waive or release rights or claims in exchange for consideration
in addition to anything of value to which Employee is already entitled. 
 F. Employee is advised in writing to consult with an attorney
before signing this Addendum. 
 G. Employee has a period of at least 21 days in which to consider whether to sign this Addendum, and this
Addendum provides that for seven days after Employee signs this Addendum, Employee may revoke the Addendum and this Addendum will not become effective or enforceable until this seven day revocation period expires. 

Revocation shall be made solely by delivering a written notice of revocation to: 

Maria Hawthorne 

President and Chief Executive Officer 

PS Business Parks 
 701
Western Avenue, Glendale, CA 91201 
 Employee agrees to keep written documentation proving that Employee revoked this Addendum as
provided in this paragraph, either by keeping the documents attesting to the delivery of the revocation, or verification that the fax was, in fact, received. If Employee signs this Addendum before the 21-day period has expired, Employee does so
knowingly and voluntarily. 
 The payment of all amounts set forth in the Agreement attached hereto are contingent upon the non-revocation
of this Addendum and Employer’s obligations thereunder will not become effective or enforceable until this seven-day revocation period expires. If Employer revokes his release of claims as provided above, all of Employer’s obligations
under the Agreement will immediately terminate. 
  

									
	Dated:	 		 		 		 	  

		 		 		 		 	Employee

  
 10

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