Document:

sdagreement

                                   EMPLOYMENT AGREEMENT                    This Agreement made this 19th day of February, 2018.      BETWEEN:         POLARIS MATERIALS CORPORATION, a company incorporated under the         laws of the Province of British Columbia and having a registered and records         office at 2900 — 550 Burrard Street, Vancouver, British Columbia, V6C 0A3               (hereinafter called the "Corporation")                                                               OF THE FIRST PART   AND:        SCOTT WILLIAM DRYDEN, of 4720 Rutland Road, West Vancouver, British        Columbia, V7W 1G7              (hereinafter called the "Employee")                                                            OF THE SECOND PART    WHEREAS:  A.          The Board of Directors of the Corporation is of the opinion that the Employee has  extensive background relevant to the industry in which the Corporation is engaged and has the  skills and abilities to acquire an extensive background in and knowledge of the Corporation's  business and become a valued senior executive of the Corporation;  B.          The Board of Directors recognizes that it is in the best interest of the Corporation  and its shareholders to promote the Employee to the position of Regional Vice President and  General Manager;  C.          The Corporation and the Employee further wish to provide for the compensation  to be paid to the Employee and other matters respecting his employment by the Corporation;  and  D.          The Corporation and the Employee in consideration of the mutual covenants  contained herein agree as follows:   1.          EMPLOYMENT, TERM, POSITIONS AND DUTIES  1.1          Employment    The Corporation hereby employs the Employee and the Employee hereby accepts full-time  employment upon the following terms and conditions.             LEGAL*45321078.2  

 

                                  Page 2 of 10    1.2         Term   The employment of the Employee by the Corporation commenced August 15, 2014.  The   employment of the Employee under this Agreement commences February 19, 2018 and shall   continue indefinitely thereafter, unless terminated pursuant to Section 1.3 or Section 4 (“Term”).   1.3         Resignation    The Employee may resign from the Corporation by providing three (3) months' notice to the   Corporation. The Corporation may, in its sole discretion, waive or reduce such notice, in which   case the Employee's resignation shall take effect and the Employee's employment shall   terminate on a date to be determined by the Corporation and neither party shall have any rights   or obligations pursuant to this Employment Agreement except those specifically set out in   Section 5.6. Upon the Employee's resignation taking effect, the Employee will resign as an   officer, director and employee of any of the Corporation's subsidiaries or affiliated companies.   1.4         Position   The Employee shall serve as Regional Vice President and General Manager shall perform such   duties and assume such responsibilities consonant with his position as an executive of the   Corporation and further will perform such duties and responsibilities as the Senior Vice   President and Chief Operating Officer of U.S. Concrete, Inc. may require and assign to him.    The Employee shall report to the Senior Vice President and Chief Operating Officer of U.S.   Concrete and shall serve as an officer and/or director of the Corporation and such relates and   affiliated companies as are requested of him.    2.          THE EMPLOYEE'S OBLIGATIONS   2.1         Full Time and Effort   During the Term, the Employee shall devote his full time and effort and attention to the best   interests of the business, operations and affairs of the Corporation, its parent, affiliates and   associates. The Employee may become a director of other corporations with the prior written   consent of the Senior Vice President and Chief Operating Officer of the Company.   2.2         Post-Termination Restrictions on Solicitation of Customers or Employees   The Employee recognizes and understands that in performing the duties and responsibilities of   his employment as provided in this Agreement, he will occupy a position of high fiduciary trust  and confidence, pursuant to which he will develop and acquire wide experience and knowledge  with respect to all aspects of the businesses carried on by the Corporation and its affiliates and  the manner in which such businesses are conducted. It is the express intent and agreement of  the Employee and of the Corporation that such knowledge and experience shall not be used in  any manner which would be detrimental to the business interests of the Corporation and such  affiliates whether during the currency of his employment by the Corporation or at any time  following the termination of his employment with the Corporation.  The Employee acknowledges that the Corporation has invested substantial time, effort and  expense in compiling its confidential, proprietary and trade secret information and in assembling  its present staff of personnel and obtaining customers. In order to protect the confidentiality of  the Corporation's confidential, proprietary and trade secret information, during Employee's  employment with the Corporation and for a one year period immediately following the  termination of that employment with the Corporation.         LEGAL*45321078.2  

 

                                  Page 3 of 10    The Employee agrees that all customers of the Corporation that the Employee services during   the Employee's employment with the Corporation, and all prospective customers from whom the   Employee has solicited business while in the employ of the Corporation, shall be solely the   customers of the Corporation.   The Employee agrees that he shall not, either directly or indirectly, solicit business, as to   products or services competitive with those of the Corporation, from any of the Corporation's   customers or prospective customers with whom the Employee had contact within two years   prior to the Employee's termination.   The Employee agrees that he will not directly or indirectly induce or solicit any of the   Corporation's employees to leave their employment with the Corporation within two years prior   to Employee's termination.   2.3         The parties recognize that a breach by the Employee of any of the covenants   herein contained in Sections 2.2 and 2.6 would result in damages to the Corporation and that   the Corporation could not be adequately compensated for such damages by monetary award.   Accordingly, the Employee agrees that in the event of any such breach, in addition to all other   remedies available to the Corporation at law or in equity, the Corporation shall be entitled as a   matter of right to apply to a court of competent jurisdiction, in British Columbia, for such relief by   way of restraining order, injunction, decree or otherwise, as may be appropriate to ensure   compliance with the provisions of this Agreement.   2.4         The parties further agree that a breach by the Employee of any of the covenants   contained in Sections 2.2 and 2.6 will be cause for termination of the Employee's employment   and of the Corporation's obligations under this Agreement and will nullify and make void the   obligation that the Corporation has to make the payments referred to in subsections 3.6 and   4.3(b), and the Corporation will have no obligation to provide the Employee with bonuses,   severance pay or notice of termination or compensation in lieu of notice. Where such payments   have already been made, the Employee agrees to reimburse the Corporation the amount paid.   Where the Employee fails to reimburse the Corporation, the amount paid to the Employee shall   be a debt due and owing from the Employee to the Corporation.   2.5        The parties agree that all restrictions in this Agreement are necessary and  fundamental to the protection of the business of the Corporation and are reasonable and valid,  and all defences to the strict enforcement thereof by the Corporation are hereby waived by the  Employee.  2.6          Disclosure of Information    The Employee further recognizes and understands that in the performance of his employment   duties and responsibilities as provided in this Agreement, he will acquire knowledge of a wide   variety of non-public information concerning the business of the Corporation and its affiliates   and associates. The Employee therefore agrees that, except with the permission of the   Corporation, he will not use such non-public information for any reason other than for the   business of the Corporation or disclose such non-public information to any unauthorized person.   2.7        The Employee agrees that upon termination of the Employee's employment for   any reason, the Employee will return to the Corporation all assets of the Corporation including   any documents, recordings or other format upon which information of the Corporation is stored.              LEGAL*45321078.2  

 

                                  Page 4 of 10    3.          COMPENSATION   3.1         Base Salary   Effective April 1, 2018, the Employee's annual base salary will be $285,000 per annum, which   salary shall be reviewed annually by the Compensation Committee of the Board of U.S   Concrete, Inc. (“Compensation Committee”) and adjusted accordingly each year, if warranted,   as determined in the sole discretion of the Compensation Committee. The adjustments to the   Employee's salary shall recognize the Employee's performance and contribution to the   Corporation and the performance of the Corporation. The Employee's base salary shall be   payable in substantially equal semi-monthly instalments in arrears, subject to such payroll   withholding deductions as may be required by law.   3.2         Equity Incentives   Subject to the approval of the Compensation Committee, the Employee shall be eligible to   participate in U.S Concrete, Inc.’s equity incentive plans, as determined by the Compensation   Committee, in accordance with the terms and conditions of the applicable plan.    3.3         Other Benefits   The Employee shall be eligible to participate in all employee benefit plans and programs in   effect for executive and key management employees of the Corporation to the extent of and in   accordance with the rules and agreements governing such plans and programs so long as such   plans and programs are in effect, which plans and programs may be amended, deleted or   revised from time to time as the Corporation in its sole discretion determines.   The Corporation shall provide the Employee with the use of one non-reserved office parking   space or a financial contribution to travel expenses of equivalent value.   3.4         Expenses   The Corporation shall reimburse the Employee for reasonable expenses incurred by him in the   performance of his duties and responsibilities hereunder in accordance with company policy.  3.5          Vacation   The Employee shall be entitled in each calendar year to paid vacation in accordance with the   Corporation's executive vacation policy as it exists from time to time, commencing with a   minimum entitlement of four (4) weeks paid vacation, to be taken at such time or times as the   Employee may select and as the Corporation may reasonably approve having regard to the   business, affairs and operations of the Corporation and its affiliates. If the Employee is   employed for only a part of such year, such vacation entitlement shall be prorated as though it  were accruing from day to day.  3.6          Bonuses   Subject to the approval of the Compensation Committee, the Employee shall be eligible to   participate in U.S. Concrete, Inc.’s annual bonus plan, subject to the terms and conditions of   that plan. The target award for the Employee’s position is 35% of base salary. The bonus plan   will be based on individual targets set by the Senior Vice President and Chief Operating Officer  of U.S. Concrete, Inc.            LEGAL*45321078.2  

 

                                  Page 5 of 10    4.          TERMINATION   4.1        Notwithstanding anything in this Agreement to the contrary, the Corporation may  terminate the employment of the Employee for just cause by giving written notice to the  Employee of its intention to terminate this Agreement on the date specified in such notice. If the  Employee's employment is terminated for just cause, the Employee shall not be entitled to any  severance, notice of termination or compensation pursuant to the termination provisions of this  Agreement. For the purposes of this agreement, the Corporation shall have "just cause" to  terminate the Employee upon:       (i)    The Employee's indictment for any crime involving monies or other property or              any felony, crime, or any offence of moral turpitude, or fraud, embezzlement,              theft, dishonesty, wilful misconduct, or deliberate injury to the Corporation, its              related companies or its subsidiaries in the performance of his duties hereunder;      (ii)    The Employee's intentional or grossly negligent refusal or failure to perform his              duties or carry out directions of Senior Vice President and Chief Operating              Officer U.S. Concrete, Inc. which is not cured within ten (10) days of notice of              such refusal or failure to perform his duties;      (iii)   The Employee's material breach of any material provision of this Agreement              which breach is not cured within ten (10) days of notice of such breach; or      (iv)    Any misappropriation by the Employee of funds or property of the Corporation, its              related companies or its subsidiaries.  Notwithstanding anything to the contrary contained in this Agreement, the Employee shall not  have the right to cure any event constituting "just cause" hereunder if the Employee previously  exercised any of the cure rights granted hereunder at any time during the twelve (12) month  period immediately preceding the event constituting "just cause". Any termination for "just  cause" will not be in limitation of any other right or remedy the Corporation may have under this  Agreement.  4.2         (a)         If the Employee is permanently disabled, the Corporation may  replace the Employee either on a temporary or permanent basis without terminating the  employment of the Employee. During the Employee's absence due to disability, the Employee  will be entitled to such insurance and other benefits as may be provided for pursuant to the rules  and agreements governing the plans providing for insurance and benefit coverage, but will not  receive salary in addition to wage loss replacement insurance benefits.              (b)         For the purposes of this Article, "permanent disability" means any  physical or mental incapacity, disease or affliction, as determined by a legally qualified medical  practitioner selected by the Corporation and acceptable to the Employee, acting reasonably,  which prevents the Employee to a substantial degree from performing his obligations as an  employee of the Corporation.              (c)         If the Employee recovers from permanent disability, the  Corporation may offer to the Employee the position that the Employee formerly occupied prior to  the Employee's permanent disability or such other comparable position that the Corporation in  its sole discretion determines. If no other position is offered by the Corporation to the Employee,  the Employee shall be entitled to such compensation as is set out in Section 4.3(b).          LEGAL*45321078.2  

 

                                  Page 6 of 10    4.3        (a)         The Corporation may terminate the employment of the Employee  for reasons other than just cause by giving written notice to the Employee of the intention to   terminate his employment on the date specified in such notice.               (b)        The Corporation has the discretion to terminate the employment   relationship at any time. If the Employee's employment is terminated without just cause, the   Corporation will pay to the Employee a sum equal to 52 weeks of the Employee's then current   base annual salary, plus an amount equal to the cost of the Employee's benefits and a pro rata   bonus, but excluding incentive stock options, for a period of 52 weeks.   4.4         (a)        The Corporation wishes to assure fair treatment of senior   executives of the Corporation in the event of a Change in Control of the Corporation, and   accordingly the Corporation and the Employee agree that the Employee's entitlement to   severance pay will be an amount equal to 78 weeks of base salary plus the cost of 52 weeks'   benefits other than bonus and incentive stock options if the Employee's employment is   terminated by the Corporation or any successor corporation or person within six (6) months of a   change of control, or an amount equal to 78 weeks of base salary plus the cost of 52 weeks'   benefits other than bonus and incentive stock options if the Employee resigns within six (6)   months of a change of control; or an amount equal to 52 weeks of base salary plus the cost of   52 weeks' benefits other than bonus and incentive stock options if the Employee's employment   is terminated by the Corporation or any successor corporation or person between six (6) and   twelve (12) months following a change of control, or an amount equal to 52 weeks of base   salary plus the cost of 52 weeks' benefits other than bonus and incentive stock options if the   Employee resigns between six (6) and twelve (12) months of a change of control.               (b)         "Change of Control" means the occurrence of any of the following   events:       (i)     if any individual, partnership, company, corporation, society, or other legal entity               (a "Person"), alone or together with any other Persons with whom it is acting               jointly or in concert, becomes the beneficial owner of, or acquires the power to               exercise control or direction over, directly or indirectly, such securities (or               securities convertible into, or exchangeable for, securities) entitled to fifty percent               (50%) or more of the votes exercisable by holders of the then-outstanding               securities generally entitled to vote for the election of directors ("Voting Stock") of               the Corporation or if any Persons that previously were not acting jointly or in               concert commence acting jointly or in concert and together beneficially own, or               have the power to exercise control or direction over, securities entitled to more               than fifty percent (50%) of the votes, exercisable by Holders of Voting Stock of               the Corporation, and such Persons did not at the date hereof own or otherwise               exercise control over fifty percent (50%) or more of the votes exercisable by               holders of voting stock, nor have rights of conversion which, if exercised, would               permit such Persons to own or control such a percentage of votes;      (ii)     the Corporation is merged, amalgamated or consolidated into or with another               Person and, as a result of such business combination, securities entitled to more               than fifty percent (50%) of the votes, exercisable by holders of the Voting Stock               of the Corporation or of such Person into which the Voting Stock of the               Corporation is converted in or immediately after such transaction are held by a               Person alone or together with any other persons with whom it is acting jointly or               in concert and such Person, together with those with whom it is acting jointly or in               concert, held securities representing less than fifty percent (50%) of the votes         LEGAL*45321078.2  

 

                                 Page 7 of 10               exercisable by the holders of the Voting Stock of the Corporation immediately              prior to such transaction;     (iii)    the capital of the Corporation is reorganized and, as a result of such              reorganization, securities entitled to more than fifty percent (50%) of the votes              exercisable by the holders of the Voting Stock of the Corporation upon or              immediately after such reorganization are held by a Person alone or together              with any other Persons with whom it is acting jointly or in concert and such              Person, together with those with whom it is acting jointly or in concert, held              securities representing less than fifty percent (50%) of the votes exercisable by              the holders of the Voting Stock of the Corporation immediately prior to such              reorganization;     (iv)     the Corporation sells or otherwise transfers all or substantially all of its assets to              another Person and immediately following such sale or transfer securities entitled              to more than fifty percent (50%) of the votes exercisable by the holders of the              Voting Stock of the acquiring Person are held by a Person that alone or together              with any other Person or Persons with whom it is acting jointly or in concert, and              such person, together with those with whom it is acting jointly or in concert, held              securities representing less than fifty percent (50%) of the votes exercisable by              holders of the Voting Stock of the Corporation immediately prior to such              transaction; or     (v)      during any period of two consecutive years, individuals ("Incumbent Directors")              who at the beginning of any such period constitute the directors of the              Corporation cease for any reason to constitute at least a majority thereof. For              purposes of this clause (v):              (A)   each director who, during any such period, is elected or appointed as a                    director of the Corporation with the approval of at least a majority of the                    Incumbent Directors will be deemed to be an Incumbent Director;              (B)   an "Incumbent Director" does not include a director, elected or appointed                    pursuant to an agreement (in respect of such election or appointment)                    with another Person that deals with the Corporation at arm's length, or as                    part of or related to an amalgamation, a merger or a consolidation of the                    Corporation into or with another person, a reorganization of the capital of                    the Corporation or the acquisition of the Corporation as a result of which                    securities entitled to less than fifty (50%) percent of the votes exercisable                    by holders of the then-outstanding securities entitled to Voting Stock of                    the Corporation or such Person into which the Voting Stock of the                    Corporation is converted on or immediately after such transaction are                    held in the aggregate by Persons who were holders of Voting Stock of the                    Corporation immediately prior to such transaction; and              (C)  references to the Corporation shall include successors to the Corporation                   as a result of any amalgamation, merger, consolidation or reorganization                   of the Corporation into or with another body corporate or other legal                   Person.                                   LEGAL*45321078.2  

 

                                  Page 8 of 10    5.          MISCELLANEOUS   5.1         Binding Agreement   This Agreement shall be binding on the parties hereto and their respective successors in   interest but, subject as hereinafter provided, shall not be assignable by either such party except   the Corporation shall be entitled to assign this Agreement to any continuing or successor   corporation resulting from any amalgamation, consolidation, merger or arrangement with one or   more affiliates of the Corporation. This Agreement and all rights of the Employee hereunder   shall endure to the benefit of and be enforceable by the Employee's heirs, executors,   administrators or other legal personal representatives.   5.2         Notices   Any notice or other communication required or permitted to be given or made hereunder shall   be in writing and shall be well and sufficiently given or made if:              (a)         enclosed in a sealed envelope and delivered in person to the party  hereto to whom it is addressed at the relevant address set forth below; or              (b)         sent by electronic communication;              if to the Corporation addressed to it at:              c/o U.S. Concrete, Inc.               331 N. Main Street              Euless, TX 76039              Attention: Ronnie Pruitt, Senior Vice President and COO              and if to the Employee, addressed to him at:              4720 Rutland Road              West Vancouver, BC V7W 1G7  and thereafter at such residence in British Columbia as notified to the Company  Any notice or other communication so given or made shall be deemed to have been given or  made and to have been received on the day of delivery, if delivered, and on the day of sending,  if sent by electronic communication (provided such delivery or sending is during normal  business hours on a business day and, if not, then on the first business day thereafter). Either  party hereto may change his or its address for notice by notice to the other party hereto given in  the manner aforesaid.  5.3          Modification and Waiver   No provision of this Agreement may be modified or amended unless such modification or   amendment is authorized by the Board and is agreed to in writing, signed by the Employee and   the Corporation. No waiver by either party hereto of any breach by the other party hereto of any  condition or provision of this Agreement to be performed by such other party shall be deemed a  waiver of similar or dissimilar provisions or conditions at the time or any prior or subsequent  time. This Employment Agreement replaces any prior Employment Agreements and no  agreement or representations, oral or otherwise, express or implied, with respect to the  employment of the Employee by the Corporation have been made by either party which are not  set forth expressly in this Agreement.         LEGAL*45321078.2  

 

                                  Page 9 of 10    5.4         Mitigation    The Employee shall not be required to mitigate any damages he may suffer by reason of the   termination of his employment hereunder by the Corporation pursuant to Section 4.3 hereof nor   shall any rights or benefits required to be provided to the Employee hereunder be terminated or   reduced as a result of his employment by another employer, except to the extent specifically   provided for in this Agreement.   5.5         Acknowledgement   The Employee acknowledges and agrees that the payment contemplated in Section 4.3 hereof   include his entitlement, if any, to payment in lieu of notice, severance pay or damages under   applicable employment standards legislation, common law or any other entitlement at law   arising out of the termination of his employment.   5.6         Survival of Obligations   The obligations of the parties hereunto pursuant to Sections 2.2, 2.3, 2.4, 2.5, 2.6, 2.7, 3.4, 4.2,   4.3, 4.4, and 5.1 to 5.13 of this Agreement shall survive the termination of the Employee's   employment hereunder.  5.7          Entire Agreement   This Agreement contains all the terms and conditions agreed upon by the parties hereto with   respect to the subject matter hereof and supersedes all prior agreements and understandings   with respect thereto, including the Employee’s prior employment agreement made July 11th,  2014 and amended by letter dated July 17th, 2015..   5.8         Law Governing   This Agreement shall be subject to and governed by the laws of the Province of British   Columbia.   5.9         Mediation and Arbitration   The parties agree to attempt to resolve all disputes arising out of or in connection with this  Agreement, including its existence and validity or its breach or termination by either party, by  structured negotiation with the assistance of a mediator agreed to by the parties or failing  agreement, appointed by the British Columbia International Commercial Arbitration Centre   under its commercial mediation rules.   If the dispute cannot be settled within a period of thirty (30) days after the mediator has been   appointed, or such longer period agreed to by the parties, the dispute shall be referred to and   finally resolved by arbitration in Vancouver, British Columbia pursuant to the terms of the British   Columbia Commercial Arbitration Act. The arbitral tribunal shall be comprised of a single   arbitrator agreed upon by the parties. If the parties are unable to agree to the appointment of an   arbitrator within fifteen (15) days of delivery of a request for arbitration by either party to the   other, a request for appointment of the arbitrator may be made to the Executive Director of the   British Columbia International Commercial Arbitration Centre. If for any reason the Executive   Director is unable to make the appointment requested, a request shall be made for appointment   of the arbitrator to the Supreme Court of British Columbia.          LEGAL*45321078.2  

 

                                 Page 10 of 10   Each party shall bear its own costs of legal representation and assistance. All other costs,  including the fees and expenses of the mediator, the arbitrator and administrative fees and  charges, shall be shared equally by the parties.  5.10        Time of Essence   Time shall be of the essence of this Agreement.  5.11        Invalidity  The invalidity, illegality or unenforceability of any provision hereof shall not in any way affect or  impair the validity, legality or enforceability of the remaining provisions hereof.  5.12        Currency  All dollar amounts referred to herein are Canadian dollars.  5.13        Headings  The headings contained herein are for reference purposes only and shall not in any way affect  the construction or interpretation of this Agreement.  IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the date first  written above.                                          POLARIS MATERIALS CORPORATION                                                                                                                                                                                                                                          Per: :                                               Ronnie Pruitt                                              Director    WITNESS:                                              Name:                                     SCOTT WILLIAM DRYDEN          LEGAL*45321078.2Exhibit

Exhibit 10.1

SEPARATION AND CONSULTING AGREEMENT

THIS SEPARATION AND CONSULTING AGREEMENT (this “Agreement”), dated as of May 11, 2018, is made by and between Digital Realty Trust, Inc. (the “REIT”), DLR LLC (the “Employer” and together with the REIT, the “Company”) and Scott E. Peterson (“Peterson”).

WHEREAS, Peterson and the Company previously entered into that certain letter agreement, dated as of November 10, 2015 (the “Employment Letter”), pursuant to which Peterson is employed as Chief Investment Officer of the Company;
WHEREAS, effective as of the Termination Date (as defined below), Peterson desires to resign from his position as Chief Investment Officer of the Company, and as an employee of the Company, and Peterson and the Company desire to specify the terms of Peterson’s resignation and termination of employment and to provide for the termination of the Employment Letter; and
WHEREAS, in connection with Peterson’s resignation and termination of employment, the Company wishes to secure the services of Peterson as a consultant to the Company upon the terms and subject to the conditions set forth herein, and Peterson wishes to render such services to the Company upon the terms and subject to the conditions set forth herein.
NOW, THEREFORE, in consideration of the mutual agreements set forth herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows:

1.Resignation.

a.    Resignation; Termination of Employment Letter.  Effective as of May 31, 2018, which date may be extended up to fourteen (14) days at the Company’s sole election (such date, the “Termination Date”), Peterson hereby resigns as an officer and employee of the Company and its affiliates.  Peterson and the Company acknowledge and agree that (i) the termination of Peterson’s employment shall not constitute a termination by the Company without “Cause” or by Peterson for “Good Reason” for purposes of the Employment Letter or any other plan or agreement between Peterson and the Company or its affiliates, and (ii) nothing contained in this Agreement or any action taken by the Company in connection with Peterson’s termination of employment or transition to a consulting role (including the training or hiring of a successor to Peterson’s position or to a similar position) will constitute “Good Reason” for purposes of the Employment Letter or any other plan or agreement between Peterson and the Company or its affiliates.  In addition, effective as of the Termination Date, the Employment Letter shall terminate, and Peterson shall have no further right or interest thereunder; provided, however, that notwithstanding the foregoing, Sections 6(e) (Termination of Offices and Directorships), 8 (Restrictive Covenants), 9 (Code Section 409A), 11 (Payment of Financial Obligations), 12 (Withholding), 13 (Arbitration) and 17 (Governing Law) of the Employment Letter shall remain in full force and effect in accordance with their terms.

b.    Accrued Salary.  On the Termination Date, the Company will pay to Peterson all accrued salary earned through the Termination Date, subject to standard payroll deductions and 

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withholdings.  Peterson acknowledges and agrees that, as of the Termination Date, he does not have any accrued, unused vacation or paid-time-off.  

c.    Expenses.  Peterson acknowledges that, within seven days (7) days after the Termination Date, Peterson will submit his final documented expense reimbursement statement reflecting all business expenses incurred by him through the Termination Date, if any, for which he seeks reimbursement.  The Company will reimburse Peterson for any such expenses pursuant to its regular business policies and practices.

d.    Return of Company Property.  On or before the Termination Date, except as otherwise determined by the Company, Peterson shall return to the Company all Company documents (and all copies thereof) and other Company property in his possession or control, including, but not limited to: Company files, correspondence, memoranda, notes, notebooks, books, records, plans, forecasts, reports, proposals, agreements, financial information, personnel information, marketing information, research and development information, information regarding business contacts, customers, vendors, strategies, information regarding potential, pending or completed transactions (including, without limitation, mergers, acquisitions, joint ventures and other partnerships), products, computer-recorded information, databases, computer programs, tangible property and equipment, credit cards, entry cards, keys, computer access codes and any other materials of any kind that contain or embody any proprietary or confidential information of the Company (and all reproductions thereof in whole or in part).  Peterson shall make a diligent search to locate any such documents, property, and information.  In addition, if Peterson has used any non-Company computer, server, or e-mail system to receive, store, review, prepare, or transmit any Company confidential or proprietary data, materials, or information, he shall immediately provide the Company with a computer-useable copy of such information and then permanently delete and expunge such Company confidential or proprietary information from those systems.  Peterson agrees to provide the Company with a written certification verifying that the necessary copying and/or deletion has been completed.  

2.Consulting Services.  During the period commencing on the Termination Date and ending on February 28, 2019 or such earlier date on which Peterson’s consulting relationship with the Company is terminated as provided herein (the “Consulting Period”), Peterson shall provide such consulting services as may be mutually agreed by and between the Company and Peterson, including the Transitional Services (as set forth herein) as may be reasonably requested by the Company (the “Consulting Services”).  Peterson shall provide the Consulting Services to the Company at times and locations mutually agreed to by Peterson and the Company.  Peterson shall comply with all applicable policies and procedures of the Company (including, without limitation, technology use, confidentiality, background check, and work authorization policies and procedures).  

3.Compensation; Treatment of Equity Awards; Expenses.
a.    Bonus.  In consideration of, and subject to and conditioned upon, (i) Peterson’s execution and non-revocation of the Releases (as defined below) in accordance with Section 4 below, (ii) Peterson’s continued compliance with the terms and conditions of this Agreement, including without limitation, the confidentiality, non-solicitation, non-competition and 

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non-disparagement covenants contained or referred to in Section 7 below, and (iii) satisfaction of the Bonus Conditions set forth herein, the Company shall pay to Peterson a one-time cash payment equal to $287,500 (the “Bonus”) to be paid in a single lump sum as set forth herein.
b.    Treatment of Equity Awards.  Peterson represents and acknowledges that except as set forth on Exhibit A attached hereto, he has no outstanding equity awards or equity-based awards with respect to the REIT, Digital Realty Trust, L.P. (the “Operating Partnership”) or any affiliate thereof (the “Equity Awards”), or any other rights to acquire stock or equity interests of any such entity.  In consideration of, and subject to and conditioned upon, Peterson’s execution and non-revocation of the Releases in accordance with Section 4 below and Peterson’s continued compliance with the terms and conditions of this Agreement, including without limitation, the confidentiality, non-solicitation, non-competition, and non-disparagement covenants contained or referred to in Section 7 below, the Company, the Operating Partnership and Peterson agree that each outstanding Equity Award held by Peterson shall be treated in accordance with the terms of the applicable award agreement governing such Equity Award; provided, however, that in no event shall the termination of Peterson’s employment with the Company pursuant to this Agreement or a termination of the consulting relationship established hereby upon the expiration of the Consulting Period or by either party for any reason, in either case, constitute a Qualifying Termination as defined in, and for purposes of, any applicable award agreement governing Peterson’s outstanding Equity Awards.  All Equity Awards that have not become vested as of the conclusion of the Consulting Period shall, automatically and without further action, terminate and be cancelled without consideration therefor, and Peterson shall have no further right or interest therein.
c.    Expenses.  The Company shall, in accordance with applicable Company policy, reimburse Peterson for reasonable and necessary business expenses actually incurred or paid by Peterson during the Consulting Period in connection with the Consulting Services, subject to proper substantiation of such expenses in accordance with applicable Company policy; provided, however, that Peterson shall not be authorized to incur any such expenses (including any travel expenses) without prior written approval from the Company.
d.    Right to Receive/Retain Payments and Benefits.  Peterson’s compliance with the terms of Sections 1.d, 7 and 8 of this Agreement (including any agreements or covenants cross-referenced therein) and execution and non-revocation of the Releases in accordance with Section 4 below are conditions to his right to receive and retain the Bonus and the continued vesting of his Equity Awards as set forth in Section 3.b.  If Peterson violates or breaches Sections 1.d, 7 or 8 of this Agreement (including any agreements or covenants cross-referenced therein), does not execute or revokes any Release, or if the Company terminates the consulting relationship established hereby for Cause, the Company shall not be obligated to pay the Bonus or continue to provide Peterson with the continued vesting of his Equity Awards in accordance with Section 3.b above.
4.Release of Claims and Notice of Rights.  Peterson acknowledges and agrees that the right to receive and retain the Bonus and the continued vesting of the Equity Awards set forth in Section 3.b is subject to and conditioned upon his execution, delivery, and non-revocation of a first general release of claims (a “First Release”) and a second general release of claims (a “Second Release”) in forms prescribed by the Company (collectively, the “Releases”).  Peterson shall execute 

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and deliver the First Release within twenty-one (21) days following the Termination Date, and shall execute and deliver the Second Release within twenty-one (21) days following the date on which Peterson’s consulting relationship terminates.  The parties agree that nothing in this Agreement shall be construed to limit Peterson’s ability to file a charge or complaint with the Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, the Securities and Exchange Commission, or any other federal, state, or local government agency or commission (“Government Agencies”).  Further, the parties agree that this Agreement does not limit Peterson’s ability to communicate with any Government Agencies or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including providing documents or other information, without notice to the Company.  This Agreement does not limit Peterson’s right to receive an award for information provided to any Government Agencies.

5.Termination.  The consulting relationship established hereby may not be terminated by either party prior to February 28, 2019, except that the Company may terminate the consulting relationship for Cause at any time or the consulting relationship may be terminated at any time by mutual agreement of the Company and Peterson.  For purposes of this Agreement, “Cause” will be determined in the reasonable discretion of the Company, and will include, without limitation, the following: (i) failure by Peterson to exercise a reasonable level of skill and efficiency in performing the Consulting Services; (ii) misconduct by Peterson which injures the general reputation of the Company or its subsidiaries or affiliates or interferes with contracts or operations of the Company or its subsidiaries or affiliates; (iii) Peterson’s conviction of, or entry of a guilty or no contest plea to, a felony or any crime involving moral turpitude; (iv) fraud, misrepresentation, or breach of trust by Peterson in the course of his services which adversely affects the Company or its subsidiaries or affiliates; (v) Peterson’s willful and gross misconduct in the performance of the Consulting Services that results in economic or other injury to the Company or its subsidiaries or affiliates; (vi) a breach of the covenants set forth or referred to in Section 7 below; or (vii) a breach by Peterson of any of his obligations under this Agreement.

6.Obligations of the Company Upon Termination.  Upon the termination of the consulting relationship established hereby for any reason, the continued vesting of Peterson’s Equity Awards under this Agreement shall cease as of the applicable date of such termination.  In addition, if the consulting relationship established hereby terminates due to the expiration of the Consulting Period or is earlier terminated by mutual agreement of the Company and Peterson, subject to and conditioned upon Peterson’s execution and non-revocation of the Second Release, the Company shall pay to Peterson, in accordance with the timing requirements specified in Section 3.a above, a lump sum payment equal to the Bonus, to the extent earned but unpaid prior to the date of termination.  Except as expressly provided in this Section 6, Peterson shall not be entitled to any further payments in connection with or following the termination of the consulting relationship established hereby.

7.Restrictive Covenants.

a.Confidentiality.  Peterson agrees that during the Consulting Period and thereafter, he will not, directly or indirectly, disclose or appropriate to his own use, or the use of any third party, any trade secret or confidential information concerning the REIT, the Operating 

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Partnership, or their respective subsidiaries or affiliates (collectively, the “Digital Group”) or their businesses, whether or not developed by Peterson, except as required in connection with Peterson’s performance of the Consulting Services.  Peterson further agrees that, upon termination of the consulting relationship hereunder, he will not receive or remove from the files or offices of the Digital Group any originals or copies of documents or other materials (physical, electronic, or otherwise) maintained in the ordinary course of business of the Digital Group, and that he will return any such documents or materials (physical, electronic, or otherwise) otherwise in his possession.  Peterson further agrees that, upon termination of the consulting relationship, he will maintain in strict confidence the projects, including, but not limited to, leasing, build-to-suit, merger and acquisition transactions (including acquisitions of land), in which any member of the Digital Group is involved or contemplating (collectively, the “Digital Group Projects”).  
The federal Defend Trade Secrets Act of 2016 (the “Act”) provides immunity from liability in certain circumstances to employees, contractors, and consultants for limited disclosures of Digital Group “trade secrets,” as defined by the Act.  Specifically, employees, contractors, and consultants may disclose trade secrets: (1) in confidence, either directly or indirectly, to a federal, state, or local government official, or to an attorney, “solely for the purpose of reporting or investigating a suspected violation of law,” or (2) “in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.”  Additionally, employees, contractors, and consultants who file lawsuits for retaliation by an employer for reporting a suspected violation of law may use and disclose related trade secrets in the following manner: (1) the individual may disclose the trade secret to his/her attorney, and (2) the individual may use the information in the court proceeding, as long as the individual files any document containing the trade secret under seal and does not otherwise disclose the trade secret “except pursuant to court order.”
b.Non-Solicitation of Customers and Suppliers.  Peterson agrees that during the Consulting Period, he will not, directly or indirectly, solicit, induce, or encourage any customer, vendor, or other party doing business with any member of the Digital Group to terminate or limit their existing contractual relationships with the Digital Group or such member or transfer their business from the Digital Group or such member, including in the context of any rights of first offer, renewals or extension options of any customer of the Digital Group, and he will not initiate discussion with any such person for any such purpose or authorize or knowingly cooperate with the taking of any such actions by any other individual or entity.
c.Non-Competition.  Peterson covenants and agrees that during the Consulting Period, he shall comply with the Non-Competition Covenants set forth herein.
d.Non-Disparagement.  Peterson agrees that during the Consulting Period and thereafter, he will not make any statement, publicly or privately, which disparages or would reasonably be expected to disparage the Digital Group or any of its employees, officers or directors.  The Company agrees to instruct its executive officers and directors not to make, during the Consulting Period and thereafter, any statement, publicly or privately, which disparages or would reasonably be expected to disparage Peterson.

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e.Proprietary Information and Inventions Assignment Agreement.  Peterson acknowledges and agrees that he has executed that certain Proprietary Information and Inventions Assignment Agreement with the Employer, dated November 10, 2015, a copy of which is attached hereto as Exhibit B (the “PIIAA”), and that such agreement shall remain in full force and effect in accordance with its terms.
f.Interpretation.  In the event the terms of this Section 7 shall be determined by any court of competent jurisdiction to be unenforceable by reason of its extending for too great a period of time or over too great a geographical area or by reason of its being too extensive in any other respect, it will be interpreted to extend only over the maximum period of time for which it may be enforceable, over the maximum geographical area as to which it may be enforceable, or to the maximum extent in all other respects as to which it may be enforceable, all as determined by such court in such action.
8.Cooperation.  During the Consulting Period and thereafter, Peterson shall cooperate with the Digital Group, upon the reasonable request of the Company, with respect to any internal investigation or administrative, regulatory, or judicial proceeding involving matters that arose during Peterson’s employment with the Company (including, without limitation, Peterson being available to the Digital Group upon reasonable notice for interviews and factual investigations, appearing at the reasonable request of the Company to give testimony without requiring service of a subpoena or other legal process, and turning over to the Digital Group all relevant Digital Group documents which are or may have come into Peterson’s possession during his employment); provided, however, that any such request by the Company shall not be unduly burdensome or unreasonably interfere with Peterson’s personal schedule or ability to engage in gainful employment and the Company shall reimburse Peterson for any actual, reasonable, out-of-pocket expenses incurred in connection with providing any such cooperation.

Nothing herein is intended to be or will be construed to prevent, impede, or interfere with Peterson’s right to respond accurately and fully to any question, inquiry, or request for information regarding the Digital Group or his or her employment with the Company when required by legal process, or from initiating communications directly with, or responding to any inquiry from, or providing truthful testimony and information to, any federal, state, or other regulatory authority in the course of an investigation or proceeding authorized by law and carried out by such agency.  Peterson is not required to contact the Digital Group regarding the subject matter of any such communications before they engage in such communications.

9.References.  Any and all inquiries made by outside third parties concerning the employment of Peterson by the Company shall be directed to Cindy Fiedelman, Chief Human Resources Officer.  The Company agrees that if contacted by a prospective employer of Peterson, it will only verify dates of employment, salary as of the Termination Date and job classification held by Peterson.

10.Independent Contractor.  The Company and Peterson expressly agree that, during the Consulting Period, Peterson is solely an independent contractor and neither Peterson nor any principal, employee, or contractor of Peterson shall be construed to be an employee of the Company 

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in any matter under any circumstances or for any purposes whatsoever.  Nothing in this Agreement shall establish an agency, partnership, joint venture, or employee relationship between the Company and Peterson, and Peterson shall not represent himself as an employee or officer of the Company.  The Company and Peterson agree and acknowledge that neither party hereto renders legal, tax, or accounting advice to the other party.  Without limiting the generality of the foregoing, the Company shall not provide Peterson or any principal, employee, or contractor of Peterson with, and no such individual shall be eligible to receive from the Company under any Company plan, any benefits, including without limitation, any pension, health, welfare, retirement, workers’ compensation, or other insurance benefits.  Peterson shall be solely responsible for all taxes arising in connection with the payment of the Bonus (if any) (except to the extent required by law, as determined by the Company) and the continued vesting of the Equity Awards in respect of the Consulting Services, including, without limitation, any and all federal, state, local and foreign income, and employment taxes.

11.No Assignment.  This Agreement and the rights and duties hereunder are personal to Peterson and may not be assigned, delegated, transferred, or pledged by Peterson.  Peterson hereby acknowledges and agrees that the Company may assign, delegate, transfer, pledge, or sell this Agreement and the rights and duties hereunder (a) to an affiliate of the Company or (b) to any third party in connection with (i) the sale, transfer, or other disposition of all or substantially all of the assets of the Company or (ii) a merger, consolidation, or other similar corporate transaction involving the Company.

12.Indemnification.  Without limiting any other right of indemnification, contribution or recovery, if the Company or its officers, directors, employees, or agents incur any liability or expense as a result of any claim that any of the above representations and warranties are not true or have been breached or that arise from Peterson’s negligent performance of the Consulting Services, Peterson shall indemnify the Company, its officers, directors, employees, and agents and hold each of them harmless against all such liability or expense, including reasonable attorney’s fees.

13.Notices.  Any notice or other communication required or permitted under this Agreement shall be effective only if it is in writing and delivered personally or sent by fax, email or registered or certified mail, postage prepaid, addressed as follows (or if it is sent through any other method agreed upon by the parties):

If to the Company:
Digital Realty Trust, Inc. 
Four Embarcadero Center, Ste. 3200 
San Francisco, CA 94111 
Attn:  General Counsel 
Fax: (415) 738-6501

If to Peterson, to his most recent address on the Company’s books and records.

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14.Miscellaneous.

a.    Governing Law.  This Agreement shall be governed, construed, interpreted, and enforced in accordance with the substantive laws of the State of California, without reference to the principles of conflicts of law of California or any other jurisdiction, and where applicable, the laws of the United States.

b.    Amendments; Waivers.  This Agreement may not be modified, amended, or terminated except by an instrument in writing signed by Peterson and the Company.  No failure to exercise and no delay in exercising any right, remedy, or power hereunder preclude any other or further exercise of any other right, remedy, or power provided herein or by law or in equity.

c.    Binding Effect; Benefit.  This Agreement shall inure to the benefit of and be binding upon the parties hereto and each of their respective successors and assigns.  Nothing in this Agreement, expressed or implied, is intended to confer on any person other than the parties hereto and their respective successors and permitted assigns, any benefit, rights, remedies, obligations, or liabilities under or by reason of this Agreement.

d.    No Authority to Bind the Company.  Peterson shall have no authority to, and Peterson shall not, (i) enter into any contract or agreement on behalf of the Company or otherwise bind or commit the Company or (ii) except as expressly authorized in accordance with Section 3.c above, incur any expense or liability on behalf of the Company.

e.    Enforcement.  If any provision of this Agreement is held to be illegal, invalid, or unenforceable under present or future laws effective during the term of this Agreement, such provision shall be fully severable, this Agreement shall be construed and enforced as if such illegal, invalid, or unenforceable provision had never comprised a portion of this Agreement, and the remaining provisions of this Agreement shall remain in full force and effect and shall not be affected by the illegal, invalid, or unenforceable provision or by its severance from this Agreement.  Furthermore, in lieu of such illegal, invalid, or unenforceable provision, there shall be added automatically as part of this Agreement a provision as similar in terms to such illegal, invalid, or unenforceable provision as may be possible and be legal, valid, and enforceable.

f.    Construction.  This Agreement shall be deemed drafted equally by both the parties.  Its language shall be construed as a whole and according to its fair meaning.  Any presumption or principle that the language is to be construed against any party shall not apply.  The headings in this Agreement are only for convenience and are not intended to affect construction or interpretation.

g.    Entire Agreement.  The terms of this Agreement (together with the PIIAA and any other agreements and instruments contemplated hereby or referred to or incorporated herein) are, as of the date hereof, intended by the parties to be the final expression of their agreement with respect to the subject matter hereof and may not be contradicted by evidence of any prior or contemporaneous agreement.  As of the date hereof, this Agreement shall supersede all undertakings or agreements, whether written or oral, previously entered into by Peterson and the Company or 

8
    

any predecessor thereto or affiliate thereof with respect to the subject matter hereof (including, without limitation, the Employment Letter, except as expressly provided herein).  References in this Agreement to “this Agreement” and/or “herein” shall include all annexes and exhibits hereto.

h.    Counterparts.  This Agreement may be executed in several counterparts, each of which shall be deemed to be an original, but all of which together will constitute one and the same Agreement.

15.Acknowledgement.  Peterson hereby acknowledges (i) that Peterson has consulted with or has had the opportunity to consult with independent counsel of Peterson’s own choice concerning this Agreement, and has been advised to do so by the Company, and (ii) that Peterson has read and understands this Agreement, is fully aware of its legal effect, and has entered into it freely based on Peterson’s own judgment.  Without limiting the generality of the foregoing, Peterson acknowledges that he has had the opportunity to consult with his own independent legal counsel to review this Agreement for purposes of compliance with the requirements of Section 409A of the Internal Revenue Code or an exemption therefrom, and that he is relying solely on the advice of his independent legal counsel for such purposes.

[Signature Page Follows]

IN WITNESS WHEREOF, the parties hereto have executed this Separation and Consulting Agreement effective as of the date first written above.

	
	
	DIGITAL REALTY TRUST, INC., 

	a Maryland corporation

	 

	 

	By:   /s/ Joshua A. Mills         

	Name: Joshua A. Mills

	DLR LLC, 

	a Maryland limited liability company

	 

	By:  Digital Realty Trust, L.P.

	Its:  Managing Member

	

By:  Digital Realty Trust, Inc.

	Its:  General Partner

	

By:     /s/ Joshua A. Mills         

	Name: Joshua A. Mills

	Title: Senior Vice President, General Counsel and Secretary

SCOTT E. PETERSON

/s/ Scott E. Peterson            
Scott E. Peterson

Exhibit A

EQUITY AWARDS

	
					
	Grant Date
	Award ID
	Type of Award
	Number of Units Awarded
	Status as of Termination Date

	Feb. 24, 2015
	4175
	Performance-based Profits Interest Units
	48,868
	26,842 units vested
22,026 units unvested

	Jan. 1, 2016
	4506
	Performance-based Profits Interest Units
	23,971
	23,971 units unvested

	Feb. 16, 2016
	4947
	Time-based Profits Interest Units
	2,488
	1,244 units vested
1,244 units unvested

	Jan. 1, 2017
	5599
	Performance-based Profits Interest Units
	13,692
	13,692 units unvested

	Feb. 28, 2017
	7353
	Performance-based Profits Interest Units
	1,968
	1,968 units unvested

	Feb. 28, 2017
	6906
	Time-based Profits Interest Units
	6,111
	1,527 units vested
4,584 units unvested

	Jan. 1, 2018
	10013
	Performance-based Profits Interest Units
	14,238
	14,238 units unvested

	Mar. 2, 2018
	10049
	Time-based Profits Interest Units
	6,719
	6,719 units unvested

	Mar. 2, 2018
	10054
	Time-based Profits Interest Units
	2,927
	2,927 units unvested

	Mar. 9, 2018
	10062
	Performance-based Profits Interest Units
	4,769
	4,769 units unvested

	Note: Performance-Based Profits Interest Units granted in 2016 and after are shown at target.

Exhibit B

PROPRIETARY INFORMATION AND INVENTIONS ASSIGNMENT AGREEMENT

[See Attached]

9

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