Document:

EX-10.1

 Exhibit 10.1 

CONFIDENTIAL SEPARATION AGREEMENT AND GENERAL RELEASE 

In consideration of the mutual covenants and promises set forth in this Confidential Separation Agreement and General Release (this
“Agreement”), Dan M. Chandler, III (“Employee”) and PS Business Parks, Inc. (“PS Business Parks” or the “Company”) acknowledge and agree to be bound to the following terms: 

1. Separation Date. Employee’s resignation from employment with the Company is effective on March 23, 2022 (the
“Separation Date”). 
 2. Separation Payment and Benefits. In consideration of Employee’s execution of this Agreement
and assuming Employee does not exercise his revocation right pursuant to Paragraph 7(g), the Company agrees to provide Employee the following: 
  

	 	a.	 A lump sum payment of cash in exchange for the 41,186 restricted stock units of the Company owned by the
Employee (the “Restricted Stock Units”), in the gross amount equal to six million, six hundred forty two thousand, eight hundred ninety dollars ($6,642,890), which represents the market value of the Company common stock underlying such
units as of March 18, 2022, less all applicable taxes and other withholdings, and payable within fourteen (14) calendar days of the Effective Date of this Agreement pursuant to Paragraph 25 below; and 

 

	 	b.	 a lump sum payment of cash in the gross amount of ninety thousand, five hundred seventy three dollars
($90,573), which represents reimbursement for 20 months of COBRA coverage plus anticipated taxes, and which shall be payable within fourteen (14) calendar days of the Effective Date of this Agreement pursuant to Paragraph 25 below (together,
the “Separation Payment”). 

 Employee acknowledges and agrees that (i) upon satisfaction of the payment
set forth in Section 2(a), the Company shall have no further obligations with respect to the Restricted Stock Units and the Restricted Stock Units will be terminated, and (ii) the Restricted Stock Units represent all Company restricted
stock units owned by the Employee or to which the Employee is entitled. Employee and the Company acknowledge and agree that nothing contained in this Agreement shall be construed as a representation, warranty, or statement, whether direct or
implied, by PS Business Parks regarding Employee’s present entitlement, if any, to any post-employment benefits, including but not limited to pension, disability, or unemployment insurance benefits, from any entity, organization, or provider,
or from any federal, state, or local agency. Employee acknowledges and agrees that neither the Company, nor any employee or agent thereof, has proffered to Employee, whether in writing or otherwise, any such representations, warranties, or
statements not expressly set forth in this Agreement, and that Employee has not relied upon any such representations, warranties, or statements in entering into and performing under this Agreement. 

3. Consideration. Employee acknowledges and confirms: (i) the sufficiency of the consideration set forth herein for this Agreement
generally and specifically for the release of Employee’s claims as defined in Paragraph 5 below and throughout this Agreement; (ii) that the Company is not, in the absence of Employee’s execution of this Agreement, otherwise required
to provide Employee with the Separation Payment or any other payments or benefits; (iii) that the 

  
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Separation Payment is being given to Employee in return for Employee’s agreement to fulfill the promises and to provide the waivers and releases that are stated in this Agreement;
(iv) that the Separation Payment is in excess of any payment, benefit, or other thing of value to which Employee might otherwise be entitled from the Company; and (v) that Employee accepts the consideration set forth in this Agreement as
adequate and as the full, final, and complete settlement and discharge of all possible claims that Employee has or might have as more fully described in Paragraph 5 below. 

4. No Other Payments, Benefits, or Claims. Except for the Separation Payment and other consideration expressly described herein,
Employee’s right to any compensation or benefits from the Company will cease on the Separation Date, and no other payment or benefits shall be made or provided to Employee by the Company. Except as provided in, and subject to, the
“Retention of Rights Regarding Government Agencies” clause of this Agreement, Employee acknowledges that Employee has no entitlement, nor any right, to make any claim for any additional payments, benefits, bonuses, stock or stock options,
commissions, or compensation of any kind or nature whatsoever from the Company. Employee also acknowledges that the Company has provided Employee payment of all accrued but unused paid time off and/or vacation as of the Separation Date. 

5. Release of any Existing but Currently Unknown Claims. Employee acknowledges and agrees that he has no pending lawsuit,
administrative charge or complaint against the Company (or its subsidiaries, affiliates or related entities), in any court or with any governmental agency. Subject to Paragraph 8, Employee, on behalf of himself and on behalf of Employee’s
heirs, estate, spouse and child or children, attorneys, representatives, executors, administrators, successors, assigns and agents, hereby irrevocably and unconditionally releases and forever discharges, with prejudice, PS Business Parks and its
past and present affiliates, parents, subsidiaries, related companies (including Public Storage), investors and investment partners, and the directors, officers, board members, employees, stockholders, benefit and equity plans (including the
trustees, administrators, fiduciaries and parties-in-interest of each plan) as well as predecessors, successors and assigns of each of the foregoing entities or persons,
and all persons acting by, through, under, or in concert with any of them (collectively, the “PS Business Parks Releasees”), from any and all actions, complaints, rights, claims, charges, causes of action, demands, liabilities,
attorneys’ fees, costs, and damages, known or unknown, asserted or unasserted, suspected or not, fixed or contingent, and in law or in equity, which Employee now has, or may ever have had, concerning, relating to, predicated upon, or arising
out of, directly or indirectly, Employee’s employment with PS Business Parks or any other PS Business Parks Releasee and/or Employee’s separation from that employment. 

This Release includes any and all actions, complaints, rights, claims, charges, causes of action, demands, liabilities, attorneys’ fees,
costs, and damages based upon any conduct occurring up to and including, or that have accrued as of, the date that Employee signs this Agreement (and any obligations or causes of action arising from or predicated upon such claims), including but not
limited to: 
  

	 	(a)	 any and all claims arising under common law, including but not limited to wrongful or retaliatory discharge,
breach of express or implied contract, promissory estoppel, covenant of good faith and fair dealing, or based upon a violation of public policy; 

  

	 	(b)	 any and all claims sounding in tort, including but not limited to fraud, battery, assault, conversion, libel,
slander, defamation, or negligent or intentional infliction of emotional distress; 

  
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	 	(c)	 any and all claims arising under statutes which include but are not limited to the Civil Rights Acts of 1866
and 1867, Title VII of the Civil Rights Act of 1964 (“Title VII”), the Civil Rights Act of 1991, the Employee Retirement Income Security Act (“ERISA”), the Americans with Disabilities Act (“ADA”), the National Labor
Relations Act (“NLRA”), the Worker Adjustment and Retraining Notification Act (“WARN”), the Occupational Safety and Health Act (“OSHA”), the Genetic Information Nondiscrimination Act, the Lilly Ledbetter Fair Pay Act of
2009, the Fair Credit Reporting Act (“FCRA”), the Family and Medical Leave Act (“FMLA”), the Equal Pay Act of 1963, as amended, the Consolidated Omnibus Budget Reconciliation Act (“COBRA”), the Age Discrimination In
Employment Act, the Equal Pay Act, the Rehabilitation Act of 1973, Section 1981 of Title 42 of United States Code, the Rehabilitation Act, Section 1981 of the Civil Rights Act of 1866, the California Constitution, California’s Unfair
Competition Law, the California Fair Employment and Housing Act, as amended, the California Family Rights Act of 1991, applicable provisions of California’s Labor Code and the California Industrial Welfare Commission Wage Orders, the California
Confidentiality of Medical Information Act, any other applicable California state or city laws and ordinances concerning workplace rights or obligations or payment of wages; 

 

	 	(d)	 any and all claims for or relating to any form of employment discrimination, harassment, whistleblower or other
retaliation, improper wage payment or deductions, or any other unlawful employment practice under federal, state, municipal, local, or foreign law; 

  

	 	(e)	 any and all claims arising under any federal, state, municipal, local, or foreign law, rule, regulation or
judicial or administrative decision that in any way prohibits employment discrimination, harassment, retaliation, improper wage payment or deductions, or any other unlawful employment practice, or that is in any way related to employment and/or the
separation therefrom; 

  

	 	(f)	 any and all claims arising under any other federal, state, municipal, local, or foreign law, rule, or
regulation, including but not limited to the United States and California Constitutions, civil rights laws, wage-hour, wage-payment, pension, or labor laws, rules, and regulations, ordinances, public policy, contract or tort laws, or any other
action; and 

  

	 	(g)	 any and all claims for attorneys’ fees, costs and expenses. Employee acknowledges that Employee is not a
“prevailing party” as defined by any federal, state or local law, rule, judicial or administrative decision. 

With respect to any claim that could be brought by Employee (collectively, “Claims”), the Parties expressly waive the provisions of
California Civil Code section 1542, which provides as follows: 
 A general release does not extend to claims that the
creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party. 

  
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 In that connection, Employee realizes and acknowledges that one or more of the Claims may
include losses sustained by Employee that are presently unknown or unsuspected, and that such losses as were sustained may give rise to additional losses and expenses in the future which are not now anticipated. Nevertheless, Employee acknowledges
that the releases herein have been negotiated and agreed upon and that in consideration for the rights and benefits under this Agreement, Employee intends and hereby releases, acquits, and forever discharges PS Business Parks and the PS Business
Parks Releasees from any and all Claims, including those that are unknown, unsuspected, or unforeseen or that are presently unknown and unanticipated. 

Employee expressly acknowledges that this Agreement is also intended to include in its effect, without limitation, any and all claims which
Employee does not know of or suspect may exist in Employee’s favor at the time of execution of this Agreement, and that this Agreement will also extinguish any such claims. Employee further expressly waives any rights under the provisions of
any laws, rules, regulations, judicial or administrative decisions providing in substance that releases shall not extend to claims which are unknown or unsuspected, at the time of execution, to the person executing such waiver or release. 

Employee also acknowledges and affirms that Employee has been fully paid all wages and other compensation or incentives owed to Employee by
the Company, including all overtime wages, incentive compensation, expense reimbursement payments, separation compensation, severance compensation, bonuses and commissions, and Employee also acknowledges and affirms that, as of the date of
Employee’s execution of this Agreement, Employee has been afforded all required periods of family, medical, and other leave, as well as any right to reinstatement upon the conclusion of any leave taken. 

Employee further acknowledges and understands that, subject to Paragraph 8, Employee is waiving any right Employee may have to, and will not
bring any legal, equitable, arbitral, administrative or investigative claim, suit, charge, action or other proceeding (“Actions”) against any of the PS Business Parks Releasees relating to any of the claims Employee has released in this
Paragraph 5, or to receive any compensation, recovery, monetary relief, damages, settlement, or other individual relief arising as a result of any Actions commenced by any other person, entity or agency against any of the PS Business Parks
Releasees. 
 Employee represents and warrants that Employee has not, either individually or on a collective basis, commenced, maintained,
prosecuted, or participated in any Action of any kind against any of the PS Business Parks Releasees before any court, arbitration panel, administrative or investigative body or agency. Further, to the extent that Employee has, and subject to
Paragraph 8 of this Agreement, Employee agrees that Employee shall withdraw or dismiss and shall undertake all measures necessary to effectuate the withdrawal or dismissal of, any such Action, with prejudice, within five (5) business days
following Employee’s receipt of the Separation Payment. In the event that Employee is unable to unilaterally withdraw or dismiss any such Action, Employee represents and warrants that Employee shall request, to the fullest possible extent, the
withdrawal or dismissal with prejudice of such Action. In the event that any Action is commenced by Employee or on Employee’s behalf, Employee hereby waives any right to any individual compensation, recovery, monetary relief, damages,
settlement, or other relief. 

  
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 Notwithstanding the foregoing, by entering into this Agreement, Employee is not releasing
claims that may not be waived or released as a matter of law, including any claims for enforcement of this Agreement, claims that arise after the date that Employee signs the Agreement, or any rights or claims Employee may have to receive
workers’ compensation or unemployment insurance benefits. 
 6. Termination of Employment Relationship. The parties agree
that Employee’s employment with the Company terminated on March 23, 2022. In consideration of the promises made by the Company in this Agreement, Employee promises that he will not seek or accept future employment with the Company.
Employee further agrees that Employee will not accept assignment with the Company as an independent contractor, subcontractor, per diem, or consultant, or through any contract service, agency, or registry. The parties agree that the Company has no
obligation to employ or to continue to employ him and may refuse to do so without any recourse. If Employee seeks or obtains such employment or other services agreement after the date of execution of this Agreement, this Agreement shall constitute
sufficient cause for refusal to hire and/or for the termination of any such employment or other services agreement. 
 7. Notice
Regarding Waiver of Rights. If Employee signs this Agreement, Employee will forever give up all rights and claims arising out of his employment with the Company, 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) who are involved in claims that may include age discrimination. Pursuant to the Federal Age
Discrimination in Employment Act, the Company hereby notifies Employee of the following employee rights: 
 (a) The Company may not require
Employee to 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 written in a manner calculated to be understood by Employee. Employee shall seek clarification
from the Company if there is any portion of this waiver that Employee does not understand. 
 (c). Employee’s waiver or release is a
release of Employee’s rights or claims arising under the Federal Age Discrimination in Employment Act. 
 (d). Employee is not waiving
or releasing any of Employee’s rights or claims that arise after the date Employee signs this Agreement. 
 (e). Employee is only
waiving or releasing rights or claims in exchange for consideration that is in addition to anything of value to which Employee is already entitled. 

(f). Employee is advised to consult with an attorney before signing this Agreement. 

(g). Employee has a period of at least twenty-one (21) days in which to consider whether to sign
this Agreement. Employee has seven (7) days after Employee signs this Agreement to revoke the Agreement. This Agreement will not become effective or enforceable until the seven-day revocation period
expires. 

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

Patricia Park 
 Vice
President, Human Resources 
 701 Western Avenue, 

Glendale, CA 91201 
 If
delivered by mail, the revocation must be (1) postmarked within the 7-day period; (2) properly addressed as set forth above; and (3) sent by certified mail return receipt requested. 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 written revocation was, in fact,
received. If Employee revokes the Agreement as permitted herein, Employee will not receive the Severance Payment. If Employee signs this Agreement before the 21-day period has expired, Employee does so
knowingly and voluntarily. 
 8. Retention of Rights Regarding Government Agencies. Notwithstanding the foregoing or any other
provisions here, nothing in this Agreement is intended to, or shall, limit or interfere, in any way, with Employee’s right or ability, under federal, state, or local law, to file or initiate a charge, claim, or complaint of discrimination, or
any other unlawful employment practice, that cannot legally be waived, or to communicate with any federal, state, or local government agency charged with the enforcement and/or investigation of claims of unlawful employment practices, including but
not limited to the U.S. Equal Employment Opportunity Commission and any state or city fair employment practices agency. Further, nothing in this Agreement is intended to, or shall, limit or interfere, in any way, with Employee’s right or
ability to participate in or cooperate with any investigation or proceeding conducted by any such agency. Further, nothing in this Agreement shall be construed as, or shall interfere with, abridge, limit, restrain, or restrict Employee’s right
to engage in any activity or conduct protected by Section 7 or any other provision of the National Labor Relations Act, or to report possible violations of federal, state, or local law or regulation to any government agency or entity, including
but not limited, to the extent applicable, to the U.S. Department of Labor, the Department of Justice, the Securities and Exchange Commission, the Congress, and/or any agency Inspector General, or make other disclosures that are protected under the
whistleblower provisions of federal, state, or local law or regulation. Employee and the Company acknowledge and agree that Employee’s right and ability to engage and participate in the activities described in this paragraph shall not be
limited or abridged, in any way, by any term, condition, or provision of, or obligation imposed by, this Agreement, including but not limited to the confidentiality and non-disparagement clauses.
Notwithstanding the foregoing, Employee understands that the waivers and releases in this Agreement shall be construed and enforced to the maximum extent permitted by law. 

Employee also understands and acknowledges that, by signing this Agreement, Employee has completely waived Employee’s right to receive
any individual relief, including monetary damages, in connection with any such claim, charge, complaint, investigation, or proceeding, and if Employee is awarded individual relief and/or monetary damages in connection therewith, Employee hereby
unconditionally assigns to the Company, and agrees to undertake any and all measures necessary to effectuate such assignment of, any right or interest Employee may have to receive such individual relief and/or monetary damages. 

  
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 9. Return of Company Property. Employee agrees that, prior to Employee’s
execution of this Agreement, Employee has returned all of the Company’s property and equipment in Employee’s possession or under Employee’s control, including but not limited to any and all computers, laptops, computer hardware or
software, Blackberrys, cell phones, smartphones, iPhones, iPads, credit cards, keys, manuals, notebooks, external digital storage medium, financial statements, reports, passwords, company ID’s, and any other property of the Company, including
any and all copies of Company documents, materials, and information not specifically addressed and relating to Employee. 
 10. Legal
Representation. Employee acknowledges and represents that Employee has been advised to, and had a full and fair opportunity to, receive the advice of independent legal counsel prior to Employee’s execution of this Agreement, and an ample
opportunity to receive an explanation from such legal counsel of the legal nature and effect of this Agreement, that Employee has fully exercised that opportunity to the extent Employee desired, and that Employee fully understand the terms and
provisions of this Agreement as well as its nature and effect. Employee further acknowledges and represents that Employee is entering into this Agreement completely freely and voluntarily. 

11. No Admission of Liability. Nothing contained in this Agreement, nor the fact that the Company has signed this Agreement, shall be
considered an admission of any liability or wrongdoing whatsoever by the Company or any other PS Business Parks Releasee. 
 12.
Confidentiality/Cooperation. This Agreement does not supplant, modify, supersede or extinguish any obligations Employee may have under statutory or common law not to use or disclose the Company’s confidential and proprietary information
which Employee acknowledges and agrees survives the termination of Employee’s employment (collectively the “Post-Termination Obligations.”). The Company’s competitive success depends on the proper safeguarding of its trade
secrets and confidential information. Certain such information of the Company 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 the
Company’s trade secrets and commercially useful confidential information learned through Employee’s employment and to use this information only as necessary and appropriate for the Company’s legitimate business purposes. The Company
promises to safeguard against disclosure without the consent of affected persons all information touching on the privacy interests of the Company’s employees and tenants. The Company’s trade secrets and commercially useful confidential
information include without limitation the Company’s non-public financial information and the contents of the Company’s business plans. Employee agrees to promptly return to the Company all documents
and other materials in Employee’s possession that are the property of the Company. 
 Employee shall not be held criminally or civilly
liable under any federal or state trade secret law for the disclosure of a trade secret that: (A) is made (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney and
(ii) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. Further, in the event that
Employee files a lawsuit for retaliation by the Company for reporting a suspected violation of law, Employee may disclose the trade secret to Employee’s attorney and use the trade secret information in the court proceeding, if Employee:
(A) files any document containing the trade secret under seal; and (B) does not disclose the trade secret, except pursuant to court order. 

  
 7 

 Employee agrees and acknowledges that the Post-Termination Obligations are incorporated into
this Agreement as if fully set forth herein, that these Post-Termination Obligations survive the execution of this Agreement notwithstanding any other provision hereof, and that the consideration provided to Employee in this Agreement constitutes
additional consideration for these Post-Termination Obligations. Further Employee agrees and acknowledges that the Post-Termination Obligations are in addition to, and not in place of, those set forth in this Agreement. 

Employee agrees that Employee will not disclose, disseminate, or publicize, or cause or permit to be disclosed, disseminated, or publicized,
directly or indirectly, specifically or generally, to any person, corporation, association, governmental agency, or other entity, (1) any of the terms of this Agreement, (2) any information regarding Employee’s employment with the
Company, or (3) any claims or allegations of wrongdoing, or the basis for any such claims or allegations, which were or could have been made or asserted against the Company or any of the PS Business Parks Releasees, except that such information
may be disclosed: (a) to Employee’s accountant, attorneys, domestic partner, and/or spouse, provided that, to the maximum extent permitted by applicable law, rule, code, or regulation, they agree to maintain the confidentiality of the
information; (b) to the extent necessary to report income to appropriate taxing authorities; (c) in response to an order of a court of competent jurisdiction or a subpoena issued under authority thereof; (d) in response to any
subpoena issued by a state or federal governmental agency; (d) to the extent publicly disclosed by the Company; or (f) as otherwise required by law. To the extent that Employee is subpoenaed by any person or entity (including but not
limited to any government agency) to give testimony or produce documents (in a deposition, court proceeding, or otherwise) which in any way relates to Employee’s employment by the Company and/or any of the PS Business Parks Releasees and/or
this Agreement, Employee will give prompt notice of such request to Patricia Park, PS Business Parks, 701 Western Avenue, Glendale, California 91201, or her designee or successor at the Company. 

13. Non-Disparagement. Subject to Paragraph 8, Employee agrees that Employee will not make any
false, negative, or disparaging comments about, and will refrain from directly or indirectly making any comments or engaging in publicity or any other action or activity which reflects adversely upon, the Company or any of the PS Business Parks
Releasees. This Non-Disparagement provision applies to comments made verbally, in writing, electronically, or by any other means, including but not limited to blogs, postings, message boards, texts, video, or
audio files, and all other forms of communication. 
 14. References. In response to any and all employment verification/reference
requests, Employee shall direct prospective employers to contact the Company’s Human Resources department. Human Resources may contract with a third-party provider to respond to verification/reference requests. The only information that will be
provided to prospective employers by Human Resources or a third-party provider is the dates of employment, positions held and, if authorized in writing by Employee, Employee’s last rate of pay. 

15. Non-Solicitation: Employee agrees that for a period of one (1) year from the Effective
Date of this Agreement, Employee will not directly or indirectly solicit or otherwise encourage any of the Company’s or Public Storage’s employees or cause others to solicit or encourage any of the Company’s or Public Storage’s
employees to discontinue their employment with the Company. Any breach of this provision shall constitute a material breach of this Agreement. 

  
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 16. Entire Agreement; Modification. Employee and the Company understand, covenant,
and agree that: (i) this Agreement constitutes the full, complete, and exclusive agreement between Employee and the Company relating to Employee’s employment, separation from employment or any matters covered by this Agreement;
(ii) with the exception of those Agreements or obligations referenced in Paragraph 12 there are no other agreements, understandings, covenants, promises, grants, awards or arrangements between Employee and the Company or any other PS Business
Parks Releasee relating to Employee’s employment, separation from employment or the matters covered by this Agreement; (iii) this Agreement supersedes, cancels and terminates any and all other agreements, understandings, grants, awards,
covenants, promises, and arrangements, whether oral or in writing, or express or implied, between Employee and the Company, its employees, agents, representatives or any PS Business Parks Releasee and in entering into and performing under this
Agreement, no party has relied upon any promises or statements except as explicitly set forth herein. 
 The parties acknowledge and agree
that no modification of this Agreement shall be valid or binding except through a writing personally executed by Employee and Patricia Park (or her designee or successor, in each case on behalf of the Company), which writing must reference and
attach a copy of this Agreement to be effective. Neither e-mail correspondence, text messages, nor any other electronic communications shall constitute a writing for the purposes of this provision of the
Agreement. 
 17. Construction. The parties acknowledge and agree that this Agreement is the product of negotiations between Employee
and the Company, that Employee is an experienced professional, that Employee had ample opportunity to obtain legal counsel, and that the language of this Agreement shall not be presumptively construed either in favor of or against any of the
parties. 
 18. Waiver. No waiver of any of the provisions of this Agreement shall be deemed, or shall constitute, a waiver of any
other provision, whether or not similar. No waiver shall constitute a continuing waiver. No waiver shall be binding unless executed in writing by the party charged with the waiver. 

19. Severability. Should any provision of this Agreement be declared illegal or unenforceable by any court, arbitrator, administrative
agency, or other entity, the parties agree that said court, arbitrator, administrative agency, or other entity shall possess full discretion to interpret or modify all such provisions to the minimum extent necessary to be declared enforceable. If
such interpretation or modification is not possible, such provision shall immediately become null and void, leaving the remainder of the Agreement in full force and effect. However, in the event a court, arbitrator, administrative agency, or other
entity finds the Release set forth above to be illegal, void, or unenforceable, Employee agrees, at the Company’s option, to execute a release, waiver, and/or covenant that is legal and enforceable to effectuate the terms of this Agreement.

 20. Successors and Assigns. This Agreement shall not be assignable by Employee, but shall be binding upon Employee and upon
Employee’s heirs, administrators, representatives, executors, and successors. This Agreement shall be freely assignable by the Company without restriction and shall be deemed automatically assigned by the Company with Employee’s consent in
the event of any sale, merger, share exchange, consolidation, or other business reorganization. This Agreement shall inure to the benefit of the Company, the PS Business Parks Releasees, and their successors and assigns. 

  
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 21. Governing Law. This Agreement shall in all respects be interpreted, enforced, and
governed by and in accordance with the internal substantive laws (and not the choice of law rules) of the State of California. 
 22.
Further Action. Each party agrees to execute all such further and additional documents and instruments, as shall be necessary or expedient to carry out the provisions of this Agreement, and shall promptly and in good faith undertake all
reasonable acts to effectuate the provisions of this Agreement. 
 23. Section and Paragraph Headings. The section and paragraph
headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. 

24. Consideration Period. Employee has until April 10, 2022, to consider the Agreement before signing it and returning it to
Patricia Park (PS Business Parks, 701 Western Avenue, Glendale, California 91201) or her designee at the Company (the “Consideration Period”). Employee may use as much of the Consideration Period as Employee wishes before signing this
Agreement, and Employee agrees that to the extent that Employee takes less than the time period stated herein to consider this Agreement prior to signing it, Employee acknowledges that Employee had sufficient time to consider this Agreement with
legal counsel and that Employee expressly, voluntarily and knowingly waives any additional time. Employee also understands and agrees that any material or immaterial changes to the Agreement will not restart the running of the Consideration Period.
In the event that Employee does not sign and return this Agreement to the Company prior to April 10, 2022, this Agreement will automatically expire and be rendered null, void, and unenforceable, and Employee will not be entitled to receive the
Separation Payment. 
 25. Effective Date. Employee may revoke this Agreement in writing within seven (7) days after Employee
signs this Agreement. This Agreement shall not become effective or enforceable until such revocation period has expired without the exercise of such revocation right. 

26. Voluntary Agreement. Employee acknowledges that Employee is entering into this Agreement voluntarily, that Employee has read and
understands the provisions of this Agreement, and that Employee is of sound mind and fully competent to enter into this Agreement. Employee further acknowledges and understands that, except as provided for in, and subject to, the “Retention of
Rights Regarding Government Agencies” clause of this Agreement, this Agreement contains a full and final release of all of Employee’s claims against the Company and the PS Business Parks Releasees, as described above. Employee has the
right to consult with an attorney and the Company hereby advises Employee, again, to consult with an attorney of Employee’s choice before signing this Agreement. 

27. Counterparts. This Agreement may be executed in one or more counterparts or multiple originals, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument or document. 

  
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	Dated:	 	 March 23, 2022
	 		 	 /s/ Dan M. Chandler, III

		 		 		 	Dan M. Chandler, III
				
	Dated:	 	 March 23, 2022
	 		 	PS Business Parks
					
		 		 		 	By:	 	 /s/ Nathaniel A. Vitan

					
		 		 		 	Its:	 	Assistant Secretary

  
 11Document

Exhibit 10.1

EXECUTIVE EMPLOYMENT AGREEMENT
THIS EXECUTIVE EMPLOYMENT AGREEMENT (this “Agreement”) is made as of April 11, 2022, (the “Effective Date”), between Caret Holdings, Inc, a Delaware corporation (and collectively with its parents, subsidiaries, and other corporate affiliates, and its or their successors or assigns (the “Company”), and Robert Bateman (“Executive”).  The Company and Executive are each referred to as a “Party” and collectively as the “Parties”.
WHEREAS, the Company wishes to offer continued employment to the Executive, and the Executive wishes to accept such offer, on the terms and conditions set forth below;
NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
1.Term of Employment.  The Company shall employ Executive, and Executive hereby accepts employment with the Company, upon the terms and conditions set forth in this Agreement for the period commencing as of the Effective Date, and continuing on each anniversary of the Effective Date, unless terminated earlier in accordance with Section 4 hereof (the “Employment Period”).  
2.Position and Duties.
(a)Position.  During the Employment Period, the Executive shall serve as the Chief Financial Officer.
(b)Duties.  Executive shall have the normal duties, responsibilities, functions and authority customarily associated with such position and such other duties and responsibilities as may be assigned from time to time to Executive by the Chief Executive Officer of the Company or such other person as the Chief Executive Officer may designate from time to time (the “Supervisor”). Executive shall report to the Supervisor, and Executive shall devote Executive’s full-time energies and attention to the business and affairs of the Company. Executive shall perform Executive’s duties, responsibilities and functions to the Company hereunder in a diligent, trustworthy, professional, ethical and efficient manner and shall comply with the policies and procedures of the Company and its Affiliates and will cooperate fully with the Board of Directors of the Company (the “Board”) in the advancement of the best interests of the Company.  Notwithstanding, Executive may engage in charitable, civic, fraternal and trade association activities that do not interfere materially with Executive’s obligations to the Company and comply with the Company’s policies. Employees may serve on the boards of directors of other organizations so long as those other companies are not in direct competition with the Company and so long as the employees’ service does not otherwise present a real or perceived conflict of interest as defined by the Company’s policies. A real or perceived conflict of interest may arise if employees serve on the boards of more than one public company or if they serve on more than two boards in total.
3.Compensation and Benefits.
In exchange for services rendered by the Executive hereunder, the Company shall provide the following:
(a)Base Salary.  During the Employment Period, Executive’s base salary shall be five hundred thousand dollars ($500,000.00) per annum, or such higher amount as 
        

determined by the Company in its discretion, as adjusted from time to time (the “Base Salary”), which salary shall be payable by the Company in regular installments in accordance with the Company’s general payroll practices (in effect from time to time).
(b)RSU Grants.      Executive will be granted, subject to the approval of the Compensation Committee of Root, Inc. (the “Compensation Committee”), an initial on-hire RSU grant of one million, two hundred thousand ($1,200,000) (the “On-Hire Grant”). Beginning in calendar year 2023, Executive is eligible to receive performance grants of one million, eight hundred thousand dollars ($1,800,000) annually in RSUs (the “Annual Grant”), at the discretion of the Compensation Committee and subject to Executive meeting performance expectations for Executive’s role. Any such grants shall be governed by the Root, Inc. 2020 Equity Incentive Plan (the “Plan”), as may be duly amended from time-to-time by the Root, Inc. Board of Directors. Subject to the foregoing, including Executive’s Continuous Service (as defined in the Plan) as of each such date, the Annual Grant will vest on the following schedule: one-quarter on the first anniversary of the grant date and the remainder quarterly thereafter; and the On-Hire Grant will vest on the following schedule: one-half on the first anniversary of the grant date, and the remainder on the second anniversary of the grant date. 
(c)Annual Performance Bonus.  In addition to the Base Salary, Executive shall be eligible to receive an annual performance bonus of up to 100% of the Base Salary (the “Annual Bonus”). The actual amount of Annual Bonus, if any, shall be determined by the Company in its sole discretion, and shall be based, in part, on Executive’s performance and the performance of the Company during the calendar year, as well as any other criteria the Company deems relevant.  Any Annual Bonus awarded to the Executive shall be paid in accordance with the Company’s policies and practices, as in effect from time to time, but in any event, no later than March 15th of the following calendar year.  Executive must be employed on the day that the Annual Bonus, if any, is paid to be eligible to receive the bonus, unless a pro rata bonus is awarded in accordance with Section 4 below. Executive’s minimum bonus for 2022 to be paid in 2023 will be five hundred thousand dollars ($500,000).
(d)Double Trigger Change in Control.  In the event that Executive’s employment with Company is terminated by the Company or its successor or assigns without Cause (as defined below) or Executive resigns for Good Reason (as defined below) on account of or within one year from the date of the closing of a Change in Control (as defined below) (such period, the “Double Trigger Period”), the vesting and exercisability of each of the Executive’s outstanding equity awards granted pursuant to the Plan shall be automatically vested in full.
(e)Benefits.  The Executive shall be permitted during employment to participate in any group life, hospitalization or disability insurance plans, health programs, retirement plans, fringe benefit programs and similar benefits that may be available to other employees of the Company generally, on the same terms as such other employees, in each case to the extent that the Executive is eligible under the terms of such plans or programs, as may be changed from time to time by the Company or the relevant insurer or administrator.
(f)Paid Time Off.  Executive shall be eligible for paid time off each year in accordance with the policies of the Company in effect, subject to the conditions as they may be established or changed from time to time by the Company’s sole discretion.
(g)Business Expenses.  Subject to Section 18(d), the Company shall reimburse Executive for all reasonable business expenses incurred by Executive in the course of performing Executive’s duties and responsibilities under this Agreement, so long as Executive’s business expenses are consistent with the Company’s policies in effect from time to time with respect to travel, entertainment and other business expenses, subject to the Company’s requirements with respect to reporting and documentation of such expenses.
        

4.Termination of Employment During the Employment Period.
(a)Termination.  During the Employment Period, this Agreement and the employment of Executive by the Company may be terminated at any time as follows:
(i)By mutual written agreement of the Parties;
(ii)By the Company if Executive dies or becomes Disabled;
(iii)By the Company for Cause immediately upon notice;
(iv)By the Company without Cause upon thirty (30) days’ written notice;
(v)By Executive for Good Reason; or
(vi)By Executive, voluntarily, at any time; provided that Executive agrees to give the Company not less than thirty (30) days written notice of Executive’s resignation unless such notice period is waived by the Company.
(b)Termination Payments.
(i)Termination for Cause and upon Executive’s Resignation.  If Executive’s employment hereunder is terminated during the Employment Period pursuant to Sections 4(a)(iii) or (vi), Executive shall be entitled to payment of:
(A)Executive’s accrued but unpaid Base Salary through the date of termination; and
(B)any properly documented reimbursable expenses owed to Executive (clauses (A) and (B) of this Section 4(b)(i), collectively, the “Accrued Obligations”).
(ii)Termination upon Death or Disability.  If Executive’s employment hereunder and the Employment are terminated during the Employment Period pursuant to Section 4(a)(ii), Executive, or his estate if applicable, shall be entitled to payment of:
(A)Accrued Obligations;
(B)an amount equal to the portion of the Annual Bonus, if any, to be awarded to Executive pursuant to Section 3(c) from the period beginning on January 1st of the year in which Executive’s employment with the Company is terminated, through the date of such termination on a pro rata basis.
(iii)Termination by Mutual Agreement, by the Company without Cause or by Executive for Good Reason.  If Executive’s employment hereunder and the Employment Period are terminated during the Employment Period pursuant to Sections 4(a)(i), (iv) or (v), Executive shall be entitled to the following:
(A)payment of Accrued Obligations;
        

(B)an amount equal to twelve (12) months of Executive’s per annum Base Salary as of the date of termination (the “Severance”); 
(C)an amount equal to the portion of the Annual Bonus, if any, to be awarded to Executive pursuant to Section 3(c) from the period beginning on January 1st of the year in which Executive’s employment with the Company is terminated, through the date of such termination on a pro rata basis; 
(D)if Executive timely elects continued coverage under COBRA for Executive and Executive’s covered dependents under the Company’s group health plans following such termination or resignation of employment, then the Company shall (in the Company’s discretion) pay directly or reimburse Executive for the payment of the COBRA premiums necessary to continue Executive’s health insurance coverage in effect for Executive and Executive’s eligible dependents on the Separation from Service date until the earliest of (A) the 12-month period following the termination of Executive’s employment, (B) the expiration of Executive’s eligibility for the continuation coverage under COBRA, or (C) the date when Executive becomes eligible for substantially equivalent health insurance coverage in connection with new employment or self-employment (such period from the termination date through the earliest of (A) through (C), the “COBRA Payment Period”). Notwithstanding the foregoing, if the Company determines, in its sole discretion, that the payment of the COBRA premiums could result in a violation of the nondiscrimination rules of Section 105(h)(2) of Section 409A of the Internal Revenue Code (the “Code”) or any statute or regulation of similar effect (including but not limited to the 2010 Patient Protection and Affordable Care Act, as amended by the 2010 Health Care and Education Reconciliation Act), then in lieu of providing the COBRA premiums, the Company, in its sole discretion, may elect to instead pay Executive on the first day of each month of the COBRA Payment Period, a fully taxable cash payment equal to the COBRA premiums for that month, subject to applicable tax withholdings (such amount, the “Special Severance Payment”), for the remainder of the COBRA Payment Period. Executive may, but is not obligated to, use such Special Severance Payment toward the cost of COBRA premiums. If Executive becomes eligible for coverage under another employer’s group health plan or otherwise ceases to be eligible for COBRA during the period provided in this clause, Executive must immediately notify the Company of such event, and all payments and obligations under this clause shall cease; and
(E)the Company shall accelerate the vesting of any then-unvested Company equity awards then held by Executive such that as of Executive’s date of termination, Executive will be deemed vested in those equity awards that would have vested had Executive remained employed with the Company for an additional 12 months.
        

The amounts described in clauses (B), (C) and (E) of this Section 4(b)(iii) will be paid in a lump sum within sixty (60) days following the date of termination, provided that Executive (or, in the event of Executive’s death, Executive’s estate) has executed and delivered to the Company not later than thirty (30) calendar days following the date of termination a waiver and release of claims in the form provided by the Company to Executive (or, in the event of Executive’s death, Executive’s estate) after Executive’s termination (the “General Release”) and the latest date on which the General Release is subject to revocation has expired.  The Accrued Obligations shall be paid no later than as required by law or within thirty (30) days following the date of termination, whichever occurs earlier.  As to any amount described in clause (B) or (C) or (E) of this Section 4(b)(iii) that constitutes “nonqualified deferred compensation” within the meaning of Code Section 409A and the regulations and guidance promulgated thereunder (collectively, “Section 409A”), if the sixty (60) day period begins in one calendar year and ends in a second (2nd) calendar year, payment shall always be paid in the second (2nd) calendar year. All payments of amounts described in clauses (B), (C) and (E) of this Section 4(b)(iii) are subject to clawback by the Company in the event of any knowing breach by Executive of the provisions of Sections 5, 6, 7, 8, 20 or 21 hereof. Such clawback shall apply to payments that would have been made to Executive after the date of a proven breach had payments been made monthly rather than in a lump sum.
(c)Limitation on Payments Hereunder.  Except as otherwise expressly provided herein, Executive shall not be entitled to any other salary, bonuses, employee benefits, or compensation from the Company, its Affiliates, or Subsidiaries after the termination of the Employment Period, and all of Executive’s rights to salary, bonuses, employee benefits, and other compensation hereunder which would have accrued or become payable after the termination of the Employment Period (other than vested retirement benefits accrued on or prior to the termination of the Employment Period or other amounts owing hereunder as of the date of such termination that have not yet been paid) shall cease upon such termination, other than those expressly required under applicable law (including the those under Title I, Part VI, of the Employee Retirement Income Security Act of 1974, as amended, and Section 4980B of the Code).
(d)Offsets.  The Company may offset any amounts Executive owes to Company or any of its Affiliates or Subsidiaries against any amounts the Company owes Executive hereunder, to the extent permitted by Section 409A.
(e)Notice Period.  During the period following delivery of notice of the Executive’s termination, whether voluntarily by the Executive or by the Company without Cause pursuant to Section 4(a), and prior to the effective date of the Executive’s termination, the Company may, in its sole discretion: (i) require the Executive to perform only such duties as it may allocate to the Executive; (ii) require the Executive not to perform any of the Executive’s duties; (iii) to the extent practical given the Company’s requirements under subsection (i) above, require the Executive not to have any contact with employees, clients or vendors of the Company as the Company shall determine; and (iv) exclude the Executive from the Company premises.
(f)Payment in Lieu of Notice. The Company may, at its absolute discretion, when terminating the Executive’s employment without Cause pursuant to Sections 4(a)(iv), elect to notify the Executive in writing that it is exercising its right to dismiss the Executive with immediate effect and that it will be making a payment to the Executive in lieu of notice. The Company’s payment in lieu of notice shall be equivalent to the Base Salary which would have been payable or have accrued during the Executive’s notice period.
(g)Resignation Upon Termination.  Upon termination of the Executive’s employment for any reason, the Executive agrees and covenants that the Executive shall immediately tender a resignation to the Company for any position held by the Executive as an 
        

officer of Root, Inc. or any of its Subsidiaries or Affiliates or as a member of the board of directors or any committee thereof of Root, Inc. or any of its Subsidiaries or Affiliates.
5.Proprietary Information and Trade Secrets.
(a)Proprietary Information and Invention Agreement.  Executive understands and acknowledges that during the course of employment by the Company, the Executive will have access to and learn about Proprietary Information and trade secrets (“Proprietary Information”) as outlined and defined in Executive’s Proprietary Information and Invention Agreement (“PII Agreement”, incorporated throughout this Agreement).  Executive agrees that upon termination of employment, Executive’s obligations under the PII Agreement continue where applicable and that Executive must return all such Proprietary Information as outlined in the PII Agreement.
(b)Non-Use and Non-Disclosure.  Executive agrees that during employment with the Company, Executive will not improperly use, disclose, or induce the Company to use, any proprietary information or trade secrets of any former or concurrent employer or other person or entity. Executive further agrees that Executive will not bring onto the premises of the Company or transfer onto the Company’s technology systems any unpublished document, proprietary information or trade secrets belonging to any such employer, person or entity unless consented to in writing by both the Company and such employer, person or entity.
(c)Permitted Governmental Disclosures.  The federal Defend Trade Secrets Act of 2016 immunizes employees against criminal and civil liability under federal or state trade secret laws – under certain circumstances – if Executive discloses a trade secret for the purpose of reporting a suspected violation of law.  Pursuant to such Act, immunity is available if Executive discloses a trade secret in either of these two circumstances: (1) Executive discloses the trade secret (a) in confidence, (b) directly or indirectly to a government official (federal, state or local) or to a lawyer, (c) solely for the purpose of reporting or investigating a suspected violation of law; or (2) in a legal proceeding, Executive discloses the trade secret in the complaint or other documents filed in the case, so long as the document is filed “under seal” (meaning that it is not accessible to the public). Further, nothing in this Employment Agreement prohibits Executive from reporting possible violations of federal law or regulation to any governmental agency or entity, including but not limited to the Department of Justice, the Securities and Exchange Commission, Congress, and any federal Inspector General, or from making other disclosures that are protected under the whistleblower provisions of federal law or regulation.  Executive does not need prior authorization to make any such reports or disclosures and is not required to notify the Company or the Board that he has made such reports or disclosures.
(d)Third Party Information.  Executive understands that the Company will receive from third parties confidential or proprietary information (“Third Party Information”) subject to a duty on the Company’s part to maintain the confidentiality of such information and to use it only for certain limited purposes.  During the Employment Period and thereafter, and without in any way limiting the provisions of Section 5(a) above, Executive shall hold Third Party Information in the strictest confidence and will not disclose to anyone (other than personnel of the Company or its Subsidiaries and Affiliates who need to know such information in connection with their work for the Company or such Subsidiaries and Affiliates) or use, except in connection with Executive’s work for the Company, Third Party Information unless expressly authorized by a member of the Board in writing.
        

6.Non-Compete; Non-Solicitation.
(a)Non-Competition.  In further consideration of the compensation to be paid to Executive hereunder, Executive acknowledges that during the course of Executive’s employment with the Company and Affiliates he has and shall become familiar with the Company’s and its Affiliates’ corporate strategy, pricing, processes, and other market and financial information, know-how, trade secrets, and valuable customer, supplier, and employee relationships, and with other Proprietary Information and trade secrets contained herein and in Executive’s PII Agreement concerning the Company and its Affiliates, and that Executive’s services have been and shall be of special, unique, and extraordinary value to the Company and its Subsidiaries and Affiliates.  Accordingly, Executive agrees not to engage in the Restricted Activities during Executive’s employment with the Company and for 12 months after the termination of Executive’s employment for any reason.
Notwithstanding anything to the contrary in this Agreement, Executive may, directly or indirectly, own, solely as an investment, securities of any person or entity engaged in the business of the Company which are publicly traded on a national or regional stock exchange or on the over-the-counter market if  Executive (i) is not a controlling person of, or a member of a group which controls, such person or entity and (ii) does not, directly or indirectly, own 5% or more of any class of securities of such person or entity.
This Section does not, in any way, restrict or impede the Executive from exercising protected rights to the extent that such rights cannot be waived by agreement or from complying with any applicable law or regulation or a valid order of a court of competent jurisdiction or an authorized government agency, provided that such compliance does not exceed that required by the law, regulation, or order.
(b)Non-Solicitation of Employees.  The Executive agrees and covenants not to directly or indirectly through another person (i) induce or attempt to induce any employee of the Company to leave the employ of the Company or in any way interfere with the relationship between the Company and any employee, contractor or consultant thereof, or (ii) knowingly hire any person who was an employee of the Company at any time during the twelve (12) months prior to the termination of employment.  This obligation, however, shall not affect any responsibility Executive may have as an employee of the Company with respect to the bona fide hiring and firing of Company personnel.
(c)Non-solicitation of Current and/or Prospective Customers.  The Executive agrees and covenants not to directly or indirectly through another person (i) induce or encourage any vendor, supplier, customer, or Prospective Customer of the Company to cease doing business with or reduce its business with the Company or in any way interfere with the relationship between the Company and such vendor, supplier, customer or Prospective Customer (including by making disparaging remarks about the Company) or (ii) provide to such customers or Prospective Customers products and/or services similar to or competitive with those offered by the Company.
(d)Reformation.  If, at the time of enforcement of this Section 6, a court shall hold that the duration, scope, or area restrictions stated herein are unreasonable under circumstances then existing, the parties agree that the maximum duration, scope, or area reasonable under such circumstances shall be substituted for the stated duration, scope, or area and that the court shall be allowed to revise the restrictions contained herein to cover the maximum period, scope, and area permitted by law.
        

(e)Executive’s Acknowledgements.  Executive acknowledges that Executive has carefully read this Agreement and has given careful consideration to the restraints imposed upon Executive by this Agreement, and is in full accord as to the necessity of such restraints for the reasonable and proper protection of the Proprietary Information, business strategies, employee and customer relationships, and goodwill of the Company and its Subsidiaries and Affiliates now existing or to be developed in the future.  Executive expressly acknowledges and agrees that each and every restraint imposed by this Agreement is reasonable with respect to subject matter, time period, and geographical area.  Executive further acknowledges that although Executive’s compliance with the covenants contained in Sections 5, 6 or 7 may prevent Executive from earning a livelihood in a business similar to the business of the Company, Executive’s experience and capabilities are such that Executive has other opportunities to earn a livelihood and adequate means of support for Executive and Executive’s dependents.
7.Enforcement.  Because Executive’s services are unique and because Executive has access to Proprietary Information and Work Product, the parties agree that the Company and its Subsidiaries and Affiliates will suffer irreparable harm from a breach or threatened breach of Sections 4, 5, 6, 8, 20 or 21 by Executive and that money damages would not be an adequate remedy for any such breach or threatened breach of this Agreement.  In the event of any breach or threatened breach of this Agreement, the Company and its Subsidiaries and Affiliates, in addition to other rights and remedies existing in their favor, shall be entitled to specific performance and/or injunctive or other equitable relief from a court of competent jurisdiction in order to enforce, or prevent any violations of, the provisions hereof (without posting a bond or other security).  In addition, in the event of an alleged breach of violation by Executive of Section 6, the Non-Compete Period and the Non-Solicit Period shall be extended automatically by the amount of time between the initial occurrence of the breach or violation and when such breach or violation has been duly cured.
8.Executive’s Representations.  Executive hereby represents and warrants to the Company that (a) the execution, delivery, and performance of this Agreement by Executive do not and shall not conflict with, breach, violate, or cause a default under any contract, agreement, instrument, order, judgment, or decree to which Executive is a party or by which Executive is bound; (b) Executive is not a party to or bound by any employment agreement, noncompete agreement, or confidentiality agreement with any other Person that would prohibit Executive’s employment with the Company or restrict Executive’s ability to fully perform Executive’s duties for the Company; (c) upon the execution and delivery of this Agreement by the Company, this Agreement shall be the valid and binding obligation of Executive, enforceable in accordance with its terms; and (d) Executive is not subject to any pending, or to his knowledge any threatened, lawsuit, action, investigation, or proceeding involving Executive’s prior employment or consulting work or the use of any information or techniques of any former employer or contracting party.  Executive hereby acknowledges and represents that he has consulted with independent legal counsel regarding Executive’s rights and obligations under this Agreement and that Executive fully understands the terms and conditions contained herein.
9.Survival.  Sections 5 through 22 shall survive and continue in full force in accordance with their terms notwithstanding the termination of the Employment Period and this Agreement.
10.Notices.  Any notice provided for in this Agreement shall be in writing and shall be either personally delivered, sent by reputable overnight courier service, or mailed by first class mail, return receipt requested, to the recipient at the address below indicated:
        

Notices to Executive:
    Robert Bateman
    [Address on file with the Company]

Notices to the Company:
Root, Inc.
80 E Rich St Suite 500
Columbus, Ohio 43215
Attention: Alex Timms, CEO (or equivalent)
or such other address or to the attention of such other Person as the recipient party shall have specified by prior written notice to the sending party.  Any notice under this Agreement shall be deemed to have been given when so delivered, sent, or mailed.
11.Severability.  Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal, or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality, or unenforceability shall not affect any other provision of this Agreement or any action in any other jurisdiction, but this Agreement shall be reformed, construed, and enforced in such jurisdiction as if such invalid, illegal, or unenforceable provision had never been contained herein.
12.Complete Agreement.  This Agreement, together with the Proprietary Information and Invention Agreement signed by Executive, sets forth the entire agreement and understanding between the Company and Executive relating to the subject matter of this Agreement and supersedes all prior discussions or representations.  This Agreement does not alter or modify any Company policies, procedures, or employment handbooks signed on or before the effective date of this Agreement. No modification of or amendment to this Agreement, nor any waiver of any rights under this Agreement, will be effective unless in writing signed by the General Counsel or Chief Executive Officer of the Company and Executive. Any subsequent change or changes in Executive’s duties, salary, or compensation will not affect the validity or scope of this Agreement.
13.No Strict Construction.  The language used in this Agreement shall be deemed to be the language chosen by the parties hereto to express their mutual intent, and no rule of strict construction shall be applied against any party.
14.Counterparts.  This Agreement may be executed in separate counterparts (including by means of pdf signature page), each of which is deemed to be an original, and all of which taken together constitute one and the same agreement.
15.Successors and Assigns.  This Agreement, including the covenants in paragraph 4 above, will be binding upon and inure to the benefit of (i) the Company and its successors and assigns, by merger or otherwise, and (ii) the Executive and the Executive’s heirs and personal representatives.  This Agreement is not assignable by the Executive.  The Company may unilaterally assign its rights and obligations under this Agreement to any successor to Company’s rights and obligations hereunder as a result of any change in control, merger, consolidation, restructuring or reorganization or to any other successor to all or substantially all of the securities, business and/or assets of the Company or any of its Affiliates, and Executive shall continue to be bound by the terms and conditions of this Agreement.  In connection with 
        

any such assignment by Company, following such assignment, references to “Company” in this Agreement, shall mean the successor to all or substantially all of the securities, business and/or assets of Company or any of its Affiliates to whom this Agreement is assigned.
16.Choice of Law and Choice of Forum.  All issues and questions concerning the construction, validity, enforcement, and interpretation of this Agreement and the exhibits and schedules hereto shall be governed by, and construed in accordance with, the laws of the State of Ohio, without giving effect to any choice of law or conflict of law rules or provisions (whether of the State of Ohio or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Ohio.  Jurisdiction and venue of any dispute, action or proceeding relating to this Agreement, the employment of Executive, the termination of Executive’s employment, or the validity, interpretation, performance, breach or termination of the Agreement shall be exclusively in the state or federal court located in Franklin County, Ohio.
17.Amendment and Waiver.  The provisions of this Agreement may be amended or waived only with the prior written consent of the Company (as approved by the Board) and Executive, and no course of conduct or course of dealing or failure or delay by any party hereto in enforcing or exercising any of the provisions of this Agreement (including, without limitation, the Company’s right to terminate the Employment Period with or without Cause) shall affect the validity, binding effect, or enforceability of this Agreement or be deemed to be an implied waiver of any provision of this Agreement.
18.Tax Matters; Code Section 409A.
(a)The Company and its respective Subsidiaries and Affiliates shall be entitled to report such income and deduct or withhold from any amounts owing from the Company or any of its Subsidiaries or Affiliates to Executive any federal, state, local, or foreign withholding taxes, excise tax, or employment taxes (“Taxes”) imposed with respect to Executive’s compensation or other payments and benefits from the Company or any of its Subsidiaries or Affiliates (including, without limitation, wages and bonuses).  In the event the Company or any of its Subsidiaries or Affiliates does not make such deductions or withholdings, Executive shall indemnify the Company and its Subsidiaries and Affiliates for any amounts paid with respect to any such Taxes, together (if such failure to withhold was at the written direction of Executive) with any interest, penalties, and related expenses thereto.
(b)The intent of the parties is that payments and benefits under this Agreement comply with Section 409A; and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith.  In no event whatsoever shall the Company or any of its Subsidiaries or Affiliates be liable for any additional tax, interest, or penalty that may be imposed on the Executive by Section 409A or damages for failing to comply with Section 409A with respect to this Agreement or otherwise.
(c)Notwithstanding the foregoing, a termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits upon or following a termination of employment unless such termination is also a “separation from service” within the meaning of Section 409A and, for purposes of any such provision of this Agreement, references to a “termination,” “termination of employment” or like terms shall mean “separation from service.”  Notwithstanding anything to the contrary in this Agreement, if Executive is deemed on the date of termination to be a “specified employee” within the meaning of that term under Section 409A(a)(2)(B), then with regard to any payment or the provision of any benefit that is considered “nonqualified deferred compensation” under Section 409A payable on account of a “separation from service,” such payment or benefit shall not be made or provided until the date which is the earlier of (A) the 
        

expiration of the six (6)-month period measured from the date of such “separation from service” of Executive, and (B) the date of Executive’s death, to the extent required under Section 409A.  Upon the expiration of the foregoing delay period, all payments and benefits delayed pursuant to this Section 19(c) (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay) shall be paid or reimbursed to Executive in a lump sum, without interest, and any remaining payments and benefits due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein.
(d)To the extent that reimbursements or other in-kind benefits under this Agreement constitute “nonqualified deferred compensation” for purposes of Section 409A, (A) all such expenses or other reimbursements hereunder shall be made on or prior to the last day of the taxable year following the taxable year in which such expenses were incurred by Executive; (B) any right to such reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit; and (C) no such reimbursement, expenses eligible for reimbursement, or in-kind benefits provided in any taxable year shall in any way affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year.
(e)For purposes of Section 409A, Executive’s right to receive any installment payments pursuant to this Agreement shall be treated as a right to receive a series of separate and distinct payments.  Whenever a payment under this Agreement specifies a payment period with reference to a number of days, the actual date of payment within the specified period shall be within the sole discretion of the Company, to the extent permitted under Section 409A.
(f)Notwithstanding any other provision of this Agreement to the contrary, in no event shall any payment under this Agreement that constitutes “nonqualified deferred compensation” for purposes of Section 409A be subject to offset by any other amount unless otherwise permitted by Section 409A.
19.Waiver of Jury Trial.  AS A SPECIFICALLY BARGAINED FOR INDUCEMENT FOR EACH OF THE PARTIES HERETO TO ENTER INTO THIS AGREEMENT (AFTER HAVING THE OPPORTUNITY TO CONSULT WITH COUNSEL), EACH PARTY HERETO EXPRESSLY WAIVES THE RIGHT TO TRIAL BY JURY IN ANY LAWSUIT OR PROCEEDING RELATING TO OR ARISING IN ANY WAY FROM THIS AGREEMENT OR THE MATTERS CONTEMPLATED HEREBY.
20.Corporate Opportunity.  Executive shall submit to the Company all material business, commercial, and investment opportunities or offers presented to Executive, or of which Executive becomes aware, at any time during the Employment Period or any period of at-will employment, which opportunities relate to the Company’s business (“Corporate Opportunities”).  Unless approved by the Board, during the Employment Period or any period of at-will employment, Executive shall not accept or pursue, directly or indirectly, any Corporate Opportunities on Executive’s own behalf or for Executive’s personal benefit or for the benefit of any Person other than the Company.
21.Executive’s Cooperation.  During the Employment Period and thereafter, Executive shall reasonably cooperate with the Company and its Subsidiaries and Affiliates in any internal investigation or administrative, regulatory, or judicial proceeding as reasonably requested by the Company or any Subsidiary or Affiliate (including, without limitation, Executive’s being available to the Company and its Subsidiaries and Affiliates upon reasonable notice for interviews and factual investigations, appearing at the Company’s or any Subsidiary’s or Affiliate’s request to give truthful and accurate testimony without requiring service of a subpoena or other legal process, volunteering to the Company and its Subsidiaries and Affiliates all pertinent information and turning over to the Company and its Subsidiaries and Affiliates all 
        

relevant documents which are or may come into Executive’s possession, all at times and on schedules that are reasonably consistent with Executive’s other permitted activities and commitments).  In the event the Company or any Subsidiary or Affiliate requires Executive’s cooperation in accordance with this section, the Company shall pay Executive a per diem reasonably determined by the Board and reimburse Executive for reasonable expenses incurred in connection therewith (including reasonable transportation, lodging and meals, upon submission of receipts).
22.Legal Advice.  The Executive acknowledges that he is entering into this Agreement of Executive’s own accord and without coercion or pressure of any kind from the other party or from any third person and that he or she has been given the opportunity to obtain independent legal advice in connection with this Agreement.
23.Definitions.
(a)Certain Definitions.  For purposes of this Agreement, the following definitions shall apply:
(i)“Affiliate” shall mean, any employer with which the Company would be considered a single employer under Section 414(b) or 414(c) of the Code (as defined below), applied using fifty percent (50%) as the percentage of ownership required under such Code sections, including (i) any Person (as defined below), any other Person directly or indirectly controlling, controlled by or under direct or indirect common control with, such specified Person and (ii) any Person that is a natural Person, the spouse, ancestors, or lineal descendants of such Person, any limited partnership or limited liability company controlled by such Person or such Person’s spouse, ancestors, or lineal descendants or in which such Person or such Person’s spouse, ancestors, or lineal descendants hold a majority interest, any trust established for the benefit of any of them and such Person’s estate or legal representative.
(ii)“Cause” shall mean, with respect to Executive, one or more of the following: (i) commission of, or conviction of, a felony or a crime involving moral turpitude; (ii) commission of an act or omission to act with respect to the Company or any of its Affiliates or Subsidiaries or any of their customers or suppliers involving dishonesty, disloyalty, or fraud; (iii) conduct that brings or is reasonably likely to bring the Company or its Affiliates or Subsidiaries into public disgrace or disrepute; (iv) repeated failure to perform duties as reasonably directed by the Board; (v) gross negligence or willful misconduct with respect to the Company or any of its Affiliates or Subsidiaries; (vi) material breach of the Company’s Code of Conduct as amended from time to time; (vii) any material breach by Executive of Section 4, 5, 6, 8, 20 or 21 of this Agreement; or (viii) the Executive relocates from the Company’s principal office by more than fifty (50) miles without written Company approval.  With respect to subsection (iv) herein, “Cause” shall only exist if Executive fails to cure the alleged infraction within thirty (30) days of receiving written notice from the Company; and if Executive remedies the condition within such thirty (30) day cure period, then no Cause shall be deemed to exist with respect to such condition.
(iii)“Change in Control” shall have the meaning ascribed in the Root, Inc. 2020 Equity Incentive Plan. For the avoidance of doubt, Caret Holdings, Inc. shall not be substituted for Root, Inc. in the definition of “Company” in such context.  
        

(iv)“Code” shall mean the Internal Revenue Code of 1986, as amended.
(v)“Disabled” shall mean Executive’s incapacity due to physical or mental illness or Executive is considered disabled under the Company’s long-term disability insurance plans.
(vi)“Good Reason” shall mean, with respect to Executive’s resignation from employment, one or more of the following occurring: (i) a material reduction in Executive’s Base Salary or any other reduction in Executive’s Base Salary that is not otherwise uniformly applied to similarly situated employees; (ii) a material diminution in Executive’s duties, responsibilities or authority (provided that a change of Executive’s Supervisor shall not constitute a material reduction in job responsibilities, duties or authority); (iii) a material breach of this Employment Agreement by the Company; or (iv) the relocation of Executive’s principal office by more than fifty (50) miles. “Good Reason” shall only exist if the Executive provided written notice to the Company within sixty (60) days of the initial existence of the condition, describing the existence of such condition, and the Company shall thereafter have the right to remedy the condition within thirty (30) days of the date the Company received the written notice from the Executive.  If the Company remedies the condition within such thirty (30) day cure period, then no Good Reason shall be deemed to exist with respect to such condition.  If the Company fails to cure the alleged infraction within thirty (30) days of receiving written notice from Executive, then the Executive may deliver a notice of termination for Good Reason at any time within sixty (60) days following the expiration of such cure period.
(vii)“Person” shall mean any natural person, corporation, partnership (whether general or limited), limited liability company, association, custodian, nominee, trust, estate, joint venture, governmental authority, or other individual or entity.
(viii)“Prospective Customer” shall mean any prospect with whom Executive or a representative of Company for which Executive was aware has engaged in discussions to do business with the Company within the last twelve (12) months of Executive’s employment.
(ix)“Restricted Activities” shall mean activity in which the Executive contributes the Executive’s knowledge, directly or indirectly, in whole or in part, as an employee, employer, owner, operator, manager, advisor, consultant, contractor, agent, partner, director, stockholder, officer, volunteer, intern, or any other similar capacity to an entity, within the Restricted Territory, that is (1) a property and casualty insurance company offering products that are the same or similar to the Company; or (2) an entity doing or intending to do business with a property and casualty insurance company; and either (1) or (2) is engaged in the activity of implementing the framework for and/or processing telematics sensor data for the construction of predictive and/or explanatory signals related to behavior of an individual and/or motion of a vehicle while driving for use in insurance underwriting, rating or claims handling. Restricted Activity also includes activity that may require or inevitably require disclosure of trade secrets or Proprietary Information as defined in this Agreement or in the PII Agreement.
        

(x)“Restricted Territory” shall mean the United States because the type of work Executive is engaged can be performed, shared, utilized, developed, bought, sold, or accessed from anywhere to anywhere, in person or remotely.
(xi)“Subsidiary” shall mean, with respect to any Person, any corporation, partnership, limited liability company, association, joint venture, or other business entity of which more than fifty percent (50%) of the total voting power of shares of stock or other ownership interests entitled (without regard to the occurrence of any contingency) to vote in the election of the Person (or, in the case of a partnership, limited liability company, or other similar entity, control of the general partnership, managing member, or similar interests) or Persons (whether directors, managers, trustees, or other Persons performing similar functions) having the power to direct or cause the direction of the management and policies thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof.

* * *

        

IN WITNESS WHEREOF, the parties hereto have executed this Employment Agreement effective as of the date first written above but signed on the date(s) indicated below.
CARET HOLDINGS, INC.

By:    /s/ Alexander Timm                

Name: Alexander Timm                

Title:    Chief Executive Officer            

Date:  March 22, 2022

/s/ Robert Bateman                    
                            Robert Bateman
                            Date: March 18, 2022

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