Document:

Exhibit

GRIFFIN CAPITAL ESSENTIAL ASSET REIT, INC.
TIME-BASED RESTRICTED STOCK UNIT AGREEMENT

This Restricted Stock Unit Agreement (this “Agreement”) is made by and between Griffin Capital Essential Asset REIT, Inc., a Maryland corporation (the “Company”), and ____________________ (the “Participant”).

WHEREAS, the Company maintains a long-term incentive plan named Griffin Capital Essential Asset REIT II, Inc. Employee and Director Long Term Incentive Plan (the “Plan”);

WHEREAS, the Plan allows the grant of Awards to full-time employees of the Company;

WHEREAS, the compensation committee (the “Committee”) of the board of directors of the Company (the “Board”) has designated employees of Griffin Capital Real Estate Company, LLC (“GRECO”), a Delaware limited liability company and wholly-owned subsidiary of Griffin Capital Essential Asset Operating Partnership, L.P., the operating partnership of the Company and owner of 100% of the equity interests of GRECO (the “Operating Partnership”), as  employees of the Company for purposes of the Plan and has otherwise determined that such employees of GRECO are eligible persons under the Plan;

WHEREAS, the Committee has determined that GRECO is an Affiliate under the Plan;

WHEREAS, the Participant is a full-time employee of GRECO;

WHEREAS, Section 10 of the Plan provides for the issuance of Other Equity-Based Awards, which includes restricted stock units (“RSUs”), to eligible persons; and

WHEREAS, the Committee has determined that it would be to the advantage and in the best interest of the Company and its Affiliates to cause RSUs to be issued to the Participant under the Plan, subject to the terms and conditions set forth herein (the “Award”).

NOW, THEREFORE, in consideration of the mutual covenants herein contained and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto do hereby agree as follows:

1.    Issuance of RSUs. The Participant shall be granted, by the Company, a total of [INSERT NUMBER] RSUs, granted as of January 15, 2020 (the “Grant Date”), subject to the terms and conditions, rights, voting powers, restrictions and limitations set forth herein and in the Plan.  

2.    Definitions. For purposes of this Agreement, the following terms shall have the meanings set forth below.  All capitalized terms used but not otherwise defined herein shall have the meanings ascribed to such terms in the Plan.

		
	(a)
	“Cause” means “Cause” as defined in the Employment Agreement.

(b)     “Change in Control” means a “change in control event” with respect to either GRECO or the Company, or both of them, within the meaning of Section 409A of the Code.

(c)    “Code” means the Internal Revenue Code of 1986, as amended.

(d)    “Deferral Election” means a valid deferral election made by the Participant in accordance with Treasury Regulation Section 1.409A-2, subject to such timing and in the form attached hereto as Exhibit B.

(e)    “Disability” means “Disability” as defined in the Employment Agreement.

(f)    “Employment Agreement” means that certain employment agreement between the Company, GRECO, the Operating Partnership, and the Participant dated December 14, 2018, as in effect on the date hereof.

(g)     “Good Reason” means “Good Reason” as defined in the Employment Agreement.

(h)    “Person” means “Person” as defined in Section 3(a)(9) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as modified and used in Sections 13(d) and 14(d) thereof, except that such term shall not include (i) the Company or any of its Subsidiaries, (ii) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its Subsidiaries, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities, or (iv) a corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company.
    
(i)     “Qualifying Termination” means a termination of the Participant’s employment and service with GRECO and its Subsidiaries (or any successors thereto) by reason of (i) the Participant’s death, (ii) a termination due to the Participant’s Disability, (iii) an involuntary termination by the Company, GRECO or any of their Subsidiaries other than for Cause, or (iv) a voluntary termination by the Participant for Good Reason.

(j)    “RSUs” means an Award issued under the Plan which entitles the holder, upon satisfaction of the vesting and other conditions set forth in the applicable award agreement and Plan, to be issued Shares.

(k)    “Share” means one share of common stock of the Company.

(l)    “Subsidiary” means with respect to any Person, any entity in which it owns, directly or indirectly, the majority of the equity.
 
3.    Plan Governs; Stockholder Rights; Transfer Restrictions.

		
	(a)
	The RSUs are subject to the terms of the Plan and this Agreement.  

(b)    The Participant shall be entitled to a Distribution Equivalent Right with respect to this Award in the event that a dividend, distribution or liquidation payment is paid with respect to Shares of the Company on or after January 1, 2020, provided that the record date for such dividend, distribution or liquidation payment occurs on or after January 1, 2020 and the Participant has not forfeited the corresponding RSU prior to the payment date thereof.  Such Distribution Equivalent Right (i) shall equal the total number of Shares underlying the Participant’s Award, multiplied by the amount of such dividend, distribution or liquidation payment, (ii) shall be in the same form as the applicable dividend, distribution or liquidation payment, and (iii) shall be paid to the Participant within thirty (30) days following the date such dividend, distribution or liquidation payment is paid to the Company’s stockholders or, if such dividend, distribution or liquidation payment was paid to the Company’s stockholders prior to the Grant Date, payment shall occur within thirty (30) days following the Grant Date.  

Except as provided above, the Award shall not confer upon the Participant any rights as a stockholder of the Company unless and until such issued Shares are reflected as issued and outstanding on the Company’s stock ledger. 

(c)    Without the consent of the Committee (which it may give or withhold in its sole discretion), the Participant shall not sell, pledge, assign, hypothecate, transfer, or otherwise dispose of (collectively, “Transfer”) any unvested RSUs or any portion of the Award attributable to such unvested RSUs (or any securities into which such unvested RSUs are converted or exchanged), other than by will, pursuant to the laws of descent and distribution or to a “family member” within the meaning of the Securities Act (the “Transfer Restrictions”); provided, however, that the Transfer Restrictions shall not apply to any Transfer of unvested RSUs or the Award to the Company.  Any permitted transferee of the Award or RSUs shall take such Award or RSUs subject to the terms of the Plan and this Agreement.  Any such permitted transferee must, upon the request of the Company, agree to such waivers, limitations, and restrictions as the Company may reasonably require.  Any Transfer of the Award or RSUs which is not made in compliance with the Plan and this Agreement shall be null and void and of no effect ab initio.  

4.     Vesting. The RSUs shall vest and become nonforfeitable with respect to 25% of the RSUs on December 31 of each of 2020, 2021, 2022 and 2023, subject to the Participant’s continued employment and service with GRECO, the Company or any of their Subsidiaries (or applicable successors thereto) through the applicable vesting date; provided that vesting may accelerate as specifically set forth in the Employment Agreement, or in the following situations: 
 
(a)     Change in Control.  Subject to Section 4(b), in the event that a Change in Control occurs, the RSUs shall vest in full as of immediately prior thereto, unless this Award is assumed, continued, converted or replaced with a substantially similar award by the Company or a successor entity or its parent or subsidiary. 

(b)     Effect of Termination of Service.  In the event that the Participant incurs a Qualifying Termination, the RSUs shall vest in full as of immediately prior to such Qualifying Termination.

In the event of the Participant’s termination of employment and service with GRECO, the Company and their Subsidiaries for any reason (other than a Qualifying Termination), all RSUs that have not vested as of the date of such termination of employment or service (after taking into account any accelerated vesting that occurs in connection with such termination) shall automatically and without further action be cancelled and forfeited without payment of any consideration therefor, and the Participant shall have no further right to or interest in such RSUs.

The benefits provided by this Section 4(b) are subject to the condition that the Participant (or, in the event of the Participant’s death or Disability, the Participant’s estate or personal representative, as the case may be) timely execute and not revoke a written release of claims against GRECO, the Company and their Subsidiaries in the form attached as Exhibit A to the Employment Agreement (a “Release”).  Such signed Release must be delivered to the Company on or within sixty (60) days following the date of such Qualifying Termination.  If the date for signing the Release spans two calendar years, then the Shares that are otherwise due upon vesting of the RSUs shall not be issued prior to the first day of the second such calendar year.

5.    Settlement of Award.  Except as otherwise provided in a valid Deferral Election, and subject to the release requirements set forth in Section 4(b) and Participant’s timely execution of any required documents as described in Section 7, as soon as administratively practicable following the date that an RSU vests, but in any event within seventy (70) days thereafter, the Company will issue to the Participant one Share for 

each vested RSU (on a one-to-one basis).  In all cases absent a Deferral Election, the issuance and delivery of Shares under this Agreement is intended to qualify as a short-term deferral as provided by Treasury Regulation Section 1.409A-1(b)(4) and shall be construed and administered in such a manner. 

6.     Adjustments for Corporate Transactions and Other Events.

(a)     Stock Dividend, Stock Split and Reverse Stock Split.  Upon a stock dividend of, or stock split or reverse stock split affecting, the Shares, the Committee shall adjust the number of outstanding RSUs in an equitable manner to reflect such event, including in the case of a stock dividend taking into account any Distribution Equivalent Rights paid to the Participant. Adjustments under this paragraph will be made by the Committee, whose determination as to what adjustments, if any, will be made and the extent thereof will be final, binding and conclusive.

(b)    Merger, Consolidation and Other Events. If the Company shall be the surviving or resulting corporation in any merger or consolidation in which the Shares are converted into other securities, the RSUs shall pertain to and apply to the securities to which a holder of the number of Shares subject to the RSUs would have been entitled.  If the stockholders of the Company receive by reason of any distribution in total or partial liquidation or pursuant to any merger of the Company or acquisition of its assets, securities of another entity or other property (including cash), then the rights of the Company under this Agreement shall inure to the benefit of the Company’s successor, and this Agreement shall apply to the securities or other property (including cash) to which a holder of the number of Shares subject to the RSUs would have been entitled, in the same manner and to the same extent, including the same restrictions and vesting and payment schedule, as the RSUs.

(c)    Other Adjustments.  Notwithstanding the foregoing, the RSUs shall be subject to adjustment as set forth in the Plan.

7.    Company Documents.  At the Company’s reasonable and customary request, the Participant must timely execute and deliver to the Company any shareholders’ agreements, investment representations or other documents that the Company, in its sole discretion, deems necessary or desirable to effectuate the issuance of the Shares.  

8.     Securities Law Compliance.  None of the Company’s securities are presently publicly traded, and the Company has made no representations, covenants or agreements as to whether there will be a public market for any of its securities.  The RSUs cannot be transferred by the Participant unless such transfer is registered under the Securities Act or an exemption from such registration is available.  The Company has made no agreements, covenants or undertakings whatsoever to register the transfer of the RSUs under the Securities Act.  The Company has made no representations, warranties, or covenants whatsoever as to whether any exemption from the Securities Act, including, without limitation, any exemption for limited sales in routine brokers’ transactions pursuant to Rule 144 of the Securities Act, shall be available.  If an exemption under Rule 144 is available at all, it shall not be available until at least six months from issuance of the Award and then not unless the terms and conditions of Rule 144 have been satisfied.

To the extent not inconsistent with applicable law, the Participant agrees not to effect any sale or distribution of the RSUs or any Shares received as a result thereof, or any securities convertible into or exchangeable or exercisable for such securities, including a sale pursuant to Rule 144 under the Securities Act, during the 14 days prior to, and for a period of up to 90 days beginning on the date of the pricing of any public or private debt or equity securities offering by the Company (except as part of such offering), if and to the extent requested in writing by the Company in the case of a non-underwritten public or private 

offering or if and to the extent requested in writing by the managing underwriter or underwriters (or initial purchaser or initial purchasers, as the case may be) and consented to by the Company, which consent may be given or withheld in the Company’s sole and absolute discretion, in the case of an underwritten public or private offering (such agreement to be in the form of a lock-up agreement provided by the Company, managing underwriter or underwriters, or initial purchaser or initial purchasers, as the case may be).

Certificates evidencing the Shares issued in connection with the RSUs, to the extent such certificates are issued, may bear such restrictive legends as the Company and/or the Company’s counsel may deem necessary or advisable under applicable law or pursuant to this Agreement, including, without limitation, the following legends or any legends similar thereto:
 
“Any transfer of the securities represented hereby shall be invalid unless a Registration Statement under the Securities Act of 1933, as amended (the “Securities Act”) is in effect as to such transfer or in the opinion of counsel for Griffin Capital Essential Asset REIT, Inc. (the “Company”) such registration is unnecessary in order for such transfer to comply with the Securities Act.  The securities represented hereby are subject to transferability and other restrictions as set forth in (i) a written agreement with the Company and (ii) the Griffin Capital Essential Asset REIT II, Inc. Employee and Director Long Term Incentive Plan, in each case, as has been and as may in the future be amended (or amended and restated) from time to time, and such securities may not be sold or otherwise transferred except pursuant to the provisions of such documents.”

The Participant acknowledges that the Plan and this Agreement are intended to conform to the extent necessary with all provisions of the Securities Act and the Exchange Act, and any and all applicable laws.  Notwithstanding anything herein to the contrary, the Plan shall be administered, and the Award is granted, only in such a manner as to conform to such laws, rules and regulations.  To the extent permitted by applicable law, the Plan and this Agreement shall be deemed amended to the extent necessary to conform to such laws, rules and regulations.

9.     Taxes.  GRECO, the Company or any of their Subsidiaries may withhold from the Participant’s wages, or require the Participant to pay to such entity, any applicable withholding or employment taxes resulting from the vesting or settlement of the Award (including the RSUs and/or the Distribution Equivalent Rights); provided, however, that GRECO, the Company and their Subsidiaries, and the Affiliates, have not made warranties or representations to the Participant with respect to the income tax consequences of the transactions contemplated by this Agreement, and the Participant is in no manner relying on GRECO, the Company or any of their Subsidiaries, or any Affiliate, or the representatives of each, for an assessment of such tax consequences.  Notwithstanding the foregoing, and with the prior approval of the Committee, the Participant may, upon vesting or settlement of the RSUs, elect to have the Company withhold Shares equal in value to the maximum statutory rate for federal, state, and local income and employment taxes applicable in Participant’s jurisdiction to satisfy any withholding tax obligations resulting from the vesting and settlement of the RSUs.  To the extent that the Shares withheld are not sufficient to cover all taxes due, the Participant shall be responsible for any remaining amount of taxes that may be due.  To the extent that any Federal Insurance Contributions Act tax withholding obligations arise in connection with the Award, the Company shall accelerate the payment of a portion of the Award sufficient to satisfy (but not in excess of) such tax withholding obligations and any tax withholding obligations associated with any such accelerated payment, and the Company shall withhold such amounts in satisfaction of such withholding obligations.  The Participant 

is advised to consult with his or her own tax advisor with respect to such tax consequences and his or her receipt and settlement of the RSUs.  

10.    Remedies.  The Participant shall be liable to GRECO, the Company and their Subsidiaries for all costs and damages, including incidental and consequential damages, resulting from a disposition of the Award or the RSUs which is in violation of the provisions of this Agreement. Without limiting the generality of the foregoing, the Participant agrees that the Company shall be entitled to obtain specific performance of the obligations of the Participant under this Agreement and immediate injunctive relief in the event any action or proceeding is brought in equity to enforce the same. The Participant shall not urge as a defense that there is an adequate remedy at law.
 
11.    Code Section 409A.  

(a)    General.  To the extent applicable, this Agreement shall be interpreted so that this Award is exempt from (or, to the extent that exemption is not possible, to comply with) Section 409A of the Code and Department of Treasury regulations and other interpretive guidance issued thereunder (“Section 409A”).  Notwithstanding any provision of this Agreement to the contrary, in the event that following the Grant Date the Company determines that the Award must be revised to maintain exemption from or to comply with Section 409A, the Company may adopt such amendments to this Agreement or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that the Company determines are necessary or appropriate to (a) exempt the Award from Section 409A and/or preserve the intended tax treatment of the benefits provided with respect to the Award, or (b) comply with the requirements of Section 409A; provided, however, that this Section 11 shall not create any obligation on the part of GRECO, the Company or any of their Subsidiaries to adopt any such amendment, policy or procedure or take any such other action, and none of GRECO, the Company or any of their Subsidiaries shall have any obligation to indemnify any Person for any taxes imposed under or by operation of Section 409A (except to the extent such taxes are imposed due to an operational failure).

(b)    Notwithstanding anything to the contrary in this Agreement, no amounts shall be paid to the Participant under this Agreement during the six (6)-month period following the Participant’s “separation from service” to the extent that the Committee determines that the Participant is a “specified employee” (each within the meaning of Code Section 409A) at the time of such separation from service and that paying such amounts at the time or times indicated in this Agreement would be a prohibited distribution under Code Section 409A(a)(2)(b)(i).  If the payment of any such amounts is delayed as a result of the previous sentence, then on the first business day following the end of such six (6)-month period (or such earlier date upon which such amount can be paid under Code Section 409A without being subject to such additional taxes), the Company shall pay to the Participant in a lump-sum all amounts that would have otherwise been payable to the Participant during such six (6)-month period under this Agreement.  Such specified employee delay does not apply to payments made on account of payment of employment taxes or income inclusion, as described in Treasury Regulation Section 1.409A-3(j)(4)(vi) and (vii).

(c)    Distribution Equivalent Rights.  Any Distribution Equivalent Rights granted in connection with the RSUs issued hereunder, and any amounts that may become distributable in respect thereof, shall be treated separately from such RSUs and the rights arising in connection therewith for purposes of the designation of time and form of payments required by Section 409A.

 
 

12.    Miscellaneous.  
 
(a)     Incorporation of the Plan.  This Agreement is subject to the terms and conditions of the Plan, which are incorporated herein by reference. In the event of any inconsistency between the Plan and this Agreement, the terms of the Plan shall control.
 
(b)     Not a Contract of Service Relationship.  Nothing in this Agreement or in the Plan shall confer upon the Participant any right to continue to serve as an employee or other service provider of GRECO, the Company or any of their Subsidiaries or shall interfere with or restrict in any way the rights of GRECO, the Company or any of their Subsidiaries, which rights are hereby expressly reserved, to discharge or terminate the services of the Participant at any time for any reason whatsoever, with or without Cause, except to the extent expressly provided otherwise in a written agreement between GRECO, the Company or any Subsidiary and the Participant.

(c)     No Benefit Accruals.  This Award is designated as a bonus that is in addition to the regular cash wages of the Participant. No amount of stock or income received by the Participant pursuant to this Award will be considered compensation for purposes of any severance or any pension, retirement, insurance or other employee benefit plan or program of GRECO, the Company or any of their Subsidiaries in calculating any employment-related benefits to which the Participant may be entitled from the Participant’s employment or service with GRECO.  Participation in the Plan is discretionary and voluntary, and the Plan can be terminated at any time.  This Award does not create a right or entitlement to future awards, whether pursuant to the Plan or otherwise.
 
(d)     Governing Law.  The laws of the State of California shall govern the interpretation, validity, administration, enforcement and performance of the terms of this Agreement regardless of the law that might be applied under principles of conflicts of laws.

(e)     Amendment, Suspension and Termination.  To the extent permitted by the Plan, this Agreement may be wholly or partially amended or otherwise modified, suspended or terminated at any time or from time to time by the Committee or the Board; provided, however, that, except as may otherwise be provided by the Plan, no amendment, modification, suspension or termination of this Agreement shall adversely affect the Award in any material way without the prior written consent of the Participant.  For purposes of this paragraph, “material” means a change that the Committee or Board determines, in good faith, could reasonably be expected to result in a reduction in the dollar value of the RSUs or could reasonably be expected to result in a curtailment of the Participant’s rights to receive the Shares or Distribution Equivalent Rights hereunder.  For clarity, changes to features that the Committee or Board determines in good faith are an insignificant or unimportant feature of the Award, involve an administrative process, or are too remote to be reasonably expected to occur, shall not be considered “material.” 
 
(f)     Notices. Any notice to be given under the terms of this Agreement shall be addressed to the Company in care of the Secretary of the Company at the Company’s principal office, and any notice to be given to the Participant shall be addressed to the Participant at the Participant’s last address reflected on GRECO’s records.  Any notice shall be deemed duly given when sent via email or when sent by reputable overnight courier or by certified mail (return receipt requested) through the United States Postal Service.  
 
(g)     Successors and Assigns. GRECO, the Company or any Subsidiary may assign any of its rights under this Agreement to single or multiple assignees, and this Agreement shall inure to the benefit of the successors and assigns of GRECO, the Company and their Subsidiaries.  Subject to the restrictions on transfer 

set forth in Section 3 hereof, this Agreement shall be binding upon the Participant and his or her heirs, executors, committees, successors and assigns.
 
(h)     Entire Agreement. The Plan and this Agreement (including all exhibits thereto, if any, and any Deferral Election) constitute the entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of GRECO, the Company and their Subsidiaries and the Participant with respect to the subject matter hereof.
 
(i)     Clawback.  This Award shall be subject to any clawback or recoupment policy required by law.
 
(j)     Spousal Consent.  As a condition to GRECO’s, the Company’s and any Affiliate’s obligations under this Agreement, the spouse of the Participant, if any, shall execute and deliver to the Company the Consent of Spouse attached hereto as Exhibit A.
 
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written.
 
GRIFFIN CAPITAL ESSENTIAL ASSET REIT, INC.,
a Maryland corporation
 
By: __________________________________
Name: Michael J. Escalante
Title: Chief Executive Officer
 
The Participant hereby accepts and agrees to be bound by all of the terms and conditions of this Agreement.
 
_____________________________________
Participant 

Print Name: ___________________________
 
 

Exhibit A

CONSENT OF SPOUSE
 
I, ____________________, spouse of ___________________, have read and approve the foregoing Time-Based Restricted Stock Unit Agreement (the “Agreement”), and the Plan (as defined in the Agreement). In consideration of the granting to my spouse of the RSUs of Griffin Capital Essential Asset REIT, Inc. (the “Company”) as set forth in the Agreement, I hereby appoint my spouse as my attorney-in-fact in respect to the exercise of any rights and taking of all actions under the Agreement and agree to be bound by the provisions of the Agreement insofar as I may have any rights in said Agreement or any Shares issued pursuant thereto under the community property laws or similar laws relating to marital property in effect in the state of our residence as of the date of the signing of the foregoing Agreement or otherwise. I understand that this Consent of Spouse may not be altered, amended, modified or revoked other than by a writing signed by me, and the Company.
 
Grant Date: January 15, 2020
 
 
By: ________________________________
Print name: __________________________
Dated: ___________________
 
 
If applicable, you must print, complete and return this Consent of Spouse to Griffin Capital Essential Asset REIT, Inc. Please only print and return this page.

Exhibit B - RSU DEFERRAL ELECTION FORM
Instructions:  This Election Form can be used to elect to defer shares of Stock that become payable pursuant to Restricted Stock Unit (RSU) Awards granted under the Griffin Capital Essential Asset REIT II, Inc. Employee and Director Long Term Incentive Plan.  This form must be delivered to the Company’s Human Resources Department by December 31st prior to the start of the calendar year in which the applicable RSU Award is granted (or, with respect to the first year that you are eligible to participate in any equity-based nonqualified deferred compensation program sponsored by the Company or its affiliates, within 30 days following your initial eligibility and then your election only applies to compensation for services to be performed subsequent to the election).  Your elections apply only to RSU Awards granted during the calendar year designated below and will not carry forward to future years.  All capitalized terms have the meaning set forth in the Plan.  It is important that you understand that after the December 31st prior to the start of the designated calendar year (or for the first year of participation, the 30-day deadline), this Election Form will generally become irrevocable, except in very limited circumstances set forth in current Internal Revenue Service guidelines.    
PARTICIPANT INFORMATION
	
		
	Name:
	______________________________________________________________________

	Address:
	______________________________________________________________________

RSU DEFERRAL
I hereby elect to defer the following number or percentage (rounded downward to the next whole share) of shares of common stock of the Company (“Stock”) that become payable to me pursuant to any RSU Award granted to me during the designated calendar year and instead to have those shares of Stock paid to me commencing on the date set forth below.   Regardless of my election below, if I die, I experience a Separation from Service, or a Change in Control (as defined under the Plan) occurs prior to the date(s) elected below, the shares of Stock will be paid as soon as practicable (but in no event more than 70 days) thereafter to me (or, in the case of death, to my heirs or estate); provided, however, in the case of a payment triggered by Separation from Service if I qualify as a “specified employee” as defined in Section 409A at the time of my Separation from Service no distribution will be made to me prior to the first business day following the end of the six-month period following such Separation from Service (or, if earlier, upon my death).  In all events, payment may be accelerated if employment taxes become due or taxable income is recognized as described in Section 5 of the Plan.  Any withholding of Stock to satisfy tax withholding requirements shall occur before application of this deferral election (and, if the remaining shares of Stock are insufficient to satisfy my deferral election, my deferral election shall be reduced to equal the remaining shares). 
	
			
	Calendar Year
	Number or Percentage of Shares of Stock to be Deferred
	Distribution Date

	

All
	____________ shares OR
____________ %
	01/01/_______

	Shares that Vest in __________
	____________ shares OR
____________ %
	01/01/_______

	Shares that Vest in __________
	____________ shares OR
____________ %
	01/01/_______

	Shares that Vest in __________
	____________ shares OR
____________ %
	01/01/_______

	Shares that Vest in __________
	____________ shares OR
____________ %
	01/01/_______

	
		
	Distribution Method (circle one)

	Single lump sum
	Up to 5 Annual Installments –
Specify number of installments (2-5): ________________________

If you do not elect a distribution method above, you will be treated as if you elected a lump sum.

ACKNOWLEDGEMENT AND AUTHORIZATION
By signing below, I certify and acknowledge that the Company is authorized to defer payment of shares of Stock as indicated above and that I will be responsible for any taxes due as described in the Plan.  I further acknowledge that my RSU Award and the shares of Stock related thereto are governed by the terms and conditions of the Plan document.  The above acknowledgement and Participant Information is true, accurate and complete. 
Signed: _________________________________________________    Date: ____________________
	
				
	As Plan Administrator, I hereby acknowledge receipt of this form.

	PLAN ADMINISTRATOR
	_______________________________________________
	DATE
	_______________________Exhibit

Exhibit 10.1

CONSULTING AGREEMENT

    
This CONSULTING AGREEMENT (hereinafter “Agreement”) is made and entered into as of July 1, 2020 (hereinafter the “Effective Date”), by and between Harsco Corporation, a Delaware corporation with a principal place of business at 350 Poplar Church Road, Camp Hill, PA (hereinafter “Client”), and Consultant, Tracey McKenzie (hereinafter “Consultant”).

Article 1

TERM AND TERMINATION

1.1 Term.   This Agreement shall commence on the Effective Date and shall continue in effect for a period of six (6) months from the Effective Date of this Agreement (the “Term”).

1.2 Termination of Agreement.   Upon written request of Client at any time or upon the expiration of the Term of this Agreement, whichever is sooner, Consultant shall advise Client of the extent to which performance has been completed on all pending projects, and collect and deliver to Client whatever work product then exists related to each such project in the manner requested by Client. 

1.3 Survival.   Articles 5, 6, 7 and 8 hereof shall survive the expiration of this Agreement and continue in effect, as applicable.

Article 2

INDEPENDENT CONTRACTOR STATUS

2.1 Intention of Parties.   It is the intention of the parties that Consultant be an independent contractor and not an employee, agent, joint venturer, or partner of Client. Nothing in this Agreement shall be interpreted or construed as creating or establishing the relationship of employer and employee between Client and either Consultant or any employee or agent of Consultant.

2.2 Nonexclusive.  Consultant shall retain the right to perform work for other persons or entities during the term of this Agreement. 

Article 3

SERVICES TO BE PERFORMED BY CONSULTANT

3.1 Work.   All work performed by Consultant shall be documented and shall set forth, at a minimum, a description of the work to be done and, once completed, the work that Consultant performed.   Client shall have the right to accept or decline any proposed work by Consultant.  

3.2 Method of Performing Services.  Consultant will determine the method, details, and means of performing the work to be carried out for Client on each project. Client shall have no right to, and shall not, control the manner or determine the method of accomplishing such work. Client may, however, require Consultant to observe certain policies of the Client including, but not limited to, the Client’s Code of Conduct, confidentiality, computer network, security and safety policies of Client. In addition, Client shall be entitled to exercise general oversight over the results of work performed by Consultant to ensure that the work product delivered by Consultant is satisfactory. This oversight shall include the right to inspect, stop work, make suggestions or recommendations as to the details of the work, and request modifications to the scope of the 

Exhibit 10.1

work and/or deliverables.

3.3 Scheduling.   Consultant agrees to accommodate work schedule requests of Client to the extent possible and in accordance with the time frame Client establishes for a project. Consultant agrees to be reasonably available, up to thirty (30) hours per week, during the Term of this Agreement to render services under this Agreement.

3.4 Reporting.  Client will advise Consultant of the individual(s) to whom Consultant will report progress on each project. 

3.5 Place of Work.   Consultant will perform all work for Client from Consultant’s own offices or residence except when certain projects or tasks may, as mutually determined in advance, be performed at Client’s principal place of business. Client and Consultant shall develop appropriate administrative procedures for performance of work at Client’s site, if work at such site is necessary as determined by Client.

Article 4

COMPENSATION

4.1 Fee.   Within sixty (60) days following the Effective Date, Client shall pay Consultant a one-time fee of four hundred thousand dollars ($400,000) as consideration for services rendered under this Agreement and the general release of claims and agreement to cooperate set forth in Article 7.

4.2 Expenses.   Except as otherwise agreed in writing by Client, Consultant shall be responsible for all costs and expenses incident to the performance of services for Client, including all costs incurred by Consultant to do business.
    
Article 5

TREATMENT OF CONSULTANT’S PERSONNEL

5.1 Compensation of Consultant’s Personnel.   Consultant shall bear sole responsibility for payment of compensation to its personnel, if any, that Consultant retains. Consultant shall pay and report, for all personnel assigned to Client’s work, federal, state and local income tax withholding, social security taxes, and unemployment insurance applicable to such personnel as employees of Consultant. Consultant shall bear sole responsibility for any health or disability insurance, retirement benefits, or other welfare or pension benefits, if any, to which such personnel may be entitled. Consultant agrees to defend, indemnify, and hold harmless Client, Client’s officers, directors, employees and agents, and the administrators of Client’s benefit plans, from and against any claims, liabilities, or expenses relating to such compensation, tax, insurance, or benefit matters; provided that Client shall (1) promptly notify Consultant of each such claim when and as it comes to Client’s attention; (2) cooperate with Consultant in the defense and resolution of such claim; and (3) not settle or otherwise dispose of such claim without Consultant’s prior written consent, such consent not to be unreasonably withheld.

5.2 Workers’ Compensation.  Notwithstanding any other workers’ compensation or insurance policies maintained by Client, Consultant shall procure and maintain workers’ compensation coverage for its personnel, if any, sufficient to meet the statutory requirements of the state in which Consultant’s personnel are engaged.

5.3 Consultant’s Agreements With Personnel.   Consultant shall obtain and maintain in effect written agreements between Consultant and each of its personnel who participate in any of Client’s work. 

Exhibit 10.1

Such agreements shall contain terms sufficient for Consultant to comply with all provisions of this Agreement, and shall confirm that such personnel shall have no status as employees of Client and no ability to participate in any Client benefit plan.

5.4 State and Federal Taxes.   As neither Consultant nor its personnel, if any, are Client’s employees, Client shall not take any action or provide Consultant’s personnel with any benefits or commitments inconsistent with any of the terms of this Agreement. In particular:

		
	•
	Client will not withhold FICA (Social Security) from Consultant’s payment.

		
	•
	Client will not make state or federal unemployment insurance contributions on behalf of Consultant or its personnel.

		
	•
	Client will not withhold local, state or federal income tax from Consultant’s payment.

		
	•
	Client will not make insurance contributions on behalf of Consultant or its personnel.

		
	•
	Client will not obtain workers’ compensation insurance on behalf of Consultant or its personnel.

Article 6

CONFIDENTIALITY AND INTELLECTUAL PROPERTY RIGHTS

6.1 Confidentiality.   Consultant shall maintain in strict confidence, and shall use and disclose only as authorized by Client in writing, all information of a competitively sensitive, confidential and/or proprietary nature that it receives or otherwise learns about in connection with the work performed for Client. Consultant shall require its personnel, if any, to agree to do likewise. Client shall take reasonable steps to identify for the benefit of Consultant any information of a competitively sensitive, confidential or proprietary nature, such as by using confidentiality notices in or when transmitting written material where appropriate. These restrictions shall not be construed to apply to (1) information generally available to the public; (2) information released by Client to the public generally without restriction; (3) information independently developed or acquired by Consultant or its personnel without reliance in any way on other confidential or proprietary information of Client; or (4) information approved for the use and disclosure of Consultant or its personnel without restriction. Notwithstanding the foregoing restrictions, Consultant and its personnel may use and disclose any information (1) to the extent required by an order of any court or other governmental authority or (2) as necessary for it or them to protect their interest in this Agreement, but in each case only after Client has been so notified and has had the opportunity, if possible, to obtain reasonable protection for such information in connection with such disclosure. The foregoing confidentiality obligations are in addition to any and all confidentiality obligations of Consultant to Client.

6.2 Ownership of Work Product.   All copyrights, patents, trade secrets, or other intellectual property rights associated with any ideas, concepts, techniques, inventions, processes, or works of authorship developed or created by Consultant or its personnel during the course of performing Client’s work (collectively, the “Work Product”) shall belong exclusively to Client and shall, to the extent possible, be considered a work made for hire for Client within the meaning of Title 17 of the United States Code. Consultant automatically assigns, and shall cause its personnel automatically to assign, at the time of creation of the Work Product, without any requirement of further consideration, any right, title, or interest it or they may have in such Work Product, including any copyrights or other intellectual property rights pertaining thereto. Upon request of Client, Consultant shall take such further actions, and shall cause its personnel to take such further actions, including execution and delivery of instruments of conveyance, as may be appropriate to 

Exhibit 10.1

give full and proper effect to such assignment.  The foregoing intellectual property obligations are in addition to any and all such obligations of Consultant including, but not limited to, the obligations set forth in the Confidentiality Agreement.

6.3 Residual Rights of Personnel.   Notwithstanding anything to the contrary herein, Consultant and its personnel shall be free to use and employ its and their general skills, know-how, and expertise, and to use, disclose, and employ any generalized ideas, concepts, know-how, methods, techniques, or skills gained or learned during the course of any assignment, so long as it or they acquire and apply such information without disclosure of any confidential or proprietary information of Client and without any unauthorized use or disclosure of Work Product.

Article 7

RELEASE; COOPERATION

7.1 General Release of Claims.   Consultant, for Consultant and for Consultant’s executors, administrators, attorneys, personal representatives, successors, and assigns, for and in consideration of promises made herein, does hereby irrevocably and knowingly, voluntarily and unconditionally waive and release fully and forever any claim, cause of action, loss, expense, or damage, known or unknown, of any and every nature whatsoever against Client and its past and present parents, subsidiaries, divisions, related or affiliated entities, and all officers, directors, agents, insurers, attorneys, employees, or trustees of any or all of the aforesaid entities (hereinafter collectively referred to as “Released Entities”), of whatever nature arising from any occurrence or occurrences, from the beginning of time until the date of Consultant’s execution of this Agreement, including without limitation any claims arising or in any way resulting from or relating to Consultant’s previous employment with Client.  It is understood that this release does not serve to waive any claims that, pursuant to law, cannot be waived or subject to a release of this kind, including claims for unemployment or workers’ compensation benefits.  By signing this Agreement, Consultant is not giving up:  (i) any rights or claims that arise after Consultant signs this Agreement; (ii) any claim to challenge the release under the Age Discrimination in Employment Act (ADEA); (iii) any rights to vested retirement benefits; and (iv) any rights that cannot be waived by operation of law.  

Without limitation of the foregoing, Consultant specifically waives any claims against all Released Entities arising under Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Americans with Disabilities Act, the Family and Medical Leave Act, the Employee Retirement Income Security Act, the Equal Pay Act, the Genetic Information Nondiscrimination Act, the Fair Labor Standards Act, the Portal to Portal Act, and the Pennsylvania Human Relations Act, all as amended, or any other federal, state, or local law or ordinance relating in any way to unlawful discharge, discrimination, retaliation, wage payment, or fair employment practices, or any claim under any statutory or common law theory.  The intent of this paragraph is to capture any and all claims that Consultant has or may have against the Released Parties arising from events occurring prior to the execution of this Agreement and covered by the foregoing release of claims.  Consultant warrants and represents that Consultant has not, prior to signing this Agreement, filed any claim, charge, or complaint with any court or government agency in any way relating to Consultant’s employment with Client, nor has Consultant filed any claim, charge, or complaint whatsoever against any of the Released Entities.

The foregoing release of claims does not prohibit Consultant from disclosing the terms of this Agreement to, filing a complaint with and/or providing information to the Equal Employment Opportunity Commission (EEOC), the National Labor Relations Board (NLRB), the Securities and Exchange Commission (SEC) or any other governmental entity, related to Consultant’s employment with Client.  However, Consultant understands and acknowledges that the General Release and Waiver of Claims set forth above 

Exhibit 10.1

will completely bar any recovery or relief obtained on Consultant’s behalf, whether monetary or otherwise, with respect to any of the claims that Consultant has released against any and all of the Released Entities.  Notwithstanding the foregoing, nothing set forth in this Agreement limits Consultant’s right to receive a monetary award for information provided to the U.S. Securities and Exchange Commission pursuant to Rule 21F-17 promulgated under the Securities Exchange Act of 1934, as amended.

7.2 Cooperation.  Consultant agrees to cooperate fully and truthfully with any reasonable request of Client (including its outside counsel) in connection with the contemplation, prosecution and/or defense of all phases of existing, past and future litigation (including, but not limited to, administrative proceedings) about which Client believes Consultant may have knowledge or information.  Consultant further agrees to make herself available to consult with respect to or participate in the preparation for, response to, prosecution and/or defense of any past, existing, threatened or future litigation, investigation or other private or governmental proceeding involving Client, its affiliates, and any of its current or former employees including, without limitation, civil or criminal litigation, arbitrations, administrative charges and proceedings, and responses to subpoenas or civil investigative demands of any type.  Such cooperation may include appearing from time to time during and outside of regular business hours as reasonably deemed necessary by Client’s counsel at the offices of Client, Client’s outside counsel and/or an administrative agency to participate in conferences and interviews; providing testimony in depositions, court proceedings, arbitrations and/or administrative hearings as necessary; and, more generally, providing Client and its counsel with the full benefit of Consultant’s knowledge about matters related to Client and its affiliates.  Consultant agrees to render such cooperation in a timely fashion and at such times and places as may be mutually agreeable to the persons concerned or as may be necessary (i.e., at an arbitration or court proceeding).  Consultant agrees to appear without the necessity of a subpoena to testify truthfully in any legal proceedings in which Client calls Consultant as a witness.  In connection with any past, existing or future litigation or any matter contemplated by this Article 7.2, Consultant agrees to maintain as confidential all information belonging to Client and its affiliates to which Consultant has been or becomes privy at any time including, without limitation, all attorney-client privileged information and all attorney and/or party work product.  Client shall reimburse Consultant for all reasonable expenses incurred by Consultant as a result of her cooperation pursuant to this Article 7.2.

Article 8

GENERAL PROVISIONS

8.1 Notices.   Any notices to be given hereunder by either party to the other may be effected either by personal delivery in writing or by mail, registered or certified, postage prepaid with return receipt requested. Mailed notices shall be addressed to the parties at the most recent addresses on file with the other party, but each party may change such address by written notice in accordance with this paragraph. Notices delivered personally will be deemed communicated as of actual receipt. Mailed notices will be deemed communicated as of date of receipt.

8.2 Entire Agreement of the Parties.   This Agreement supersedes any and all agreements, either oral or written, between the parties hereto with respect to the rendering of services by Consultant for Client and contains all the covenants and agreements between the parties with respect to the rendering of such services in any manner whatsoever; provided that, the following agreements shall also remain in full force and effect: the Advancement and Undertaking Letter Agreement between Client and Consultant dated August 23, 2019, and any confidentiality, non-disclosure, non-solicitation, non-competition or assignment of invention agreements into which Consultant and Client previously entered. Each party to this Agreement acknowledges that no representations, inducements, promises, or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, that are not embodied herein, and that no other 

Exhibit 10.1

agreement, statement, or promise not contained in this agreement shall be valid or binding. Any modification of this agreement will be effective only if it is in writing signed by the party to be charged.

8.3 Partial Invalidity.   If any provision in this agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions will nevertheless continue in full force without being impaired or invalidated in any way.

8.4 Parties in Interest.   This Agreement is enforceable only by Consultant and Client. The terms of this Agreement are not a contract or assurance regarding compensation, continued employment, or benefit of any kind to any of Consultant’s personnel assigned to Client’s work, or any beneficiary of any such personnel, and no such personnel, or any beneficiary thereof, shall be a third-party beneficiary under or pursuant to the terms of this Agreement.

8.5 Governing Law.   This Agreement will be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania. Any action, by either party, at law or in equity to enforce this Agreement or seek a remedy for any breach shall be brought in the Court of Common Pleas of Cumberland County Pennsylvania or the United States District Court for the Middle District of Pennsylvania, and Consultant irrevocably consents to the personal jurisdiction of the above courts to resolve any such disputes.  

8.6 Successors.  This Agreement shall inure to the benefit of, and be binding upon, Consultant and Client, their successors and assigns.

8.7 Construction.  This Agreement shall be construed without the aid of any canon, custom or rule of law required in construction against the draftsman.  It shall not be construed strictly for or against Client or Consultant.

8.8 Counterparts.  This Agreement may be executed in separate counterparts (including by means of telecopied signature pages or electronic transmission in portable document format (pdf)), each of which is deemed to be an original and all of which taken together constitute one and the same agreement

[signature page follows]

Exhibit 10.1

NOW THEREFORE, Client and Consultant, by their designated representatives, hereby acknowledge that they have read and understand each of the provisions of this Agreement, that they have executed this Agreement voluntarily, with full knowledge of its significance and with the opportunity to consult with independent legal counsel, and that they intend to be fully and legally bound by the terms of this Agreement.

CONSULTANT:

By: ______________________________________________
(Signature)

Tracey McKenzie

CLIENT:

Harsco Corporation

By: _______________________________________________
(Signature)

Russell Hochman
Senior Vice President, General Counsel, Chief Compliance Officer and Corporate Secretary

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